How to Flip a House with Limited Funds

How to Flip a House with Limited Funds

Working capital is essential in the fix and flip business. You need cash to keep your projects on track to completion, and to acquire new properties as they become available to keep your business healthy. At times, you may need fix-and-flip funding to provide an infusion of working capital to meet business needs.

Funding Types Available for Fix and Flippers

Funding for the fix-and-flip business can come from a variety of sources. In some cases, it can be a good idea to form a partnership with a knowledgeable real estate person who has the capital to invest. Mor often than not, hard money loans from a capital company or private money lender are the best solutions. In particular, hard money loans are the norm in some real estate markets, especially when it comes to property flipping on a low budget.

How to Keep Your Costs Down

If you keep your costs low, you’ll make more in profits. Here are a few tested ways to skimp on costs:

Outsource as little as possible. Contractors especially can be quite expensive. It’s best to do as much of the work yourself, especially if you are on a tight budget.
If Necessary, Use Inexpensive Labor. Sometimes you will need help, especially when it comes to labor. Consider hiring a few hands at minimum wage or a tad above for general work not needing specialized expertise.
Obtain Materials at a Discount. Be creative in sourcing your materials. Be sure to visit junkyards and befriend the folks there. Also, check with hardware stores and large retail outlets for any oversupply of materials you can take off their hands.

TCF Capital Can Help

Here at TCF Capital, we know how important it is for fix-and-flippers to get the funding they need to keep their projects sailing along. Give us a call today. We can help.