- How To Flip Money Legally
- How To Flip Money Quickly
- What's The Fastest Way To Flip Money
- How To Flip Money Real Quick In Fortnite
- How To Flip Money Real Quick Video
- How To Flip Money Real Quick Youtube
Key Takeaways
Flipping is a term where you put a small amount in (usually in terms of money), and get a much higher return at the end. You flip from small to big, or from bad to good. For example, house flipping is where someone will buy a house, a used and beat up house, and sell it for twice the price they bought it for. Learn more about Private Money for Real Estate Investors and Flippers. Quick Real Estate Funding provides several loan products Fix and Flip, Bridge and Rent. To double your money in real estate, you may want to consider investing in short-term rentals, single-room leases, fix and flips, and buy and hold properties. Property investment data can help you choose which type of real estate investment is right for you.
Private lenders |Hard money lenders |Wholesaling | Partner with investors | Home equity |
Option to buy |Seller financing | Crowdfunding
Let’s make one thing clear: learning how to flip a house with no money down is entirely possible. There’s an entire community of investors ready and able to lend you the funds you need to complete your first deal. That’s right, there are plenty of investors willing to fill your pockets with their money — if you can prove to them that you deserve it, that is.
What Is House Flipping?
House flipping is the process of a real estate investor purchasing a property, making repairs or upgrades, and selling it for a profit. This investing strategy is intended for an investor to sell the property as fast as possible instead of using the property to reside in. house flipping is generally the most lucrative when an investor can locate an undervalued home and purchase it for a below market value and receive the highest possible bid once the property is repaired and put back on the market.
How Much Does It Cost To Flip A House?
The main costs of flipping a house will include renovation expenses, insurance, utilities, and marketing. The condition of the house upon purchase will determine the scope of work necessary to rehab the house and whether or not you will need to hire a contractor to complete bigger projects. You will need to cover homeowners insurance costs from the time you purchase the property until renovations are completed and you sell the house. The house’s utilities need to be accounted for during the rehab process as water and electricity will be necessary to carry out the rehab. Once the rehab is completed, you will need to spend time and money on marketing to attract potential buyers. It may be worth hiring a realtor to help get your property off the market unless you have an extensive network of real estate professionals already in place.
If you want to start investing today, using other people’s money will most likely be your quickest path to success, but you need to know who to look for. Below you will find your best options for funding your first deal.
8 Ways To Flip Houses With No Money And Bad Credit
Nowhere does it say an investor needs to fund a deal with their own money. As it turns out, there are several options for funding a deal made available to today’s investors, none of which will require you to use capital from your own pocket. In fact, it’s quite easy to argue that using other people’s money is the gold standard, at least when it comes to investing in real estate. If for nothing else, private lenders, hard money lenders and any house flipping investors with an interest in making money are all more than viable options to seek out for your next deal. Here are seven options to help you learn how to flip a house with no money:
Private Lenders
Hard Money Lenders
Wholesaling
Partner With House Flipping Investors
Home Equity
Option To Buy
Seller Financing
Crowdfunding
[ Do you want to own rental real estate? Attend our FREE online real estate class to learn how to invest in rental properties and maximize your cash flow. ]
1. Private Lenders
More often than not, private lenders will serve as an investor’s greatest source of funding. After all, private money lenders are essentially banks without the endless hoops to jump through most traditional lenders have become synonymous with. That said, private lenders are anyone with a few extra dollars in their pocket, a desire to invest, and a propensity to have their “ears bent.” Perhaps even more importantly, they are not associated with a financial institution or a government-backed agency, such as Fannie Mae or Freddie Mac. That’s an important distinction to make; it means they can make their own rules.
With the ability to set their own parameters, private money lenders will typically come at a steep price; it’s not uncommon for their fee to rest somewhere in the neighborhood of six and 12 percent, but I digress. While the average private money lenders rate is slightly higher than a traditional lender’s, they can have the money in an investor’s hand in as little as a few days or even hours. Therein lies the greatest benefit of working with private money lenders: speed of implementation. The slightly higher interest rate is well worth the cost of admission if it means an investor can secure funding in as little time as possible. Not surprisingly, most investors will find that the speed at which they can make an offer is more important than the interest rate it came with. On the other hand, traditional banks may take as long as 30 to 45 days to close on a loan or just long enough to let a deal slip through your fingers.
Most private money lenders will require a bit of an insurance policy; or, more specifically, a promissory note and a mortgage or trust deed on the subject property. Some private lenders will even want borrowers to take it a step further and guarantee the loan with their own assets, but everything is negotiable.
2. Hard Money Lenders
In their simplest form, hard money lenders are lending companies that offer specialized short-term real estate-backed loans. Unlike their private money counterparts, they are actually affiliated with a company that specializes in lending. However, hard money lenders will typically offer shorter loan terms to avoid confusion with traditional lending institutions. Whereas transactional lenders will offer loans up to 15 and 30 years, hard money lenders tend to stick with a six-month to two-year window.
Other than their affiliation with an actual company, hard money lenders will operate a lot like private money lenders. Not only are their lending guidelines a lot looser than traditional institutions, but their rates are also slightly higher. Hard money lenders will usually ask for about 11 to 15 percent and about five points (additional upfront percentage fees based on the loan amount). However, it is worth noting that there are no universal hard money lender guidelines; each will come complete with a different set of criteria.
It is also important to note that most hard money lenders will usually only loan a percentage of the purchase price — typically around 70 percent, to be exact. That will require most investors to look elsewhere if they don’t want to spend any money out of their own pockets, perhaps a private lender.
The Difference Between Hard Money & Conventional Loans
Conventional lenders like big banks judge whether or not to award loans based on the borrower’s qualifications, such as their credit score and debt to income ratio. Hard money lenders take the borrower’s credit score and income into consideration, but they are not as important as they are to banks. These lenders can be individuals or small businesses, and each will have its own set of loan qualifications. Hard money loans are typically based on the investment property at hand and the strength of the deal presented to them. They will evaluate the after repair value (ARV) of the property and the reliability of the rehabber before making the loan. Hard money lenders will finance properties that need repair that most big lenders will not, but will also require higher interest rates and less favorable terms than traditional lenders.
How To Find Hard Money Lenders
Hard money lenders are located throughout the country, you need to know how to find them. The easiest way to find them is by searching online for hard money lenders in your area. Here you will find results for companies who work with hard money loans that you can contact. Attending real estate investor meetings is a great way to network with hard money lenders looking to work with potential borrowers. You can also reach out to other real estate professionals in your network who have experience working with these lenders or know of a contact that you can reach out to.
3. Wholesaling
Wholesaling can enable investors to make a lot of money in a short amount of time, making it a great vehicle for flipping houses. The process involves finding properties for sale, getting them under contract, and then assigning the contract to a new buyer. Wholesalers make money based on a percentage of the final sale, which is usually between five and ten percent. The wholesale process does not actually involve purchasing properties, making it a great opportunity to get started in real estate without access to financing.
There is one thing to keep in mind as you consider this route: wholesale properties will not fall from the sky, and neither are buyers. While this is a highly lucrative opportunity, investors will need to take on an active role to succeed. This requires keeping a close eye on the market, networking with potential buyers, and learning how to negotiate contracts. However, by putting in the necessary effort to succeed as a wholesaler, investors will be well on their way to securing their first rehab property. As a bonus: the skills and connections needed for wholesaling will certainly come in handy as investors progress into flipping houses.
[If you want to learn more about building your first wholesale buyers list, be sure to read this article.]
4. Partner With House Flipping Investors
Both private and hard money lenders are a great way for investors to flip houses with no money out of their own pockets, but they are not the only ways. One additional way to flip a house without using your own money is to partner with house flipping investors. It is entirely possible that teaming up with someone that is already flipping houses can be your next best move, and there’s no reason they couldn’t provide you with the funding you need. That said, a partner with money is just as good as a private lender or hard money lender.
Instead of taking on your next deal alone, consider the idea of partnering up with house flipping investors. Provided the right alliances are made, there’s no reason your partner can’t fund the deal — so long as you bring value to the table. However, it is worth noting that if you aren’t bringing the funds to the partnership, you had better bring a lot of value elsewhere. Perhaps you actually know of a deal, or maybe you have the right contacts. Whatever the case may be, as a partner, you need to carry your own weight. At the very least, partnering with investors who already have money is a great way to start investing.
5. Home Equity
Did you know you can actually use the equity built up in one property to purchase another? Homeowners with value in their current homes can utilize a few options to get access to cash. The first way to do this is through a cash out refinance. This involves redoing your existing mortgage and pocketing the difference between the two loans. There are no restrictions on what homeowners can do with this capital—meaning it could be used for the down payment on a fix and flip investment property.
Homeowners can also look into a home equity line of credit (HELOC) to purchase a rehab property. A HELOC operates similarly to a credit card, allowing investors to borrow against their equity and make payments every month. These loans will provide investors with a lump sum, offering a great start to flipping houses. The best part about this option is that the interest on a HELOC can be tax-deductible in some cases.
Note that homeowners must have a certain amount of equity in their property to take advantage of these options, which will vary based on your lender. As a general rule, the more equity you have built up, the higher your likelihood of getting approved will be. Finally: always consider how much equity you will have left in the property if you borrow against your home. Many homeowners will opt to maintain at least 20 percent.
6. Option To Buy
Option to buy, or lease option, is when investors agree to purchase a property after leasing. It works like this: renters occupy a space and then agree to purchase the home at the end of the lease agreement. The purchase price will be determined when the original contract is signed, and in most cases, rent payments will act as credits towards the final price. This is a great avenue for those wondering how to flip a house with no money down, as lease option homes do not typically require any upfront payments.
Investors hoping to flip a property through lease options will need to negotiate potential renovations and repairs at the time of the contract signing. That way, both parties are on the same page about any work being done to the property. The terms of an option to buy agreement will vary depending on circumstance, so always be sure to review the contract carefully. Investors may find this a viable option for flipping houses, though it will require preparation and a strong attention to detail.
7. Seller Financing
Another answer for those wondering “how to flip a house with no money” is through seller financing. Investors can either search for properties that advertise seller financing or pitch the idea to interested sellers after finding a home to flip. Rather than going through a traditional lender, seller financing allows investors to work directly with the former property owners. This is an attractive choice to flip houses with no money because investors have more flexibility when negotiating the loan terms. This can lead to a potentially small down payment, favorable payment schedule, and even simpler approval terms.
To secure a property using seller financing, investors need to know what to expect. Just like with private money lenders, investors need to instill a sense of confidence in potential sellers. Be transparent about your goals for the property and provide information that demonstrates why they should finance this deal. You will likely be asked about your income, employment, and credit history, but keep in mind that you are not working with a traditional lender. There is more room to explain your particular situation if necessary. Finally, remember that not every property that is eligible for seller financing will be the right fit for a rehab property. Mind your due diligence and consider if it is the right move for you.
8. Crowdfunding
Another way to secure a loan for your house flipping deal is through crowdfunding. Crowdfunding is a financing strategy that relies on multiple investors who contribute a portion of your total loan. You can search online to find various sites designed to specifically connect house flippers and crowdfunders to streamline the process. This is a great opportunity for house flippers who are unable to secure mortgages from other lending institutions.
Summary
Through no fault of their own, far too many new investors are unaware of the funding opportunities made available to them. For one reason or another, they are convinced they need to use their own money to buy a home, but they couldn’t be more wrong. In fact, you don’t need to use any of your own money if you want to start investing today. That is not to say having your own money wouldn’t help, but it’s certainly not necessary.
The best thing to remember when discovering how to flip a house with no money down is that your best chances of receiving funding are going to be private money lenders, hard money lenders, and partners. Each of these three options is made available to investors the day they get into the game.
Ready to get started flipping houses in your local market?
The best rehabbers know how to find the right properties, accurately estimate costs, and scale their businesses. Our new online real estate class, hosted by expert investor Than Merrill, can teach you the correct steps to flip your first property the right way and achieve success in real estate.
Register for our FREE 1-Day Real Estate Webinar and get started learning how to flip houses in your market!
The information presented is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing provided shall constitute financial, tax, legal, or accounting advice or individually tailored investment advice. This information is for educational purposes only.
Key Takeaways
Not happy with your income in 2020? You might be wondering how to double your money in 2021.
Investing is a great way to increase your earnings. There are five different investment strategies you can use to start doubling your money this year.
How to Double Your Money: 5 Strategies
Don’t get fooled by “get rich quick” schemes. If there were an easy way to double your money in a short amount of time, then everybody would be doing it.
If you want to increase your investment returns as quickly as possible, then you’ll have to be dedicated, disciplined, and patient.
For investors, the best way to double your money is to generate high returns.
How can you do that? Just use one of these five investment strategies:
The Rule of 72
Bond Investing
Employer Matching
Stock Options
Oversold Stocks
Let’s review each of these investment strategies.
[ Do you control your finances or are your finances controlling you? Register to attend our FREE online real estate class and find out how real estate investing can put you on the path toward financial independence. ]
1. The Rule of 72
The Rule of 72 is a principle that all investors should know. It’s a classic investment tool that can help you gauge how long it will take for an investment to double in value.
Divide 72 by an annual growth rate or interest rate, and you’ll get how many years it will take to double your investment. For example:
72 / 2% Growth = 36.0 Years
If your investment earns 2% every year, then it will take 36 years for that investment to double in size.
The higher the growth rate, the less time it will take to double the investment:
72 / 4% Growth = 18.0 Years
72 / 15% Growth = 4.8 Years
72 / 20% Growth = 3.6 Years
72 / 25% Growth = 2.9 Years
Here’s the big question: how do you obtain a growth rate of 10% or more?
As you can see from the numbers above, you need a growth rate of at least 15% if you want to double your investment within 5 years.
There are three ways you can produce a higher growth rate:
Invest More Money
Invest for a Longer Period
Choose High-Return Investments
Invest More Money
The more money you invest, the more income you can amass.
Let’s say that you invested $1,000 annually, and it grows at 12% per year:
1 Year: $120
5 Years: $600
10 Years: $1,200
17 Years: $2,040
At $1,000 invested annually, it would take 17 years for the investment to double.
But what if you invested $3,000 annually, at the same growth rate?
1 Year: $360
5 Years: $1,800
10 Years: $3,600
Let’s compare:
Doubling Your Investment
$1,000 Invested Annually: 17 Years
$3,000 Invested Annually: >10 Years
Creating a Passive Income
5 Years at $1,000 Invested Annually: Passive Income of $600 Annually
5 Years at $3,000 Invested Annually: Passive Income of $1,800 Annually
Many Americans can’t afford to invest $3,000 per year. But you should try and invest as much as you have available so you can shorten the amount of time it takes to boost your returns. If you’re only investing $250 annually, try investing $500 annually. Whether you have a retirement fund or hold shares in an ETF, do whatever you can to increase your annual contributions to your investments.
One of the best ways to get extra money for your investments is to cut down on your expenses. As Will Rogers once said, “The quickest way to double your money is to fold it in half and put it in your back pocket.”
Invest for a Longer Period
Even if you can’t invest a large amount of money annually, your money will add up significantly over a longer period.
If you’re a long-term investor—and especially if you’re investing for retirement—then you won’t be as pressed to make high contributions so long as you’re going to be making contributions for 30 years or more. You’ll have a lot more money leftover for your monthly budget, too.
IRAs, 401(k)s, and index funds are terrific investments for long-term investors.
Choose High-Return Investments
Investments that offer the highest returns tend to be higher risk. Conversely, investments that provide the lowest returns tend to be lower risk.
Blue chip stocks generate the highest returns—about 10% on average. But individual stocks are also considered high-risk, and there’s a greater chance you could lose money, especially if you’re going to hold the stocks for only three or four years.
However, it’s hard to get excited about low-risk investments, like government bonds—which only generate returns of 5% to 6%.
Your best bet is to find a middle-ground. Broad market index funds and ETFs are excellent because they’re bound to generate higher returns, but they also don’t carry as much risk. Look for ones that track the S&P 500, which is a well-diversified index that’s historically reliable.
Remember: it’s safer and easier to invest for a longer period than to bank on high-risk returns.
2. Bonds
For the sake of portfolio diversification, it’s helpful to invest in a mix of stocks and bonds. That will protect you if there’s a recession or if the company you’ve invested in goes through a rough financial period.
As mentioned in the last section, bonds don’t generate the highest returns—only 5% to 6% annually. But they’re a lot safer than individual stocks, and their returns are usually consistent, which is helpful for budgeting.
Safety is a big deal. While a 10% return might sound like a great way to double your money, you could lose your entire investment if the stock value plunges or if the company goes under.
If you have a family or if you have more extensive financial obligations, a bond might be a better investment option for you.
3. Employer Matching
Does your employer match your 401(k) contributions? If so, you have in your arsenal one of the best and easiest ways to double your money. This is obviously an approach that’s only suitable for investors who are planning for their retirement.
Most employers match 50 cents for every dollar, which is a whopping 50% return on investment. If you prioritize your 401(k) contributions, you could vastly increase your retirement fund.
Even if your employer doesn’t offer a 401(k) or employer matching, you can get similar tax benefits by opening and contributing to an IRA. You’ll either get a tax subsidy up-front or when you retire (depending on whether you have a traditional or Roth IRA.
4. Stock Options
Stock options are the fastest way to generate very high returns. But it’s also the riskiest method because it requires substantial speculation.
Unfamiliar with options?
An option is a contract that gives you the right to buy or sell a certain amount of shares in a company (usually 100) at a predetermined price and at a specified point in the future.
You pay a premium price for the options. Before the contract expires, you can buy or sell at a “strike price,” which could be lower or higher than the shares’ value.
There are puts and calls:
Put Option: Allows you to sell stocks at a specific price before the expiration of the contract.
Call Option: Allows you to buy stocks at a specific price before the expiration of the contract.
There are several different ways you can leverage options in your investment strategy. Still, if you’re trying to double your money, then you’ll want to speculate whether a company’s stocks will rise or fall and then purchase options accordingly.
You should avoid stock options unless you’re a seasoned investor. They’re difficult to invest in because not only do the stocks need to rise/fall as you predict, they also need to rise/fall within the time frame that’s designated by the option.
A successful option move could generate returns that are 10% or much higher. But there’s a whole lot of speculation involved, and it’s very risky. Read our deep dive on stock options if you’re interested in them.
5. Oversold Stocks
Sometimes, the best opportunity to buy stocks is when a stock’s price plummets, and you’re able to buy many shares for a lower price.
That’s not to say you should purchase bad stocks—stocks in companies that are performing poorly or which are grossly overvalued. The goal is to buy stocks that have been oversold.
Every so often, a profitable company may go through a slump, and frightened investors will bail out and sell their shares. If you believe that the company will rebound, you could seize upon the opportunity to buy more shares for less.
Individual stocks are a high-risk investment, so you must know how to do stock research if you’re going to hunt for oversold stocks. Stock research will help you understand:
Whether or not a company is capable of rebounding/remaining profitable
Whether or not a company has strong leadership and a solid business plan
Why the company’s stock dropped in the first place. Was there a financial scare? Change of leadership? New competitor? Overhype?
These factors will help you understand whether the stock will rise in value and generate high returns.
How to Double Your Money With Real Estate
One of the best ways to double your money is by investing in real estate. Nearly all real estate investments double in time because properties naturally appreciate in value.
There are five ways to double your money with real estate:
Rent By Room
Fix and Flip
Short-Term Rentals
Buy and Hold
Use Property Investment Data
Let’s review each of these strategies.
1. Rent By Room
If you’re renting out a residential property to tenants, you might consider renting out the property by the room—rather than renting the entire house to a single tenant. This is an excellent way to increase your cash flow and maximize your property’s return.
Some markets are well-suited for renting out individual rooms. The best markets are college towns and high-density urban areas. These locations see a greater number of tenants seeking short-term leases, or where tenant turnover is higher.
The higher rent might turn off some tenants. You could make the rental more attractive by improving the property or offering utility-free living (these are good properties for installing solar panels.
2. Fix and Flip
A fix and flip is one of the best ways to generate high returns in real estate. It also enables you to generate a high return in a very short amount of time.
The hardest part about executing a fix and flip is finding ways to keep the renovation costs down. It’s best if you can learn how to do basic renovation work yourself—like flooring, painting, or landscaping.
You should only hire contractors to do highly specialized work, like roofing or plumbing. When you’re hiring a contractor, find a balance between best-quality and lowest cost. You don’t need to turn the home into a Bel-Air mansion—you only need to make it nice enough so that it sufficiently improves the value of the home.
3. Short-Term Rentals
Short-term rentals are often more lucrative than long-term rentals. Short-term rentals enable you to charge higher prices more frequently. This is especially true of vacation rentals.
It’s possible that a vacation rental can generate as much money in one week as a leased property can generate in one month. If you own a property in an ideal location, you can make a ton of money by renting it out to travelers.
The tricky part about short-term rentals is that you’ll have to do cleaning and repairs more frequently—and if you don’t carefully manage these costs, they can siphon quite a bit of your revenue.
As with doing a fix and flip, you’ll want to find a middle ground for hiring cleaning/repair services or property management services. A property management company might take between 10% and 25% of your revenue, but they’ll also perform the necessary advertising and administrative work that you need to keep your bookings high.
4. Buy and Hold
How To Flip Money Legally
“Buy and hold” is the most traditional real estate investing strategy. You’ll buy a property and hold it for a long period of time until it appreciates. Your profit will depend on how much your property appreciates.
The key to buy and hold is to find a property in an up-and-coming neighborhood, especially those undergoing redevelopment.
How To Flip Money Quickly
Buy and hold is a long-term investment strategy. You should prioritize this strategy if you’re trying to save for retirement and looking for steady and reliable returns. But it’s also a good diversification option for short-term investors—it’s safe to employ one or two buy and hold properties to counterbalance a string of fix and flips.
5. Use Property Investment Data
Property investment data can help you make informed investment decisions. Investment data will give you insight on:
What's The Fastest Way To Flip Money
Pricing trends for national and local markets
The demographics and interests of homebuyers
Federal and state legislation that may affect the housing market
How To Flip Money Real Quick In Fortnite
Keeping up with this data is an everyday task for real estate investors. Get in the habit of checking real estate news every day before you get the day started or go to sleep. You can study market trends on numerous websites, like Zillow.com or Realtor.com. Bookmark them and visit them often.
Additionally, you can use a real estate calculator to help you budget for your real estate investments.
Property investment data can give you the foresight to make great investment decisions—and to double your money.
Summary
You can double your money in 2021 by increasing the amount of money you invest, planning a long-term investment strategy, or seeking out investments that generate higher returns (retirement plans, stock options, and oversold stocks). To double your money in real estate, you may want to consider investing in short-term rentals, single-room leases, fix and flips, and buy and hold properties. Property investment data can help you choose which type of real estate investment is right for you.
Do you want to be able to retire financially comfortable?
How To Flip Money Real Quick Video
Our new online real estate class can help you learn how to invest in rental properties that can help increase your monthly cash flow. Expert investor Than Merrill shares the core real estate investment principles that work best in today's real estate market.
How To Flip Money Real Quick Youtube
Register for our FREE 1-Day Real Estate Webinar and get started learning how to invest in today's real estate market!