Flipping Houses With No Money – Is It Possible?

Starting flipping business requires a plan and the first step in this is to know if you have the capital or the money for it or not.Those aspirants that have money are one step ahead of the game. However, this doesn’t mean that the ones that don’t have any money are ineligible for it. In fact, they can still kick off as flippers even if they don’t have any capital. It is inevitable to think that in this case, you might have to face a lot of troubles. But here’s the thing: filliping fixer-uppers is not only possible with no money but it also is not very hard contrary to the popular belief with Flipping Houses With No Money.

Is it possible to buy property with no money down?

Having no money is definitely discouraging, but in terms of real estate investment, you have multiple options that are largely based on OPM – Other People’s Money.

Flipping Houses With No Money

As it is evident from the name, utilizing OPM requires you to have partners or people that can serve as investors. These investments can come in the following forms.

Flipping Houses With No Money

1. Investment from partners

Having someone else invest money in the gig is always the simplest approach. You can ask anyone from your closest friend to a family member who has an abundant cash to invest in a business, like flipping with house flipper..

In such cases, the investor or your partner would be responsible for utilizing his monetary resources, while you’d take care of all the other things like looking over the repairs, legal works and the sort of things. However, the profit will be 50/50 since it is a partnership.

2. Hard money

Although if you think there isn’t anyone in your circle who could be your partner, there are hard money lenders out there that can be your OPM source. However, before borrowing money from them, be known that it is only advisable for fixer-uppers of shorter timelines. This is because the lenders impose interest rates on the money which range from 14% to 20% and also has 4 to 6 points on top of that.

This means if you borrow a certain amount of money, let’s say $100,000 at 16%, you’d have to pay $8,000 after 6 months as an interest. However, with this $8,000, you’d also have to pay points, let’s say 4 points making a total of $4,000. So, the final payment to be done would be $12,000 added to the $100.000. The more time you’d take in fixing the house, the more interest you’d have to pay.

3. Private Lenders

Anyone who has money but doesn’t know what to do with it could be the potential investor. They might have an additional sum in their banks, IRAs, mutual or other funds, or 401(k) plans.

Rules That You Need To Know As A House Flipper

The benefit of having private investment or loans from people you know is that you are in full control of establishing the interest rate and the time period of the loan. However, to lure anyone into the investment trap, you might have to use your marketing skills or entice them with a higher interest rate – the one that is enough to encourage him and also reserve your profit .

Flipping is a business like any other. You need capital to start it off. By following the approaches, we discussed above, you can flip houses even if you don’t have any money. As for finding the investors, you can always take advantage of networking.

Checkout here to know more about House Flipping Software

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