How to Buy a Home with No Money

How to buy a home with no money down

If you are attempting to begin investing but don’t have a lot of money to invest this can seem like an unsurmountable obstacle. The truth is an investor is always looking for two things: money and houses…money and houses…money and houses! If you don’t have one you are looking for the other, if you don’t have either you are looking for both. No big deal if you don’t have money, start looking for it.

How to Buy a Home with no Money...

Maybe you do have the money!?!

Maybe you do have the money? Never count yourself out! If you have a company 401(k) or IRA you can move that money to a self directed provider. Many people have been working for years and have accumulated a good bit of money in a company IRA or 401(k) and don’t realize that they can take even more control of their investments. You are not limited to investing in the list of mutual funds provided by your employer or IRA provider. Change your plan to a Self directed option and you can easily begin investing in Real Estate with the money you didn’t think you had! For more on this Listen to my interview on the Plan Prepare Invest podcast with an advisor, Patrick Hagen, from the Entrust Group HERE ( for more details.

How to Buy a Home with no Money: Partners!

If you find a great deal on a house and the only thing limiting your ability to get started is the money, its time to bring in a partner. There are several ways to do this. First you could enter into a true partnership by drawing up a contract outlining each responsibilities and interest related to the property.

Another option is to wholesale the property to your partner with the money. This is described more in depth in my article on Slane Properties Blog HERE ( But the long and short of it is this: You found a great deal on a house so you agree to buy it from the seller (under a contract), then you agree to sell it to your money partner (under another contract) for a higher price or for a fee. This probably isn’t what you were thinking about by buying Real Estate…you just bought it and sold it in the same breath of air. This is a great way to get started if you have a knack for finding deals but don’t have the cash on hand to keep them for long term investments yet.

How to Buy a Home with no Money: Leverage Yourself

One way to leverage yourself is to borrow from the equity you have. If you own your home and have equity locked up in it you can use this to your advantage. Find a lender that will give you a home equity loan or HELOC and that offers a reasonable interest rate. This can be riskier as you need to know that your investment property will perform well enough to pay back the HELOC and provide you with a profit or you risk losing your home. You will also need a sufficient credit score to get approved.

Another way you can leverage yourself is to borrow money from family and friends. This may not sound like the sexiest way to invest but it works. A better way to think about this is Private Money. Private lending can be the least expensive form of financing real estate and is a big deal in real estate. Remember when you are borrowing from family and friends this could be a point of contention in the future if the deal goes belly up. Another thing to keep in mind is that you want to run your real estate investing like a business so do things by the book here. Draw up promissory notes outlining interest rates and payment dates. You should consult with an attorney if you plan to use private money as there are several legal things you need to know that vary state to state.

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Discount Property Investor is focused on providing bargain priced investment property to Real Estate Investors. As well as top notch advice on managing rental property and rehab or fix and flip projects. If you're looking to buy rental property deals below market value. Or  income property for sale at a discount check out our current selection in the properties tab. Buy property the Discount Property Investor way!