Invest in Real Estate with Little or NO Money

How to Buy Investment Property With No Money

You’ve heard, “in order to make money, you have to spend or invest money.” But, how true is that? In fact, there are ways to make money in real estate with no money or little money being spent. The catch is that if your money is not being used, then your time or energy will be. Be prepared to work a little harder and more creatively. The first thing to do before investing is to evaluate your financial situation. Why are you going to invest in real estate with no money? Should you do so? Have you explored all options? If investing with no money is suits you, these are great strategies for investing without spending any money at all.


Trading possessions is one way for buying investment properties with money. This could be another property or another asset such as a car. You could also try purchasing a property in exchange for work. For example, a contractor can offer labor to a real estate developer in exchange for a down payment. For investments, it makes more sense to exchange an asset other than a property to obtain a new investment property. Be sure to write up a legal document including the value of both assets.


Wholesaling does not require money but does require networking. A wholesaler finds a seller whose property has not yet gone on the market,and then finds a buyer, and takes a cut of the selling price. Wholesaling is great for those who don’t have assets or money, but it will require building relationships and commitment.

The more money you have to invest, the easier. These options include spending money over a longer period of time.

Lease With Option of Buying

This strategy is also referred to as “rent to own” or “lease-purchase.” This means you would make payments just like with an ordinary lease and payments go toward buying investment properties. The agreement includes a time frame in which the tenant has to buy the property for a specific price. During the time period, the owner or investor cannot sell the property to anyone else. If going with this strategy, make sure to agree on a final price in a legal document.

Flexible Sellers

Some sellers, turnkey providers, who have move-in ready properties will sell to investors for as little as 5% down. This is an effective way to invest in real estate with little money down and avoid putting more money for renovations. These sellers have high interest rates so it’s important to calculate cash flow — including vacancies — ahead of time.

FHA Loan

The FHA mortgage requires a down payment of only 3.5% and must be owner-occupied. If the property is flip, you can live it in it first, fix it up, and sell it. The 203K loan is combined with the FHA mortgage and lends renovation costs.. Another option is buying a multi-family property and living in one unit while renting out the other unit.

How To Invest in Real Estate Without Your Own Money

If you can’t get approved from a bank, there are alternative ways to get loans.

  1. Private Money Loan

Borrow from a private investor, family member, or friend. They determine the interest rates but the rates can vary depending on the relationship with the lender and on the terms of agreement.

Hard Money Loan

This is obtaining a loan from a lender, usually a private investor or company. When buying investment properties, the lender cares about the value of the property and not your credit score. The lender makes sure the value of the property is worth more than the loan, in case the loan is not paid back .


In exchange for one investor’s money, the other investor takes care of the actual investing and does the work. When selecting a partner, find someone that can offer their investing experience and strategies. Make sure you’re also bringing skills to the table.


If you want to buy real estate with with no money or little money, these strategies can be lucrative if done correctly. But also try to keep tracking of your spending. Are there cutbacks you can make that can be put toward investing instead?


Don’t forget, before deciding to invest in real estate with no money or little money, search to buy investment property using predictive outcomes and see what the expected expenses are, cash on cash return, etc. You might find investments are more feasible than you think.

As the largest property management brand in the country, RPM is well equipped to maximize your investment, alleviate the daily burdens, and provide you with detailed communication along the way. At just $79 per month, are you ready to try Real Property Management?



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