3 Ways to Start Investing in Real Estate with Zero Down

Is investing in Real Estate with Zero Down for real?

No money to put down on your first investment? That shouldn’t stop you.

Use these 3 tips to get started.

You don’t have enough savings. After all, flipping is how you want to start making money, right? And you want to begin that real estate investment journey now.

But if you don’t have the money to begin with… how are you even supposed to start?

We see people do it every day. Here are the 3 main ways people have made successful real estate careers with zero money down.

Get a HELOC

If you already own a house, the first tactic you should use to get money for real estate is to get a HELOC.

HELOC stands for “home equity line of credit.” It’s basically a second mortgage that works like a line of credit that you can use and pay off over and over again. You’re able to use it for multiple properties.

You could get a HELOC from credit unions or banks. We usually send our clients to credit unions because they tend to have better options for HELOCs. A credit union will likely give you:
- A longer term
- Fixed rates
- A little more money
If you already own a home, go to a local credit union and ask them about a HELOC first.
Start a Partnership

But what if you don’t have a house, so you can’t get a HELOC? A partnership might be your next best option. There are two routes you can go.

Family or Friends

You can ask a family member or friend to be a money partner. They can provide you with the cash to use for a property’s down payment, or for the repairs of your flip.

The close and personal aspect of partnering with someone you know can be the best option for some people. In other cases, it’s nice to partner with a person or entity who’s not so personal.

Outside Partner

You could also look for an outside partner.

For example, Hard Money Mike partners with people who find good deals but don’t have the money to make that first purchase. We help them finance the whole amount so they can get into their first two or three deals. After letting us help fund their first three deals, most people come out with enough money to do their own down payment and repair costs on their next property, with no partner.

Beginning investors can make their business independent quickly when they seek out the right partner to get them started.
Use a credit card

Many people hesitate to use a credit card to fund their investments – for good reason. But when done right, a 0% credit card can be the simplest way to start investing with no money down.

What are the wrong ways to use a credit card for a fix-and-flip?
- Getting a credit card with a high APR.
- Using the card to go out and have fun.
- Not paying back the charges you put on the card.
If you’re smart, it can be easy to use a credit card the right way. Start with a 0% APR card. Understand that it’s a tool for your business, so treat it that way. Only use the card for repairs, contractors, and other costs associated with your flip.

Take out the money, sell the property, then clear the card back to zero before moving onto your next project. Don’t let the debt accumulate. Don’t keep a balance from deal to deal. This is where credit card use falls through for most investors. They don’t use the money from the sale to fully pay off the card, and it gets out of hand fast.

But if you do it right, a credit card works as a great way to help beginners get the funds needed to start in real estate.

What Are Other Ways to Investing in Real Estate with Zero Down?

Clients come to us wanting to get into real estate but think they need money in the bank. That’s not always the case.

Here are the 3 key ways we see people start their investments with no money:

If you already have a mortgage, get a HELOC.
Start with money from family, a friend, or an outside partner.
Use a 0% credit card to fund the costs of your investment.

These aren’t the only ways we’ve seen people succeed with a new real estate career.

Want even more ways to get into flipping and property investment with zero down? Download our free checklist, or check out these videos on our YouTube channel.

Happy investing

Investing in Real Estate with Zero Down