Do you want to make money flipping properties for profit? If YES, here is a complete guide on how to buy and sell a house at the same time with no money down. Learning to buy and sell a new home can be very helpful for you when you are looking to move from your old property to a new one and you don’t have the cash to buy a new home while still retaining ownership of your old home.

There is a lot of work that goes into buying a home – you have to search for a suitable property, handle the paperwork, the deadlines, and so on. Now when you add this to the equally overwhelming process of selling a home, it can be extremely challenging.

If you sell your home first before buying, you may end up with no roof over your head for a few months, and if you buy before you sell, you may also face some challenges especially overestimating the value of your property, and ending up with way less cash than you had hoped after closing.

It is possible to buy and sell a home at the same time but you may not be able to close on both houses at the same time. You may find your dream home, while your old home is still in the market, and vice versa. This means that the first challenge you would have would be how to time both deals perfectly, so that you can buy and sell at the same time without problems.

Here are some tips that you can use to make the process of buying and selling a home at the same time work.

How to Buy and Sell a House at the Same Time With No Money Down

1. Use a ‘Sale and Settlement Contingency’ Agreement to Make an Offer on Your New Home

You can use a sale and settlement contingency to make an offer on your new home before listing your current home for sale. This can help you to avoid the challenges of not being able to find a new home to buy after selling your old one. You would be able to enter into a home purchase deal, but the deal would be based on closing the sales on your old home.

This means that you would only be bound by the contract if your current home sells but this method can only work in a non-competitive real estate market. Most sellers would not agree to a sale and settlement contingency agreement in a competitive market.

2. Use a HELOC or Bridge Loan to Purchase Your New Home

Except you are buying your new home for cash, it may be difficult to get a second mortgage on your new home without selling the old one first. In this case, you can use a Home Equity Line of Credit (HELOC) loan to fund the purchase of your new home, whilst still trying to sell the current home. Under a HELOC loan agreement, the lender can offer you a second loan for a new home based on the equity that you have acquired on your current home.

You can now pay off the loan after selling your current home. The short term of the loan would make it much more affordable, and then you can easily finance the purchase of a new home while trying to sell your old home so that you can have a roof over your head after selling your current home.

Another option is to purchase your new home with a bridge loan while trying to sell your current home. Bridge loans are short-term loans that can help to close the gap between the sales price of a new home, and a home buyers new mortgage in the event that the buyer is unable to sell the old home before buying a new one. Bridge loans can be used to fund down-payments and mortgage payments on your new home until your current home sells.

3. Rent Your Current Home

You can enter into an agreement with the buyer of your current home, so that you can rent the property for a few months (between 1 and 3 months) after sales has closed. This might help you prevent the inconvenient process of moving your things into a temporary accommodation until you find a new home to buy.

4. Rent a Storage Space

You can look for a cheap and safe storage facility to move your property into after selling your home, so that you can look for your dream home. This can take away the pressure to find a new home so that you can patiently work towards finding a new home for yourself. You can also look for a temporary accommodation to rent until you are able to get a suitable home to buy

5. Learn the Market

The real estate market fluctuates from time to time so you have to target a suitable time when you can sell your old home and still have some profit left for yourself even after buying a new home. This can happen if you can take out time to discover the best time to sell, and the most suitable time to purchase a new property.

6. Consult a Real Estate Agent Early

The earlier you consult your real estate agent, the better for you. Some of the factors that delay the closing of a home can be easily avoided when you talk to your real estate agent fast enough. They would help you handle the paperwork, recommend repairs, help you understand the current market, give you an idea of how much your home is worth, and how much you can expect to spend to get your dream home, and other tips that would make the process of selling and buying your new home faster

7. Delay Closing on Your New Home Purchase Deal

You can also find smart ways to delay closing on the purchase of your new home so that it coincides with the closing on the sales of your current home. Anything from mistakes and errors in the paperwork, dissatisfaction with the repairs made on the property, appraisal problems, insurance issues, and a number of other smart tactics can be used to drag the closing for a few days or weeks so that the funds from the sale of your old home can be used to finance the purchase of a new home.

However, you have to be smart about this so that you don’t end up catching a court case, and you have to select your buyer wisely- you could get into trouble if you select a buyer who is just like you; looking to drag the deal for as long as possible as well.

The whole idea is to get a serious buyer who is able to close the deal fast enough and seamlessly, so that you can use the proceeds to finance the purchase of a new home without having to incur extra costs of renting a temporary home.

Frequently Asked Questions

  1. Can You Make Money Buying And Selling Houses?

Yes! When you invest in real estate, you can achieve great net worth in a short period.

  1. What Do You Need To Do To Buy And Sell A House?

To buy and sell a house, the following are required;

  • Deed to the house
  • Mandatory disclosures
  • Original sale contract
  • Property tax documentation
  • Mortgage loan documentation
  • Homeowners insurance records
  • Final purchase and sale agreement
  • Personal identification information
  1. What Is A Contingency Clause When Selling A House?

A contingency clause is an addition to a purchase contract stating that a specific event must happen before a real estate transaction can close. If this event doesn’t happen, the buyers can walk away from the sale, usually without losing what’s known as earnest money, or dollars they deposit in an escrow account to show they’re serious about buying the house.

  1. Can You Really Flip Houses With No Money?

The answer is yes! If you want to flip a property but don’t have enough money for a down payment, there are other options that will allow you to easily enter the house-flipping market

  1. How Much Does It Cost To Sell A House?

The average cost to sell a house is about 15% of its sale price—which includes agent commissions, home improvements, closing costs, and moving fees. So if you sell a home for $250,000, you might pay around $37,000 to cover selling expenses.

  1. Can Wholesalers Work With Real Estate Agents?

Yes! wholesalers can use agents for wholesaling MLS properties. Acquiring deals and selling deals through the MLS or realtors can perfectly work.

  1. How Much Money Do You Need To Buy A House?

To purchase a house, you need at least 25% of a home’s sale price to cover a down payment, closing costs, and moving fees which is over $60000.

  1. How Much Do Real Estate Agents Make?

The average amount a real estate agent makes is about $45,990 each year.

9. How Much Can Wholesalers Pay For Properties?

The average cost a Wholesaler pays for a property is about $78301 per year.

10. What Is The 40 70 Rule?

The 40 70 rule is the lower and upper limits of good decision-making.

11. Do You Need A Real Estate License To Flip Houses?

You don’t necessarily need a real estate license to flip a house, but it’s a good idea to get your real estate license because it will open up more opportunities for you.

12. What Is House Flipping?

House flipping which is also called wholesale real estate investing is a type of real estate investment strategy in which an investor purchases a property not to use, but to sell it for a profit.

13. Can You Flip A Foreclosed Home?

Of course, you can! If you’re buying a foreclosure to flip and make a profit, you will have to make the entire process move quickly. Once you close on a house, you need to have your contractors lined up and ready to get to work immediately.

14. How Do You Start A House Flipping Business?

The following are the steps you need to start a house flipping business;

  • Research for your ideal real estate market
  • Set a budget and house flipping business plan
  • Confirm your house flipping financing
  • Network with contractors
  • Find a house to flip
  • Buy the house
  • Renovate
  • Sell your house fix and flip
15. Can You Sell Your House Within 6 Months Of Buying It?

The general rule is usually six months—because that’s how long many lenders will need a property to be registered before they will issue another mortgage on it. But it’s all down to individual circumstances though.

16. How Long Does It Take To Buy A House?

In most cases, buyers can spend around 6 months purchasing a home. It will usually take about a week to get your mortgage pre-approval after you apply, and you’ll spend around 3 months looking at properties.

17. How Can You Find Properties To Wholesale?

The following are some ideas you need to find properties to wholesale;

  • Target the properties and property owners
  • Use the right media
  • Advertise correctly
  • Use technology system
18. How Much Money Do You Need To Start Flipping Houses?

The minimum amount you need to start flipping houses is anything between $12,000 and $15,000.

19. What Makes A Good Real Estate Investment?
  • The location
  • The condition
  • The price range
  • The size
  • Rental demand
20. Is It Worth It To Flip A House?

Of course yes! There are a lot of people who do it, enjoy it, and also make a lot of money through it. Just be sure you know how much work it entails before you making the leap. If you have the right connections, resources, and patience, flipping houses can be a great investment venture.

21. How Much Does It Cost To Build A House?

The average cost to build a house as of 2022 is about $298,432, and a typical range is between $154,185 and $477,534.

22. How Long Should You Live In Your Home?

As a general rule, a buyer should plan on staying five or more years in a home.

23. When Is The Best Time To Buy A House?

The best time to buy a house is usually late summer or early fall—when home prices are low and inventory is high.

24. Can You Deduct Your Own Labor When Flipping A House?

No! You cannot. Your labor is never tax-deductible nor can it be added to the cost of an asset you own.

25. How Much Does The Average House Flipper Make?

The average amount a house flip makes is about $60,000.

26. Should You Buy Your New Home Before Selling Your First?

Selling first is beneficial if you need to access your current home equity to buy your new home. However, selling first often requires temporary housing while buying your new house.

27. Should You Buy A House Without A Contingency To Sell An Existing One?

No! If you don’t have the cash necessary to purchase the house, it would be beneficial to include either financing or home sale contingency.

28. How Can You Be A Successful Wholesaler?

With the following tips, you can be a successful wholesaler;

  • Train your staff
  • The case for automation
  • Don’t use price to compete
  • Be on top of your cash Flow
  • Build relationships with customers
  • Have a rethink your order fulfillment
  • Use B2B e-commerce to your advantage
  • Keep inventory under control and automate
29. Can You Buy A House With 20k?

Yes! 20k is enough money to use as a down payment for a modest rental property.

30. Is It Better To Flip Or Rent?

Flipping is better. It can earn a lot of money in a relatively short amount of time.

31. Is House Flipping Still Profitable?

Yes, studies show that flipping houses is lucrative and likely to remain profitable.

32. Can You Flip A House With 20k?

If you only have $20,000 to invest in a real estate flip, it is very possible to flip a house.

33. What Is The 70 Rule In House Flipping?

The 70% rule helps home flippers determine the maximum price they should pay for an investment property. Basically, they should spend no more than 70% of the home’s after-repair value minus the costs of renovating the property.

34. How Much Tax Will I Pay If I Flip A House?

Federal income tax rates range from 10-37% of your income.

35. How Much Money Does A Wholesaler Make On Each Deal?

A wholesaler earns between the range of $5,000 and $10,000 for each contract.

36. What Are Closing Costs And Who Pays Them?

Closing costs are paid according to the terms of the purchase contract made between the buyer and seller. Usually, the buyer pays for most of the closing costs, but there are instances where the seller may have to pay some fees at closing too. But anything related to the loan, property, or insurance is the buyer’s responsibility.

37. Who Pays For The Closing Costs On A Wholesale Deal?

While almost everything in real estate is negotiable, the closing costs are always paid by buyers in a Wholesale deal.

38. Can You Flip A House With 10000?

Yes! It’s entirely possible to flip a house with at least $10,000 to start off depending on the geographic location of the property.

39. How Many Houses Can You Flip In A Year?

The average real estate investor flips 2 to 7 houses in a year.

40. What Is The 70 Rule?

The rule of 70 is simply a means of estimating the number of years it takes for an investment or your money to double. The rule of 70 is a calculation to determine how many years it will take for your money to double given a specified rate of return.

41. Can You Flip A House With 50k?

Yes! Investing $50,000 in real estate can go a long way toward creating a diversified rental property portfolio that generates strong cash flow, provided that you do it right.

42. What Is The 90 Day Flip Rule In Real Estate?

The 90-day flip rule in real estate is simply a property regulation that was developed in June 2015, and many believe it made selling properties a much more difficult procedure. This rule states that property owners who want to procure a flipped property can only proceed after 90 days have passed.

43. How Do You Flip A House In 2022?
  • Prepare a plan and budget
  • Partner with an agent
  • Research and know the market
  • Invest only in necessary repairs
44. What Are The Pros Cons Of Selling To A Cash Buyer?

The pros are the following;

  • Fast home sales
  • Fast home offers
  • No repairs or home staging
  • Able to sell in difficult circumstances

The cons are the following;

  • Low purchase offers
  • There are no guaranteed sales
  • There are no competing bidders
  • Deduct repairs and improvements from your price
45. Do You Need A License To Flip Contracts?

Of course, you will need a license! Having a real estate license will help you have multiple sources of income. When bidding on a property to flip, you can present your offer and make a sales commission when the deal closes.