how to invest in real estate with little money

Let’s discuss how to invest in real estate with little money.

If you’ve been thinking about investing in real estate but held off thinking it’s only for those with money, then think again.  Real estate investing is for everyone regardless of how much money you do or don’t have in the bank.

In this post, I’m going to share with you 5 viable ways how to invest in real estate with little money out of pocket.  Buckle in, and let’s get going.

Tip #1: Consider owner-financing

Owner-financing is a great way to acquire rental property without hefty down payments that banks usually require.  In fact, you won’t be using the banks at all.

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Owner-financing is just what it sounds like.  The owner (seller) is financing your purchase of the property.  In other words, instead of you (the buyer) having to arrange for a loan to buy the property, the seller is passing ownership (title) to you, and you make payments to the seller.  In other words, the seller is acting as the bank.

A local real estate agent can help you find properties for sale in your area where the seller is willing to consider owner-financing.

Tip #2: Try wholesaling

Real estate wholesaling is a great way to essentially flip houses without ever buying them! With wholesaling, you are the middle-man (or woman) bringing a seller and buyer together. In most states, you don’t need a real estate license to be a wholesaler, but confirm this with your state just to make sure.

To make wholesaling work, you need a seller (a motivated one), a buyer (usually an investor), and an assignable contract.  An assignable contract is one that can be “assigned” to someone else. The basic mechanics of wholesaling are this: you (the wholesaler) find a seller and agree to a purchase price (say $50,000 as an example), and you write up a purchase agreement.  

Then, you write up another purchase agreement with your buyer (say for $55,000).  At closing, the title to the property is transferred to the buyer, the seller is paid $50,000, the buyer pays $55,000, and you make the difference of $5,000.  There is much more to be said about real estate wholesaling, but that’s the gist of it.

Tip #3: Look into personal loans/lines of credit

If you’ve got good credit and income, you may be able to qualify for an unsecured personal loan or an unsecured personal line of credit.  Companies like can quickly get you the money you need to either come up with a down payment, fund renovation work, or even buy a property with all cash.  Check them out.

Tip #4: Explore private money

Do you have a friend or family member who would like to partner with you on a real estate deal?  If so, this can be a great way to get the money you need. This is actually how I started out.

Tip #5: Buy multi-family & live in one of the units

If you’re willing to call your rental property home, you might look into a VA or FHA loan.

While you do need to be active or prior military (or a military spouse) to get a VA loan, VA loans provide 100% financing.  To make this work, you’d have to purchase a multi-family property (2-4 units), and live in one of the units. This is also great way to live practically for free.

Even if you’re not prior  or active military, you should look into an FHA loan.  FHA loans provide financing for as little as 3.5% down. Like VA loans, however, FHA loans only provide financing for multi-family investment properties with the borrower living in one of the units.

Final thoughts on how to invest in real estate with little money

Don’t think that becoming a real estate investor requires a lot of up-front capital.  In this post, I’ve given you 5 viable ways (some even that I’ve used) to get started acquiring investment properties.

About the author

Brandon Jones

Desiring to escape the clutches of corporate America, I started investing in real estate in 2015 and left my job in 2020 to become a full-time real estate investor. I now teach other how they can experience freedom through real estate investing.

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