🏠 House Flip Academy · Interactive Guide

Finance Your
First Flip
With Confidence

Learn every financing strategy, pick the right one for your situation, fill in your deal terms, and see your real profit — step by step.

6
Financing Methods
70%
Rule Calculator
4
Step Framework
The House Flipping Blueprint
Before picking a financing strategy, understand the four stages every successful flipper follows from acquisition to sale.
01

Find the Deal

Identify distressed properties trading below ARV. Drive for dollars, MLS, auctions, and wholesalers are your hunting grounds.

02

Run the Numbers

Apply the 70% rule: never pay more than 70% of ARV minus repair costs. This protects your margin from day one.

03

Finance the Purchase

Choose from hard money, private lending, HELOCs, or conventional loans. Each has trade-offs in speed, cost, and access.

04

Rehab & Sell

Manage renovation to budget and timeline. Every extra week costs holding money. List fast, close fast, collect profit.

The Profit Formula
This is the equation we'll calculate together in Step 4. Understand it here before we run the numbers.
Maximum Allowable Offer (MAO)
( ARV × 0.70 )
− Fixed Costs  (closing, agent fees, taxes, permits)
− Rehab / Renovation Costs
− Desired Profit
− Holding Costs  (monthly cost × months held)
= Maximum You Should Pay for the Property
Choose Your Financing Strategy
Select the method that fits your situation. Each card expands with a full breakdown — how it works, what to watch for, and typical terms.
⚡

Hard Money Loan

Asset-based, short-term loans from private lenders. Close in days, not months — built for investors who move fast.

Fast closing No income verify Rates 10–15% 6–18 mo terms
🤝

Private Money Lender

Borrow from individuals — friends, family, or investors — with fully negotiated terms. More flexibility, often lower rates.

Flexible terms Lower rates possible Network needed Relationship risk
🏡

HELOC / Home Equity

Tap equity in your primary home. Cheapest funding available if you have the equity. Draw only what you need.

Lowest rates Revolving credit Requires equity Risk to primary home
🏦

Conventional Loan

Traditional bank financing. Best rates but slowest process and harder to qualify on investment property.

Best rates 7–9% Longer terms 30–60 day close Strict qualifying
🗝️

Seller Financing

The seller acts as the bank. No traditional lender involved. Negotiate directly for creative deal structures.

No bank approval Creative terms Rare to find Seller must agree
💵

Cash / Self-Funded

Use your own capital. Maximum negotiation power, zero finance costs — but ties up your liquidity completely.

No interest cost Fastest close Large capital needed Opportunity cost
Fill In Your Deal Terms
Every field feeds directly into the profit calculation. Be as accurate as possible — garbage in, garbage out.
⚡ Hard Money Loan selected
Estimated sale price after full renovation
What you're paying for the property
Total contractor + materials budget
Closing costs, agent fees, taxes, permits
Loan payment + utilities + insurance per month
How long you'll own the property before selling
Minimum you need to make this worth your time
Annual rate on your financing
Your Deal Analysis
Here's the complete financial picture of this flip based on your inputs.
📊 Deal Snapshot
What This Means