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
Pablo Torres
Pablo Torres is a qualified Real Estate Agent with over 10 years experience in real estate sales, due diligence and contract negotiations. Knowledgeable of South Florida neighborhoods. Currently, Pablo focuses his skills on all markets in the Miami metropolitan area.
He has the ability to understand sellers, buyers and renters needs with excellent communication. Fluent in English and Spanish with working knowledge of Portuguese. Pablo has impeccable reputation and a passion for real estate.
He graduated with a degree in International Business from Florida International University (1998) and a masters in business administration from Nova Southeastern University (2003). He had embarked on a career in commercial banking before being driven to switch to one of his passions-real estate.
Dedication, perseverance and punctuality allowed Pablo to sell different types of properties. His expertise with South Florida's cultural diversity has allowed him to sell real estate to both buyers and sellers.
Part of what makes Pablo so successful is his dedication to exceptional customer service and his devotion to their needs, whether they are buying or selling properties. Pablo has many repeat customers who cite his willingness to work long hours to resolve the toughest issues, as a reason why they stick with him. Torres integrity, attention to detail and careful handling of a transaction, exceeds their expectations. Sellers know that Pablo's extensive and personalized marketing strategies, means that their listing is seen by most buyers.
As a real estate professional, Pablo has the tools to represent your interests in virtually any transaction. Pablo's ability to interview, reason and figure out the smallest details makes every successful transaction a seamless process. Pablo is the right real estate professional to hire.
