Can You Invest in Real Estate with No Money?

The real estate industry sells multiple types of dreams to newbies. I was a newbie 15 years ago. Then nobody told me that there are ways to invest in real estate with no money. As Jon and I built our homebuying company, it became evident that there are legitimate ways to invest in real estate with no money.

Investing in Real Estate With No Money

When we talk about investing in real estate with “no money,” it’s important to note that “This doesn’t literally mean zero financial involvement.” There is always little money involved. In some instances, you may even be driving for dollars, and the gas money is your investment. How about that?!

Strategy 1: The Power of Partnerships

Real estate investing can be treated like a team sport. When the same investing goals are shared among partners, you can work together with someone to achieve the same thing.

When Jon and I partnered to what then became Brotherly Love Real Estate, I didn’t have enough money to invest. Jon invested 70% of the money for a house flip opportunity, and we split the profits based on the investment percentage.

All I needed was someone who shared the same goal as me – Jon!

Eric Jeanette of FHA Lenders says, “Many seasoned investors solicit down payment funds from individuals who are looking for a guaranteed rate of return. This method enables investors to purchase more deals than if they were using their own funds.”

Strategy 2: The Art of Seller Financing

Seller financing is a creative homebuying strategy that allows you to invest in real estate with no money down. A property owner agrees to hand over their property without you needing to secure a traditional bank loan. They will act as the lender in this real estate deal. You and the seller agree to pay them back over time.

Outline the terms with them, including the interest rate and timeline. If you want to invest in real estate with no money, this is a great way to do it. This strategy requires good negotiation skills and the ability to convince the seller of your reliability (and commitment) to pay them back.

Strategy 3: Exploring Lease Options

A lease option is another investment strategy that doesn’t involve extensive financial involvement. This strategy involves leasing a property with an option to purchase it in the future.

Either way, don’t dismiss successful alternative investment strategies such as lease options. Similar to seller financing, you can negotiate the terms with the seller. A bonus when exploring lease options is that you get to live there yourself before investing in the house. This means you can take care of it and spruce it up from the start.

Strategy 4: Wholesaling for Beginners

While you aren’t technically holding the properties long-term, wholesaling is a way to get involved in real estate with no money. This strategy entails identifying a deal, securing the contract, and then transferring that contract to an end buyer for a fee.

You’re facilitating an off-market real estate sale. This is where many real estate investors spend their money. Real estate marketing is not cheap!

Investing Outside of Where You Live

While these real estate investing strategies require minimal financial involvement, they are not a shortcut. Each approach needs effort and a willingness to take risks. While you can invest in real estate with no money, that doesn’t mean you won’t lose it later.

Ultimately, having the ability to pay for properties in all cash will help you grow your investing portfolio. Home sellers are more inclined to accept cash offers versus financed ones. Regardless of what market you’re located in, cash offers carry the most weight.

For example, investors paying cash for homes in Japan are winning most of the competition. Properties all the way from Tokyo to Philadelphia are more likely to sell for cash if it’s an option. Don’t underestimate the power of the dollar (or yen).

Invest in Real Estate Without Putting Money Down

In conclusion, real estate investing with no money is not a myth. It is possible! However, it does require a different approach. You must be resourceful, innovative, and resilient. If you don’t have money to bring to the table, get something else. This could simply be your time.

And start hustling.