Ways To Start Flipping Houses With Limited Income

Flipping houses is a popular and lucrative business venture anyone can do—even if you have limited funds. As a matter of fact, flipping houses without money is a popular way for people to get their foot in the door of the real estate industry. Although flipping a house typically requires significant amounts of money, there are a few ways to start flipping houses with a limited income.

Acknowledge Your Strengths & Weaknesses

When flipping houses that need repair work, be honest with yourself about what you can confidently repair and what you may need to call a repairman to fix to keep your budget in check. Attempting to make highly skilled repairs that would be best left to professionals may cost you more if you have spent money and time on materials and need to call a professional to re-do the repair. Similarly, your time investment should also be accounted for, for example, sometimes it might be a more prudent use of your time and money to do something else and call professional painters to paint your house. 

Use Crowdfunding

If you want to start flipping houses with limited funds, a great option to obtain funds is by crowdfunding. By using a popular crowdfunding site, you can pitch your idea to a large group of investors in exchange for funds. If they like your pitch, you will give them a small stake in the property while they fund your house-flipping ventures.

Try Private Lenders

For many, private lending is their go-to funding source. Private lenders are perfect for people who need more flexibility throughout the lending process and need the funds fast. Since these lenders typically set their own rules, each one is different. Some lenders have specific real estate or financial requirements to obtain the loan, but it’s always important to ask questions and build relationships with private lenders.

Utilize Your Equity

If you have some equity in your primary home, you can use it to help fund your house-flipping project without having to cash out. By taking out a home equity line of credit, you can borrow up to 80 percent of the value of your home, or you can complete a cash-out refinance. However, it’s important to note that using your home as collateral is risky, and you should have a plan to back up this investment.

Find a Trustworthy Partner Investor

An easy way to find funding for your house-flipping venture is to have a trustworthy partner investor. This would mean you need to find someone willing to fund the purchase and renovation in exchange for a share of the profit. However, you and your partner must agree on how you split the proceeds.