By Ralph R. Roberts, Joseph Kraynak

Part of Flipping Houses For Dummies Cheat Sheet

Flipping houses is an expensive endeavor. You need money to purchase the property, renovate it, pay the bills for the duration of the project, and sell the property. Where will you find the money to finance your house flips? Here are a few sources to consider::

  • Your own savings
  • Home equity loan or line of credit (on your current home)
  • Bank loan (you’ll need cash for a down payment)
  • Personal loans (from friends or family members)
  • Government loan (if you’re buying from a government program)
  • Hard money loans (from investors)

After you purchase a property, you may be able to finance the repairs and renovations by refinancing to pull equity out of the property.