Real Estate: How Do I Flip Houses in 2017 With NO Money – Local Records Office

LOS ANGELES – One of the questions that I continually get asked is: “how do I flip houses with no money?”

 

People see all the TV shows that show people flipping houses with no money and they really want to know if it actually can be done! The problem is that many of those shows just make it all seem so easy. Truth be told, “the gurus” have it half right. You can learn how to flip houses with no money down. In fact, I do it all the time. On just about every house flip I do, I have minimal, if any cash of my own in the deal.

 

Is it easier to flip houses if you have money of your own? It definitely is – especially when you’re just starting out. But there are many ways to flip houses with no money using some funding sources you might not have thought about.

 

Which Comes First, The Deal or the Money?

 

In many cases, new investors just don’t know whether to get the money first or get the deals first. This is another question that seems to come up a lot.

 

The short answer is that there is really no right or wrong one on this. If you get the money first and have no deals then you need to find a deal real quick. Likewise, if you find a good deal, but don’t have the money for it, you’ll need to get the money fast so you wont lose the deal. Realistically, you need to be working both sides of the house flipping equation, virtually all the time.

 

Don’t let any of that get in your way. If you say you can’t do a deal without the money, then you’ll never do the deal. If you say you can’t get money without a deal, you’ll never get the money. It’s a catch-22 and a big trap for you. The bottom line is this:

 

Money is everywhere – you just need to go get it!

 

So go out and get the deals and the money at the same time. In this guide, we’ll teach you how to get the money.

The First Steps

 

Before we get into the how-to’s of flipping houses with no money, lets take a step back on what you should do before you start looking for money to fund your house flips.

 

Of course, it would be ideal if money just “came to you”. It doesn’t. I’ve tried to raise money sitting on my couch watching TV and trust me, this approach doesn’t work. A few hundred thousand dollars doesn’t just “walk in the door”…although that would be nice if it did!

 

So, before you go out there and start on your quest for house flipping cash, here are a few things you should do before you get started:

 

  • Read: Reading books and learn everything you can about house flipping. Get your education. The fact that you are reading this right now is a very good first step. You are on one of the best platforms for learning how to invest in real estate on the planet. So good job there! Do a Google search for “how to flip houses with no money” – you’ll find plenty of information there as well.

 

  • Surround: Immerse yourself with people who are doing the business and are more successful than you. Who you associate with speaks volumes about who you are. Hang out with super successful people. This success mindset will rub off on you…and they also may be great sources of capital to fund your house flips as well.

 

 

  • Study: Study your market. Get to know it as well as you possibly can. Understand the trends, the kinds of houses, the neighborhoods, the streets. Get in your car and start driving around. If you’re close, just walk it. You’ll be amazed at how much you’ll learn. Call some real estate agents on listings you see. Ask questions. Make inquiries. Get dirty. The more you know and feel your market, the better prepared you’ll be when you talk to your money people.

 

  • Expose: This does not mean rip off all your clothes and streak the neighborhood. What it does mean is that house flipping is a contact sport, so go out and make some contacts. In the process, you’ll need to start formulating your own all-star house flipping team. It means getting out and meeting people.

 

  • Think Abundance: Always be open to creative ways to come up with the money to finance your deals. Thinking abundance is the primary way to do this. To be successful in real estate investing, you can’t have a closed mind. Creativity rules the day. Yes, there are rules, but there is a tremendous amount of creativity that goes along with successful real state investing. If you shut your mind off from any new ideas, you are not thinking abundance. Always think in terms of “how can I get this deal funded?” Ask this question to yourself and you’ll find that creative ideas will all of a sudden start appearing in front of you.

 

Although the list below is by no means all-inclusive, they may even spark ideas of your own that allow you to realize your house flipping goals without the use of your own cash. Be open to new ideas – look for other ways to expand on this list below. Although this list covers the majority of the ways to flip houses with no money, any combination of these factors can also be used to create new, creative ways to fund your flips.

 

Your Own “Money”

 

Most new investors don’t realize that there are money resources that they already have. What’s lesser known is how to flip houses with no money with resources you actually may already have at your disposal already!

 

I thought this was an article on how to flip houses with no money? It is. Even though the resources are your own, there is no outlay of cash on your part, which is the best part. The key is finding the money to use then to flip. If you look carefully there, there are a number of ways to do this:

 

  • Home Equity Loan: Using the equity in your primary residence is a very popular way to flip houses with no money. If you can leverage that money into a few deals with a private moneylender, there’s no cash outlay for you as your closing costs can also be rolled into the loan as well. You can also use this method in combination with any other strategy flipping houses with no money.

 

  • Credit Cards: You want to use these wisely and responsibly but it is an option and one that is very popular with new house flippers. As one of the most common ways to start a business, credit cards have been used in this way for years to finance all kinds of business ventures. Be careful not to over extend yourself, but credit cards can be used very effectively as a short-term source of funding.

 

  • Credit Lines: In addition to the methods above, when you are funding your rehab, you can use your good credit to get a line of credit with your suppliers for building materials, kitchen cabinets, flooring or any other building materials that may be needed in the house flip renovation. You may even be able to get your contractor to be paid after you sell.

 

  • IRAs: Did you know that you can use your own IRA money to invest in real estate? It’s called a self-directed IRA and many of the investors we use to flip houses use this method to finance many of our flips. Make sure you consult your accountant, lawyer and your financial planner before you jump in. They will be able to tell you if there are any kinds of early withdrawal penalties that need to be avoided.

 

Make sure you check with them before you do anything. A self-directed IRA is the lesser known of IRA options in which the account owner can make active investments on behalf of the plan. To open one, an owner must hire a trustee or custodian to hold the IRA assets. That person is then responsible for administering the account and filing required documents with the IRS. Do your homework and beware that a misstep can disqualify your IRA’s tax-deferred status, forcing you to pay tax on its full value plus penalties if you’re under age 59½.

 

To learn more about real estate and Local Records Office go to http://www.Local-Records-Office.org

 

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