Fix and Flip Down Payment Funding: Zero Cash to Close

Fix and Flip Down Payment Funding Strategies

One of the biggest hurdles for flippers is the initial cash requirement. Fix and flip down payment funding solves this by providing the 15% to 25% required by your hard money lender.

How to Fund the Down Payment

Instead of draining your bank account, you can use modern gap funding techniques:

• 0% Business Credit Cards: Sequence applications to get $50k-$150k at 0% interest, then liquidate the cards to pay the down payment.
• Unsecured Term Loans: Borrow the exact amount needed for the down payment and closing costs at a fixed rate.

The Zero Cash to Close Model

By combining a hard money loan (covering 80% of purchase and 100% of rehab) with gap funding (covering the 20% down payment and closing costs), you achieve a "zero cash to close" deal. You keep 100% of the equity and maximize your cash-on-cash return.

Read more about structuring these deals in our Definitive Guide to Gap Funding.