Affordable House Flipping: 3 Ways to Fund Your Project

by Middleton Realty, Inc. 04/02/2023

Like any real estate transaction, flipping a home involves a lot of separate costs. While flipping a house can have an excellent return on investment, it can also cost quite a bit to get the process started. However, there are ways to flip houses with very little upfront cash. Here are the best ways to flip on a tight budget:

Private Lenders

Private loans come with a variety of advantages because they don’t work with banks or government institutions. This means that a private lender can give you your money much quicker and without the same regulatory obstacles as traditional lenders. However, they also make their own rules, which can benefit you or hinder you. As long as you’re clear about any contract details and expectations, they can be a good option for funding a flip.

Hard Money Lenders

Hard money lenders work with entities that specialize in lending money but offer shorter term loans than traditional sources. Hard money loans are excellent options for flipping houses because they allow for flexibility in timelines. However, like private lenders, hard money lenders have their own unique rules and guidelines, so shopping around for the best fit is ideal.

Crowdfunding

Crowdfunding is a more free-form type of investment strategy involving multiple sources. Each source would contribute a part of the total loan amount. There are many sites and companies dedicated to helping you set up your own crowdfunding initiative and when paired with promotion and marketing strategies, it can be an extremely convenient way to raise the funds for a flip.

These are just a few ways to get the funding you need while sticking to a small budget. All offer a great opportunity for financing your flipping project with a low initial investment up front. Research and budget carefully to find the best fit for your situation.

About the Author
Author

Middleton Realty, Inc.

Patrick Middleton, Broker/ Owner of Middleton Realty Corp. A Jacksonville native, I obtained my real estate license in 1985 and opened Middleton Realty in 1995. My interest in real estate was spurred by a desire to invest in residential properties. This interest became a focal point of my business. For over 30 years, I have been helping people build their investment portfolios and helping home-buyers make fiscally sound decisions. My love of the outdoors, especially fishing and boating, has given me an edge in helping others who want to incorporate Jacksonville’s outstanding outdoor amenities into their personal lifestyle. Willie Inman- Real Estate Agent NACA approved, first time home buyer specialist, commercial . 904 673-1388, [email protected] Tom Burau- Real Estate Agent Certified distressed property specialist, military relocation professional. Tom works with first time home-buyers as well as exclusive beach properties and multi-unit investment properties. Contact info: 904 553-8291, [email protected]. Also on Facebook.