This is the most common path. It allows you to buy a house and fund the repairs with a single mortgage. While it typically requires 3.5% down, you can often cover that through down payment assistance programs or a financial gift from a family member.
You find a distressed property, get it under contract, and then sell that contract to another investor for a fee. You can use that fee as your down payment for your own project. how to buy a fixer upper house with no money
Leo stared at the "For Sale" sign leaning crookedly in the overgrown yard of 402 Willow Creek. The porch was sagging like a tired eyelid, and the roof had lost a fight with a fallen oak branch. To most, it was an eyesore. To Leo, who had a toolbox and exactly three hundred dollars in his savings account, it was a ladder. This is the most common path
He didn't go to a big bank; they would have laughed at his balance sheet. Instead, Leo spent three weeks tracking down the owner, an elderly man named Mr. Henderson who lived two states away and was tired of paying property taxes on a "rotting pile of sticks." You find a distressed property, get it under
You find a motivated owner who owns the home outright. They act as the bank, allowing you to pay them monthly. If the house is in bad enough shape, they might agree to a $0 down payment just to get the tax liability off their hands. The Story: The House on Willow Creek
These are private investors who fund "fix and flips." They care more about the property's potential value (After Repair Value) than your credit. They often fund 100% of the purchase and repair costs, but the interest rates are high and you must sell or refinance quickly.