How do house flippers acquire money to finance renovations

[Joshua Lira]

I have a question concerning house flipping. I know most use hard money lenders & private lenders to acquire the property but how do they finance the renovation? Do they borrow more than what the purchase price of the property is? Or do they tap into lines of credit (credit card, business line of credit etc...) or personal cash.

[Marc Desrosiers]

@Joshua Lira

Personally I use my two credit cards from the orange box store to finance materials. If over $299 they don’t charge interest for 6 months on that purchase. So they basically finance it for free. Little tip, if your under the $299 you can add gift cards to bring the total up and then use the gift cards for smaller purchases. I also have cash set aside for other expenses including the monthly payments on the credit cards. The majority is on the credit cards though and gets zeroed out after closing.