How to Invest in Real Estate With Little Money

Aditya - March 19, 2023 - - 0 |
How to Invest in Real Estate With Little Money

Gunjan Goel, Director, Goel Ganga Developments 

Investing in real estate is one of the most appealing ways to secure your financial future. But the constraint of having little upfront money is the most common reason for people to put their property investment dreams on hold. While it is true that real estate is an asset class that typically requires money to make money, there are ways to get started without a large sum of money. You need to understand how to invest in real estate with the right people on your side.

Here are some strategies that you can successfully adopt for investing in real estate with little funds.

Real Estate Investment Trusts (REITs)  

There are numerous advantages to investing in REITs. For starters, they are convenient for anyone who is already familiar with investing in products such as stocks. Furthermore, investment in a REIT does not imply that you own physical property. This has its own advantage. Since you don’t own any property, you don’t have to worry about property management or maintenance, making REITs a much more hands-off investment. Finally, when compared to other investments such as stocks, REITs provide very competitive returns, making them both convenient and effective.


A plethora of new financing options have opened the market for new real estate businesses to profit. Microloans, as the name implies, are typically geared toward startups or newer businesses that require resources to generate additional growth. Microloans are much smaller than the loans offered by traditional financial institutions. A microloan is an excellent way to invest in real estate when you do not have much money.

Property Lease Options

Property lease options are underutilised investments with low initial costs. You can rent out a property without purchasing it if you have a property lease option. It can be a small upfront investment that provides all the benefits of a steady rental income without the hassle of a mortgage – and if the price rises above your agreed-upon purchase price, you’ll have gained instant equity.

Seller Financing

Seller financing is a tried and trusted method of investing in real estate with little or no upfront money. When buyers are unable to obtain a loan from a financial institution, they may seek real estate financing from sellers. Essentially, the seller takes on the role of “lender,” allowing the buyer to purchase the property and make periodic payments over a mutually agreed-upon period. Because the buyer is not bound by any traditional lending requirements from lenders, seller financing is an excellent way to acquire real estate.


Private partnerships or real estate investment groups (REIGs) are another viable option for investors interested in owning actual physical real estate rather than just REIT shares. The partnership method enables groups of investors to purchase one or more apartment or condo units via an operating company. The company manages the investment for a certain percentage of the monthly rent, relieving the investors of time-consuming property management concerns.

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