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 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 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 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.
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With 20 years’ experience in real estate and mortgage lending, along with deep roots in Franklin County, Cathy is the real estate expert with both local knowledge and a global network at her finger tips. Cathy connects with her clients, actively and respectfully listening to what their needs are, and delivers results for them, time and again.
Cathy understands the complexity of the lending side of real estate transactions, and brings in-depth knowledge to both buyers and sellers. Cathy is also the recipient of the coveted 10 Best Real Estate Agent for Client Satisfaction two years in a row in Massachusetts.
Cathy covers Franklin and Hampshire counties in the Pioneer Valley of western Massachusetts. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. Cathy would be honored to put her real estate experience to work for you.
