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You’ve done your due diligence, checked your numbers backwards and forwards and after all your research you determine you have a smoking deal.

What now? How are you going to fund it?

You’ve probably heard that you can play the fix and flip game with no money out of your pocket, yet you’re faced with the dilemma of having this excellent opportunity and no money to pull the trigger on it.

Buying homes to fix and flip with no money and no credit is a very gray area. First off, you need cash to fix and flip houses. It is definitely capital intensive. You need money to tie the property up and you will need cash to fund the rehab, plus all your costs of holding it. Without enough working capital you won’t be able to take advantage of your deal of the decade.

But what about all those creative ways of tying up a property then fixing and flipping it with no money out or your pocket? How is that possible?

I mentioned earlier that it’s a gray area because lots of people out there make it seem like you don’t need any money to play this game, when in fact you do. It doesn’t necessarily need to be your money. It could be someone else’s. The good news is there are lots of “someones” out there.

The big question is how do you attract the money?

Believe it or not finding the funding is the easy part. Cash is everywhere. It’s abundant. You just need to learn how to get it. Here are 4 of the most popular sources of capital for real estate investing:

  1. Hard Money Lenders
  2. Private Money
  3. Self-Direct IRA/401K funds
  4. Love Money


I have a long list of hard money lenders. They are everywhere and want to put their money in play. Hard money lenders are a valuable resource to your fix and flip business although they may not solve 100% of your problem. Typically hard money lenders will only lend 70-85% of the purchase price, which means you will need additional capital to fund the down payment, service of the loan and the rehab costs.


Private money comes from individuals that want higher average returns than they can receive in more traditional investments. You can borrow these funds or partner up. There are many ways to structure these types of joint ventures to create a win-win for you and the investor.


I can write a book on how to attract this type of money. Investors with IRA or 401K accounts generally want better returns than what the equity markets offer. If you can show them how your project can make more money than stocks or mutual funds you will have a long-term investor to fund your deals


This money comes from people you know intimately like family or close friends. Because these people trust you there’s a good chance you can borrow or partner to fund 100% of your deal.

As you grow your fix and flip business it’s likely you’ll use all 4 of these sources for money. Marty and I do. The more experience you have the easier it will get. Hard money lenders will see the upside of your project, as will most seasoned private money lenders/partners. The important thing to remember is that if you truly have a great deal the money will find you.