How to Start Flipping Houses with No Money

Whether you have little or no money or don’t want to use your own, you can still jump on the house-flipping bandwagon. Several strategies are available for anyone who wants to start flipping houses without a sizable personal investment upfront.

From borrowing from private lenders to online crowdfunding, getting the financial support you need to get your house-flipping business off the ground without having deep pockets is possible. Consider the options below as you learn how to start flipping houses with no money.

What Is House Flipping?

House flipping is a real estate investment strategy that involves buying undervalued property, fixing it up and selling it quickly to earn a profit. The key is finding distressed properties, rundown homes owners want to sell without upgrading or houses sold at auction or foreclosed.

When setting a budget or negotiating the purchase of a property, many flippers adhere to the so-called “70% rule.” According to this rule, you shouldn’t pay more than 70% of a property’s after-repair value (ARV) minus the cost of repairs.

You can capitalize on market demand by making strategic renovations, but don’t get carried away with unnecessary upgrades, which can eat into your profit. Look to resell the property within 12 months to reap earnings to reinvest in future flips.

How Much Does It Cost to Flip a House?

To prepare for your first fix-and-flip, you need to know what goes into the flipping cost. Here are some of the main costs associated with flipping a house:

• Purchase price
• Closing costs
• Taxes
• Renovation expenses
• Marketing and selling costs

You’ll also incur carrying costs, the money you’ll spend to keep the house before selling it. These include the mortgage, insurance, property taxes, utilities and possibly other expenses, such as a homeowner’s association (HOA) fee.

Furthermore, it’s important not to get caught off guard by loan costs, such as origination, inspections, appraisals and insurance. A permitting fee may also be required to redo certain rooms or add to the house.

The purchase price and these additional costs, which typically amount to about 10% of the acquisition price, equal the investment traditionally required for a flip.

10 Ways to Flip Houses With Little to No Money

House flipping requires money. Luckily, it doesn’t have to be yours. Consider these 10 ways to fund your upcoming real estate flipping project:

1. Crowdfunding

Crowdfunding has transformed the way real estate investors access capital. Through real estate crowdfunding platforms, you can contribute small amounts, sometimes as little as $10, to pool funds with other investors in order to purchase and renovate properties. This makes house flipping accessible without requiring personal capital. 

Alternatively, if you have a deal but no funds, you can pitch your project on real estate crowdfunding sites to attract backers. These platforms also double as networking hubs, where you can connect with potential mentors, local investors or future business partners at meetups and online forums.

2. Hard Money Lenders

Hard money loans are short-term, high-interest loans provided by private lenders or companies based primarily on the value of the property being purchased, rather than your personal credit score. These loans typically come with interest rates between 8% and 15%, and are often used for periods of six months to three years. They’re ideal for flips because they offer fast approval and fund disbursement, letting you act quickly on time-sensitive deals. 

The trade-off is cost—hard money is expensive and best used only when you have a strong plan to renovate and sell the property within the loan’s term to avoid ballooning interest or default.

3. Private Money Lenders

Private money lenders are usually individuals, such as wealthy professionals or seasoned investors, who lend money informally for real estate projects. Unlike banks, they’re not bound by strict underwriting rules, giving them flexibility to offer creative loan terms such as lower interest rates, profit-sharing agreements or repayment deferments. 

You can find private lenders through local real estate investment clubs, business networking events or personal contacts. To secure their support, you’ll need a clear proposal that outlines the property’s potential, renovation budget, timeline and expected return. Building trust and consistently delivering returns can turn one-time lenders into long-term capital partners.

4. Home Equity

If you already own a home, the equity you’ve built can be a powerful funding source for your first flip. You can tap into it using a home equity loan or a home equity line of credit (HELOC), which gives you access to a revolving pool of capital at relatively low interest rates. Generally, you’ll need at least 15–20% equity to qualify. 

Another option is a cash-out refinance, where you refinance your current mortgage for more than you owe and use the difference as flip capital. For those with a Solo 401(k), it's even possible to use retirement funds for house flipping without penalty, as long as it's through a self-directed plan.

5. Seller Financing

With seller financing, you bypass traditional lenders and strike a deal directly with the property’s current owner. In this setup, the seller acts as the lender and lets you pay for the property over time. These agreements often include interest-only payments, balloon payments or low/no money down options, making them attractive to flippers without upfront capital. 

The key challenge is convincing the seller to trust you and accept a delayed full payment. You’ll need to clearly articulate your renovation and resale plan and negotiate terms that protect both parties, often with legal documentation outlining repayment schedules and contingencies.

6. Sale-Leaseback

A sale-leaseback allows you to unlock the equity in your current home while continuing to live in it. You sell the property to an investor and sign a lease agreement to rent it back, giving you immediate capital to fund a flip. In some cases, these agreements include a rent-to-own option, allowing you to repurchase the home later.

This method works best for homeowners who have considerable equity but want to stay in their home while freeing up funds. Before agreeing to this structure, it’s crucial to understand the lease terms and ensure your rights are protected.

7. Wholesaling

Wholesaling requires no ownership or renovation work. Instead, you act as the middleman: you find a distressed or undervalued property, secure it under a purchase contract, then assign that contract to a cash buyer (usually another investor) for a fee, typically $5,000 to $15,000 or more.

This method relies heavily on your ability to find deals and negotiate favorable purchase prices. You’ll need strong networking skills and an investor list ready to buy your contracts quickly. While wholesaling can be done with little to no money, you may need small amounts for earnest money deposits or marketing costs.

8. Partner With House-Flipping Investors

If you lack cash but have time, hustle, or access to good deals, partnering with an experienced flipper can be your ticket in. In these arrangements, your role might be to find properties, manage contractors, or bring a buyer to the table, while your partner funds the project.

Profit splits vary, but the experience and connections gained can be just as valuable as the income. To succeed, you’ll need to prove your reliability and bring something tangible to the partnership, such as local market knowledge, contractor relationships or an investor network.

9. Live-In Flip

A live-in flip lets you reduce risk and financing costs by living in the property while you renovate it. As an owner-occupant, you may qualify for low-down-payment mortgage programs such as FHA, VA, or USDA loans, some requiring as little as 0–3.5% down. This strategy allows you to spread renovation work over time, often saving money by doing it yourself.

Additionally, if you live in the property for at least two years, you may qualify for a capital gains tax exemption on profits up to $250,000 (single) or $500,000 (married). It's a smart long-term approach for first-time flippers.

10. Government Loans and Grants

There are several government-backed programs designed to encourage housing revitalization and homeownership that flippers can tap into. The FHA 203(k) program lets you finance both the purchase and renovation of a property under one loan.

For low-income or first-time investors, programs like the Home Investment Partnerships Program (HOME) or the Federal Home Loan Bank’s Affordable Housing Program offer grants or subsidies for rehabilitation. FEMA also provides hazard mitigation grants to rebuild or fortify properties in disaster-prone areas. These programs come with eligibility requirements and more paperwork, but they can offer crucial capital without requiring personal funds.

Start Flipping With Little to No Money of Your Own

You now know how to start flipping houses with no money or at least less capital than real estate investments generally require.

You have many potential options, from borrowing money, partnering with other flippers and seeking government grants. Choose wisely and make a tidy sum while offering some excited homeowner a nice new place to live.

Frequently Asked Questions