How to get unsecured money ?

6 Replies

Was wondering is there anyway possible to get my hands on unsecured money with a good credit score ? Want to do my first fix and flip, but I don’t know how to go about getting the funds to support it. Any feedback would help. Thanks.

What incentive would somebody have to loan a first time flipper unsecured money?  If you are not confident that you can successfully complete a deal without losing money, no lender is going to be.

Your best bet is to find a friend or family member willing to loan you the money... They know you best and if anybody trust you enough to loan you unsecured funds, it would be them.


@Devin Howard congrats on building a strong credit score! That will pay you dividends for years!

When I first started I also looked at unsecured loans but they were just too small. 

I would look at hard money lenders to build a track record with then find a solid private money lender. 

Best of luck!

Most people in your shoes use the house they are flipping as securitization.  Good credit should help you with a hard money lender but you will still have to pony up some of your own cash.  If you can't put some of your own cash in the deal, you need to find a partner...And seeing as this is your first flip, this needs to be someone who trusts you as a person, not you as a flipper since you have no experience. 

When I first started flipping houses, I would go to people who knew me personally, knew that I was wholesaling deals left and right and knew that if I said we had a winner to flip, it was a winner.  I offered to run the whole job from beginning to end and they just had to sit back and collect a fat check for 50% of the profit.  Needless to say, they were happy to do so.  

Do that once or twice and you will have people begging to partner with you.  Then you can dictate the terms of the money.  

Why are you only looking for unsecured debt? Just about every lender hard money or private money should expect to have some securitization, I.e. a promissory note, deed of trust (or mortgage if a mortgage state) and possibly a personal guarantee. Security instruments for real estate loans are essential to keep both sides in line. As a newbie flipper, you will be super hard pressed to find unsecured debt for your first or even 5th flip.

Yes there is, it will typically be in the form of an unsecured personal Line of Credit or the most popular of Credit card stacking and cashing them out to use the cash to purchase homes. 

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