6 Ways to Invest in Real Estate With No Money

Disclaimer: PropStream does not offer financial advice. This article is for informational purposes only. Do your due diligence and consult financial and/or legal professionals before investing in real estate with creative financing.

To invest in real estate, it helps to have money, but you don’t need it to get started. You can leverage your time, skills, and grit instead of cash to land your first deal. Read on as we break down the top six ways to invest in real estate with no (or little) money down.

Why Invest in Real Estate with No Money Down

If you’re reading this article, chances are you have little to no money to invest in real estate but still want to. If so, you’re not alone. Housing affordability has deteriorated in recent years due to rising home values and lagging incomes, making traditional down payments harder to come by.

However, you can still break into the market if you get creative. All it takes is the right strategies combined with hard work. So before you write off real estate investing, consider the little-to-no-money-down methods below.

Investing In Real Estate with No (or Little) Money Down

1. How Wholesaling Lets You Invest With No Upfront Cash

Wholesaling is the practice of putting properties under contract and then reassigning the contract to an investor for a fee. In other words, you never invest your own money. Instead, you find great deals that other investors are willing to pay for. For them, it’s a marketing cost. For you, it’s a way to make money in real estate without actually risking any capital.

Pro Tip: If you’re new to the process, signing up for PropStream Academy’s free Introduction to Wholesaling course is a great way to build confidence and understand the basics before tackling your first deal.

As a result, wholesaling can be a great strategy for beginners with limited funds. However, what you lack in capital, you must usually make up for in hustle. After all, finding great deals that others are willing to pay for takes time and skill. 

To streamline the prospecting process, build lead lists in PropStream by different potential selling motivations, such as vacant, absentee owner, high equity, and pre-foreclosure. Then, skip-trace the leads’ contact information and launch an email or postcard campaign directly within the platform or export the lead lists to a dialer like BatchDialer to call them on the phone. 

2. Why Seller Financing Works for Investors With Limited Cash

If a seller has high equity or their property is fully paid off, they may be able to offer seller financing. This is an arrangement in which the seller also serves as the buyer’s lender. In other words, instead of making payments to a bank, you make them directly to the seller. 

Since sellers aren’t bound to the same lending standards as banks are, they can typically offer more flexible loan terms, opening the door to financing that requires little to no money down. 

3. Sub-To Deals: A Flexible Way to Control Property Without a Down Payment

In real estate, “subject-to” or “sub-to” deals refer to properties that are sold “subject to” an existing loan. In other words, you take over the seller’s existing mortgage payments, so you don’t have to get a new loan. Unlike an assumable mortgage, however, the loan remains in the seller’s name, meaning they’re still legally responsible for it.

That said, you’ll still have to come up with the difference between the property’s existing loan balance and purchase price, i.e., the equity. Fortunately, there are two ways to do this without cash: You could seller-finance the remaining equity, or you could opt for a subject-to with a wraparound, by which the seller creates a new, larger mortgage that covers the original one plus equity. That way, you can finance both into one new loan.

Subject-to deals can be a great option for distressed properties or those with relocating sellers. 

Want to see subject-to deals in action? Read about Jeremy Davis’s investing journey and his experience finding subject-to deals with PropStream. 

4. Why Partnerships & Joint Ventures Are a Powerful Entry Strategy for New Investors

Another way to invest in real estate without money is to use other people’s money. How? By forming partnerships and joint ventures. 

For example, a simple two-party partnership could have one “money partner” provide the capital while a “sweat equity partner” (you) handles the actual work of finding and managing the investment. This can work well for flips, rentals, and even long-term investments. 

5. Lease Options: Control a Property Now, Buy It Later

If you can’t buy a property right away, consider requesting a lease option. This lets you rent the property with an option to buy it later. In other words, you’ll have the right, but not the obligation, to buy it at a future date for a pre-determined price on pre-determined terms. 

In short, a lease option lets you control the property without immediately owning it or needing to make a down payment.

6. Investing Through REITs or Real Estate Crowdfunding

Lastly, you can also gain exposure to the housing market by investing in real estate investment trusts (REITs) or crowdfunding platforms. Both offer fractional ownership shares in properties or property funds without the hassle of maintenance, tenants, or securing financing. 

For example, some REITs sell shares for as little as a few dollars, while the minimum investment on the real estate crowdfunding platform Fundrise is only $10. Owners of either can realize returns through regular dividends and/or equity payouts.  

Tips for Success When Investing With No Money Down

To get the most out of investing in real estate with no money down, follow these best practices:

Develop Negotiation and Communication Skills

Without money, you’ll need to develop strong negotiation and communication skills to convince sellers, lenders, and other investor partners to work with you. 

Build a Buyer’s List Early (When Wholesaling)

As a wholesaler, the last thing you want is to find the perfect deal but have nobody to assign it to. Build a cash buyer’s list early, so that when opportunity knocks, you can cash in.

Choose Motivated Sellers with Strong Equity Positions

The more equity a homeowner has, the more they stand to gain by selling. By focusing on owners with high equity, you’re more likely to find off-market opportunities and willing sellers.

Understand the Risks and Legal Requirements for Creative Financing

Seller financing, subject-to deals, and other creative financing methods can be attractive when you don’t have much money. However, beware of the risks and any legal requirements involved. 

Never Skip Due Diligence

Before signing on the dotted line, run a thorough comp analysis, verify the property’s ownership, check for title issues and liens, and perform other due diligence tasks. You’ll be glad you did.

How PropStream Helps You Find No-Money-Down Deals

Deciding to invest in real estate with no (or little) money down is one thing. Finding a deal is another. With PropStream, you can streamline the prospecting process with these features:

Lead Generation

Choose from 165+ search filters and 20 pre-built lead lists to find motivated sellers. For example, PropStream can help you filter out property leads by equity level, ownership length, pre-foreclosure status, and more. 

Apply and stack multiple filters to build lists ideal for creative financing and wholesaling deals. 

Market & Property Analysis

Analyze leads more closely by reviewing mortgage data, comps, rent estimates, and property conditions directly within PropStream. This can also help you identify owners who may be open to seller financing or sub-to deals.

Skip Tracing

With your lead list finalized, you can skip-trace your prospects’ contact information to instantly get seller phone numbers and email addresses. 

Marketing Tools

Finally, PropStream includes built-in marketing tools. For example, you can launch postcard and email campaigns to contact leads, pitch creative financing solutions, or make wholesale offers.

The truth is, you don’t need a large down payment to start investing in real estate. All you need is some know-how and the right tools. Use PropStream to find motivated sellers, skip trace owners, and explore creative deal structures—all from one powerful platform.

*PropStream engages an independent third party to perform skip-tracing.