Dreaming about owning rental property but worried about the lack of funds? It might seem impossible, but there are several ways to invest in real estate without having cash on hand. Interested? Let's explore ten different strategies to help you purchase real estate without investing money.

1. Partnerships

A reliable partner can help fund a real estate deal, making it one of the best ways to finance property with no money down. Partnerships are based on the "deal delta," which requires three elements: knowledge, hustle, and money. You don’t need to provide all three; your partner can make up for what you lack.

For example, I teamed up with a couple from church who had good incomes but no time to manage a property. They provided the $35,000 down payment, while I brought the knowledge and hustle. We split the profits 50/50, and the deal has been successful for six years.

2. Seller’s Mortgage

Assuming the seller’s existing mortgage is another viable option. In this scenario, you take over the seller's mortgage payments. This can be beneficial if the seller's mortgage has a lower interest rate than current market rates. Ensure there's no due-on-sale clause that prohibits the mortgage transfer.

3. Credit Cards

Credit cards with low or zero-interest introductory offers can help you cover down payments. For instance, using a business credit card with a 0% interest rate, you can put down $20,000 on a $200,000 property, borrowing the rest through a landlord loan. Be mindful of the interest-free period and associated fees.

4. House Hacking

House hacking means buying a building with multiple units, living in one, and renting out the others.Rent from tenants covers your mortgage, allowing you to live for free. FHA loans, which offer lower down payments, can make this strategy accessible with as little as 3.5% down.

5. Private Money

Borrowing from friends, family, or acquaintances can help fund your real estate investments. These private money loans often have flexible terms. For example, I borrowed at a 15% interest rate with no points or closing costs, which saved me thousands.

6. Seller Financing

In seller financing, the seller acts as the bank, handling the mortgage process. You repay the loan directly to the seller, often with favorable terms. This is ideal when the seller has no existing mortgage, allowing them to make extra income while helping you bypass traditional lenders.

7. Hard Money Loans

Hard money loans are quick loans given by private lenders for a short period of time.They typically have higher interest rates but fewer requirements than conventional loans. These loans are ideal for purchasing fixer-uppers with little to no down payment.

8. Cash-Out Refinance

If you own a home, you can use its equity for a cash-out refinance. This allows you to take out a larger mortgage than you owe and use the extra funds for another investment property. This strategy is useful if you have significant equity in your primary residence.

9. Gap Lenders

Gap lenders cover the down payment in exchange for partial ownership of the property. While these loans come with high interest rates and fees, they can be a solution if you have no money to invest.

10. The BRRRR Method

The BRRRR method stands for Buy, Renovate, Rent, Refinance, Repeat. Start by purchasing a fixer-upper with a loan, renovate it, rent it out, and then refinance it based on the new value. Use the cash from refinancing to repay the initial loan and fund your next investment.


Investing in real estate with no money down is challenging but possible. From partnerships to seller financing, there are various strategies to explore. Consult a financial advisor to see which options align with your goals and circumstances. Investing in real estate can diversify your portfolio and generate passive income, even with limited initial funds.

Investing Tips:

• Talk to a Financial Advisor: They can help you weigh the pros and cons and decide if investing in property suits your financial goals.

• Explore Alternatives: If direct ownership isn’t feasible, consider options for passive income.

Ready to dive into real estate investing? With these strategies, you can start building your portfolio with little to no upfront cash. For such more tips keep in touch with Jag Sidhu.


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