The Real Estate Lie That’s Holding You Back

You’ve probably heard this before:

“To invest in real estate, you need 20% down, excellent credit, and at least $50,000 saved up.”

That’s what banks say. That’s what your broke neighbor believes. And that’s exactly what keeps smart, driven people stuck on the sidelines.

Here’s the truth: you don’t need your own money to buy real estate.

Yes, you read that right. No fluff. No scammy tricks. No late-night infomercial nonsense. Just real, proven strategies used by investors across the country to buy property with little-to-none of their own money.

How do I know? Because I started the same way.

How I Got Started Using Other People’s Money

When I first stepped into real estate, I didn’t have a rich uncle. I didn’t have capital. I had drive, research skills, and a deep hatred for being broke.

I couldn’t get a loan. I didn’t have cash. But I did find people who did—and I learned how to bring them valuable deals that made them money. In return, I got a cut. Then I learned more creative ways to control and own property with no money down.

This guide lays out those exact strategies. You’ll learn how to use other people’s money, creative financing, and high-leverage tactics to go from zero to owning real estate.

Let’s dive in.

WHOLESALING – GET PAID WITHOUT OWNING PROPERTY

Wholesaling is the gateway drug of no-money real estate. It’s fast. It’s lean. It’s pure hustle. And it works.

What is Wholesaling?

Here’s the short version:

1. You find an off-market property (usually distressed or discounted).

2. You get the seller to agree to a purchase price and sign a contract.

3. You assign that contract to a cash buyer (like a flipper or landlord).

4. You collect a fee at closing—often $5,000 to $20,000—without ever buying the house.

You’re not flipping the property. You’re flipping the contract.

Why It Works

You’re doing what most investors are too busy or lazy to do: finding good deals. The buyer gets a solid investment property, the seller gets out of a bad situation, and you get paid for making it happen.

Tools You Need

• Skip tracing tools (BatchLeads, Propstream)

• A basic contract (state-specific assignment agreements)

• A phone and the guts to cold call

• Negotiation skills and problem-solving mindset

• A cash buyer list (very important—more on that in a moment)

Real Example

You find a tired landlord who just wants out. They agree to sell their property for $90,000. You get the property under contract and assign it to a rehabber for $105,000. At closing, you make $15,000—and never put up a dime of your own money.

Bonus Tip

Build your cash buyer list before you look for deals. It’s easier to sell when you already know who’s buying. Go to local investor meetups, post in Facebook groups, and call “We Buy Houses” signs. Ask them what kinds of deals they’re looking for and where.

PRIVATE MONEY – FIND INVESTORS TO FUND YOUR DEALS

Private money is the real estate cheat code almost nobody teaches you about in school.

What is Private Money?

Private money refers to real people (not banks) who lend their own capital to fund your deals. They could be doctors, dentists, retired executives, or even friends and family. These people want better returns than what the stock market is offering—and you’re offering a secured way to earn it.

How to Structure It

You bring the deal. They bring the money. There are several common ways to set this up:

• Debt Structure: They loan you money at an agreed interest rate (e.g. 8–12%), and you pay them back monthly or at closing.

• Equity Partnership: You split the profit 50/50 (or whatever you negotiate).

• Preferred Return: They get a set return first (e.g. 8%), then you split the remainder.

Where to Find Private Lenders

• Local real estate meetups and networking groups

• BiggerPockets forums

• LinkedIn connections

• Social media (start posting about your journey)

• Friends and family who have retirement accounts or savings

The Magic Line

Here’s how to start the conversation without sounding desperate:

“Would you be open to earning 8–10% returns, secured by real estate, with none of the day-to-day management?”

It’s simple, clear, and positions you as someone offering opportunity—not asking for a handout.

SELLER FINANCING – WHEN THE SELLER BECOMES THE BANK

Seller financing is one of the most underrated creative financing methods out there. You don’t need a bank or hard money lender. The seller provides the financing.

When It Works

• The seller owns the property free and clear

• They don’t need all the money up front

• They’re open to monthly income

• The market is slow and they’re flexible

How It Works

You negotiate:

• A purchase price

• A down payment (which can be very low)

• Interest rate and loan term

• Balloon payment (if applicable)

The seller carries the note, and you make monthly payments to them—just like you would with a mortgage.

Key Legal Docs

Make sure you use:

• A promissory note (outlines the terms)

• A mortgage or deed of trust (secures the deal)

• A purchase agreement that clearly explains the financing

Work with a real estate attorney. Structure matters.

SUBJECT-TO – TAKE OVER PAYMENTS, KEEP THE EXISTING LOAN

Subject-to (or “Sub-To”) investing is a powerful strategy that lets you acquire property without getting a new loan.

What is a Subject-To Deal?

You buy a property subject to the existing mortgage staying in place. You take title to the property, but the original loan remains in the seller’s name. You just keep making the payments on their behalf.

When It Works

• The seller is behind on payments or facing foreclosure

• They’re getting divorced or relocating quickly

• They’re emotionally ready to walk away

• The home has little equity, but the numbers still work

Why It Works

You avoid loan qualification, down payments, and credit checks. In many cases, you get a home with built-in equity and favorable financing terms.

Legal Considerations

• Always use an attorney

• Get full disclosures signed

• Use an escrow company to manage the transition

• Be upfront with the seller

Done right, this is one of the most leveraged tools in the no-money-down investor’s toolbox.

LEASE OPTIONS – CONTROL PROPERTY NOW, OWN IT LATER

Lease options (also known as rent-to-own) allow you to control a property and generate cash flow without owning it outright.

How It Works

• You lease the property from the seller (usually below market rent)

• You also get an option to buy the property within a set timeframe at a predetermined price

• You pay a small “option fee” (can be as low as $1)

• You either live in the property or rent it out (Airbnb, sublease, etc.)

Why It Works

• Gives you control and income with minimal upfront capital

• Allows time to build credit or secure long-term financing

• Locks in purchase price in a potentially appreciating market

Smart Strategy

You can sublease the property at a higher rate than your lease, generating monthly profit. You can also improve the property and build sweat equity before purchasing.

Always use two separate agreements:

• A lease agreement

• An option-to-purchase agreement

This avoids complications and maintains legal clarity.

HOUSE HACKING – LIVE FOR FREE, BUILD EQUITY FAST

House hacking is the most accessible method for people with limited cash and a steady income.

What is House Hacking?

You buy a small multi-family property (duplex, triplex, fourplex) and live in one unit while renting out the others. Or buy a single-family home and rent out the rooms.

Why It Works

• Your tenants cover your mortgage

• You live for free (or even cash flow)

• You get homeowner loan terms (low interest, low down payment)

Loan Options

• FHA Loan: 3.5% down, great for owner-occupants

• NACA Program: 0% down, no closing costs, no PMI

• VA Loan: 0% down (for veterans)

This is a low-money option that builds long-term equity and teaches you how to manage tenants.

THE BRRRR STRATEGY – BUILD WEALTH WITH RECYCLABLE CAPITAL

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a powerful way to grow your portfolio with very little money staying in the deal.

How It Works

1. Buy a distressed property using private or hard money

2. Rehab it to increase the value

3. Rent it out to generate cash flow

4. Refinance at the new appraised value and pull out your initial investment

5. Repeat with the same capital

Why It’s Powerful

You get to keep the property, get your money back, and go again—scaling your portfolio without new capital injections each time.

What to Watch Out For

• You must buy significantly below market

• You need a solid after-repair value (ARV)

• You need a lender who will do cash-out refis based on ARV

• Rehab delays or rent issues can throw off your timing

High reward, higher risk. But done well? It’s the investor’s version of cloning money.

CLOSING THOUGHTS: YOU DON’T NEED MONEY—YOU NEED MOVES

You’ve now got a roadmap. Seven proven strategies to buy real estate without using your own cash. The excuses stop here.

To recap:

• Wholesaling gets you paid without buying

• Private money lets you buy without qualifying

• Seller financing and Sub-To deals avoid banks

• Lease options give you control with flexibility

• House hacking gets you equity while living rent-free

• BRRRR builds scalable wealth with recycled capital

The common thread in all of them? Value creation. You’re not trading money—you’re trading creativity, effort, and strategy.

This is real. It’s not theory. Investors are using these methods every day to build wealth from nothing.

If you're broke but motivated, if you’re willing to learn and hustle, if you’re serious about changing your future—this is your time.

Want Help Executing These Strategies?

Let’s map out a game plan. I’ll help you figure out which no-money-down method works for your situation, connect you with the right tools, and help you take action.

You don’t need money to buy real estate. You just need the right plan.
Let’s build it together.