How to invest in real estate with no money

Wholesaling is the practice of finding distressed properties, putting them under contract, and assigning that contract to an end buyer for an assignment fee. You do not buy the physical house; you sell the contract. To start, search for motivated sellers (like pre-foreclosures or inherited homes) using sites like [Zillow](https://www.zillow.com). Negotiate a low purchase price and insert an 'assignment clause' in the contract, then locate cash buyers on local real estate investor groups to buy the contract.

A lease option (rent-to-own) allows you to lease a property with the legal option to purchase it at a pre-determined price within a set timeframe. You pay a small option fee (often negotiable to zero or sweat equity) and rent the property, then sub-lease it to a tenant at a higher rate (called sandwich leasing). You keep the monthly cash flow difference and build equity without owning the property. Learn about option contract legal structures on [Nolo's Real Estate Center](https://www.nolo.com/legal-encyclopedia/real-estate).

Seller financing occurs when the property owner acts as the bank, allowing you to make monthly mortgage payments directly to them rather than obtaining a traditional bank loan. This is common with sellers who own their homes free and clear and want monthly income. You can negotiate zero down payment terms by offering a higher purchase price or interest rate, or by agreeing to handle all property maintenance yourself. Create legal templates on [Rocket Lawyer](https://www.rocketlawyer.com).

If you lack capital but have the time, skills, and drive, find an equity partner who has capital but lacks time. You act as the 'sweat equity' partner — finding the deal, managing contractors, and handling tenants — while they act as the cash partner, providing the down payment and securing the mortgage. Draft a clear operating agreement that details how profits, equity, and tax write-offs will be split, using models on [LawDepot](https://www.lawdepot.com).

If you want a completely hands-off approach with zero minimums, invest in Real Estate Investment Trusts (REITs) or fractional platforms. REITs are companies that own, operate, or finance income-producing real estate. You can buy shares of publicly traded REITs for as little as $1 on brokerage apps using fractional shares. You earn a share of the rental income without the hassle of property management. Read about REIT rules at the [U.S. Securities and Exchange Commission](https://www.sec.gov/files/reits.pdf).