One of the ways I’ve heard of doing this is to create your own mortgage to cover the purchase and fix-up costs and sell the mortgage to a mortgage broker. Once you have sold the house, you will be able to use the proceeds of the sale to pay off the mortgage and keep a profit off the top.
However, I’ve never actually done this. There is, though, an excellent article on this web site, under the how-to section, written by J.P. Vaughan which describes this exact process in more detail.
How can I finance the purchase of a fixer-upper and renovation costs with no money down, and the seller wants all cash out ASAP? I have enough in unsecured lines of credit to purchase, but not to fix up (this is an expensive way to go anyway). Where are all you creative investors???