HOW TO FLIP A HOUSE USING JV WITH SELLER WITHOUT HAVING MONEY 

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One technique to flip a house without your own money for a down payment is to do a Joint Venture with the seller.

When browsing any real estate forum, it is easy to see that there is tons of interest in how to flip a house without using your own money. Why wouldn’t there be? After all, real estate investing is a capital intensive business, and there are many benefits to structuring a deal that does not include your own capital.

I have used this strategy before where I entered into a financing agreement with the seller. They funded the renovation, I managed the renovation, and we split the profits at a pre-negotiated proportion. It was awesome.

Multiple Ways to do a Joint Venture

There are two fundamental different ways you can setup a joint venture to flip a property with no money down. The first way is to have a 3rd party partner on a deal to supply the cash for the project. This is probably the most common way but it requires a partner with deep pockets.

Funding Tip:

A potential Win-Win scenario is for the owner to tap into a home equity line of credit for the renovations. Home equity lines of credit are usually at a very good interest rate. 

Benefits to Seller

By allowing us to renovate the property, he was able to sell the property quick once it was put on the market. He was also able to make some money with the equity split of the gain we created.

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