House flipping is one of the most lucrative ways of making money today. There is a housing shortage, which means house prices are rising exponentially. If you are able to get your hands on a property to flip, then you could stand to make a huge profit.

However, because there is a housing shortage, it should come as no surprise for you to learn that financing a house to flip can be very difficult unless you are a millionaire. This post will tell you what your options are for financing a house, so you can get started as a real estate investor.

Taking a Loan

One of the most common ways of financing a property purchase is to take out a loan. As long as your credit score’s good and you have a clean financial history with no adverse events (i.e., bankruptcies or defaults), then most lenders will be more than happy to lend money to you. You should bear in mind that for large loans such as hard money loans or mortgages, you will need to have a large enough income to make repayments on your loan, with interest. Most companies will only lend you three times your annual salary when it comes to large loans. Hard money loans on the other hand require you to put up a property as collateral. According to the experts over at, you can apply and get approved for a loan online. When taking out any kind of loan, you need to be confident that you are going to be able to repay it.

Borrowing from Family

An alternative to taking out a loan from a professional lender is to borrow from one’s family. If your family is wealthy or has a lot of savings, then they might be willing to finance your property purchase, provided that you pay them back as soon as you have flipped the property and taken your profit. Borrowing from one’s loved ones can be a very hard thing to do though because asking can be awkward. It’s worth noting that if you are going to borrow from loved ones, ensure that repayments are made on time or you can strain your relationship.

Selling Property

If you currently own property that you don’t want, then selling it could be an effective way of financing your property purchase. In fact, owning property could be a great way to start flipping houses and building a name for yourself. You can flip the property that you currently own, using it to get good reviews online or to add a property to your portfolio. If you currently own land, then you may want to consider getting a building permit and permission to build a property there. You can then flip this property for a huge profit.

Private Individual Lenders

Private individual lenders are lenders who lend money to people privately. Unlike hard money lenders and banks, they are not financial institutions, meaning that they set their own rules. If you are going to borrow from a private individual, then you need to research them first. Unfortunately, in many places, private lenders are just loan sharks. A loan shark is an individual who lends to others and then charges very high interest, threatening violence if the loan isn’t repaid on time. Only work with professional, experienced, and well-rated private individual lenders.

Use Your Savings

If you have a substantial amount of savings, then it might be a good idea to use them to finance your house purchase. A lot of people don’t like to use their savings for house purchases, because it means that they don’t have any emergency money left over. Using your savings will mean that you don’t have to pay any interest and in turn save you money. As soon as you flip the property, you can then replenish your savings, or alternatively use the whole amount to buy another house, and then flip it for even more.

Re-mortgaging House

If you own a house and currently live in it, then one way of financing a new property purchase is to re-mortgage your house. A re-mortgage is when you release all of the equity that you have in your home back to the bank and get it in cash. As soon as you have flipped the property that you have bought, then you can either repay the bank and get your equity back in your home, or buy more property, and flip that until you can pay off your mortgage in full. Re-mortgaging a house can be a great way of financing a property purchase.  

If you want to start investing in properties, then now’s the time to start. While property prices are very high, that is only because there is a huge demand for them. Buying a property now will give you the chance to establish yourself as a property trader.