Have you always wanted to get into the house flipping business but had no idea where to start without any money? Don’t worry, people do it all the time!
Many people are able to start with nothing and build their own real estate empire from the ground up! In this article, we will discuss 4 ways to flip houses with no money in Utah.
4 Ways to Flip Houses With No Money in Utah
You might think this sounds impossible, but people do it every day. Flipping houses with no money will require you to do your homework and learn about the process and how it works. You need to also learn about what type of methods for funding there are and which ones will be the best for YOU!
You should create a business plan outlining exactly how you intend your house flipping venture to work.
Find Some Partners
Think about who you know who may want to invest. Even think about people you don’t know, but could pitch your investment idea to. This could be a friend, family member, business associate or possibly another real estate investor who would be willing to partner with you.
Okay so here is the strategy, once you have shared your ideas with your future partner, you can arrange for them to use there cash to finance the deal, while you do all the work to get the job done correctly.
Loans – Hard Money & Private
When looking into getting a loan, look at hard money or through a private lender, which can be a great way for getting you the cash you need to buy an investment. A private money loan is a great method as there are many people out there, with money just sitting in their bank accounts, waiting to invest with you.
They just don’t know it yet. Present your plan and reasons why they need to invest with you, you will be able to find a private money lender who is ready to invest.
A hard money or private loan is also a great way to get the fast cash. Remember, hard money loans often come with a high-interest rate as well as 2- 3 points. Due to the high-interest rates, hard money loans are great for a houses you know you can flip over night.
Remember these types of loans will get you the cash you need fast, just ensure you pay it back as soon as possible.
Use What You Got
One thing to remember even though you don’t have an a lot of cash sitting in your bank account, you may have other things for collateral or assets that would secure the financing you need.
You can use a home you own, your IRA or retirement accounts and even your 401k to help get a line of credit. If you tap into any of these accounts for a down-payment, beware of the associated risks, and tax penalties for pulling out money early.
Mix & Match
One thing to point out is even if you can’t get the cash you need by using the methods above, you can mix and match these types of methods to accomplish your goals.
Maybe a rich grandmother will lend you part of the down-payment you need, and you are able to pull the rest of the cash from a self-directing IRA. Or maybe you can partner with an experienced local home buyer, only investing a small amount you borrowed through a hard money loan.
However, you decide to invest, do your research and keep in mind all of the potential streams of credit that might be available to you!
Are you ready to begin your adventure flipping houses? Our awesome team can help you get started today! Click here to fill out our form, or give our office a call today! (801) 441-2800