One of the biggest myths about real estate investing is that you need to have a massive 20% down payment to get started. While saving up for that can feel like a hurdle, the truth is, you don’t need to deplete your savings or wait years to jump into rental property investing. There are creative ways to purchase investment properties and start generating rental income without putting down that full 20%.

Let’s talk about three powerful strategies to help you get started in real estate investing right now, no matter where your finances stand.

1. House Hacking: Turning Your Home Into an Investment

One of my favorite ways to help first-time real estate investors build wealth is through house hacking. With house hacking, you live in part of your home while renting out the other part, whether it’s a basement, a spare room, or an entirely separate unit in a multi-family property.

Here’s the magic: house hacking not only helps you generate rental income, but it also covers your mortgage or a big chunk of it. Plus, it allows you to build wealth by letting your tenants pay down your mortgage. House hacking gives you a chance to turn your home into a true income-generating asset—all while you still live there!

2. Using Hard Money Loans to Close Deals Fast

If you’re looking to invest without draining your savings, hard money loans are a fantastic option. Unlike traditional financing, hard money lenders offer short-term loans based on the property’s value rather than your credit score or income. These loans are ideal for real estate investors who need to act fast in a competitive market.

With a hard money loan, you can quickly purchase a property, complete any necessary renovations, and either flip the property or refinance it through a traditional lender. This allows you to avoid the standard 20% down payment and get into the game with less money upfront.

3. Tapping Into Your Home’s Equity for Investment

If you’re a homeowner, your home might be the key to getting into real estate investing. By using a Home Equity Line of Credit (HELOC) or refinancing, you can tap into the equity you’ve built in your home to fund your first (or next) investment property. Instead of saving up tens of thousands for a down payment, you can leverage your equity to finance a rental property—and still keep your savings intact.

This strategy works particularly well for those who want to purchase rental properties but don’t have the full 20% down. You use the bank’s money, invest in real estate, and let your rental income grow as your property appreciates in value.

Amber and Donnie’s Story: Using Equity to Build Wealth

Let me share the story of my clients Amber and Donnie. They had dreamed of becoming real estate investors for years, inspired by their grandmother’s real estate investments. They wanted to carry on the family legacy but had no idea how to get started—until they joined my mentorship program.

Through the program, and later my mastermind, I showed them how to use The Step Up Strategy—but in a slightly different way. Instead of using their equity to invest $50,000+ for a down payment on a new investment property, I helped them leverage a fraction of that amount to convert their basement into a rental unit. With just a small investment, they now bring in thousands of dollars every month in rental income while simultaneously increasing their home’s value.

This is just one of the many ways I teach people to start real estate investing with what they already have!

Ready to Start Investing?

Do you want to invest in real estate but feel like your finances are holding you back? The strategies I’ve shared—house hacking, using hard money loans, and leveraging home equity—are all ways to get into real estate investing without needing a huge down payment.

At my upcoming event, The Owning It & Living It Experience, November 1st- 3rd in Atlanta,GA where we’ll dive even deeper into these strategies. One session, Real Estate for Rookies, will walk you through how to invest in real estate without putting 20% down, and you’ll get the opportunity to ask all your pressing questions in real time!

Don’t let financial hurdles stop you from building wealth through real estate investing. Join me in person, and let’s get your questions answered so you can start investing today.

Grab your ticket today and let’s get you on the path to real estate success!