If you think you need a lot of money to start investing in real estate, then you’re wrong. The secret of many successful real estate investors involves no money or little capital when investing. A lot of veterans in real estate investment have mastered the art of using other people’s money when investing. All you have to do is learn and understand your options.

Here are ways to invest in real estate when you don’t have money at your disposal:

1. Use Hard Money Lenders

Hard money lenders are companies or individuals who loan their money to investors, but they expect a return. It’s one of the most popular methods when investing in real estate without the need to produce cash from your own pocket. Similar to bank loans, hard money lending has its set of qualifications for investors. However, the necessity to go through a tedious procedure is minimized in this type of loans. To have more knowledge with real estate investing, visit bestrealestatedirectory.com.

If you’re a real estate investor with no capital, you can secure a loan quickly from these groups of individuals or private entities. Some lenders are even willing to finance risky projects. However, this type of loan has high interest, and the reason is usually the risk the investment involves. Additionally, the terms only last for 12 months or less.

If you borrow from hard money lenders, you are to shoulder the following expenses:

● Closing costs

● Appraisal fees

● Application fees

● Other fees associated with purchasing a property

2. Borrow from Microloan Programs


Another type of loans for real estate financing is microloans. These loans aim to finance businesses or startups that have no capital including real estate investors. Unlike bank financing, these microloan programs have less strict requirements such as credit score.

For instance, if you have a history of borrowing beyond your means, bank financing may be difficult for you. However, with microloans, you can still invest in real estate even with such history and no cash at hand and with a low interest rate.

When considering microloans, be sure to anticipate closing costs or other fees when acquiring property as the average of microloans is only $13,000. Therefore, you can usually take advantage of this type of loan when you’re only purchasing a small or cheap property.

Here are two types of microloans that can help you through:

SBA (Small Business Administration) Microloan Program – This is used to encourage entrepreneurs with little capital to engage in businesses.

Intermediary Lenders – In partnership with the SBA, these community-based nonprofit organizations assist borrowers through management and technical assistance. These microlenders include Valley Economic Development Corporation and LiftFund, Inc.

3. Do Real Estate Wholesaling

Real estate wholesaling is one of the fastest ways to gain profits from real estate. It involves scouring for below-the-market properties or those on a discounted price. Your role is to control the property by the purchase and sale agreement without actually paying for it. Throughout the deal, you can find potential clients to buy such contract.

Selling the contract means selling your right to purchase the property to another buyer. In simpler terms, it’s marketing someone’s property to other homebuyers before the deal closes. For instance, if you have a property under contract for $100,000 and sells it to other homebuyers to $110,000, you gain $10,000 from selling the contract.

However, to avoid risks, you need to have a contingency stated in the purchase contract. It shall allow you to retract from the deal when no buyer is found before the closing date.

4. Take Advantage of Purchase-Money Mortgage

Purchase-money mortgage, also known as seller financing, is another way to invest in real estate without cold cash. This type of financing involves the seller as the financer. Instead of the buyer giving money to the seller when purchasing a property, seller financing works the opposite way. The seller finances or extends loans to the buyer in acquiring his property in exchange for repayment on agreed terms.
If you’re not qualified for traditional bank financing and other lending methods, you can use this type of loan. As long as a seller is willing to finance you, investing in real estate can be made possible.


Not having enough money should not hinder you from investing in real estate. Use these methods as strategies when investing so you can start making profits now. Remember, you don’t have to use your own money; instead, use other’s money to finance your investment.

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