Are you interested in house flipping but have no idea where to start without any money? Don’t worry, few flippers start with a significant sum of money!
Many people are able to start with nothing and build their own real estate empire from the ground up! In this article, we will discuss 4 ways to flip houses with no money in Kansas.
4 Ways to Flip Houses With No Money in Kansas
Flipping houses with no money may sound impossible, but it is a fairly common accomplishment. If you want to flip houses with no money, you will need to do your homework and educate yourself on the process of flipping and how to find the best funding for YOU!
You should create a business plan outlining exactly how you will approach your house flipping venture.
Find Some Partners
Think about who may want to invest in real estate. Sometimes they make the best source of investment. Even people who are not interested in real estate investing could change their mind with a good pitch.
Once you have shared your strategy with your prospective partner, you can arrange for them to provide financing while you handle the task of making a house worth their investment.
Loans – Hard Money & Private
Getting a loan, whether via hard money or via a private lender can help you secure the cash you need to make a property investment. A private money loan is a great method. There are many people with extra money who are looking for a good investment, maybe even one of your own investment ideas.
You must pitch your investment idea to them. If you can present a tangible plan and show that your idea is a good investment, you will be able to find a private money lender who is ready to invest with you.
A hard money loan is another great way to get the cash you need, especially if you need it fast. However, hard money loans often have a high-interest rate and fees. Because of the high-interest rates, hard money loans are great for a property you know you can flip fast.
They allow you to get the money you need quickly, just try to pay it back as soon as possible, otherwise your investment may not be worth the loan.
Use What You Got
Even if you don’t have an abundance of cash at your disposal, you might have other assets you can use as collateral to secure financing.
You can use a home you own as collateral. You could even use your IRA or retirement accounts and even your 401k to help get a line of credit. There are many risks though. There are many fees and potentially tax penalties for pulling out money early.
Mix & Match
You may be in a situation where you cannot find investors nor loans that will cover your venture fully. It is still possible to obtain all the money you need by using a combination of the methods we have mentioned.
Maybe a rich aunt will provide a loan for only part of the down payment. Then you could pull the remainder from an IRA. Or maybe you partner with an avid local investor who can only invest a small amount so you also need to borrow through a hard money loan.
However, if you decide to invest and make a good pitch you can find investors who are interested in your venture. Do your research and keep in mind all of the potential streams of credit that might be available to you!