Real Estate

Buying A Home With Little To No Money Down

Some people today may believe that investing in real estate is a lost cause. However, no matter what is happening in the real estate market, there are still opportunities looming about. It is up to you to seize them. But what do you do if you don’t have any working capital?

Educated Yourself.

Never underestimate the power of education! Once you think you know it all there is no room for improvement or gain. I recommend reading everything you can get your hands on regarding real estate and real estate investing. Libraries are full of books written on the subject, and the Internet is a wealth of information.

Skip over the expensive real estate investment “courses”, most of them are no worth their money. There is just as good as information for free online and at the local public library.


Networking is crucial in the real estate investment business. There are multiple people that it takes to put a deal together. I recommend having some business cards made up and attending local real estate investment club meetings.

At these meetings, you will meet lots of other people in the same business as you, and many people have found their business partners here. One way to get started with no money down is to work with a money partner. You provide the leg work, they provide the money, and profits are split. Everyone is happy!

Meet With Local Loan Officers.

This can be an educational experience for you, as well as a possible business opportunity. Who better to explain to you the financing of investment properties, but a loan officer? Make sure that your loan officer specializes in investment property, or at least has vast experience in that area.

Investment property financing is a whole different ball game. Perhaps there are loans out there that can help you accomplish what you want. Remember, the loan officer only makes money once they give you a loan, so they want to finance you as much as the next person.

Hard Money Loans.

Another financing option might be a hard money loan. These are not good for all types of deals, but may be ideal for a rehab project to someone with little to no money and no credit. Often times the lender (usually a private lender) will loan money on the value of the home, not the sales price.

This is a way to incorporate some fix-up money into your project if you do no have working capital. For example, a home might be worth $100,000, and need $25,000 in repairs. You can finance usually up to 75% of the value, meaning you can finance $75,000. If you can purchase it for $50,000, you can get the $25,000 you need for repairs. Be careful, these loans usually have stricter terms and higher interest rates. Do your homework first!

Find Homeowners That Are Willing To Work With You

If a homeowner is in a distressed situation, they may be able to help you as you help them. Find out if they have an assumable mortgage or if you can purchase the property “subject to”. This helps the owner and can allow you to get a deal with little to no money out of pocket.

A lot of times real estate investing takes creative thinking and problem-solving. There is a solution to every problem if you are willing to find it. You can definitely begin investing in real estate with no money down if you have the drive and determination.

Lastly, this may be a good time to think about obtaining your real estate license. You can be your own Realtor, and put a little extra money in your pocket.