Can You Really Flip Properties With No Money Down?

Flipping properties with no money creates an appealing low barrier to entry to property investing, and it’s the reason many people want to get into it.

Wholesaling properties is one way to profit in real estate with zero money down—essentially, wholesaling means bringing sellers and investors together and collecting a finder’s fee.

However, you cannot act as a wholesaler if you’re considering flipping bank-owned properties. Bank-owned properties must be purchased before they can be flipped. You cannot act as a wholesaler and assign contracts on bank-owned properties.

No Money Down Options

No Money Down Real estate

How can you get into the game with no money down? While you can purchase a property with no money down, you may be competing with people who can put substantial money down so your chances of having your offer accepted are not good. Here are a few options:

  1. Wholesale

Avoid bank-owned properties and limit your efforts to wholesaling fix and flip properties: connect with a seller, make them an offer with an assignment contingency which allows you the opportunity to find an investor before the closing date, and sell the property to this investor at a profit.

This model comes with a significant risk: if you can’t find an investor to assign the contract to before the closing date, you become responsible for purchasing the property, in which case you may be forced to put money down as well as hold the property until you sell it.

  1. Use Other People’s Money

You can purchase a property with private money, meaning a cash partner. You source a good fix and flip deal. You complete or manage the rehab work. Your cash partner fronts the money to fund the purchase and the rehab. The two of you distribute the proceeds according to your pre-defined agreement.

This is a good option if you:

  • Have the time and expertise to do the rehabbing work (or manage the project). You will, through sweat equity, add value that matches the money invested by your cash partner.
  • Have poor credit, since you are leveraging your cash partner’s down payment and credit rating.

It’s vital to have a partnership agreement in place before looking for properties that includes a timeline for completion of the project, to avoid holding costs. Clear communication is key!

  1. Hard Money Loan With No Down Payment

Most hard money lenders require a 20% down payment plus points (2-10%). To flip a property with no money down, work with a lender who will roll those points into the loan and use equity in another property as collateral for this purchase. This requires that you own the other property free and clear, or you have at least 40% available equity to use as collateral.

Since hard money loans are typically interest-only, you will need to flip the property within a month, or find a cash partner who can cover the holding costs while the property is being rehabbed.


Flipping a property with no money often requires the help of others through wholesaling the deal, using private money or working with a hard money lender.  If you live in the Greater Fort Lauderdale area and want to learn more, contact us.