How to Invest in Real Estate With Little Money: 4 Different Strategies

We all know that real estate is one of the best investments for growing and storing wealth. From Buffet, to Trump, to Richard Branson, millionaires and billionaires use real estate as a way to maintain their empire.

But for us “Average Joe’s”, the greatest difficulty seems to be getting started. How do you invest in real estate with little money? Is it even possible to invest in real estate before you’re a millionaire?

I’ve actually invested in property four different ways – without being worth anywhere near a million! So there certainly is hope for all of us.

Although the real estate markets are a lot higher than they were a few years back, if you’re intelligent with your investing, it is certainly possible to make a decent return. Start by reading up on the topic, including this great FREE guide by the creators of the Bigger Pockets podcast – then consider a few of these traditional and “round-about” ways to invest.

And while I recommend reading multiple books from the Rich Dad Poor Dad series, just be careful about leveraging your finances too much. Some investors recommend borrowing as much as you can to buy as much as you can. This is incredibly risky and should only be done if you know what you’re doing and are willing to lose everything.

  • Free tool: To keep track of all of your finances, investments, and budgets in one place for free, check out Personal Capital.

If you want to start making money from real estate before you’re rich, consider these four strategies:

1. Invest in Publicly Traded REITs. Minimum Cost: $5

A Real Estate Investment Trust (REIT) is a corporation that is entirely made up of real estate investments – either by directly owning property or by owning mortgages.

The beauty of owning a portion of an REIT is that they are required to pay out 90% of what they earn every single year. This means that a rental property bringing in $1 million will have to pay out $900k to shareholders – ensuring a consistent a healthy dividend.

The drawback to publicly traded REITs is that anything traded on the public market is going to be limited to an average return because the stock price will increase/decrease based on the change in the dividend paid out.

However, the plus side is that you can buy into many REITs that cost under $10/share and have a decent return of 5-20%.

There are many great ways to invest. The key is to find the right one for you based on how much you plan to invest and what features interest you most.

2. Invest in a Private eREIT Thru Fundrise. Minimum Cost: $1000

One of my newest and favorite investments is the Fundrise eREIT – which allows anyone to invest as little as $1000 into a private REIT.

Just like a publicly traded REIT, you own shares in real estate or mortgages. Unlike a traded stock, you are buying in at the initial offering price – which ensures that your return will likely be higher. Furthermore, because it’s not publicly traded, there are fewer costs – meaning higher returns for investors.

The beauty of both public and private REITs is that you don’t have to handle any of the management or maintenance of the property itself – you simply enjoy your monthly/annual dividend.

Right now the annual return on my investment in Fundrise is just over 9.5%. And they’re about to launch a new REIT that they expect to make close to a 20% annual return (for longer-term investors).

Now, real estate is always risky, but the benefit of a Fundrise REIT is that the investments are diversified across multiple properties – meaning that you won’t lose everything if one market or property is negatively impacted.

3. Buy Your Own Rental Property. Minimum Cost: $15,000+ (or $0 – Depending on Your Method)

Although you might think that owning your own rental property is out of the question (after all, you aren’t a millionaire yet), don’t completely throw it out.

There are a couple of ways you can go about being a landlord, and it doesn’t have to cost a fortune.

Become a Traditional Landlord

First, the traditional landlord route of owning a property that you rent out to others on a long-term basis is pricey, but doesn’t have to be exorbitant if you play your cards right. Consider one of these three strategies:

1. Buy an Inexpensive Fixer-Upper

If purchasing a property at regular price isn’t within your budget. Consider a fixer-upper.

In some parts of the country (like Michigan) you can purchase a house for as little as $10k. If you’re willing to spend some time fixing the property up, you’ll have yourself a nice little rental in no time!

This is actually something that my brother and I did while in graduate school. We won a Michigan home action for $2,500 (which the bank negotiated up to $10k). We spent a year living and fixing this property, and now have a rental that will pay for itself after about 6 years.

You want to do your research before getting involved in buying fixer-uppers so that you don’t get something in need of major structural repairs. But it’s amazing how much a home’s value will increase with just a few inexpensive cosmetic repairs.  

2. Buy a Personal Home with a Separate Unit to Rent Out

If you’re going to own your home anyway, why not purchase something that has an attached granny apartment – or even pick up a duplex.

By purchasing a single property with a rental already attached, you really won’t be paying much more than you would for a regular house – and you’ll find yourself making money in the process. In fact, owning a duplex may result in your tenants rent paying the entire mortgage!

I haven’t done this yet, but I always keep my eyes out for duplexes and houses with grannys/lofts when moving to a new location.

3. Add a Tiny House or RV to your Property

You’ll want to check with the legal regulations in your area to make sure you aren’t going to get fined, but it may be possible for you to subdivide your land and add a trailer or tiny home to your property as an additional rental!

Although you may have to pay $20k to purchase your rental, depending on your location, it could easily pay for itself within a year or two – and you may be able to get a loan from Bugis Credit for the tiny home or RV.

Become an AirBnB Landlord

If you don’t have a separate house to rent out, or if you don’t want to rent out your property on an ongoing basis, you may want to consider renting out your property, or even a single room, on a part-time basis via AirBnB.

Through this site you can state what dates the property is available and set a rate. Then, as tourists and travelers explore your area, they can book the night in your rental.

This is another method that requires a brief look at your local legislation, as some communities don’t permit AirBnB. However, if you could make an extra $30-75/night by renting out a room in your house, and you don’t mind having strangers around (AirBnB insures your belongings), why not?!

4. Setup an LLC and Buy Rental Property with Friends and Family. Minimum Cost: Likely $5,000-10,000 per Investor (but Flexible)

Another great way to invest in real estate when you can’t afford to buy the property yourself is to partner up with others. If you find 10 or 20 friend and family members each willing to pitch in $10k, you could be well on your way to owning your first piece of real estate!

Currently, I own a portion of another Michigan rental property (worth about $20k), through an LLC investment with several family members. Although we haven’t pulled any money out of this account yet, it’s slowly building up equity and we will likely use the profits from this property to purchase more in the future.

You don’t want to go into business with anyone without having a good plan – and this is especially true with real estate investments involving friends and family.

Although a smart purchase will pay off eventually, there can be a lot of surprising costs that pop up – not to mention the time involved in managing the property.

While owning and operating an LLC, depending on your state, shouldn’t cost more than $500-$1,000, you will want to have a plan for financing any additional costs that might come up (such as repairs or payments when the property isn’t rented out).

If you set up a clear agreement, have a plan for who will manage the property and how they will be compensated, and build up a bit of a cash reserve, a joint LLC can prove to be a great investing tool for everyone involved.

Seek legal advice before pursuing this option.

What’s Next?

Real estate investing requires some work and money to get started – but it doesn’t have to be overwhelming.

By implementing one of the four investing strategies listed above, you can start making money from real estate without tremendous risk, work, or cost. 

For the comments: What are your thoughts and recommendations regarding real estate investing? Have you tried any of the methods above? Do you know of any other ways to invest in real estate before you’re rich?


Rob is enthusiastic about everything related to money and investing. A financial analyst and instructor, he enjoys using what he’s learned from 10 years of studying business and money to help others achieve financial stability. He founded Money Nomad in 2014!

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  1. Hii..!!!
    These is one of the best post I have ever come across. A real estate investment needs to be strategically planned in order to earn a huge profit. I got to learn a lot from this post.
    Thanks for this post..!!!

    1. I’m glad you found the post helpful Herman! And thanks for your insights – you’re absolutely right that planning your strategy is an important step to take before investing.

    2. There are two categories of “no money down” investors: 
      1. Those who have gone to a seminar pitching this as a system, and have to use “no money down” because… They don’t have any money. 99% of these people fail and end up giving real estate investors a bad name because they can’t back up their commitments to home sellers, contractors, lenders, and others. 

      If you can’t AFFORD to purchase a home, you SHOULD NOT BUY IT. I know you don’t want to hear it, but start saving and you’ll have enough for the downpayment in no time. Some quick “low hanging fruit” tips to save some quick cash include – switch to Metro pcs or Boost for cellphone (I only pay $20/month), switch auto insurance to Insurance Panda ($25/month), and start using GasBuddy (saves me like $100/month at least. I drive a lot).

      You do not want to go into this broke.
      2. Experienced investors who simply use the good financing and leverage options to create the best outcome for their transactions. One of those options might include not putting money down up front. 
      We run into this every day – novice real estate investors think that “no money down” means “no commitment or obligation”. This is absolutely not the case of course, and is the reason so many of these transactions fall apart and tarnish the ethical investors out there. 

  2. These are really awesome tips! Investing in real estate as a beginner can be really tricky, but the results can be worthwhile for some. It sounds like you’ve got a grasp on how it works. Nice work! Thanks for sharing!

  3. Great share!!Its true many people don’t know what they exactly want and this post include all the important points.Please keep on posting post like this and I’ll be glad to read all your posts.Thanks for the article!!

  4. When you invest in residential real estate, you are getting more than a home or a piece of land upon which to build a home. Real estate investment has become a popular way for people to make money, and it is not uncommon to buy a house or land without any intention of living there. Some people simply buy and hold property, waiting for it to appreciate in value before re-selling it. Having cash for a down payment is the quick and easy way to enter the real estate market, but it’s not your only option. Many people have found ways to start investing in real estate with little or no money of their own. Options include borrowing money as well as a number of more unusual and creative paths to ownership. This article explores some of those paths.

  5. Thanks for this great article! We are in the same line, I believe. Investing in real estate really is a good business investment, this article can help you head start a business.

    1. When you buy a rental property using a mortgage, your tenant is actually the one paying the mortgage payment, thus increasing your net worth each month. Because of the loan pay down a rental property is essentially a savings account that grows automatically, without you depositing money each month.

      1. That’s true. If you can get someone else paying your mortgage for you, then you’re in a great spot! Thanks for sharing,


  6. Thanks for this great article! We are in the same line, I believe. Investing in real estate really is a good business investment, this article can help you head start a business.

  7. Very interesting strategies! If you decide to invest in a property directly, especially a fixer upper, be sure to look into the history of the property. Go to Housefax.com to see building permits, loan/lien history, fire incidents, and other property specific information.

  8. Hello..!!!
    I loved the strategies that you have mentioned in this post buddy. Real estate is such business that you need to act smart and wise. Reading this type of blogs can be really very helpful.
    Thanks for posting.

  9. If you withdraw your retirement savings now, you’ll lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties. If you change jobs, leave your savings invested in your current retirement plan, or roll them over to an your new employer’s plan.

  10. Hey, great share…..

    I was thinking of investing in a real estate from quite a long time but I was little apprehensive about it. Your tips and ideas are really going to be helpful for me.

    Thanks for sharing this post. Keep sharing more….

  11. Hi,
    Glad to seen your post! It is so informative and useful. I would like to share my experience with all!!
    I am not a real estate investing guru by any means. In fact, I only have 3 rental properties. The first one I bought with no money down. I used hard money to make the purchase and then traditional loans to refinance and pay back the hard money lender.

    You can find a wholesaler. These are the men and women that have the “I Buy Homes” ads, signs and sometimes commercials. These investors specialize in picking up properties at a discount. They usually don’t want to be landlords.

    Thanks for being sharing!! Keep it up!!

    Ronald K. Roy

    1. Awesome insights Roy! Thanks so much for sharing. Anyone able to buy money for $0 down is impressive in my book. I’ll have to go ahead and experiment with this a little on my own.

  12. Investing time into proper planning is key to turning your dreams into reality. Operating a small business is not just about working for yourself or working from home, it’s also about having the necessary management skills, industry expertise, technical skills, finance and of course a long-term vision to grow and succeed.

    1. That’s true. It takes a lot of work, but it’s certainly worthwhile — and real estate is an awesome way to get into it.

  13. Great advice! Buying a home with a part you can rent out is a great way to make some extra income that can even pay your own note! Thanks for sharing.

  14. Hi Rob,

    Thanks for sharing this great list of ways to invest in real estate.I have always wanted to be a real estate investor and now I can actually see the likelihood of that becoming a reality.

    People often underestimate the impact curb appeal can have on a property.
    Great Read. Thanks for Sharing.

  15. Great Article

    Many people can’t grasp the concept of how to find deals like this. There are alot of motivated sellers out there that will sell you their home

    1. You’re right. If you’re smart and willing to invest the time to research, you can find a lot of great deals and opportunities. Thanks for the comment!

  16. Good points Rob. Investing in real estate has long been a smart move but it should be viewed as a longer term investment. Like most other markets local real estate markets can and do rise and fall. Pick the right time and go in for the longer haul and this type of investment can be rewarding

    1. Great tips Brett — thanks for sharing your insights. It’s definitely hard for many of us to focus on the long-term value of an investment when we live in a time where we want immediate turn around. But patience is key!

    2. We will furnish you with a full conference to clarify the majority of your.accessible alternatives so you can pick the material arrangement that is directly for your home. We will work with you and stick to your own needs.

  17. Great tips! I had no idea there were so many ways to invest in real estate and make a profit. Fixer-uppers might require a bit of work, but you can really get some great results when you finish renovating. Thanks for sharing!

    1. Thanks for stopping by Heather. And you’re right — fixer-uppers are great, provided you have the time and know-how to make it a success. Honestly, just getting started in some capacity is what’s important.

  18. Rob you are absolutely right thanks man for sharing your cool ideas with us .

    Real estate investing requires some work and money to get started – but it doesn’t have to be overwhelming.



  19. Hi Rob,
    That’s a really catchy title. Anyhow you didn’t mention crowdfunding as an option. You briefly covered reits but why invest in a large group of asset verse cherry picking the ones that work best for you? For example, you have EXTRA money, lol, just lying around, why not look for a deal like the one we are offering that has a 20% ROI? just saying. You don’t need a lot of money to get involved, and it will not consume your life in research.

    1. Thanks for the comment Antoine! I didn’t mention crowdfunding in this post much because it usually requires a minimum investment of $5,000 (and often requires you to be an accredited investors). But I am a huge fan of crowdfunding and speak about it elsewhere!

      1. Rob, Okay that’s fair. Most do have a minimal requirement and or the accreditation aspect. But its always worth mentioning. 🙂

  20. Hi,
    It is not easy to invest in real estate with no money. There are many ways to do it, but they all take work and sacrifice. If you are too busy or scared to talk to a lender about your finances, you will not be a successful real estate investor.
    The lender will help you get your finances in order, even if you never get a loan in your name. They can help you improve your credit, and make you more attractive to partners or other lenders.
    If you want one step to take right now, go talk to a lender. If you don’t like that lender, talk to as many as you need to until you find the right one.

  21. Hi Rob,
    This is brilliant article, and all your articles were brilliant I have ever come. They all helped me a lot for investing in property and making money. Thank you for helping me a lot…..

  22. Thank you very much for post the article. Really, it’s very good. I learnt a lot about this. I’ll try to apply your ideas and tips. It regarded hear a portion of the particulars of your exploration.

  23. Great advice. There are so many ways to invest in real estate. You have correctly identified many ways to invest in real estate. Another way to get started is to purchase a multi unit complex (up to 4 units). You can get in with a 3.5% down payment (if you live in one of the units) plus buyers closing costs. This plan works best if you do not own a home. You must convince the lender that you are really going to live in one unit. Real estate investing is not a get rich quick program. It takes time and persistence.

    Thanks and great investing.

  24. This is a pretty awesome article. I actually started out with a single family home, which was a mistake.

    If I had it to do all over again, I would start with the last option and invest with family, friends and investors so that I could start out with at least 20 or so units and be able to afford a property manager as well as avoid being 100% unoccupied when a tenant moves out.

  25. My parents have been thinking about getting into real estate. So, I like that you pointed out that getting a sperate home and renting it out can be a good way for them to get started. That does seem like a simple and less stressful way for them to jump into real estate investment.

  26. I love that you suggested becoming a landlord when investing in real estate. As you mentioned, there are choices such as renting out a room of it to tourists. This is a great idea to help us pay for the house since we only have a limited budget. We just want to finally have our own house because we don’t want to pay rent anymore which we have been doing ever since we got married in 2015.

  27. Great Article Rob! The strategies you have described is really awesome and very useful for the beginners who actually want to invest money in the RE. Thanks for sharing such an informative post and I really appreciate this one. Keep Posting similar articles.

  28. Great strategies rob, these tips are very beneficial specially for the retired persons who are thinking on how to invest their savings in real state.

  29. Great post. Real estate business is amongst the most rewarding businesses. You have provided really good information and ideas which are useful and people can understand better. Keep sharing…!!!!
    Great post. Real estate business is amongst the most rewarding businesses. You have provided really good information and ideas which are useful and people can understand better. Keep sharing…!!!!

  30. I like your tip about being a landlord to collect revenue. That is interesting considering my wife and I have been thinking about getting into the housing business. I’ll have to consider your tips and get a couple of cheap properties.

  31. i really like how you write an strategies and make some awesome article, really informative
    i already added your site to my book mark to keep me updated
    thank youfor sharing 🙂

  32. I didn’t know that it was possible to get into real estate investing with just a little amount of money to get started, since my first thoughts of getting into real estate investment involved complicated numbers and all that. To be fair, all it would take would be a little elbow grease and saving money in order to pretty up a house that can be used as another source of income. If I had the chance to be able to get into real estate, I would try getting into it by renting out a small house in order to be able to get some cash flow going after the place has been fixed up.

  33. I like your tip about purchasing a property that is within your budget. That makes sense considering you want to buy a house that you can afford now, flip it, and sell it for considerable gains. I’ll have to consider your tips so that I can invest in real estate properly.

  34. Thanks for sharing this awesome content about investment. I am really thankful to you. Waiting for your next piece of content. Well done. I would like to invest in commercial real estate best ways. Could you please post a content about investing in commercial space? If possible, pls Keep posting. Because I would like to visit your site regularly.

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