How To Invest In Real Estate Without Any Money

Investment Property Loan Exchange
Home Real Estate Investments Real Estate Investments Guides How To Invest In Real Estate Without Any Money

Invest In Real Estate

Investing in real estate can be an aspirational dream for many. Buying real estate property to live in or lease out can be a great way to save money or generate passive income while holding a tangible asset that generally appreciates in value over time. The problem is investing in real estate is not cheap, in fact, it can be downright expensive, with median home prices in Q4 2022 sitting at $535,800. When you could invest in other areas, such as the stock market, with just a few dollars, you’d be forgiven for wondering why people with a limited budget still aspire to purchase real estate property.


Investment property financing


OK, you don’t have money to spend. So how do you buy real estate property then? Spoiler warning: strictly speaking, you can’t – no one is lining up to give away real estate for free. That being said, you can still be an investor. You need to work a little harder and be a little more creative by investing other people’s money. Let’s look at what we mean by this, and what options you have, below. But before you read up on it, we’d like to mention that if you are looking for money to invest, you can start by talking to our team at REI News. Our team is specialists in pairing investors with affordable, trusted lenders based on the investor’s needs.


Table Of Content:

  1. Private Money Lenders
  2. Joint Ventures
  3. Crowdfunding
  4. Wholesaling
  5. Seek Seller Financing
  6. Assume A Seller’s Loan


How To Invest In Real Estate With Little Or No Money

While investing in real estate without money can sound like a fantastic deal, it is recommended that you try to raise capital or maintain a strong credit rating that would allow you to gain funding through traditional means. This is because you could find the best deals in the long term when you are paying a significant down payment or have a stronger credit rating where lenders will not include much risk in their calculations. Before agreeing to any deals or loans, it is crucial to do your research and ensure it is a financially responsible choice for you. If possible, consulting with a financial advisor is recommended.

Should you decide to proceed, we’ve compiled a list of options you might consider to find funding for your real estate ambitions.

  1. Private Money Lenders

Instead of taking out a loan from a traditional institution like a bank, where your loan may be turned down due to your poor credit rating or little experience, you instead could seek a loan from a private individual or group. This funding source is usually more accessible, as the vetting process is far less stringent than a bank.

However, along with this accessibility, you may find yourself paying an increased interest rate as the lender takes on more risk to facilitate the loan. Due to a lack of regulation, it’s key that you must review the terms of your loan in detail and try to negotiate a better deal before accepting the loan.

  1. Joint Ventures

You could also work with an equity partner who would elect to put up all or the majority of the funds for the project. From your end, you would put up either a portion of the investment or your time and expertise to find, close and manage the property based on agreed goals. Your partner would get part ownership and share of profits based on a pre-agreed scale.


Get In Touch With The Real Estate Investor News Team If You Want To Know More About Buying And Financing Investment Properties

Contact Us Now

  1. Crowdfunding

Crowdfunding is a relatively newer form of real estate investing. The platform allows the “crowd” (investors from the general public) to invest smaller amounts in facilitating real estate projects to get off the ground, and then they would share in a proportional share of profits. You could list your own real estate project on a crowdfunding platform and seek crowdfunding.

Or you could use the platform to invest in other projects and enjoy your share of the project’s profits. Crowdfunding has its share of risks, where some project owners could abscond with project funds without finishing the project or could simply fail in the attempt to complete the project. So always do your due diligence before investing in other projects, or ensure you have a detailed project plan and budget for the projects that you intend to list.

  1. Wholesaling

Real estate wholesaling can be one option to make money from real estate. In this method, you’d approach discounted properties, usually distressed or sellers looking for a quick sale. You would then explain to the seller that you’re a wholesaler and make an offer on the property. You’ll then have to find a buyer who might be interested in purchasing the property at a higher price.

You may have to facilitate an appraisal process and determine the renovation cost from contractors. Based on this outcome, you have more ammunition to sell the potential buyer on the property’s value. Regardless of the effort taken, once you find a buyer to purchase the property at your expected price, you connect the buyer and seller and close the deal. You usually make money from a finder’s fee (usually between 5 – 10% of the sale price).


Commercial real estate lenders

  1. Seek Seller Financing

You may be able to convince a motivated seller to finance the sale of their property based on monthly installments, potentially with interest. This can be hard to get without having a trusting relationship between yourself and the seller. However, with the right timing and with a properly motivated seller, you may be able to have them finance at least part of the purchase.

  1. Assume A Seller’s Loan

Should a seller be suitably motivated to sell their property, you may be able to convince them to accept a down payment and then assume their loan payments freeing them of that responsibility. Of course, you’d have to ensure the loan was transferrable and that their loan terms were attractive and manageable within your limited budget.



The above are some of the common options you could seek to invest in real estate with little to no money of your own. As mentioned earlier, it is key that before accepting any deal or loan, you go through the small print to make sure you do not get caught unawares and find yourself unable to fulfill your obligations as part of the agreement.

If you’re keen on exploring your options for financing a purchase of real estate property, talk to our experts at REI News. We’ll explore the various opportunities open to you and pair you with the most suitable lender with the best possible terms.


Let Us Help You Boost Your Real Estate Projects!

Share your real estate investment projects with us and one of our team members will contact you with the right funding solution.