How to Start Investing in Real Estate With Little to no Money

How to Start Investing in Real Estate With Little to no Money
by Jerome Foster - October 20, 2021, ,

The real estate market has always presented an excellent investment opportunity. However, not everyone has the extra finances to spare towards purchasing a piece of property. Does that mean you can’t be part of real estate investment? Despite how money-vested this field is, you actually don’t need to personally possess any to get started.

We asked real estate experts how you can make it a reality, and here are their top pieces of advice on how you can invest in real estate without any money;

Find Investors, Crowdfunding

If you want to invest in real estate with little to no money, there are many ways you can work around that. 

You could try to find other investors to fund your real estate investments. These can include personal connections (hello, Aunt and Uncle) or crowdfunding. However, it is worth mentioning that if you are just starting out or are otherwise short on cash, it will be difficult to convince investors to part with their hard-earned money and leave it to you.

In addition, you could invest in REITs. These investments only cost one share (dozens to hundreds) and allow investors with little money or those who want to take on less risk to dip their toes in the real estate market. 

Darren Nix, Founder of Steadily Landlord Insurance

FHA Loan

One way individuals can invest in real estate with little money is by using an FHA loan to purchase a 2-4 unit multi-family home. An FHA loan only requires a down payment of 3.5%. As the owner, you can live in one of the units and rent out the other units. Once you increase the value of the property, you can take out a Home equity line of credit for any arising repairs and purchase more real estate.

Jaquetta T Ragland, the owner of jaquettatragland.com

Money is a major concern when investing in real estate. Unlike stocks and bonds, buying an investment property is often extremely expensive.  Many investors started by leveraging their existing properties (their main residence, for example) with little or no extra cash. 

House Hacking

Which consists in renting or subletting part of your property to earn extra income - is a common way to invest in real estate with no money. It can take many forms, from getting roommates to turning part of your property into short-term rentals (like AirBnB.) 


You can also leverage the equity on the property by contracting a home equity loan or a home equity line of credit (HELOC) to purchase another investment building.

If you have a little money, you can also buy your first income property by buying a small rental (2 to 4 units) and occupying one of the units yourself to qualify for government-backed financings, such as USDA or FHA, that require low or no down payments. 

Finally, you can get in touch with other real estate investors and join your resources to purchase a property and share the profits.  

Omer Reiner, Licensed Real Estate Consultant FL Cash Home Buyers, LLC

Wholesale Properties

There are a variety of ways to invest in real estate with no or very limited financial resources. The main strategy is to wholesale properties. Wholesaling is the process of getting a property under contract and then selling that contract to a buyer. The difference between the price of the contract with the seller and the contract with a buyer is the wholesaler's profit. For most deals, there requires no funds or financing by the wholesaler.  

Find Property For An Investor

Another strategy to invest in real estate without financing is to find a property for an investor. The investor agrees to pay a percentage of the profits that are made from purchasing that particular property. If the investor fixes up the property after purchase and then sells, the investor agrees to pay the finder of the property a certain amount.

Other strategies include creative financing ideas. One, in particular, that is used to invest in real estate with limited funds is subject to. A person can put a home under contract, conduct repairs and updates, and then list the property for sale. The difference between the sale price and what the person has under contract with the seller would be the person's profit.

Ed Frowley, Owner We Buy Houses in Western Mass

Investing in anything requires money, moreover if it is in Real Estate. However, there are ways to start investing with little or no money simply because the money will come from some source. It is made possible if you can recognize and bring in other people who will finance your purchase or by using different methods and strategies in investing with no cash reserves. 

Apply For A Mortgage

This is by far the most popular method to finance the purchase if lacking the money. However, a little cash is needed for a down payment and closing.

Money Lender

The fund for investment will come from a group or private individuals.


These are granted to start-up businesses. It offers a smaller amount but is less strict with the requirements.

Home Equity Loans

The borrower uses the equity using the house as the collateral.

House Hacking

This means generating income by renting out their primary home.


If lacking finances, you may find a partner who will fund the down payment and get a loan to fund the property.

There are various ways to invest in Real Estate with little to no money or even a low credit score. This type of investment is a good source of passive income and a long-term investment. 

Warner Quiroga, President/Owner Prestige Home Buyers

VA Loan Program

One of the most common ways to do this requires access to a home with zero money down, usually through a VA loan program. If you can get a home as a primary residence and pay nothing, stay there for the minimum year you need to do so for it not to be an investment property, then begin renting it out to recoup your mortgage cost and start banking on equity. 

Jake Hill, CEO of DebtHammer


  • Jerome has worked for an international real estate magazine in the past before joining Prudentialcal. He now spearheads our team of writers and ensures the quality of content we produce weekly.

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