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how to get money for real estate investing

When you want to invest in real estate, there are tons of guides out there to help you learn how to make money in real estate for beginners – and it’s easy to find information on rental income, real estate investment trusts (REITs), and property flipping. What isn’t so readily available is how to fund real estate investment or get money for real estate investing with little money.

The knowledge is out there, but it’s typically scattered or comes in lists with very few details about how each funding option works. Here, I want to lay out the ways you can actually get money to start investing in real estate as soon as possible.

This is what’s in store:

Now, let’s get to it!

Do You Need to be Rich to Invest in Real Estate?

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First things first: It might seem like the wealthy have the real estate investing market cornered. Whether individuals put their “riches” into real estate or they build fortunes by investing in properties isn’t important – there’s money in real estate.

The good news is that you do not have to be rich to invest in real estate. Actually, the majority of Americans – 65.7% – own a home. And, this doesn’t account for those who have money in real estate investment pools and REITs, which require less investment than an outright property purchase.

The bottom line is that anyone with a willingness to learn can invest in real estate.

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How Long Does it Take to Make Money From Real Estate Investments?

How to get money for real estate investing without a

Real estate investment timelines vary depending on your strategy. If you’re flipping properties, you could see quick profits in a few months to a year—This involves buying distressed properties, renovating them, and then selling them for a profit.

On the other hand, if you’re pursuing a buy-and-hold strategy, it may take longer to see significant returns. With this approach, you’re renting out properties for passive income and waiting for equity growth over time. You might start seeing positive cash flow within months to a year, but the real appreciation typically happens over years or even decades.

Wholesaling is another option, where you find off-market deals and assign contracts for a fee—This can have a shorter timeline, sometimes just weeks to months. Lastly, investing in Real Estate Investment Trusts (REITs) offers immediate dividends from publicly traded real estate companies, with potential capital appreciation over time.

Ultimately, your timeline will depend on your chosen strategy, market conditions, and the type of property you invest in.

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18 Ways to Get Money for Real Estate Investing

how to invest in real estate with no money

Now, explore the ways you can get more money to invest in real estate. From traditional methods to others you may not have heard of, here’s where you might be able to find the funds.

Keep in mind that real estate, as with all other investment channels, comes with risks. You should always consult professionals when making investment decisions.

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1. Conventional Mortgage

A conventional mortgage is a loan offered by traditional financial institutions like banks or credit unions. It’s probably the most common funding option for real estate investing.

To qualify, you typically need:

A good credit score
Stable income
A down payment (up to 20% of the property’s purchase price)

This option won’t work for those with poor credit or limited savings for a down payment.

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2. Government-Guaranteed Mortgage

Government-guaranteed mortgages, like USDA loans, FHA loans, or VA loans, are backed by government agencies—This makes them more accessible if you have a lower credit score or smaller down payment.

Qualification criteria vary depending on the specific program, but they generally have less stringent requirements compared to conventional mortgages.

See if you qualify for a USDA loan.
See if you qualify for an FHA loan.
See if you qualify for a VA loan (veterans only).

These mortgages may not be suitable if your income is on the high side or you don’t meet the criteria.

Another option in this realm worth looking into is Habitat for Humanity’s homeownership program. However, there is the caveat that you must live in the home for a set amount of time and it must be your primary residence—This may not be suitable if you want to invest in multiple properties or implement a short-term investment strategy.

3. Business Credit

Using business credit to fund real estate investments involves obtaining loans or lines of credit in the name of a business entity. Qualifying often requires a solid business plan, good credit history for the business, and potentially collateral.

This method won’t be workable if you don’t yet have an established business or you’re unable to meet the credit requirements. But, here at Business Credit Workshop, we teach you how to set up your business to be “credit ready” and how to obtain up to $100K in business credit.

4. Home Equity Funding

Home equity funding involves borrowing against the equity in your primary residence. Qualifying typically requires sufficient equity in your home and a good credit score. Look into home equity loans and home equity lines of credit (HELOCs).

If you don’t own a property, you won’t be able to qualify for home equity funding. And, this option may not be suitable if you have little equity or are uncomfortable risking your primary residence as collateral.

5. Real Estate Investor Line of Credit

A real estate investor line of credit provides flexible financing for real estate investments.

Qualifying may require:

A good credit score
A track record of successful real estate investments
Possibly collateral

This option might not work for inexperienced investors or those with poor credit. It’s better-suited to seasoned investors.

6. Installment Sale or Lease to Own (Seller Financing)

An installment sale, also known as seller financing, involves the seller acting as the lender and financing the purchase of the property for the buyer. You may think this is an impossible strategy if you’ve never done it, but you’d be surprised at how often this actually happens.

You’ll typically need to negotiate with the seller and agree on terms—Most sellers would want to see that you can get a conventional mortgage or some other way to make a balloon payment at the end of the terms.

Related to seller financing, lease-to-own financing allows a buyer to rent a property with the option to purchase it later. In contrast, an installment sale involves buying property through periodic payments, with the buyer gaining ownership gradually.

The main difference is that in lease-to-own, ownership transfers after the final purchase, while with seller financing, the buyer typically has equitable ownership from the start. These methods may not be feasible if the seller is unwilling or unable to offer an agreement like this or if the buyer cannot negotiate favorable terms.

7. Private or Hard Money Lender

Private money lenders and hard money lenders are typically private companies or individuals that offer short-term loans secured by real estate.

Qualifying may require:

A solid investment strategy
Collateral
A realistic plan for repayment

This option might not work when you’re unable to meet the lender’s requirements or if you’re seeking long-term financing.

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8. Wholesale

Wholesaling involves finding discounted properties and assigning the purchase contract to another buyer for a fee.

Qualifying doesn’t typically require a large amount of capital but does require finding motivated sellers and buyers—you have to flex your sales muscles.

This method may not be suitable if you don’t have strong negotiation skills or you’re unable to find profitable deals.

9. Equity Partner

An equity partner is someone who invests capital in a real estate venture in exchange for a share of the profits. You have to find a suitable partner and negotiate terms.

Think of it like an angel investor or similar situation wherein you do most of the hands-on work and the investor takes a cut of your profit in exchange for an initial payment.

This option may not work if you’re uncomfortable sharing ownership or decision-making authority.

10. Rent, Lease, or Sublet

Renting, leasing, or subletting property to generate rental income requires being in control of real estate assets. In most cases, you must own the property. But, if the owner or property manager approves, you can lease or rent then sublet for profit.

You might earn rental income off of:

Residential homes
Commercial properties
Rooms or office space
Empty lots

You’ll need to take control over suitable properties, market them to tenants, and manage the property.

This option only works if you can access investment properties and you need to be able to manage rental properties effectively.

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11. Rent Out Your Assets

Renting out assets like a car, truck, trailer, or tool can generate additional income. You can use online platforms and marketplaces to list your assets, or even create your own website. And, you will need to make sure you’re properly insured to cover any damages and licensed if this is required in your location.

You’ll need suitable assets available for rent and to market them effectively. People might be interested in renting anything from utility trailers to bounce houses and power tools.

This won’t work if you don’t have assets to rent or you’re uncomfortable with others using your possessions.

12. Renovate Your Budget

Renovating your budget involves cutting unnecessary expenses and reallocating funds toward real estate investments. You just need to assess your current financial situation and make adjustments to prioritize saving and investing.

If you have limited disposable income or you’re unwilling to make sacrifices to fund investments, this may not help you—In some cases, budget readjustment will only help you get money for real estate investing after you increase your income.

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13. Ask for a Raise

Asking for a raise at your current job can increase your income and potentially provide additional funds for real estate investments. You’ll need to demonstrate your value to your employer and negotiate a salary increase.

This option may not work if you’re in an industry with limited salary growth potential or you’re too uncomfortable to negotiate with your employer.

14. Get a Second Job

Taking on a second job can provide extra income to fund real estate investments. All you need is a suitable employment opportunity and to balance the demands of multiple jobs.

This option may not be feasible if you have limited availability or you aren’t able to secure additional employment. But, skills training can help you get there.

15. Save Every Penny

Saving aggressively by cutting expenses and increasing savings contributions can help accumulate funds for real estate investments over time.You’ll need discipline and commitment to a savings plan.

This option may not be the best fit if you have high living expenses or you’re not willing to make sacrifices to save money.

16. Start a Business

Starting a business that generates income can provide capital for real estate investments. You’ll have to identify a viable business opportunity and secure funding or investment capital. But, you might be able to start without much initial investment if you leverage assets that are right in front of you.

The business will need to fit your skill set. But, I’ve seen people create businesses from scratch with nothing. As an idea, you could find free furniture on Craigslist, paint it, and resell it for a profit. Or, you could resell used books or other small items on an online marketplace.

This option isn’t great if you don’t have entrepreneurial skills or you aren’t able to manage the demands of starting and running a business.

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17. Network and Learn

Networking with experienced real estate investors and learning from their expertise can provide valuable insights and opportunities for partnerships or joint ventures. Look to local real estate investing groups, the Chamber of Commerce, and other related groups to get started.

To make this work, you’ll need to actively participate in networking events and seek mentorship. You have to be willing to invest time and effort into building relationships and acquiring knowledge.

18. Research Local Grants

Researching local grants or assistance programs for real estate investors can provide funding opportunities or incentives for investment projects. Local nonprofits are a good place to start.

You’ll need to identify relevant grant programs and meet their eligibility criteria.

This option won’t work out if you or your property is located in areas with limited grant availability or you’re ineligible for the specific programs. But, particularly in low-income or rural areas, you could be pleasantly surprised at what you can unearth—it’s definitely worth looking into.

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Frequently Asked Questions

What is the smartest way to invest in real estate?

The smartest way to invest in real estate depends on your financial goals, risk tolerance, and available resources. Generally, strategies like buy-and-hold rental properties, house hacking, or investing in REITs are considered “smart” options to build long-term wealth.

Is it hard to make money in real estate?

Making money in real estate can be challenging, but it’s not impossible. Success often requires careful planning, market research, and diligence in finding profitable opportunities.

How do you get money from investing in real estate?

There are several ways to generate income from real estate investing, including rental income from tenants, profits from property appreciation over time, and gains from flipping properties for a profit.

Can I invest $100 dollars in real estate?

It’s difficult to invest only $100 directly into real estate due to the high costs associated with property ownership. However, you can indirectly invest in real estate through crowdfunding platforms or REITs with a relatively small initial investment.

How to invest in real estate with $1000?

With a $1000 investment, you might consider starting with real estate crowdfunding platforms, where you can pool your funds with other investors to buy fractional shares of properties. Additionally, you could explore investing in REITs or looking for small, affordable properties in emerging markets.

The Bottom Line

Getting started in real estate investing doesn’t necessarily require vast wealth. While there’s no get rich quick method to secure funds, there are many avenues to secure funding and begin your journey in the real estate market.

By exploring options like conventional mortgages, government-guaranteed loans, business credit, or even leveraging your existing assets, you can find a path that suits your financial situation and goals—Whether you’re considering rental properties, flipping houses, or investing in REITs, the key is to educate yourself, network with experienced investors, and remain diligent in your pursuit of opportunities.

Remember, success in real estate investing is attainable with determination, careful planning, and a willingness to adapt to market conditions. So, take the first step, explore your options, and embark on your journey to financial growth through real estate investment.

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How to Get Money for Real Estate Investing: 18 Practical Ideas