April 01, 2025
Getting into the fix-and-flip game can be one of the fastest ways to build wealth through real estate—but your first hurdle is figuring out how to finance the deal. If you’re just getting started, you’ve probably realized that most traditional banks aren’t going to hand you a check for a distressed property.
So how do you get in the game without already being rich?
As someone in the business who sees these deals happen every day, here’s what I tell aspiring investors:
1. Hard Money Loans
Hard money lenders are the go-to for many first-time flippers. They’re asset-based, meaning they care more about the deal than your credit. The pros? They’re fast and flexible. The cons? High interest rates and fees. But if the deal has enough spread, it can still work in your favor.
2. Private Money
This is where relationships matter. Private money usually comes from friends, family, or local investors who want a return on their cash without doing the work. The terms are negotiable, and if you structure it right, everyone wins. You’ll need a solid plan and a trustworthy demeanor—because people are betting on you, not the property.
3. Partnering Up
If you’re short on cash or experience, find someone who has what you’re missing. You bring the hustle and sweat equity, they bring the capital. Just make sure everything’s in writing. Equity splits, responsibilities, exit strategies—get it all on paper before you swing a hammer.
4. HELOCs & Lines of Credit
Already own a home or rental? You might be able to tap into a Home Equity Line of Credit (HELOC) or business line of credit. This gives you the flexibility to fund part of the project without taking on a new loan for every deal.
5. Portfolio Lenders & Local Banks
Some smaller banks offer “portfolio” loans that stay in-house. These lenders tend to be more flexible, especially if you’ve built a relationship with them. They might look at your long-term potential instead of just one flip.
Flipping a house isn’t just about finding a deal—it’s about knowing how to fund it and finish strong. The money is out there. It’s just about getting creative, building relationships, and being able to pitch a deal that makes sense.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
