Flipping money, or spending money on some sort of asset and then reselling it for profit, is one of the oldest side hustles in the books.
People have been flipping stuff since barter economies existed, and it doesn’t matter if you’re flipping $500 or barely have any money to start; everyone can try to flip cash.
So, if you’re wondering how to flip money to grow your starting capital, this is the post for you!
I’m covering over a dozen ways to flip money, and many of these ideas don’t need much starting capital at all.
What Is Flipping Money?
Flipping means buying an asset that you think will appreciate and reselling it at a later date for profit.
So, when people say “flip your money,” this basically means investing your money into an asset you think you can resell down the line to make more than you spent on it.
How Does Flipping Money Work?
The first step in figuring out how to flip money is to decide what sort of asset class you want to deal with.
When flipping, it’s important to deal with asset classes you understand because you need to identify undervalued assets, buy them, and then flip them.
Identifying these undervalued assets takes experience, so that’s why it’s best to stick with what you know best.
The next step in flipping your money is to decide how much to invest.
You can flip $1,000, much less, or much more; how much capital you start with largely depends on the asset class, your risk tolerance, and goals.
Finally, the next step in flipping money is to actually buy the asset you’re considering and to then resell it for a profit.
Some assets, like properties, sometimes need work and renovations to flip and are much more hands on.
In contrast, other flippable assets like domain names are more of a buy-and-hold strategy.
Whatever you decide, this is the basic economics of how to flip money to make money!
The Best Ways To Flip Money
Now that you know how flipping money works, it’s time to outline some popular asset classes people flip for cash!
1. Start A Retail Arbitrage Business
Retail arbitrage is undeniably one of the most common ways to flip money, and it’s also a business model with immense potential.
In a nutshell, retail arbitrage involves buying popular everyday products on discount and then reselling them online for a profit.
Popular retail arbitrage products include:
- Home goods
- Sports equipment
- Video games
Usually, retail arbitrage sellers buy inventory from stores with clearance sections, like Kohl’s, Target, and Walmart.
Many retail arbitrage sellers then flip their inventory by selling merchandise with Amazon FBA.
With Amazon FBA, you send your inventory to Amazon warehouses for a fee. When you make a sale, Amazon handles shipping and fulfillment for you, making it easier for you to focus on growing your sales.
Amazon FBA is ideal for retail arbitrage because it lets you focus on sourcing more inventory, and your listings are also Prime-eligible which is pretty much a must-have these days.
So, if you want to flip your money, you can try buying popular products you spot on sale and then listing them under your Amazon FBA store.
This requires startup capital, and there’s a steep learning curve, but the income potential with this idea is very high.
2. Invest In Real Estate With Crowdfudning
Another way to flip money is to invest using real estate crowdfunding platforms.
Unlike traditional real estate investing which requires immense capital, real estate crowdfunding is more beginner-friendly.
With crowdfunding platforms, you can buy shares of income-generating real estate since investors pool their money together to buy properties.
Once you buy shares, you can generate income through rental income and potential property appreciation.
There are also lots of crowdfunding platforms out there you can use to flip your money.
For example, with Fundrise, you can invest in income-generating real estate starting with just $10.
Fundrise charges 1% in fees annually, but to date, it’s returned over 8% annually for investors.
There are other Fundrise plans if you invest $500 or more, but even $10 is enough for you to add real estate to your portfolio.
3. Try Website Flipping
If you want to make money online and have a knack for building websites, buying and selling websites is another way to flip money.
This is actually a side hustle idea I’ve been itching to try since starting This Online World, and the idea is pretty simple on paper.
Website flipping involves starting or buying a website, growing it, and then flipping it for more money than you spent on it.
Some people do this for a full-time career, and the income potential from flipping blogs is very high.
I mean, blogs usually sell for a 30 to 40 times multiple on monthly profit on marketplaces like Flippa.
So, if you buy a starter blog for $10,000 that’s making a bit of money and then grow the monthly profit to $1,000, you can flip that website for up to $40,000 (assuming the website is high-quality.)
Again, if you know how to run a blog and make money with it, I think this is the perfect way to try flipping your money online.
This Online World made $22,000 in 2020, but I’m definitely looking to add more blogs to my portfolio and to try flipping one in the near future, so stay tuned!
4. Flip Stuff You Own
Sometimes, figuring out how to flip money is as simple as doing some Spring cleaning and then selling stuff you don’t need anymore.
This is a very common way to get into flipping, and like retail arbitrage, you can focus on reselling popular products to people in your city.
Anyway, once you find some stuff you own that you think you can flip, you can list it on several online marketplaces to find buyers.
Popular marketplaces to resell stuff includes:
- Mercari: One of the best selling apps if you want to sell a variety of products and manage things from your smartphone.
- Poshmark: The go-to marketplace for flipping clothing, shoes, and accessories.
- Sideline Swap: The best place to sell sports equipment and apparel.
- Facebook Marketplace: Ideal if you prefer in-person cash sales when flipping stuff for profit.
- Depop: A social selling marketplace that’s best for thrifted clothing and more creative outfits.
With this flipping strategy, it’s a good idea to do some competitive research first to see what prices other sellers are listing similar goods at so you stay competitive.
Of course, you can also try other popular websites and methods to sell stuff you own.
Pawn shops are one route, and you can also sell online with marketplaces like eBay.
Extra Reading – eBay vs Mercari – What’s Best For Sellers?
5. House Flipping
If you’re the kind of person who is handy and knows how to renovate, flipping houses is another popular way to flip money.
The downside to this flipping method is it requires more capital to get started since you have to buy a property.
But, with the right renovations and market, flipping properties can be incredibly lucrative.
Personally, this isn’t a flipping idea I’m going to try anytime soon because of the capital requirements and the handyman skills you need.
But hey, this is one of the most popular ways to flip money for a reason.
6. Buy & Flip Collectibles
Another way to flip money is to buy and sell highly collectible goods.
Collectibles are also interesting in that prices can fluctuate a lot between sellers since it’s not always easy to assign a value to something; after all, how do you value an ancient Roman coin, or antique watch?
As mentioned, you should probably stick to flipping collectibles you understand so you don’t get burned on a bad trade, but this is a viable option.
7. Artwork Flipping
If you’re looking to diversify your portfolio with an alternative asset class, you can always try flipping money by investing in shares of fine art.
With companies like Masterworks, you can invest in shares of fine art starting with only $20.
From there, you can benefit from potential appreciation in the artwork or eventually resell your shares to other art investors on Masterworks.
This is definitely a more long-term way to flip your money, and many Masterworks projects have time frames of 10 to 20 years.
However, if you like fine art and want an alternative investment class, you can consider this flipping idea!
8. Print On Demand Selling
While this isn’t the most conventional way to flip money online, if you want to start your own business, I definitely recommend checking out print on demand.
Print on demand, or POD, is a business model where you partner with a manufacturer to sell products to consumers.
Here’s how it works:
- You upload your artwork and designs to a POD provider’s product catalogue
- You promote those products online
- When you make a sale, the POD provide manufacturer and ships the product to your consumer
This is similar to dropshipping and Amazon FBA except the key difference is you’re uploading your designs to otherwise generic products.
Plus, starting your own print on demand store is very easy.
The POD provider I use and recommend is Printify, and you can upload your designs to Printify and then sell on places like Etsy or Shopify
You need a bit of starting capital for print on demand since you have to pay for manufacturing and shipping costs when you make a sale, but you honestly don’t need more than $50 to $100 to start out.
You can also try selling POD products on Sellfy, which is an ecommerce platform that lets you start your own online store in about 5 minutes.
Again, this isn’t the most conventional way to flip money, but if you have a knack for graphic design, I’d definitely try POD.
Extra Reading – How To Start An Etsy Sticker Business.
9. Flip Free Stuff For Cash
If you have no starting capital, flipping free stuff for cash is definitely where you should be starting out with this side hustle idea.
You’d be amazed what sort of stuff people throw or give away for free because they don’t want to take something to the junkyard.
People do this all the time, and if you drive around your neighborhood on junk day, you find stuff like:
- Small and large appliances
- Office furniture and stationary
Granted, a lot of this stuff is junk, but I remember people driving through our neighborhood in pickup trucks every year to haul off the best stuff they could find.
You can also browse the “free” section on classifieds like Craigslist or The Facebook Marketplace.
Now, if you want to flip money with this method and invest a bit, you can always try refurbishing free furniture and then selling it for a profit.
Oftentimes, stuff is junk until it gets some TLC or repair work, so there’s actually a lot of potential here!
In the past year or so, cryptocurrency and NFTs have been all the rage, and this presents yet another asset class that’s viable for flipping.
Now personally, I own some Bitcoin and Ethereum and that’s all for now.
I’m also not a financial advisor, and you have to decide if cryptocurrency is something you want in your portfolio or not.
But, there’s no denying that buying and selling crypto is a strategy to flip your money, and it’s what a lot of people have been trying in recent months.
If this is something that interests you, you can always open an account with a popular exchange like Coinbase, buy some crypto you’ve been watching, and then see if you can flip it for a profit later on.
Again, this is a more speculative way to flip money, so you should do your due diligence and research before diving right in.
11. Invest In Stocks
If you’re mostly interested in earning passive income and don’t want to be very active when flipping money, you can always stick with regular investing.
This is a pretty common way people try to build wealth, and again, it can be more hands off and passive which could be what you’re looking for!
Dividend-paying stocks are one option, and you can also explore ETFs, mutual funds, or even things like bonds if you want something that’s more stable and safe.
Personally, I stick with dividend stocks and growth stocks since I’m younger and have a long investment timeframe, but again, do your due diligence and research!
There’s also plenty of options to start investing if this is how you want to flip your money.
For starters, you can probably start investing for free by opening an investing account with your bank.
There’s also free online brokers like M1 Finance that let you invest without paying commissions, which is pretty sweet.
The bottom line is there’s a lot of options here, and if you want a long term way to flip money, investing is worth considering.
12. Domain Name Flipping
Like flipping websites, domain names are another digital asset that you can buy and sell for profit.
Now, domain flipping is a very speculative realm in my opinion, and it’s also an asset class that can tie up your money for a very long time.
But, people have been buying and selling domain names since the Internet existed. In fact, some of the most valuable domain names of all time sold for millions of dollars.
Granted, all of the short, ridiculously valuable domain names are taken these days.
However, if you spot an upcoming trend or can snag an expired domain name for a bargain, this is another viable way to flip money online.
13. Make A Wager With HealthyWage
If you’re still wondering how to flip money, one of the more creative ways actually involves getting paid to workout!
With HealthyWage, you can potentially earn thousands of dollars by placing a wager on yourself to get in shape and lose a certain amount of weight.
Here’s how HealthyWage works:
- You use the HealthyWage calculator to see how much money you can earn with your weight loss bet
- You place your bet
- If you lose your target weight by the end of your challenge, you win your bet back plus interest
How much money you make with HealthyWage depends on numerous factors, including your starting weight, total bet, length of bet, age, and gender.
But, HealthyWage’s main goal is to provide people with financial motivation to stick to their fitness goals.
And, if you can get paid to lose weight and recoup your bet plus interest, this is technically flipping money!
You can read our HealthyWage review if you want more details about this fitness app.
14. Flip Land
A final method to flip your money is to buy land and then resell it for a profit.
Of course, this likely takes a large amount of starting capital as well as time since you have to wait for the land to appreciate in value.
But, people have been buying and selling land since money was invented, so this isn’t anything revolutionary.
Typically, people buy land they think will be developed on in the near future; so think growing suburbs or mid-sized city.
However, you can also try investing platforms that let you add land to your portfolio.
For example, with AcreTrader, you can actually invest in income-generating farmland, and many projects require $5,000 to $10,000 to start investing.
AcreTrader is definitely a longer-term investment, but you can also sell your shares of farmland to other investors if you want to exit.
Tips For Flipping Money Successfully
Now that you know some of the best ways to flip money, I want to cover a few tips and some red flags you should keep in mind when pursuing this money-making idea.
- Stick With What You Know: As mentioned, flipping money takes experience and knowing the asset class you’re dealing with!
- Watch For “Too Good To Be True” Deals: The golden rule is that if something is too good to be true, it is, so watch for red flags!
- Start Out Small: When you’re new to flipping money, you can start with small flips to gain experience and slowly increase how much capital you invest.
- Consider Your Timeframe: One small downside of flipping money is that you often tie-up your capital in the asset you’re flipping for months or years, so keep this timeframe in mind.
- Watch For Scams & MLMs: Unfortunately, a lot of strategies marketed as being easy ways to flip money are scams or multi-level marketing schemes. Again, if something sounds too good to be true, it is, so always do your research and due diligence!
I hope our guide on how to flip money helps you put your capital to work and create a new income source for yourself!
Personally, I think this entire space is very interesting, and I plan on experimenting with website flipping and retail arbitrage moving forwards.
Ultimately, you know what asset class is best for you, so pick a way to flip money and go for it!
Best of luck!
Looking for other ways to make extra cash? Checkout:
Tom is a 24 year old recent college graduate from Canada with a passion for side hustling, passive income, and marketing. This Online World is all about providing people with honest ways to make and save more money by using technology. To learn more about Tom, read his About Page!
If you’re interested in freelance writing services or want to partner with This Online World, please visit Tom Blake Digital to get in touch!