How are you funding your flips in 2025

Question

Curious what everyone’s seeing out there lately.

With rates higher and some lenders tightening up, are you still leaning on hard money? Private lenders? Or are you getting creative with seller finance, second-position loans, or partnerships?

What’s been working best for you lately? And if you’ve had a great experience with a lender or private money source, who do you recommend?

Appreciate any insights — always trying to stay sharp on what’s working out there.

David Atis · Answer

Great question! Hard money is still a go to for many, especially when speed and leverage are key, but I’ve also seen an uptick in seller financing to help reduce upfront cash outlay and overall cost of capital.

As a HM lender, I’ve been structuring deals to help flippers maximize leverage, soft credit pulls, no appraisal costs, up to 90% of purchase price (or even 100% for qualified investors), and full coverage of reno costs, with closings as fast as four days. Having that flexibility has been a game changer for investors looking to stay competitive in this market.

I'm curious what’s been working best for you?

Corby Goade · Answer

Depending on your volume, a HELOC is always my go to. Cheap, flexible and payments are low. No points and I can just free it up as soon as I cash out.

I find so many flippers don't keep any properties and that's almost always a mistake. You can be so much more efficient with HELOCS and when you couple that with cost segs, your cash flow from the properties you keep becomes totally irrelevant. A property that's $200 per month negative cash flow that you cost seg in to a $75K tax savings is a better investment than almost anything else you could possibly do.

Maybe a bit off topic, but that's my two cents!

Mike Klarman · Answer

Options are a luxury I think, especially starting out. If you have the option of Hard Money, a HELOC, or asking your rich Uncle for a private loan then you are one lucky S.O.B.

To get the foot in the door, more times rather than not, one needs to come correct. That usually means you have good credit, good project spread, the money to close. That is usually the only option until you develop the deep enough connections within the room to have that not be the only option. That's going to take some scars, some success stories, lots of networking, it's a constant grind of.

Always treat a connection as a doorway, that door leads to another which leads to another. For example, someone may call me and ask for a GC referral and I give them a number. They talk to my GC who mentions a really sharp agent they are working with, you get that number. You call the sharp agent and he mentions that you'd hit it off with a client of theirs and you get that number. You call this investor who is an Oil Guy from Texas who invests in real estate and also lends his own money. Your a Cowboys fan and so is he and you to hit it off.

That's a fictional story, but it is not as well. I bet that kind of thing happens all the time, It's happened to me. I've met key network pieces three or four persons removed from where I started the chain.

John McDonald · Answer

I agree with David. Seeing as speed is always a top priority, either cash in bank, hard money, or investors are the best options. Banks move to slow, unless of course you have an open line of credit.

Good luck in 2025.

Steve Harlow · Answer

I've used HELOC's on my last 10 flips. Also used IRA money to buy tham and cover repairs.

Aryia Bala · Answer

You should always be looking to find and free up additional sources of capital (HELOC, SBLOC, CCs, etc) and raising your credit score while showing more experience on title.

As a hard money lender we havent been tightening the leash....

Randy Halverson · Answer

If you find a deal I can help with a sweet deal on private money. Wouldn't that be better than hard money?

Sean Graham · Answer

@Corby Goade nailed it

How are you funding your flips in 2025

How are you funding your flips in 2025

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