No cash to start investing

48 Replies

I’ve been wanting to begin my real estate investment journey for a long time. Ive read some & purchased studied a couple of program but funding is the problem. What stategies are available to me if I dont have any cash at all?

@Kenyetta Overton I am no expert in real estate investing but I doubt that there is a way to invest in real estate without any money. Even wholesale which does not require buying a physical property may require some money (please don't quote me on this). Try looking to start with house hacking, rural loans (for property in rural areas). Still, those will require something. Good Luck

Good question, and very fair, Yes it is possible without cash, I have not pursued those avenues since I had cash in bank in the beginning.  

The real question is why do you want to get involved with real estate, whats your goal.  

Also, which city are we talking about 

cash helps tremendously, but really it's generally not a cash problem as much as a knowledge/talent problem

If you had 100k dropped in your lap, would you know what to do with it to make a good investment? unlikely (not to say you might not find a way to spend it). My point is that if you spend time learning, and networking you'll start to understand this business and your strategy will develop. Once you know what you're talking about, what you want to accomplish, and know people who are in the business, finding money becomes pretty easy.

if you only had a money problem, then you could just find a deal and pitch to someone with cash and have no trouble closing. Money is in abundance, talent and deals are scarce.

educate and network, both are free and they make funding much easier to get. In the meantime, save every single penny you can, this shows you're willing to make the same sacrifice that you'll be asking many others to make with you. aka skin in the game  

@Anthony Gjolaj thanks for your reply. I want to get into real estate to build some financial security. Decades ago, I’ve purchased personal properties using Carlton Sheets training & studied Marko Rubel, but haven’t been able to move from homeownership to investing bc of lack of resources. I understand that there’s OPM out the but I have no real idea how to find it.

You need money to have honey. Everyone's in awhile rich uncle Bob may appear with some cash to help a badly needed niece.

@Alexander Felice thanks for your reply. To a certain extent I would know what to do if 100k was dropped in my lap & I have studied some but need to do more. Although I continue to seek resources nearby, Networking is seemingly a challenge for me bc I don’t drive & r.e. Meet ups in my area are weekdays after work hours in places not conveniently accessible by public transportation. I really just don’t want to waste any more money on programs like Marko Rubel et al when those funds can be saved & used for actually investing.
@Sam Shueh thanks for your reply. Unfortunately, there’s no rich anyone in my family, not even in the distance. It is solely up to me to get this work done.
Does anyone know of an investment group or meetup in philadelphia, pa? I can get to center city, university city, old city, northern liberties, art museum & graduate hospital areas; as well as some parts of west & south philadelphia & city line avenue.
@Anthony Gjolaj again thanks. I checked out the invitation but like most of the meetups I found that are “in philadelphia “ are actually somewhere else. This one is in in cherry hill nj. I’ll go through the site more thoroughly. There must be something directly in Philly.

Based on some of the questions you are asking I would say you need to start with real estate education. There is a ton of information on this website and plenty of books on how to get started.  Here is a path I would recommend for you.

1. Educate and consume everything real estate. Podcasts and audiobooks work great for long commutes.

2. Start saving 10% of your current income so you can have some money to invest.

3. Network with other investors. Join a local REIA or meetup group.

4. Locate an area that you plan on investing(farm area) in and start studying the market. Know what renovated properties in the area sell for so that when you see something listed for 50% of the market value you will know there is a possible deal to be had.

5. Start driving in your farm and area and writing down addresses for vacant or dilapidated buildings. This is called driving for dollars. You can create a list of people to market to for off market deals.

Education is the cheapest thing to acquire in real estate but most people tend to skip over it. Good luck.

If you own a home and have some equity in it you can take out a HELOC to use for down payment. Find inexpensive duplex and try to purchase using FHA program. But, you would need a stable job, so the lander could approve your loan. Having a good 700+ credit is beneficial. Rent out your personal residency and move into one of the units, rent out the other. But before starting all that talk to a lander, to find out what is your debt to income ratio, run the numbers, do research on the areas.

@Kenyetta Overton you must read @Brandon Turner book on investing with no money, it gives very practical advice about funding types and financing. Super helpful and informative. Ive used it to learn how to fund deals, the advise is not only relevant but he gives practical scenarios that are relatable. 

The strategies available really depend on your specific situation... available credit, partnerships, risk tolerance, local resources etc. I think it helps to know most of the available methods, then decide what combination of those work best for you. I hope this is helpful, best of wishes on your journey.

Well It takes money and the more the better. Donot believe this nonsense of zero money down . In order to be an investor you must have money to invest ! The days of getting into a property with no skin in the game are over . Even if somebody gave you a house you’d still need reserves for cap ex holding costs and closing fees

It doesn't cost money to drive for dollars, use the BP calculators, look at MLS listings, talk to realtors and hard money lenders.

Go to to find lenders in your area that will finance based on the deal and not the person 

Use the BP calculators to find a good deal and bring it to them.  This will do a few things 

1. Help you understand the numbers and feel more confident

2. Help you look more professional when presenting your deal 

There are also people on BP and elsewhere that have money they want to invest but don’t have the deals.  Find a good deal and bring it to them 

Hussle and attitude will bring you farther than money and no action 

I also suggest listening to BP podcast #276... it’s fantastic 

There are also other podcasts that discuss just getting started and no money down.  

Brandon Turners book on no and low money down is a great resource also

Hope this helps... good luck! 


Hey @Kenyetta Overton I'm from the Philadelphia area and live in Austin now. I've had the opportunity to purchase properties in both places with a buy and hold strategy. A few things that I would encourage you to do is not look for just meetup groups in Philadelphia, Cherry Hill is right over the bridge and you will find people doing deals all over the vicinity. Because of the lack of cash, you might find some small deals in the outskirts of the city either way. My recommendations would be the following 

1) Get with someone who is a whole seller and start presenting deals to them to split the commission. This might involve a lot of phone calls to find deals but it will show their processes and even give you insight into investor groups. Hopefully, this lasts a few months before you can do it on your own and begin getting more of the commission. 

2) Look at your options for a HELOC although you don't have to submit for a formal application yet. Understanding how much money you might have access to will be important especially in some parts of Philly where some homes are under 50K

3) I think the most important thing is finding investor groups and having some potential deals that you need them to finance 100%. Money is only a tool for leverage but so is Time and Knowledge. There are plenty of people that have the money but don't have time and/or knowledge to find the good deals, so you have to leverage the two assets that you have to get access to the one you need. 

I don't think they will allow me to add a link to this post but Forbs have a recent article with 10 companies with offering 0 to very low 3% down payment some with no PMI on a property. That means on an 80K property you might only need an investor to help with the closing costs, some of which you can wrap into the mortgage anyway. If you began with the wholesaling of had enough equity in your current property you might not need an investor at all. Hope it helps and I look forward to running into each other on some Philly deals.

Hi Kenyetta,

The problem you face is a pretty consistent one across real estate investors. While there technically are ways to begin investing in real estate with absolutely no money, I think it would be more helpful to first assess your financial situation to determine why there is no money to invest. While real estate can be one of the best wealth-building tools, things can also go terrible wrong. Just for arguments sake say the bank gave you a 100% LTV loan on a duplex. If things went south (tenants move out, repairs, etc) you would want to make sure you at least had some cash reserves to be able to avoid foreclosure on the property. My advice would be to spend a few years putting away as much money as possible, then start investing. It will be much safer and more profitable in the long run.

@Kenyetta Overton Good afternoon Kenyetta, Theres plenty of money out there to raise that's for sure. They key here for you will be experience I think it's best if you grind even harder than you are now to obtain your first rental property. You can use hard money lenders, HELOC if you own your home, you can pull a loan from your vehicle if its paid off, etc. Once you have that experience under your belt raising money for your next deal will be a breeze because now you have experience and investors like to give money to those who know what to do with it and that can grow it for them. Best of luck to you, I'm sure you'll do well! Junior

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