Have you ever thought about flipping a house? In case you did, you must have concluded that you need a lot of money to get started. However, that is not the case!

The good news is that it is possible to flip a house without depositing any money. There is a big community of money lenders offering hard money loans to people all over the country. Some of the biggest markets in the US are in major cities such as Los Angeles.

But how does this work? What are the expenses and can you earn from flipping houses? Keep on reading to find out more!

The expenses


The direct expenses involved in the procedure of flipping a house include renovation, marketing, and utilities. The house’s condition during the time of purchase will help you understand the amount of renovation required. Some homes might need slightly more than interior polishing, changing furniture, while the others require bottom-to-top renovation – demolishing old walls, building the new ones, repurposing rooms, etc.

You will also have to decide accordingly whether or not to hire a professional contractor. During this time, you will have to bear all the homeowner’s insurance expenses till all the renovations are done, and you can sell it off. Moreover, the other utilities will also require paying off during this renovation period. For example, electricity and water are some of those expenses and usually those who flip homes tend to call professional electricians and plumbers.

The sooner you finish fixing and decorating the home, the sooner you can put it on sale. You need to spread the word around the block, and therefore, it is time to market the new home.

Marketing Stage

After the renovations are done, you will have to spend some amount to do the marketing to find potential customers. You may also want to hire a professional realtor to do the work on your behalf. Usually, they are familiar with the neighborhood and they will be much more efficient in finding someone to buy.

On the other hand, you will have some extra expenses but remember – you are doing this with no money and you took a loan – the sooner you pay it off, the lower the interest rate will be, leaving your with your pockets full.

Here are some of the best options from where you can obtain funding for the initial expenses.

What are the ways of flipping houses without money?


An investor doesn’t need to provide funds for a deal using his own money. So, there may be several options for doing the same. Moreover, none of these will require your capital at any point. So, let us now check out some of the most important sources of funds.

Hard money lenders

Some companies offer particular real-estate support loans on a short-term basis. Unlike the private companies that act as money lenders, these hard money lenders have a legit affiliation of specialization in money lending procedures.

More of this is explained at, so make sure to check it out.

It would be best if you did not confuse these agencies with the traditional money lenders because hard money lenders will only offer short-term credits. On the other hand, a legal money lender can approve loans to people for over 15 to 30 years. Generally, hard money lenders prefer to follow the six months to two-year tenure only.

Apart from their association with a proper organization, a hard money lender more or less functions like any other private lender. These agencies are not very strict on guidelines, but the interest rates on hard money loans are usually higher. They will charge anything around 11 to 15 percent of interest from a debtor. However, there are no strict guidelines when it comes to hard money lending companies.

Private lenders


Most of the time, an investor will reach out to private money lenders for funding their initial expenses. It is because these people are the ones who offer hassle-free loans. Precisely, anyone with a little extra money in the pocket and an intention to loan out the same can act as a private money lender. Moreover, private money lenders are not in any way associated with any government agency or financial organization. Therefore, it is evident that a private money lender will always create their set of rules.

Before you go to a private lender, you should be aware that you are risking a lot. Make sure you research them first and see if they are legit. Try to steer clear of the scammers, because what they often do is lend money and then increase interest rates or not pick up as you call them to pay it off, leaving the interest rate to jump for a few extra days and putting you in an uncomfortable position. You can strike a deal with a private lender through a lawyer, making it more secure.

Alternative Financing Options

While the two mentioned above are the most common sources, there are other similar places to reach out to. One of them is crowdfunding. However, it is a bit more difficult to go for crowdfunding when it comes to flipping homes. The reason for it being is that the people donating don’t have particular interest in you doing that, unless we are talking about specific homes which everyone in the neighborhood would like to see fixed and redecorated. But even then, hard money lenders are a much better option. They specify for this niche and they can offer you the best deals.



Hopefully, we’ve shown you how you can flip a home with no money. Flipping houses isn’t as hard to get into, because you have people willing to provide you money initially. If you succeed and sell a house, everybody wins.

Flipping houses can be a stressful business, with a bunch of deadlines and even the risk of losing money, but once you are on a roll and you have some of your money to invest it, everything becomes much more relaxed and you can focus on making profit!