One of the biggest real estate investing topics is how to invest when you don’t have any money. There are thousands of books and classes dedicated solely to this subject, that promise results. You can, in fact, buy real estate with no money..but you’ll have to have someone else’s. As such, one of the most popular methods is to get financed by a seller. This is usually used when you are trying to accumulate more than one rental property. In this case, the seller usually owns the home outright, with no existing mortgage.

The title is then passed on to the buyer (but only when the mortgage is registered on the property with a promissory note). Realize that this type of transaction is a private one, not public. Therefore, the seller can charge the buyer any interest rate that they wish to (as long as the buyer also agrees with the number). The seller also with require a specific down payment that the buyer is required to put down on the house.

Does this sound too good to be true? Well, yes and no. There are reasons that homeowners would prefer to sell their property in this way. The first is that it can sell faster, and, the taxes will be more in their favor. This is because they only will have to pay the taxes that they’re going to collect in that specific year.

They’re also much more likely to get a better tax return than they would have if they had just put the money into their bank account. You can also buy property with “no money down.” In this situation, what is called “private money” is used. Private money means money from a private lender, a family member, or a friend (less common). You should note that an issue with no money down deals is that the interest payments can really run you down, and knock down the profits.

The idea of buying real estate without having to put up any money is a great idea. If you can’t come up with the cash, and find a great investor willing to fund you, it can be a very successful endeavor. It also will help you build relationships in the field. Keep in mind that reputation in the real estate investing industry is just about everything, and it can make or break you.

Thinking about cash flow is very important when it comes to investing. You want to make sure that you are actually going to return a profit on the deal. Always have at least three exit strategies, in case the deal goes south. If you don’t have the cash flow, and/or an exit strategy, do not get involved in a real estate transaction. 

Real estate investing is all about creativity. The type of personality that becomes involved in this field is usually of the creative type. They love to come up with solutions, and ways to get things done. You’ve also got to do your homework, and learn how the game is played.

The way to do this is to study; read blogs, books, podcasts, attend events, and to watch the type of real estate shows that come  on TLC and HGTV. Don’t ever let your small income be an excuse as to why you can’t get involved in real estate deals, and become highly successful. Successful people figure out a way to make money, regardless of their current circumstances.



  1. Amy

    I can’t seem to find anyone that will lend to me. You spoke of a private lender, or a friend or family member. I talked to my friends, and they don’t seem to know anyone that could help me get this deal. What should I do?

  2. Richard Brown

    Hi Amy,

    The first thing you should do is carefully review the deal you are looking at. There could be a reason that your friends and family aren’t willing to invest–assuming that they have the money. The next thing you should do is check out real estate conferences. What you’re going to have to do here is network. If all real estate investors only looked to family and friends to help them buy a deal, there wouldn’t be many successful real estate investors. You must network! Good luck, Amy.


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