How To Invest in Real Estate With No Money in 2025

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Investing in real estate with no money is possible with creative purchase strategies like partnerships, seller financing and government programs, and with investments that don’t require you to purchase a home. Some of these methods are accessible to even first-time investors with no real estate experience. This guide will show you how to start in 2025.

Can You Really Invest in Real Estate With No Money?

Yes, you can invest in real estate with little or no cash. The key is being creative and exploring strategies that reduce or eliminate the need for cash.

Here are a few examples of ways to invest with no money:

• Partnering with investors
• Hard money loans and private lenders
• Seller financing

For example, you might leverage other people’s money through investor partnerships, private lending and renting out units in a home you live in. Other strategies include buying with seller financing or a low- or no-down payment mortgage loan, possibly with the assistance of a grant.

If you’re really short on cash and not ready for the responsibility of owning your own real estate, you can buy shares in crowdfunded real estate and real estate investment trusts.

Leverage Other People’s Money (OPM)

Other people’s money can help you invest in real estate with no upfront cash.

Partnering With Investors

If you have the skills to flip or manage property but lack the cash, consider partnering with someone with the funds but lacking time or expertise.

You can find investors at local real estate meetups, on social platforms and investment groups. Be ready to pitch your value to potential partners. Once you’ve found backing, insist on a written contract explaining roles, responsibilities and profit-sharing.

Hard Money Loans and Private Lenders

Hard money loans come from private investors and are based on the value of the property, rather than your credit score. You’ll need a track record of successful deals to qualify.

These loans close quickly, so they’re perfect for flipping properties. However, interest rates can range from around 8% to 15%, and the loans are typically short-term, so plan your exit strategy carefully.

House Hacking

When you live in one unit of a multi-unit property and rent out the others, your tenants offset your mortgage and maintenance costs, which helps you build equity faster and can even generate cash flow.

You can buy a single-family home with up to four units using a low- or no-down-payment residential mortgage loan. The rental income potential can even help you qualify.

No-Money-Down Real Estate Strategies

You have several potential options for buying with no money down.

Seller Financing

This is when the seller acts as the lender, and you make payments directly to them. Not only is this easier and faster than going through a lender, but it also lets you negotiate the interest rate and loan term, as well as the purchase price.

Have an attorney prepare a contract for the deal to avoid misunderstandings.

Lease Options (Rent-to-Own)

Rent now, buy later — while building up toward ownership. In the usual arrangement, you agree on a purchase price and date, and each rent payment includes a contribution toward the down payment. The benefit is that you can live in the home before you buy it. But there are risks.

A market crash could leave you having to pay more than the house is worth. Also, you could lose your down payment contributions if you can’t complete the sale. Seek legal advice before committing to a lease option.

Government Loans and Special Programs

Government loans and special programs can help you buy a home with little or no money down. Some are only for the purchase of your primary residence, but thanks to the potential for long-term appreciation, real estate is a good investment even if the property you buy is your own home.

USDA and VA Loans

USDA loans and VA loans let you buy with no down payment. Both have restrictions: USDA loans are good only for eligible rural properties, and VA loans are for veterans and active-duty military. VA loans, on the other hand, require no mortgage insurance or annual fees.

FHA Loans With Down Payment Assistance

FHA loans let qualified buyers purchase with 3.5% down. You don’t have to invest any of your own funds — down payment assistance is allowed. Credit requirements are less strict than conventional loans.

Conventional Loan for First-Time Buyers

First-time homebuyers can qualify for a conventional loan with as little as 3% down, no PMI required. You can use grants for your down payment or closing costs. Credit requirements are easier than conventional loans usually require.

Special Programs for Down Payment and Closing Cost Assistance

Many states, counties and cities offer grants, loans or tax credits for down payments and closing costs. You can use them with most mortgage loan types — in some cases, even if you’re not a first-time buyer.

Beginner-Friendly Options for Real Estate Investing

You can invest in real estate for as little as $10, no special skills or knowledge required.

Real Estate Crowdfunding

Crowdfunded real estate is a passive investment that requires no property management. You can invest as little as $10 to $100 on platforms like Fundrise and RealBricks, which makes it easy to diversify across multiple properties to reduce risk.

Real Estate Investment Trusts (REITs)

Real estate investment trusts buy, manage or finance commercial real estate. The benefits of REIT investing are exposure to real estate without the hassle of being a landlord, and regular dividend payments — REITS must pay at least 90% of their profits as shareholder dividends. You invest by purchasing shares, like you would in a stock.

Risks and Challenges To Consider

While investing in real estate has its obvious benefits, there are risks. Here are some of those risks to consider:

• Market swings: Property values can fluctuate.
• Debt concerns: Borrowing without a solid repayment plan is risky.
• Low liquidity: Unlike stocks, real estate isn’t easily sold.

Reduce the risk by researching local markets, property conditions and financial terms before diving in. And always have a backup plan for unexpected repairs.

Kathy Evans contributed to the reporting for this article.

Information is accurate as of Sept. 24, 2025. 

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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