Wondering How to Flip a House with No Money Down? Get Answers From Real Estate Elevated

Many people wonder how Tarek and I were able to find the money to flip our very first house. They assume we were saving funds for a long time or had a unique way to go about it, but that is not true. Keep reading if you’re wondering how we were able to flip a house with no money down!

Before we get too into the details, know that you’re going to have to pay for a house upfront—and in cash. But you don’t have to use your own money to make it happen. In fact, we highly recommend not using your own money, but rather looking for funding with the right investors.

Private Lenders vs. Hard Money Lenders

There are many types of investors out there who can fund house flips. A private lender is a great source for flipping a house without putting any money down. A hard money lender is another option, but they may have less desirable terms since they can charge high interest payments as well as other fees.

Private lenders might include a friend or an acquaintance with liquid capital. They might be looking to invest their money, and you can help them make money by putting it toward a house flip. These people probably won’t announce their search for an investment or come to you. Instead, you’ll need to seek them out by asking around and utilizing your network.

A private lender might be a doctor, lawyer, business person, or even a co-worker. If you think someone you know might be looking for an investment opportunity, feel it out by easing it into the conversation and then discussing their current and future investments. Eventually, make your move by pitching an investment idea that can quickly and easily pay off.

Private Lender vs. Partner

Once you’ve secured funding, you may consider bringing your private lender on as a partner. If the lender goes into a partnership with you, they will get more of the profit from the house. But they’ll also be more likely to continue the relationship and offer funds for future house flips. You’ll do the work while they provide the cash.

The partnership route certainly isn’t cut out for everyone, but it’s a great option for those who work well with their private lender and want to have access to their funds long term. This is the best way to flip a house with no money down and zero interest, especially if it takes more time to sell the house than planned.

Learn More From Real Estate Elevated

If you’re interested in learning more tips of the house-flipping trade, check out Tarek & Christina Seminars. Real Estate Elevated is our premier seminar and teaches real estate investors of all levels how to easily maximize profits from house flipping. Register for one of our seminars today!