How to Invest in Real Estate with No Money as a Beginner

In this article, I am going to share with you how to invest in real estate with no money using seven creative ideas. You can use it to buy your first real estate investment without using a single penny of yours. Yes, without using your own money but by Using Other People’s Money (OPM). 

How to Invest in Real Estate with No Money

I am sure you heard that word. Without a lot of money, you can not invest in real estate. No money, no investment. But if I say you can, will you believe it? Of course, you will because you know: 

  • Lack of ambition, not lack of money, will lead you to failure. 

Earlier, we had believed in those fake truths, but not anymore. 

But before that, it’s necessary to know how Cartelon Sheets managed to pay no money down on his first investment and eventually become a millionaire real estate investor. A real life success story on how to invest in real estate with no money.

A Real Life Success Story (Cartelon Sheets)


After graduation, I started to work in a private company where I had worked for about 11 years. I was too aggressive to gain promotions. I was a proud man. In those short years, I had accomplished so much. 

But, I left the job for internal problems and realized I should have started a business. I realized it’s never too late to start over.

So first, I started to look at my finances. I noticed that I had changed four houses during my Job career, and every time moved, I made about $8000 from each house sold. I saw a great opportunity and decided to start a real estate business. 

But the problem was, I had no money to invest, just like most people, nor any practical knowledge about it. 

So I started learning. At first, with some books, expensive seminars, and some research. Then I realized that there is a way that you can use to pay no down payment on your real estate investment using other people’s money. 

But still, I was not earning anything cause I left my job. So I decided to become an agent. Time passed, and I used the formula to buy my first property, and later I became a millionaire.

  • Please note here: Getting the down payment is the hardest process in the house business. Using these tricks, you can get the money which is about 20% of the total amount. And the other 80% you can take from the bank as a loan.

One warning, before you use other people’s money, remember debt is like a loaded gun. One small mistake, and you are dead. So be careful, be very careful. 

So, what are those seven creative ideas, how to invest in real estate with no money, and how to use them effectively?

1. Use The Seller Money

You are thinking, how is that possible? Why will the seller even lend me money? Yes, he will, but in some special cases. For example, he got a divorce, a foreclosure problem, job relocation, or any death in his family. In all that cases, the seller may lend you money. Because he is more eager to make the deal than you. 

To use the seller’s money, all you need to do is, ask. Don’t be shy. Ask the seller if he can hold a second mortgage? I mean an 80% loan from the bank and 20% from the seller. 

Ask him will he give you credit to repair the property? Roof, paintings, new carpet, etc. Maybe you have to give the money back when closing but ask because you don’t have the money right now.

Ask him, will he consider a lease option? Can I trade products and services at a discounted price? Ask ask ask. Don’t be shy. Ask the right questions, and you will have the right answers. 

Don’t worry about what he will think. Maybe you can have that money, who knows. So ask. Remember never hesitate to help others, never.

2. Private Investors

We all know about private investors. Some investors do not want to invest in the stock market. Because it’s too risky for them, the value of a stock can go down to zero in a night. 

That is why they think real estate is far more superior and durable than that. These kinds of people will agree to lend you money. They will invest with you. 

But how do we find them? Check the local newspaper. There will be advertisements or search online. But always know what the investor wants and what is the requirement? 

If you don’t analyze it and sign the contract, then it can cause you some serious problems later, maybe a serious dispute that can kill your investment. Analyze very carefully what they exactly want?

3. Partners

I think the best way to invest in real estate with no money is to use a partner. Partners can be a great source to finance the property. They will not just lend you money, they will also help you to accomplish the goal. But remember, a partnership is like a double-way sword that can kill you from both sides. 

Always have the terms and conditions written, that way you can avoid those problems that could appear in the long future. You never know when a person will change his mind. So have a written contract.

4. Broker Commission

The Broker commission only works on the down payment. You have to down at least 10% of the total money. But in reality, the seller only needs the amount of money that he can pay his Broker fees and the closing cost to close the deal. 

Brokers take 5 -7% in commission. You can take the commission if he allows you to do so. You can always return the money.

Negotiate with your Broker. Let him know if he lends you that money, He will earn more than the current payment. If you give me your $3000, you will receive $4000 or more. 

But to convince the Broker, you need a good rapport with that guy. Because it works on trust. No trust, no brokers commission. Create trust first,t and then borrow the money wisely.

5. The Property Itself Can Finance You


This process is not applicable everywhere, but it does almost everywhere. The price of a property depends on the land, construction, and other surroundings. If the property holds the mineral rights or trees inside the property. You can raise money by selling it. 

But do a small research to know if the technique is applicable to your city or not? If yes, then use the opportunity to finance it. You can have that answer from the nearest property office or your lawyer.

6. Credit Negotiation

The maximum investor does not know about this method. You will gain some credit from the seller to repair the house, paint the house, and for other necessary stuff. 

By using this option, you will pay less money than you would at the time of closing. That money will be enough to make the down payment.

The maximum seller will not give credit. You have to convince him no matter what. Otherwise, this method will not work. Convince him anyhow. Negotiate the credit. 

7. Lease Option


If you ask me how to invest in real estate with no money, tell me just one way. I will share the Lease Option.

The lease option is one of the best ways to invest in real estate with no money. Investors love this. A lease option means you will have written permission to lend the property to someone else, and you can choose to pay him monthly.

Plus in the far future, if the value of the property increases or decreases, then you will still pay the same amount of money as you are paying today. 

The lease option can work in any market. You have to be smart enough to make it successful. Give it a try. I can say you will love it. The lease is the best option.

Last Words

So now you know the answer to how to invest in real estate with no money by applying these seven creative ideas. We just have learned the overview of the whole process. 

There is more, as we have talked about the process in an easy way. But in reality, that will not be that easy. It will be very frustrating and demotivating. So prepare yourself that way. Build a tough mind and go for it because it works.

Thank you guys for making it to the end. I hope you enjoyed it. Leave a comment below and let me know which idea is better than the others. 

How to invest in real estate with no money?

Find a good friend and invest with him as partners as no bank will lend you money at the very beginning.

What is the average down payment in real estate?

You have to pay about 10 to 20 percent of the total value as a down payment and the rest will be paid later.

Where can I find an investment partner?

Ask your close friends and family who are interested in investing in real estate. Show them how profitable it can be and they will invest with you.

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