House flipping refers to purchasing a property for the purpose of fixing it up or upgrading it, and then selling at a profit. Flipping usually works best when you can buy an undervalued property. House flipping isn’t reserved only for those with lots of cash reserves. There are plenty of ways to do this without adequate capital. Here’s how you can flip houses with no money.

House-Flipping Loan

Image via Flickr by Michael Hart2010

A fix-and-flip or house-flipping loan is specially designed for those who want to purchase a house to renovate or remodel it and then sell it for a profit. These high-risk loans require you to take out a short-term hard money loan from either a hard money lender or private investor. Typically, house-flipping loans don’t consider your verified income; they have higher interest rates, faster closing timeframes, and shorter term limits.

Home Equity

If a traditional mortgage isn’t feasible and you own a home with equity, tapping into your home’s equity may be a viable alternative. Your bank or current mortgage lender can help you with this in a few different ways. You can either refinance your home for a higher amount and take the difference in cash, take out a home equity line of credit, or take out a second mortgage on your home. Each of these options has pros and cons, so make sure you consider each one carefully.

Private Loan

Simply put, this is a direct loan from an individual or business entity, including friends and family. Since this isn’t a traditional loan, the terms are up to the lending party and can be far more flexible than conventional mortgages. Even if you borrow from a friend or family member, you should still draw up a legally binding contract protecting both parties.


Crowdfunding is more of an investment, where a group of investors contribute to a fund that will be used to purchase and flip the property. Once the property is sold, investors share the profits based on how much each person contributed to the fund. If you have a little money, you can invest in a crowdfunding project and make a small profit. However, if you have the skills to do the work on the home, you can set up a crowdfunding project yourself, perform the renovations, and make a profit that way.

Seller Financing

Although it doesn’t happen often, you can get financing directly from the property seller. In this case, you take ownership of the property, possibly for no money down, and make payments on the principal and interest while making repairs and upgrades. Sellers who own many properties or are just looking for passive investment income and don’t need the money right away are likely to be open to this financing option. If you do find one, again, make sure you have a well-written contract.

Hard Money Loan

A hard money loan is probably the most common funding resource for house flipping projects. A hard money loan is a specific type of financing secured by real property and is typically issued by private investors or companies. This type of lender deals with real estate investments and house flips more frequently and, therefore, can be more flexible and guide you through the process. There may be no down payment requirements or minimum credit score guidelines, and they may lend the money strictly based on the strength of your plan and property potential.

While hard money loans usually have higher rates than other options, they are often a quicker means of getting the funding in your hands. However, if you can perform the required work on the home and sell it in quick order, you can pay off the interest in no time.

Saving Money on the Repairs and Upgrades

The whole point of flipping a house is to make money, of course. The first part of that is getting a good deal on the property. The other part is performing the renovations as cost-efficiently as possible. Let’s examine a few ways to save money while fixing up your flipping project. 

Follow your Budget

Stick to the budget you created in the planning phase. If you did your homework correctly, you should have a solid idea of what is needed and what it will cost. If unexpected expenses arise, try to reduce the budgetary needs in other areas.

Use Subcontractors or Do the Work Yourself

Find licensed, insured, highly reviewed, and recommended subcontractors who can work on the project. Be sure to draw up a legally binding agreement that will delineate everyone’s responsibilities. Subcontractors are expensive too, so if you have the requisite skills, the more you can do yourself, the more money you will pocket.

Save on Materials

For the best deal, purchase all the material yourself — or supervise the process closely. Plus, if you hire subcontractors, you have to pay for their time, and they’re not incentivized to keep costs low, a double whammy. Also, look for special offers in the form of sales, coupons, loyalty programs, and the like at lumber yards and hardware stores you may utilize frequently.

Another way to save money is to shop at outlet stores. You may find remnants or scratch and dent items and materials that are perfectly usable and can save you loads of money over buying new ones at a store.

Another option for saving on materials is to shop salvage yards. You never know what you might find at one. Sometimes, people get rid of perfectly good items and materials for various reasons; it is worth the potential savings to give it a shot. Finally, you can refurbish items rather than replace them outright. Sometimes a simple repair or fresh coat of paint is all that is needed.

It isn’t easy to flip houses with no money, but it can be done. If you’re willing to put in the time and effort to find the right property, search for the right financing, and work to minimize the costs, you can purchase a property with no money down, renovate it, and sell it at a profit. If you’re interested in learning more about financing options, contact the knowledgeable team at Titan Funding. You can reach us at 855-929-1134 or via our secure online messaging service.