Real Estate Tips |7 min read

How to Flip Houses With No Money

Flipping houses may sound intriguing, but some investors may consider it out of their budget. After all, you have to pay for materials, contractors, and the purchase of a property that needs renovations. When you add up all the costs of fix-and-flip projects, it can quickly become overwhelming. So, how can you do this when you have no money saved up? In today’s article, we’ll review how to flip houses with no money. Read along to learn your investment options. 

Contents of This Article: 

What Is House Flipping?

House flipping is an investment method that involves buying a property to renovate or improve it and then selling it for a profit. The goal of flipping homes is to fix and flip a property as quickly as possible to increase the value instead of using the property to live in or rent out. 


Property flippers generally look for run-down or undervalued properties that can be improved to appeal to potential buyers. This strategy is most lucrative when an investor can find a suitable property, buy it below market value, increase the value through renovations, and sell it for the highest bid once it’s back on the market. 

That said, while there will be initial costs, investors can flip houses with no money using several different strategies, including residential hard money lending. First, we’ll review how much it usually costs to flip properties. 

How Much Does It Cost to Flip a House?

Several expenses go into house flipping. For instance, you have to consider renovation expenses, insurance, utilities, and the initial home purchase. 

Ultimately, the property’s condition will determine the amount of work needed and whether or not you’ll need to hire contractors to help with renovations. In turn, this can impact the amount of money you’ll need for the project. 

You’ll need to cover homeowners insurance from the time you purchase the property until you sell it. Additionally, you’ll want to consider utilities like water and electricity, as they’ll likely be necessary to complete renovations. Then, once the renovations are done, you’ll need to spend money on marketing to attract potential buyers. You may even need to hire a realtor to help expedite the process if you want things to move quickly. 


Ultimately, house flipping can come with several costs. However, if you want to flip houses with no money, using other people’s money can be your path to success. So, read along to learn five valuable strategies you can use without breaking the bank. 

The 70% Rule in House Flipping

The process of fix-and-flip projects is quite simple: buy real estate at a low price, renovate it, and sell it for a profit. That said, the 70% rule can be beneficial when looking at flipping opportunities. Essentially, it states that investors should pay no more than 70% of a property’s after-repair value (ARV) minus the cost of repairs or renovations. 

The ARV of a property refers to the amount a home could sell for after repairs or renovations are done. As such, investors must estimate the property’s value and how much it could sell for once they’re done renovating it. Then, they can multiply that number by 70% and deduct it from the estimated cost of renovations. You’re left with the maximum amount you should buy the property for. Here’s an overview of how it works.

ARV x .70 – Estimated Repair Costs = Maximum Buying Price

Remember that the 70% rule is just a guideline, not a surefire way to ensure a successful investment. It’s crucial to perform due diligence by researching market conditions and working with other real estate professionals to ensure you make an informed investment decision. 

5 Ways to Flip Houses With No Money

You don’t necessarily need a ton of money saved to invest in real estate. In fact, you don’t even have to use your own money to invest in a property successfully. Essentially, you can invest in and flip houses with no money. So, if you’re interested in flipping houses with no savings, here are some strategies to consider. 

  1. Private Lenders
  2. Wholesaling
  3. Partner With Other Investors
  4. Home Equity
  5. Hard Money Lenders

Private Lenders

Knowing how to flip houses with no money could be as simple as working with private lenders. Private lenders essentially work like banks, except they have their own set of rules with fewer hoops to jump through. This type of real estate lending involves individuals or private companies who lend their money to investors so they can buy real estate without the process of getting a traditional mortgage loan. 

That said, since private lenders are not associated with a financial institution or government-backed agency, they can set their own rules. As such, you’ll likely be paying higher fees and interest rates for their convenience. However, you avoid the long process of applying for a traditional mortgage, which can be hard to obtain if you have poor credit or a high debt-to-income ratio. 


Wholesaling properties is another helpful strategy for investors with little money to invest in real estate. A wholesaler looks for a property to buy, makes a deal with the seller, and then finds a buyer who is willing to pay more. The wholesaler then sells the property to the buyer at a higher price than what they paid the seller, keeping the extra money as profit. 

That said, it’s important to note that a wholesaler isn’t purchasing a property. Instead, they’re simply obtaining the rights to buy it. From there, they attempt to flip the contract to another investor. 

Partner With Other Investors

Working with private lenders isn’t the only way to flip houses with no money. In fact, it may be as easy as finding someone else, like a business partner, to fund the deal for you.


While this may seem a bit far-fetched, it’s a completely viable strategy. However, if you rely on a business partner to fund the entire flipping project, you must bring something valuable to the table. 

For instance, you could take care of the renovations, get them a deal on another investment, or at least provide helpful contacts. Whatever the case may be, it’s crucial to carry your own weight as an investment partner–especially if you’re coming in with no money to contribute. 

Home Equity

If you’re interested in flipping homes with no money, you may need to think outside the box. One creative way to fund an investment property is by using the equity you have in a property you already own. Homeowners with value in their current homes can look into a home equity line of credit (HELOC) to purchase a fixer-upper. 

A HELOC works similarly to a credit card, allowing investors to borrow against the equity they have built up, making monthly payments to repay it. Additionally, there are no restrictions on what you use the capital for, meaning you can buy a fix-and-flip property or use it for renovations. However, it’s important to note that homeowners must have a certain amount of equity in a property to take advantage of a HELOC. 

Hard Money Lenders

Similar to private lenders, hard money lenders are another excellent source if you want to flip homes with no money. Hard money loans are short-term, non-conforming loans primarily used in real estate transactions.


They don’t go through the same process as conventional loans, which rely heavily on an investor’s creditworthiness and borrowing history. Instead, they use the property you’re buying as collateral. However, hard money loans generally have higher interest rates and fees since lenders are taking a risk by lending to you. 

Luckily, hard money lenders are generally easier to find than private lenders. All you have to do is search online for lenders in your area, and you should be able to find a few reputable options. However, it’s crucial to do enough research to ensure the lender you choose is experienced and reliable. 

Find a Reputable Lender Near You

If you want to flip homes with no money, there are several investment strategies to explore. One of the most straightforward ways to acquire a loan, even with bad credit, is with a hard money lender. Hard money lenders can help you quickly get the funds you need so you can get started on your fix-and-flip property right away. 

Looking for a reputable lender in Maryland? Look no further than Maryland Hard Money Lenders. Our team of experienced real estate professionals can help you secure a real estate deal quickly and efficiently. Contact MHML today to learn more about our lending process and fill out our initial loan application!

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