Do I Need Money to Invest in Real Estate?

Most people wonder whether it is possible to invest in real estate without any money.  It is normal to worry, because investment by definition is all about transacting in money. It’s not only counter-intuitive to think you can start without any capital, it also sounds too good to be true.

Invest in Real Estate Without Using Your Money

The answer is no, you cannot invest in real estate without any money at all. Any body who tells you otherwise is lying or does not know anything about business. But that does not necessarily mean you need to be filthy rich to get in. The trick is to invest money that isn’t yours.

Hold on, we’re not advocating stealing. Instead, you should learn to strategically invest in real estate using other means. If you lack money, you can bring something to the table. You can leverage your time, connection, education, intelligence, and creativity. Many investors found ways around the lack of starting capital.

Invest in Real Estate Through Different Creative Methods

While you still need a starting capital, many savvy investors manage to invest none of their own money through clever application of one or more of the following:

• Using the resources of partners
• Wholesaling
• Relying on down payment loans from FHA (around 3.5%)
• Leveraging lease option strategies
• USDA or VA loans with no down payments
• Lines of credit or home equity loans
• Use of private funds

All of the above strategies are viable, and can be used alongside each other. So it is definitely possible to invest in real estate even if you are not filthy rich to start with. The only caveat is that you should expect some trade off in terms of growth speed. The lack of money means you have to go slow and steady, and it is not going to be as easy as many fly-by-night real estate gurus would have you believe.