Zero-down real estate investing is possible but requires leveraging other people’s money, credit, or equity while accepting higher risk and lower returns than cash purchases.
Seller financing is the cleanest method. Motivated sellers—often retirees, estate sales, or tired landlords—agree to carry back a note at favorable terms. Typical structures include 0–10 percent down with the balance amortized over 15–30 years at 4–8 percent interest. Wrap mortgages and subject-to deals allow you to take title while leaving the existing loan in place.
FHA 3.5 percent down loans remain available for owner-occupants (including house hackers buying duplex–quadplex properties). Live in one unit for 12 months, rent the others, and achieve positive cash flow from day one with minimal cash invested.
VA and USDA loans offer true 0 percent down for eligible veterans and rural buyers respectively. Combine with house hacking or BRRRR strategies (Buy, Rehab, Rent, Refinance, and Repeat) for strong returns on little capital.
Partnerships trade equity for funding. Bring the deal, management expertise, or credit while money partners provide down payment and rehab costs in exchange for 50–70 percent of profits. Formal operating agreements and clear exit strategies are essential.
Private money and hard-money lenders routinely finance 100 percent of purchase plus rehab if the ARV supports it (typically 70–75 percent loan-to-ARV). Interest rates of 10–15 percent and 2–4 points make these expensive, but creative structuring (cross-collateralizing other properties, personal guarantees) can eliminate cash requirements.
Lease-options control property with little money down. Negotiate the right to purchase at a set price within 3–7 years while leasing and subletting for positive cash flow. Apply a portion of rent toward the future purchase price.
Wholesale deals assign contracts for fees without ever closing. Find distressed properties, get them under contract, then assign to cash buyers for $10,000–$50,000 spreads. No money or credit required—just hustle and market knowledge.
BRRRR with other people’s money: Buy using hard-money, rehab with contractor financing or credit cards, rent, then refinance with delayed-financing exceptions allowing cash-out at 75 percent LTV within six months. Pull most or all initial capital back out to repeat.
Syndications and crowdfunding platforms (Fundrise, RealtyMogul, CrowdStreet) allow passive investment with $5,000–$25,000 minimums. General partners handle everything while limited partners receive preferred returns and equity upside.
House hacking multifamily remains the single best wealth-builder for beginners. Buy a duplex–fourplex with 3.5–5 percent down, live rent-free or profitably while tenants pay the mortgage. After one year, repeat with the next property.
Every no-money-down strategy involves higher interest costs, personal guarantees, or equity sharing. The goal is not to stay zero-down forever but to use these techniques to acquire the first few properties, then transition to conventional financing as equity builds.
Success requires exceptional deal-finding ability, relationship capital, and willingness to accept terms others reject. The investors who master creative financing build portfolios fastest during both bull and bear markets.