You Don't Need Money to Flip Houses (If You Have This)

You Don't Need Money to Flip Houses (If You Have This)

What if I told you that it takes little to no money of your own to start your house flipping venture? House flipping is a lucrative path in real estate investing, but the upfront costs are very expensive. Acquisition costs, renovation costs, and holding costs are among the long list of initial expenses when house flipping. But don’t let that steer you away. The key to using little to no money when flipping houses is resourcefulness. Here are some strategies and approaches to gathering reliable resources to begin house flipping at an affordable cost.

Resourcefulness is a combination of creativity, hustle, and the ability to find solutions. Here's how to use resourcefulness to cut the costs on your house flipping venture:

Find Those Deals

Great flips begin with great deals. Resourceful investors can sniff out undervalued properties, particularly those priced below market value due to cosmetic issues or neglect. They can negotiate effectively and find creative financing solutions.

Build Your Team

Flipping a house often requires a crew of contractors, electricians, plumbers, etc. A resourceful house flipper will contract profitable deals with partners and find hidden gems among handymen to ensure a successful fix and flip.

Be Creative with your Financing Strategies


Those who see the potential in your deals invest money. Find a "money partner" who can cover the finances while you take care of the renovations and work. In partnerships, it is important to outline who takes on what responsibilities and how the investment return is divided. Make legal agreements to secure the deal.

Hard Money Lenders

Hard money lenders specialize in short-term, high-interest loans for real estate flips. Hard money lenders are individuals or companies that provide real estate loans secured by the property being purchased, rather than the borrower's credit history. The term "hard money" refers to the tangible asset that backs the loan's value. The risk is if the borrower defaults on the loan, the lender can take ownership of the property to recoup their losses.

Private Lenders

Network with wealthy individuals who might be interested in returns from real estate ventures. You can offer profit-sharing or other creative structures to get them on board with your investment!


Act as a middleman by finding undervalued properties, securing them under contract, and then assigning the contract to a rehabber for a fee. This requires strong negotiation and market knowledge.

Alternative Approaches

Seller Financing

Convince the seller to finance the purchase for you, potentially with a lower down payment and interest rate. This can be a win-win if you can demonstrate your renovation plan and ability to resell quickly.

Live-in Flips

FHA loans with a low down payment can be used for properties you intend to occupy for a certain period. Fix up the house while living in it, then sell it for a profit after meeting the occupancy requirement.

Remember, resourcefulness goes beyond financing:

  • Negotiate: Negotiate a lower purchase price, favorable closing terms, and potentially even contribute sweat equity to repairs with sellers who are motivated.
  • Find Value Gems: Target off-market properties or hidden gems that need cosmetic fixes rather than major structural work.
  • Build a Renovation Dream Team: Network with contractors, electricians, plumbers, and other rehab professionals who might be willing to barter services for a share of the profits.

Flipping houses without significant finances requires hard work, creativity, and a network of connections. But with resourcefulness and a solid plan, you can turn this strategy into a successful real estate career starter.

RCN Capital

Do you have a real estate project you would like to obtain financing for? RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you are looking to finance a home flip, RCN Capital has competitive loan options available.

Check Out Our Loan Programs Today