Fix & Flip 101: How to Fund Your First Flip with Minimal Cash
You’ve probably seen house-flipping success stories—someone buys a distressed property, renovates it, and sells it for a huge profit. But what they don’t tell you? Most new investors don’t have $200K sitting around to make it happen.
That’s where creative financing comes in. You don’t need a massive bankroll to get started with fix & flips—you just need the right strategy, the right funding, and a little creativity.
At MGM Capital, I specialize in helping investors get deals funded—fast. Whether you’re a first-time flipper or scaling your portfolio, let’s break down how you can fund your first flip with minimal cash out-of-pocket.
🔹 The Reality of Fix & Flip Financing
Before we get into funding strategies, let’s clear up one big misconception:
👉 Traditional mortgages won’t work for fix & flips.
Banks don’t like lending on properties that need work. If a home is distressed, outdated, or missing a working kitchen, your local bank won’t touch it with a conventional loan.
That’s why most investors use alternative financing—including hard money loans, private lenders, or creative deal structures—to make flips happen.
🔹 3 Ways to Fund Your First Flip with Minimal Cash
1. Partnering with Investors (OPM – Other People’s Money) 💰
If you don’t have the cash to fund a flip, partnering with an investor can be a game-changer. Here’s how:
✅ Silent Partner: Someone funds the deal, you handle the project & split profits.
✅ Joint Venture (JV): Both parties contribute cash, experience, or resources.
✅ Equity Split: Offer a return on investment in exchange for upfront capital.
💡 MGM Capital Tip: I work with a network of investors looking for profitable flips—so if you’re looking for a funding partner, let’s talk!
2. Seller (Owner) Financing 🏡
In some cases, the seller can act as the lender—meaning you won’t need to go through a bank at all. With owner financing, you:
✅ Negotiate low or no down payment terms.
✅ Make payments directly to the seller instead of a bank.
✅ Take control of the property without needing upfront financing.
💡 MGM Capital Tip: This works best with motivated sellers who just want out—look for distressed properties, pre-foreclosures, or landlords ready to sell quickly.
3. Hard Money Loans (Fast Funding, Low Cash Down) 🔥
Hard money loans are one of the most popular fix & flip financing tools because:
✅ They’re based on the property’s ARV (After Repair Value)—not just your credit.
✅ You can finance 90% of the purchase price + 100% of rehab costs.
✅ They close way faster than banks (usually in 7-14 days).
At MGM Capital, I work with flippers every day to secure fast, flexible funding for deals. If you need financing for your next flip, let’s connect and get you funded.
🔹 Qualifying for Fix & Flip Loans: What Lenders Look For
Even if you’re new to flipping, you can still get funding—if you present the deal the right way. Here’s what lenders (like me!) are looking for:
✅ Credit Score: 620+ is ideal, but some lenders approve lower scores.
✅ Experience Level: First-time flippers are fine IF you have a strong plan.
✅ Loan-to-Value (LTV): Most lenders offer 65-80% of the purchase price or ARV.
✅ Proof of Funds: Lenders want to see you have reserves for carrying costs & payments.
💡 MGM Capital Tip: If you don’t have experience, bring in a mentor, contractor, or partner who does—lenders love seeing a strong team behind the deal.
🔹 Next Steps: Get Your First Fix & Flip Funded 🚀
Now that you know the funding options, it’s time to take action. Here’s what to do next:
✅ Identify a property that fits fix & flip criteria.
✅ Choose a funding strategy that works for your situation.
✅ Get pre-approved for fast fix & flip financing (I can help with that!).
Coming Next in the Series:
👉 Fix & Flip 102: Loan Options & How to Get Approved (Stay tuned!)
Need funding for your next flip? Let’s chat!
Final Thoughts
Getting into fix & flip investing doesn’t mean you need hundreds of thousands of dollars upfront. With the right funding strategy, you can get started today.
At MGM Capital, I help investors secure fast, flexible funding for flips—so if you’re ready to make your first deal happen, let’s talk.
🚀 Stay tuned for Part 2!
