How to Get Money to Flip a House


Despite the huge popularity of house flipping, the biggest obstacle to becoming successful in this industry is having cash on hand. Without adequate funds to spend on purchasing a home, and on the repairs and renovation, finding a buyer for the homes becomes really hard when the time is right.

Fortunately, if you’re struggling with funds, then you’ll be happy to know that there are multiple finding options that allow you to quickly buy a home and get your dream project underway.  If you’re not sure where to get money to flip a house, you’ve come to the right place. We have collected a list of ways on how you can secure enough money to not only buy a home but also get it renovated and ready to sell.

We’re assuming that you have already completed your initial market research and are ready to buy a home. If it’s just cash in your way, then these creative ways to secure funds will help you out.

Get Loan From Friends or Family

Whether you’re a first-timer or an experienced house flipper, securing funds from friends, family, or acquaintances who are interested in investing in real estate is the best way to start off. 

As a house flipper, building a network of contractors and other useful people is a natural thing. Personal connections are the best place to start looking for financing. You never know who in your family or friends circle may be interested in lending you money for a slice of profit. 

A lot of people invest in real estate to get above-market returns and house flipping is known to get you huge profits in the shortest time. Since your friends and family have a personal connection with you, and they already have a trusted relationship with you, they may even charge you the lowest interest rates. Just ask!

Find Yourself A Lending Partner

If you think you have deep knowledge of house flipping and plenty of experience with renovations and have a well connected personal network, then you can try and find a financing partner. 

Believe it or not, there are many people out there who have excellent knowledge when it comes to flipping houses but they never have the money on hand to get the project started. This is where a financing partner comes in. 

You could convince someone in your network to become a financier. They will be entirely responsible for financing while you get to plan and manage the renovations. If your partner also happens to have some experience with house flipping or real estate in general, the two of you can decide who gets to do which tasks. In the end, both of you can share the profit according to the terms set before the project began. 

Line of Credit or Home Equity Loan

If you are a homeowner and have at least 20% equity in the residence you own, then you are eligible for a home equity loan. Being a homeowner gives you the opportunity to draw money as needed as long as you agree to pay the interest on the money you use. 

To qualify for a home equity loan or line of credit, you must have at least 20% equity in your residence. You should also have a good credit history and monthly income to ensure that you can afford to still pay your mortgage payments while you take the loan. Most banks will allow you to borrow 85% of the value of your home minus the outstanding loan. 

Personal Loan

If you have a good credit history and only require a small amount of money to get started with your house flipping project, then you can go for personal loans. These loans are very flexible which basically means that you can get this loan and spend it anywhere you want to. 

To qualify for a personal loan, you will have to prove that you have a credit score of above 650. The good news is that interest rate on personal loans starts from %5 only and you have to pay back the amount in monthly installments over the course of three-seven years. But the only problem is that the loan amount is usually small. A personal loan is usually capped at $50,000. So this option is only good if you need a boost in finances to start your project.

Take Loan or Withdraw Funds From 401(K)

If you’re a house flipper with a lot of savings in your 401(K) account, then you can either withdraw funds from the account or take a loan against it. This should be your last option since these are your savings. And if you are already near retirement, then it is highly recommended that you do not touch these funds. 

Most 401(K) accounts let you take up to 50% loan against the account balance or at least $50,000, whichever is the lower amount. This is also applicable to solo 401(K) plans. Just remember that you still have to pay interest on the loan you borrow but the money is yours so you are basically paying back the principal and interest back to yourself. 


I’ve seen many people who want to try their luck at real estate business or become seasoned house flippers. But a lot of them don’t think about their finances. This industry is full of risks and requires a lot of dedication, effort, and cleverness. If you going into this business just because you saw some house flipping shows, then you may not find success in it.

Reality TV shows hide a lot of things from the viewers. They never really show the risks involved in house flipping. However, if you do your market research properly, and construct a network of valuable people and businesses, you may have enough tools in your bag to make it big. 

Seasoned flippers use a combination of the above methods to finance their projects. So don’t hesitate to try and look for opportunities in all of these. 

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