How to Flip Houses With No Money Using Your Own Resources
As we have talked about before, there are lots of ways how to flip houses with no money. One way to flip houses with no money is using other people's money or what we refer to as "OPM" for short. What's lesser known is how to flip houses with no money with resources you actually may already have at your disposal already!
With these pathways to flipping houses with no money, even though the resources are your own, there is no outlay of cash on your part, which is the best part.
The key with any new skill you learn related to flipping houses is for to always look at ways in which you can be creative and think abundance instead of lack. Although these ways of flipping houses with no money are by no means all inclusive, they may even spark ideas of your own that allow you to realize your house flipping goals without the use of your own cash.
Below are just a few ways how to flip houses with no money using your own resources, but without any kind of cash outlay on your part.
How to Flip Houses With No Money
When people are first starting to learn how to flip houses with no money, they may not realize there are resources readily available to get them going quickly. Contrary to what some people may initially think, there are a number of ways to do this:
- Home Equity Loan: Using the equity in your primary residence is a very popular way to flip houses with no money. If you can leverage that money into a few deals with a private moneylender, there's no cash outlay for you as your closing costs can also be rolled into the loan as well. You can also use this method when flipping houses with partners as well.
- Credit Cards: You want to use these wisely and responsibly but it is an option and one that is very popular with new house flippers. As one of the most common ways to start a business, credit cards have been used in this way for years to finance all kinds of business ventures. Be careful not to over extend yourself, but credit cards can be used very effectively as a short term source of funding.
- Credit Lines: In addition to the methods above, when you are funding your rehab, you can use your good credit to get a line of credit with your suppliers for building materials, kitchen cabinets, flooring or any other building materials that may be needed in the house flip renovation. You may even be able to get your contractor to be paid after you sell.
- IRAs: You can even use your own IRA money to start flipping. Many of the investors we use to flip houses have used this method in the past. Consult your accountant as well as your financial planner before you do this and make sure you fully understand if there are any kinds of early withdrawal penalties that need to be avoided, so make sure you perform this exactly correct with the help of your accountant. Do your homework and beware that a misstep can disqualify your IRA's tax-deferred status, forcing you to pay tax on its full value plus penalties if you're under age 59½.
When Learning How to Flip Houses With No Money...Be Creative
The main idea here is to think of unconventional cash sources in order to leverage you cash and not have your own cash all tied up. These methods will help you start thinking of how to flip houses with no money, but think of other areas where you can squeeze out cash or defer payment until the house is sold. Deferring payment of debts sometimes is just as good as borrowing.
Think creatively, be open to suggestion and use these ideas as launching pads for other ways to find money so that you can start your real estate investing career flipping houses and do it with minimal downside risk of your own capital.