How to Flip Houses with No Money in 2024

Male,Hand,Turning,Page,Of,Custom,Kitchen,Drawing,To,FinishedHome flipping is a great way to make money. You can find a home that needs work, do the required rehab, and come out with a considerable profit. 

But flipping homes is also risky. You must put a lot of money in considering you will need to buy the home and pay for the construction. If you’re not careful, you may end up losing money on the deal. 

However, there is one way to protect yourself from that risk and that’s flipping a home without putting any money in. Is this even possible, you might ask. It is, and we’re going to explain how it’s done. 


What Expenses are Involved in Flipping a House?

There are several expenses involved in flipping a house. Purchasing the home and renovating it are the most obvious expenses. But you will also have to pay insurance and utilities during the renovation period. 

Additionally, you will need to market the home to buyers once it’s completed. Many flippers will partner with realtors for the selling process, but if this is the case, you will need to split your profit with the realtor. 

How Do You Flip Houses with No Money?

You do not need money to flip a house, but you do need to either find a deal or have a partner that’ll help you. People can buy properties now with 10% down on hard money. So that’s 10%, but you could go get a partner to put up that 10% and then you split the profits 50/50. It all depends if the numbers work out.

As I’ve mentioned, when you find value, that’s how you make money in real estate. If you’re walking into a deal where it’s at market value you can’t buy it with no money. The other concept is you get a 90% loan. You borrow the other 10% from somebody else. And then you do, what’s called the Burr method.

Six months later, if you bought into value, you can refinance and pull out all that capital plus some and pay everybody back. The way it works is you buy your rehab, you rent, you refinance, and you repeat the process. This is something that you can do every six months. It allows you to maximize the capital that you have.

The number one thing to keep it simple if you want to buy properties with no money down is you either have to find value and find a partner. Or you have to borrow the 10% down payment and get the hard money loan and then capitalize on the opportunity six months later. 

Always seek value. Get the lines in the water, make offers, and go drum out some opportunities.

If you are looking to get into house flipping but don’t have the capital to get it off the ground, there are plenty of options available. These include: 

Private Lenders

Happy,African,Black,Family,Couple,Customers,Renters,Tenants,Sign,MortgagePrivate lenders are lenders that are not connected to a financial institution. As opposed to a traditional lender, like a bank, they have far looser restrictions in terms of who they approve for a loan. So you won’t need to have high income or a terrific credit score to get approved. 

These lenders also require less paperwork making for a faster approval rate. They can approve your loan in just a few days as compared to banks that will take weeks or even months before approving. This makes them ideal for flippers who need to jump on great deals. 

The main drawback of a private lender is they charge high interest rates and offer short term loans, so you’ll have to make high payments in a minimal amount of time. But for many investors, the added cost is worth it. 

While private lenders do not look at income and credit scores, they will want some sort of collateral which may come in the form of a promissory note and a mortgage deed or trust. Some lenders will require the borrower to back the loans with their own assets. 

But the fact that private lenders don’t work with financial institutions allows them to be flexible in the loan terms they create so it’s likely you’ll find a solution that works for both parties. 

Hard Money Lenders

Woman,Hand,Money,And,Piggy,Bank,With,House,Model,OnHard money lenders are a lot like private lenders. The biggest difference is, they work with a financial institution. However, because the institution is not a bank, they have more freedom to work out flexible loans and provide fast approvals to people without being strict about income and credit scores. 

Like a private lender, hard money lenders specialize in short term loans that will typically need to be repaid in 6 months to 2 years. Interest rates will range from 11 to 15%. They will also require additional upfront percentage fees of the loan amount totaling about five points. 

Hard money lenders will cover all your rehab fees and some of the home’s purchase price, usually about 70%. This means that borrowers that use hard money lenders for home flipping will need to source additional home buying costs from their own pockets. If that’s not doable, you may want to seek out other alternatives. 

Wholesaling Homes

The,Real,Estate,Agent,Hand,Holding,Money,And,Explains,TheWholesaling is not the same as flipping, but it’s a similar concept that allows you to make money without investing a lot of capital. 

It involves finding homes for sale (preferably those that are selling under market value), getting them under contract to buy, and then selling the contract to an end buyer. The wholesaler profits from a percentage of the final sale, usually earning 5% – 10%. 

Wholesaling may sound like a dream come true as it does not take a huge capital investment and it allows you to make money quickly. It’s also a good way to break in to the real estate market

However, it has its share of drawbacks. It takes a good deal of networking to find homes to wholesale and buyers ready to invest. It also involves marketing which requires capital. It also does not bring is as much of a profit as flipping does. 

Partner with Successful House Flippers

Another option is to partner with someone who already has a successful career with flipping houses. Or someone who has the capital to flip houses and is interested in breaking into the industry. They will have the money to fund the project, so what can you bring to the table?

You will look more attractive to house flipping investors if you have contacts including sellers, buyers and contractors. In any case, you will need to have some characteristics that show you are capable of pulling your weight in the deal. 

Partnering with someone means you will have to split profits and it can get ugly if you don’t have some sort of contract in place in advance. It’s advisable to work out all financials before going in to the deal. 

Home Equity

coins stackedAspiring home flippers can use the equity they have in one property to purchase another. There are a variety of ways to work this angle. 

One is a cash out refinance which involves reworking your existing mortgage and pocketing the difference between the loans. You can use this money to purchase a home to flip or for any other purposes. 

You can also look into a home equity line of credit (HELOC). A HELOC is similar to a credit card as it allows investors to borrow money against their equity and make payments every month. This will give you enough funding to start on a home flipping venture. As an added bonus, HELOC payments can be tax deductible. 

You will need to have a certain amount of equity in your home to be approved for a cash out refinance or HELOC. While the amount varies from lender to lender, the more equity you have, the better your chances are of being approved. 

Also, note that these options will cause you to lose some equity in your home. It’s best to maintain at least 20% equity which is something that must be considered when making these transactions. 

Option to Buy

The option or buy, or lease option, involves agreeing to purchase a property after it’s been leased. So the renter will buy the house after the lease runs out. In most cases, the rent payments will act as credit toward the final price of the home. 

The nice thing about lease options is, they do not require up front payments. So if you use this strategy for flipping, you will be able to rehab a home without any upfront cost. 

The only issue you may run into here is in the upgrade process. Many leasers will restrict you on the type of remodeling that can be done to the property. If this is the case, you will need to work out an agreement that allows for construction or you will have to hold off on upgrading until you own the home. 

Seller Financing

money and calculator imageSeller financing is a loan provided by the seller of a property. It allows the buyer to pay off the home in installments with payments going directly to the seller. It eliminates a traditional lender. 

To take advantage of this option, you will need to find a seller offering seller financing, or you can try pitching the idea to a seller you think may be interested. 

Because the seller is offering you a loan, they will want to see credentials similar to what a lender may ask for. They will want to know about your income and what your flipping process entails. You will need to be transparent about your goals while making the seller feel confident about the project. 

It may be difficult to find a property that’s ideal for flipping that’s owned by someone offering seller financing, but if the stars align, you’re in luck! 


Many of us are familiar with crowdfunding platforms. Crowdfunding can be carried out in different ways, but for real estate, you will involve looking for investors who can contribute to your loan. They will likely want a cut of the profits. 

If you go the crowdfunding route to fund your home flipping venture, it’s important to find platforms that specialize in real estate. Here are some to consider:

  • CrowdStreet
  • DiversyFund
  • EquityMultiple
  • Fundrise
  • PeerStreet
  • RealtyMogul

How Do You Find Homes to Flip? 

Finding homes to flip requires looking in the right markets. It’s best to search in up and coming areas where prices are still low enough to make a flip worthwhile. An area where employment is on the rise and not a lot of development is going on, or where homes are selling quickly are also a prime targets. 

Flipping is an ongoing process of finding the right property and the right investor. Sometimes the right property can help you find the right investor. In any case, it’s important to keep networking, both on an offline, so you have plenty of resources available. 

What is the 70% Rule?

Home,Loan,/,Reverse,Mortgage,Or,Transforming,Assets,Into,CashHome flipping can lead to a sizable profit, but it also involves a great deal of risk. Flippers invest a lot of money considering purchasing the home and construction. They must be confident that they will get the right ROI. 

The 70% rule will ensure you get your money back and more. It states that the flipper should not pay more than 70% of the property’s after-repair value minus the cost of repairs. That can add up if you need to put in replacement windows, consider the cost of a home security system, need to update the flooring, etc. 

So flippers must estimate how much the property will sell for after it’s renovated. Then they should multiply that number by 70% and deduct the total from how much it will cost to renovate the home. 

The end total will equal how much they are willing to pay for the home. 

How Do You Find Hard Money and Private Lenders?

Traditional lenders are not hard to find. After all, most banks offer traditional loans. But what about non-traditional lenders such as hard money and private lenders? 

Hard money lenders are not difficult to find either. You will find several with a simple internet or social media search. However, it’s best not to jump at the first lender willing to approve you. You must consider the terms they are offering to determine if they are best suited for your project. 

Private lenders are more challenging to come across. The best way to get in touch with them is through networking. But be warned that private lenders can come about in unexpected places. For example, you may find a friend or relative that’s looking to get into real estate and willing to invest. 

Is Home Flipping Right for Me?

If you are considering home flipping and wondering if it’s right for you, start by weighing the pros and cons. Here are some to consider:


  • Potential to make a big profit
  • Increases real estate experience 
  • Provides insight into the local real estate market
  • Not as risky as other types of real estate investing
  • Suitable for people with high skill levels in both real estate and construction


  • Potential to lose a lot of money
  • May require costly outside help in terms of construction and investment
  • Requires a time investment in planning, research and budgeting
  • Unanticipated costs can arise during the construction process
  • Requires extensive knowledge of the construction and real estate industry

Home flipping comes with its share of risks, but these risks can be reduced if you are not putting in capital. The tips in this article will help you get started in the home flipping industry, even if you don’t have the money to spend. Will you be choosing it as a new business venture? 

Sources & Resources

Other resources: We have guides on the ins and outs of the topics you need to know to be a successful estate agent (like circle prospectingreal estate website buildersreal estate lead generation companies, or a well designed real estate CRM). If you’re looking for more advanced topics like the best probate lead sellersmortgage leadsreal estate adsbuilding your own real estate lead generation website, which real estate marketing tools you’ll need,  how to build a successful social media strategy, or even just real estate marketing ideas in general, you can try looking for a real estate mentor or an answering service that can help show you the way.

About the Author

Matt Teifke has touched every area of real estate. He is the Founder of Teifke Real Estate (TRE), TRE Homes property management, Longhorn Construction & Development and TRE Property Solutions. As the Principal Broker of TRE, he employs over 140 agents and staff. Matt also holds a Masters in Real Estate, Valuation, Analysis, Investment from Texas A&M University.

If you have questions about house flipping, please reach out to Matt here.

Last Updated: 6/7/2024