how to start investing in real estate with little money

Real estate is one of the most reliable ways to build wealth—but most people assume you need thousands of dollars to get started. The truth? You can begin investing in real estate with very little money, if you know the right strategies and tools.

bbygirl

Jun 25, 2025 - 11:30

Here’s how to get started, even if your budget is small.

1. House Hacking: Live in Your Investment

House hacking is one of the smartest (and most popular) ways to get into real estate with limited cash. It works like this:

🏠 Buy a multi-family property (duplex, triplex, or fourplex)
🛏️ Live in one unit
💸 Rent out the others to cover your mortgage (or even generate cash flow)

You can often use FHA loans, which require as little as 3.5% down, or VA loans (0% down, if you qualify).

2. Try Real Estate Crowdfunding Platforms

If you don’t want to buy a property directly, consider investing through real estate crowdfunding websites like:

Fundrise
RealtyMogul
Groundfloor

You can start with as little as $10 to $500, and your money is pooled with others to invest in large-scale commercial or residential properties. It’s passive, accessible, and doesn’t require property management.

3. Buy a REIT (Real Estate Investment Trust)

A REIT is a company that owns or finances real estate and pays investors dividends.

You can buy REITs just like stocks through any brokerage
Start with as little as $1 using platforms like Robinhood, Fidelity, or Charles Schwab
REITs offer regular income and are great for hands-off investors

💡 Bonus: Some REITs focus on apartments, others on retail centers or healthcare properties—so you can pick what suits your goals.

4. Partner With Others

If you don’t have much money, find someone who does—and bring something else to the table, like:

Time and willingness to manage tenants
Market knowledge
Construction or maintenance skills
Deal finding abilities

You can split profits based on roles and contributions. Just make sure to create a legal partnership agreement.

5. Wholesaling Real Estate

Wholesaling involves finding discounted properties, putting them under contract, and then assigning that contract to another investor for a fee.

No need to buy or renovate the property
Requires hustle, negotiation skills, and local market knowledge
Great for people who can find off-market deals or work with distressed sellers

⚠️ Note: Wholesaling is legal in most areas but may require a license—check your local laws.

6. Use Seller Financing or Lease Options

You may be able to buy property with little or no money down by negotiating directly with the seller.

Seller financing: The seller becomes the bank—you make payments directly to them
Lease option: Rent now, with the option to buy later, with part of the rent going toward the purchase price

These creative financing methods require trust and negotiation but can work in the right situation.

7. Tap Into Low-Down-Payment Loans

If you’re buying your first home or investment property, explore special loan programs like:

FHA Loans: 3.5% down
VA Loans: 0% down (for veterans)
USDA Loans: 0% down (for rural areas)
Conventional 97 Loans: 3% down

Many of these loans allow you to use gift funds, grants, or down payment assistance.

Final Thoughts

You don’t need to be rich to invest in real estate—you just need to be resourceful. Whether you start by house hacking, investing in a REIT, or finding creative financing, there are real opportunities for beginners with little capital.