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How to Start Flipping Houses (Even If You Have No Money)

Jerry Norton

Nov 17, 2023

House flipping is a well-known form of real estate investing that comes with several advantages: it can be profitable, it’s tangible, and best of all, it can be a fun experience. 

House flipping is a well-known form of real estate investing that comes with several advantages: it can be profitable, it’s tangible, and best of all, it can be a fun experience. 

One of the biggest barriers for entry into this form of real estate investing is believing that you need a ton of cash to get started. 

This couldn’t be further from the truth. 

You can start flipping houses with no money this year — you just have to know where to start. 

In this article, we’ll break down specific ways that you can flip homes without any money so that your dream of flipping houses can soon become a reality. 

How To Start Flipping Homes with No Money 

Tap into your own equity

If you currently own a home or property, you can tap into your own equity and use that equity to flip a home. 

Lenders typically allow you to borrow up to 80% of the value of your property. 

You will either be given a line of credit or a home equity loan — or a HELOC. 

Be aware that home equity loans and credit lines do come with higher interest rates than conventional mortgages, so if you plan on utilizing this strategy to flip a home, try and choose a property that can be flipped quickly so that you can pay off the loan without paying long term interest. 

Utilize a Hard Money Lender

Hard money lenders have the ability to offer you short-term loans, which can be a big advantage in the house flipping game. 

Hard money lenders typically grant you only 6 to 24 months to pay the money back.

Whereas traditional lenders have more strenuous guidelines with no wiggle room for consideration, the main perk of hard money lenders includes offering more laid-back guidelines. 

Get a Private Lender

Another option if you want to flip houses but you have no money is to obtain a loan from a private lender, individuals who have cash on hand who will loan it to real estate investors.  

Lenders must feel that you are a trustworthy candidate to loan you their hard-earned cash, so be prepared to present a business plan as well as your career history. 

Live in the House

If you intend to flip a house, you have the option of living in it while you do the work to prepare it for sale. 

As far as financing, several government-supported mortgages exist that can help, including VA and USDA loans. These loans do not require a downpayment and are a great option if you have no money.

Once you purchase the property you intend to flip, you must move in quickly thereafter. 

You must occupy the residence for at least one year as well. 

That means you have one year to complete the renovations — or exceed your dream asking price. 

Allowing yourself the year to renovate can help you avoid borrowing more funds and acquire more cash flow to fund the project.

How to Start Flipping Houses with No Money: Frequently Asked Questions 

Next, we’ll take a look at some of the most frequently asked questions associated with flipping a house with no money. 

Q. How much money do you need to start flipping houses?

This can vary depending on each situation, including the cost of the house, renovations, credit score, and downpayment. 

On average, you will need $30,000 to $60,000 for your first flipping house project. 

But, if you utilize any of the methods mentioned in this article, you can flip homes without using a penny of your own money. 

Q. What is the 70% rule in house flipping?

The 70% rule refers to determining if the house project is worth the finances and time it would take to adequately renovate the home for sale. 

The rule states that you should never purchase a property for more than 70% of its ARV, or after-repair value.

Q. Can you flip a house with bad credit?

Yes, you can flip a house even if you have bad credit! 

For options like utilizing private lenders or living in the house, your credit score won’t be necessary. 

How Can You Find Homes to Flip (Even If You Have No Money)?

There are several time tested and proven ways to find homes to flip. This includes:

  • Real Estate Auctions
  • Networking with local real estate groups or associations
  • Speaking with real estate agents
  • Utilizing Public Records
  • Speaking with Title Companies 

Or, you can use Propwire’s industry-leading real-time MLS and off-market property dashboard. 

It’s as simple as filtering by “Lead Types” and selecting the type of property you’re seeking. 

Using Propwire to find houses to flip even if you have no money.
Using Propwire to find houses to flip even if you have no money.

These 21 property types include:

  • Absentee owners
  • Auctions
  • Empty nesters
  • Intrafamily transfer
  • Out of state owners
  • MLS active, pending and sold 
  • Pre Foreclosures
  • Probates
  • Vacant Homes
  • Zombie properties 
  • And more 

Each selection will provide you with the specific type of property in your chosen location, and give you the option to skip trace to find and contact the owner of the property.

From there, you can start the conversation about purchasing the property with the owner. 

Using Propwire’s real-time database is one of the best and easiest ways to find homes to flip — even if you have no money. 

Bottom Line: How to Start Flipping Houses with No Money

Flipping houses is not only a great way to earn extra cash; it can become a real estate business on its own. 

Even better, you don’t have to put your house flipping dreams on hold if you have no money. 

Utilize one or several of the methods mentioned in this article to start flipping houses with no money, and if you’re looking to find a property as well as the owner’s contact info easily, utilize Propwire’s industry leading real estate lead software.  

Your new real estate career flipping houses lies just on the other side of making the decision to get started!