Getting Funding When You're First Starting

6 Replies

Hey Everyone,

I'm in Lynchburg, VA and want to get started on flipping houses. I don't have any personal capital to get started, and need to flip some houses to change this. All of the money I make on my full time job goes to paying the bills, etc. Can anyone give me some suggestions on some ways to find financing if you don't have any personal funds to put down? If getting started without any personal capital isn't an option, what's the minimum down payment percentage I should save for a flip? I apologize for my rookie question and do appreciate any suggestions.

I'd say 25% down would be reasonable. Without personal (or company) funds, and without a strong track record, you have two strikes. The only thing that could save you, IMO, is an incredibly lucrative deal for an equity partner who would be forgiving of the first two strikes. (BTW, I don't know any funder who has done such a deal.... A deal with two strikes, I mean.)

You could start by wholesaling a few homes to save the needed capital.

I don't know anyone that is doing 100% because you have nothing to lose if something went south, but if you have collateral, it might help. You can ask family members to loan you the money.

Joe Gore

Try to find a great deal on a house (maybe an REO) for you to buy to live in. Home loans for owner-occupants are much easier to get. Buy it right, fix it up, move in, and then get a HELOC on your equity.

Also, look into getting unsecured lines of credit and credit cards.  I got a $15,000 unsecured line of credit a few years ago with US Bank, and it was pretty easy to get.

Maybe start with a partner in a couple of wholesale deals to 1.)raise funds for your future flipping projects, and more importantly 2.)gain experience from others who know the market and have had success.

Good luck.

Thanks for all of the advice/suggestions everyone.  I think I'll be putting a few of them to use.  It's great to see how much help you get on BP!