If you want to get started in real estate investing, you don’t have to wait until you save up a large amount of capital before you get started. In fact, you can get started today without any capital at all. There are plenty of opportunities for first-time real estate investors who don’t have disposable savings to invest. Here are a few suggestions for getting started.

Ask the Seller to Take a Second Mortgage

Some sellers can be enticed to take a second mortgage in lieu of a cash-out. The trick is enticing them to do so. You will likely have to pay a higher price or find another means of giving value to the seller in exchange for waiting on their cash. When added to traditional bank financing, this can effectively get your property 100% financed, eliminating your down payment. 

Take on a Tenant

If you already have a mortgage, you can use your primary residence to help you earn passive income. You can rent out a room in your home or transform an attic or basement into additional living quarters. The income you earn from your tenant can be used to buy a second investment property, or you can use that passive income to pay off your mortgage sooner.

Apply for Housing Assistance

There are plenty of government programs that will help you get a home loan without a down payment, including USDA or FHA loans. After you live in the home for a year, you may be able to rent it out. If you wait longer, you can build up enough equity and a better credit score, which are resources that can help you get a second loan to buy a new property. Either option will help you buy a primary residence for yourself and a secondary property that you can use for rental income. Taking advantage of these resources will help you achieve your objective without having to put any money down in advance.

Anyone can start investing in real estate with just a small amount of capital. As each investment earns money, you’ll have more to invest, and you’ll work your way up to larger investments. As long as you do your due diligence and limit the risks of each investment, there’s no reason you can’t use real estate to grow your wealth gradually over time.