Getting 100% financing for your house flipping investment is not as difficult as you think. Essentially you are starting a business so you will be able to approach a lender with your business plan and projected return on investment for financing your rehab deals.

Here are some ways you can get 100% financing:

Find an Absolute Bargain

If you find a house to flip that will turn a ridiculously good profit, it will be tough for a lender to turn you down. In fact, the better your profit, the more likely you are to get 100% financing. Remember that 100% financing doesn’t mean that there are no costs. There will be administrative fees to pay, but the bulk of the funding you need will be made available.

Apply for an Unsecured Business Credit Line

As house flipping is essentially a business, you will—depending on your credit history—be able to apply for a line of credit from the bank to finance your business. Unsecured loans command an origination fee, which is payable once every five years, and you can use the funds for anything to do with the business, including funds for renovations or repairs, closing costs, or marketing your property once you’re ready to resell.

Negotiate a Seller Carryback

A seller carryback is when you pay the seller the majority of the purchase price immediately and the balance once you have resold the house. It is essential to check each state’s laws around this as seller carrybacks are prohibited in some states. 

Find a Business Partner

Many people have good credit, or even hard cash, who are too busy to leverage it to make more money but would be interested in partnering with someone who can make the deal happen and help them to make their money make more money. You have the time, and they have the money, so it is a win-win situation.

If you’re just getting started in flipping houses as a form of real estate investment, you will most likely not have built up cash reserves and will need assistance. Getting 100% financing is one way of getting your new business off the ground, even if you have bad credit. The better your credit, the more money a lender will be prepared to loan you and, the more of your own money you have, the less money you will need to borrow. However, even with poor credit and little of your own hard cash, if you find a bargain house to flip and can show a lender, the seller of the home, or a possible business partner how much return can be expected on the investment. It’s a tidy sum; you shouldn’t have any problem getting 100% financing for flipping a house.

Once you have embarked on your new venture and have made your first return, be sure to set aside a portion of your profits to put towards your next real estate investment. Before you know it, you may not even need to get 100% financing because you’ll be able to do it all by yourself.