Real estate investing offers numerous benefits, including steady cash flow, tax advantages, and equity building.

If you’ve been thinking about getting into it but feel held back by limited funds, that’s understandable. 

Many people assume you need thousands of dollars saved up before you can even begin. But that’s not always the case. There are several ways to get involved in real estate without spending a lot at the beginning. 

In this article, we’ll break down five of those options.

5 Ways to Invest in Real Estate With Little (or No) Money

The idea that real estate is only for the rich? That’s a myth. The truth takes digging.

Here’s how you can enter the real estate market without breaking the bank.

1. Wholesaling

Wholesaling lets you earn from real estate without owning property or putting up much cash.

Here’s how it works: You find an undervalued property and sign a contract with the seller to buy it at a discounted price. However, instead of buying it yourself, you assign the contract to another buyer for a higher price. The difference between the two prices is your profit.

For example, imagine you get a house under contract for $228,000, then find another buyer willing to pay $250,000. The original seller gets their $228,000, and you keep the $22,000 difference, all without purchasing or fixing the house. 

2. Partnerships

A real estate partnership involves teaming up with two or more people to invest in a property together. Instead of buying or managing everything alone, each person brings something to the table, such as money, time, or skills. 

For example, your partner might cover the down payment and repair costs, while you manage the contractors and rehabs. In the end, you both split the profit or rental income based on the agreement you made. 

This is a great option if you don’t have a lot of cash and can contribute effort.

3. Real Estate Investment Trusts (REITs)

A Real Estate Investment Trust (REIT) is a company that owns or finances income-generating real estate, like apartments or shopping centers. When you invest in a REIT, you buy shares in that company and earn a portion of the income it makes, usually through dividends.

This is a hands-off way to invest in real estate without buying or managing a property yourself.

4. Seller Financing

With seller financing, the property owner lets you make payments directly to them instead of using a bank. It’s common with landlords who prefer monthly payments over a lump sum.

You typically won’t need a credit check, closing costs are lower, and some deals require little or no money down. Just make sure to check the condition of the property, the rental history, and the lease terms before moving forward.

Keep in mind: Sellers usually charge a higher overall price since they’re taking on more risk.

5. Using Hard Money Lenders

A different strategy can change everything, even in real estate.

Hard money lenders are private individuals or companies that give short-term loans based on the property’s current and after-repair value, not your credit score.

Key features of these loans include:

• Fast funding
• Little or no down payment required
• Full ownership rights from the start
• High interest rates (10–16%)
• Best for short-term real estate investment strategies like fix-and-flip

You can find hard money lenders through local real estate investor groups or events like REIA meetings.