Ways To Flip Houses With No Money

Real estate investors always have this question on how they can flip houses without any money. For them, it may seem like a stupid question – there is no way you can flip houses with empty pockets!

This statement is true to some extent. When you have the money, investing in real estate can be pretty easy. But, you definitely can flip houses when you do not have a single dollar. And also, it is not as hard as you think it is. Even our new and budding investors can step into the house-flipping game. Wondering how? Traditional banks can be your savior! And if someone you know asks you “how can I sell my house for cash?” Grab the opportunity and flip it!

Just a little bit of chutzpah, some courage to step out of your comfort zone, and a basic understanding of how to start with…. And you’re on your way flipping houses like a pro!

But wait, what do you mean by house flipping?

House flipping is one interesting process in the real estate market. When an investor purchases houses for sale in Corpus Christi, makes the necessary upgrades and repairs, and sells the house for a profit, he has successfully flipped a house. This investment strategy is for the investors who want to sell the property as fast as possible instead of using that property for personal residence. House flipping becomes lucrative when the investor successfully locates an undervalued home and buys it below the market value. Once the property is repaired and put back on the market, they can receive the highest bid possible on that property.

How much will it cost to flip a house?

The main costs involved in house flipping are renovation expenses, utilities, insurance, and marketing. The condition of the house when it is purchased will determine what work will be needed to improve the condition of that house and if or not you will need a contractor for bigger repairs. You also need to cover the home owner’s insurance cost right from the time you buy the property till the renovations are done and you sell the house. You also need to make sure that the utilities are supplied as water and electricity will be needed to complete the rehab process. Once the rehab is done, you will need a strong marketing strategy to attract buyers to the property. It is best to hire a real estate agent if you want to sell the house fast in Corpus Christi.

If you want to start your investment journey today, using other people’s money can lead you to a quicker path of success, but you must choose your options wisely.

Let us now discuss different ways on how you can flip houses with no money 

Crowdfunding 

A great way to secure a loan for house flipping is via crowdfunding. Crowdfunding works as an excellent financial strategy that solely relies on multiple investors who contribute a portion of the total loan. In order to streamline the process, you can look online for various sites that will connect the house flippers and crowd funders. This way, house flippers who cannot secure mortgages from other lending institutions can have a great opportunity.

Wholesale Properties 

Instead of overleveraging yourself in trying to figure out how to flip houses with no money in hand, you can flip contracts instead. You do not need any cash for wholesaling real estate. This is how the process works – You can find a great deal on any property and put them under contract. You can then turn around and sell that contract to other investors by keeping a margin over its original price. That way, you need not buy or finance that property by yourself.   

All that you will need to put down is the earnest money deposit that can be as little as a dollar.

Traditional banks 

Banks do lend money to real estate investors. If you share a good relationship with your bank or your banker, they can offer you a workable loan. You can use that for flipping houses or funding your investment.

Do not enter the bank thinking that there will not be a way they will be giving you any loan. If you think so, you will have already lost. Agreed, traditional bank loans can be challenging to acquire and be more time-consuming. But, it can be a great option if you have a solid business plan and have confidence in your ability to make a nice profit.

Home Equity 

It is highly possible to use the equity built up in one property to purchase another one. Homeowners with the value in their current homes can utilize some options to get cash. The first and foremost way to do so is through a cash-out refinance. By redoing your existing mortgage, you can pocket the difference between the two loans. Homeowners are not restricted in the usage of this capital, they can either use it for a down payment or use it to fix and flip any property.

Homeowners can look into the Home Equity Line of Credit, also known as HELOC to purchase a property that needs some fixes. This process works similarly to a credit card that allows the investors to borrow against their equity and they can then make the payments each month. This way the investors can get lump sum money which will offer them a great start to flipping houses. The best part about this is that the interests can be tax-deductible in certain cases.

Flip Raw Lands 

Another great way to invest in real estate when you have little to no cash is by flipping raw land. You can purchase parcels of land for as little as $100 and sell them for five times what you paid. And one thing that must be noted is that since raw land is involved, there will be no renovations or financing, or complex settlements needed. Land can be flipped easily within a matter of days or weeks. It can be extremely profitable to flip a land.

The bottom line 

A lot of investors are often not aware of the funding opportunities that are made available to them. Most of them are convinced that they need to use their own money for buying a house. In fact, you will not have to use a single penny of yours if you wish to start investing today. You also need to be aware of the ultimate ways on how you can save money when selling your property.

The most important thing you need to remember when discovering a house to flip with no money is that your best bet will be private money lenders, hard money lenders, and partners. These options are readily made available to them the day they step their foot in the game.

If you wondering “how can I sell my house for cash?” Contact the best realtors of The Grahambelle Group. We buy houses, Corpus Christi for cash.

Contact us today to know more about our services.