Fixing and Flipping Homes Without Money
Flipping a house or the procedure of purchasing a home with the aim of improving or selling it for profit is quite lucrative. If you have a decent workforce, you can simply fix a property within a week or two and earn a massive return.
However, the process of buying a home can be pretty expensive. Hence, if you don’t have an adequate amount of cash in your bank, it’ll be impossible for you to get into this business.
… Or so was the situation a few years back.
Now, you can start working in this segment even if you don’t have enough money, to begin with – by taking a fix-and-flip loan. Or, you may check out the other options you may opt for.
How To Fix And Flip Without Any Money?
When it comes to fixing and flipping, you can use several options to fund your deal. Here are a few that you can go for.
Option – 1: A Private Lender
A private lender, in essence, is the best source of funding for an investor. After all, they work almost like a bank without the endless hoop-jumping and whatnot.
In any case, a private lender will have its own parameters to follow. Hence, if you want to take their help, you’ll need to have good credit.
In some cases, you may have to put a valuable item as collateral for them. Otherwise, you may not get the amount of money you’re looking for.
Option – 2: A Hard Money Lender
A hard money lender is all about offering a short-term loan without going through too much paperwork or anything. Unlike the former, they tend to stay connected with an organization specializing in lending money. Hence, their asking interest will be much lower than usual.
However, it’s important to note that a hard money lender will only loan a certain percentage of the buying price. The amount would be typically around 70% or less – to be exact. Hence, you may have to look elsewhere for the rest of the amount,
Option – 3: Wholesaling
A wholesaling hose can allow you to make a substantial amount of profit within a week or so. And, there’s no need to spend too much time or money on it as well.
The process of the same usually involves finding a house for sale, keeping it under contract, and assigning it to a new buyer. A wholesaler will make money on the basis of the final deal, which will be somewhere around five to ten percent.
The best thing about wholesaling is that it doesn’t involve purchasing a property. Hence, if you don’t have an adequate amount of money, this is the best place to start your journey.
Option – 4: Home Equity
As a homeowner, you’ll have some sort of value in your house. Thus, you’ll have quite a few options to get some money through a cash-out refinance. It’ll involve redoing the existing mortgage and acquiring the difference between the two loans.
And, there’s restriction available on this front. Hence, you can do whatever you want with the money – including buying a home, fixing it, and then selling it.
Option – 5: Seller Financing
The option of seller financing can help you work with the former property owner and ask for the required amount of money. It can be used for fixing the house and then selling it.
This option is much more flexible, as you’ll have the opportunity to talk with the person who’s trying to get rid of the house. Hence, it will be easier to make a deal with them.
Final Thoughts
Usually, the prospect of flipping a house is quite expensive. If you don’t use enough money, you simply cannot buy anything. However, if you want to get started just for the experience, opting for the aforementioned options can be pretty helpful.
In any case, now, we’ll be concluding our article. If you have any queries or any suggestions regarding this article, make sure to let us know about it. We’ll try to answer or integrate the same in our next blog. Have a great day ahead!
