Buying real estate with no money? It might sound like magic, but it can be done – albeit using a less traditional approach. Here are a few ways you can pull it off.  

 

1. Seller Financing

   This is when the seller also acts as the lender to provide financing for the purchase. This can be a great option for buyers with little to no money, but it's important to negotiate favorable terms and ensure the property will be worth the investment long-term. 

2. Rent-to-Own

   This is when the buyer starts off by renting the property, with the option to purchase it at a later date. If you need more time to save for a down payment, it's a great way to settle into your new place and start building a home while you put that money away.

3. Private Lenders

   Private lenders can provide financing for the purchase of a property. However, it's important to do your research and ensure the terms are favorable: interest rates in these situations can be very high, so you need to make sure you don't get in over your head.

4. House Hacking

   This method involves living in one unit of a multi-unit property while renting out the other units to cover the mortgage and expenses. This can be a great option for people who don't have much of a down payment on hand, since you'll be able to put as little as 5% down in some cases.

The bottom line

If you're looking to enter the real estate market with little to no money, you aren't totally out of luck! These approaches can certainly work for some people, though you'll likely be taking on more risk than you would in a traditional lending situation. Have questions? We're happy to let you in on more secrets! Reach out to our team and we'll get in touch with an answer ASAP.