Find Us on Socials

real estate

How to invest in real estate with no money or bad credit

A credit score is the first thing a lender looks at while approving someone for a loan. A bad credit score in numerical measures is a score that is below 670. An individual gets abas credit score when they take a loan and fail to pay it back on the decided time. The longer they delay the repayment, the lower their credit score. Your credit score will significantly influence your chances of receiving a loan and the interest rate charged. If you have no money or a bad credit score investing in real estate will be hard for you but not impossible. Here are a few ways to invest in real estate with no money or bad credit. The only society in Pakistan, Silver City, offers you plot at low prices.  

You might want to know about Silver City.

Hard money loans

Hard money loans are also referred to as short-term bridge loans and are usually given out by individuals and companies, not banks. While giving out a hard money loan, the lender does not look at your credit score and hence is not bothered about your bad credit score. However, for their security, they place stricter conditions in comparison to regular loans. The interest charged is higher than the market rate, and the period given for repayment is shorter. If the individual fails to repay the loan in a fixed time, the lender has the right to take over the property and sell it. Hard money loans are highly beneficial if you plan to flip houses; however, you should be careful while choosing a lender as many scammers are present.

Owner financing

Owner financing is when the seller and the buyer make a deal where the seller agrees to give the buyer a loan to help finance the purchase. The loan will have to be repaid by the buyer in monthly installments along with an interest rate. This time of loan allows the seller to sell their property; however, they are also at risk. If the buyer fails to pay the installments, the seller will be responsible for the foreclosure. As a buyer, you need to be sure that the seller is the sole owner of the property and that it is not on the mortgage.


Wholesaling is a commonly used method these days. The buyer negotiates with the seller in wholesaling and sets up a deal. However, instead of buying the house themselves, the individual finds another buyer to finance the purchase. The property will then belong to the new buyer, and you will keep any profit made. You act as a middleman or a third party in this case. Therefore, in wholesaling, you neither have to have the money nor a good credit score since you are not required to finance the purchase in any way. While wholesaling seems extremely optimal, it involves certain complications. The task is similar to that of a real estate agent; hence it requires you to be experienced, experienced, and well informed. Furthermore, it is hard to find a seller that agrees to wholesale conditions.

Find a partner

Many people are interested in investing in real estate, so it will not be hard for you to find a partner. Once you have found a suitable partner, you can ask them to apply for a loan using their credit score. You can then purchase a real estate property using that loan and give your share of monthly installments to your partner. However, it is essential that your partner has a good credit score to be approved for a loan. Furthermore, you need to find someone you can trust as there is a risk of them excluding you from the deal. The best way to go about a partnership is to keep a 50/50 partnership so that both of you have an equal say and there are no arguments.

Buy plots in installments in Capital Smart City.


Investing in real estate with no money or a bad credit score can be challenging; however, you can still manage to survive using the method listed above. These methods allow you to invest and earn a profit, which might eventually help improve your credit score. However, all of these methods have risks involved; therefore, you need to be careful before choosing anyone of them.

Author Bio

Hamna Siddiqui is a content writer for Sigma Properties. She loves traveling with a great fashion sense, and you will see the reflection of her creativity in her writing. With marketing majors, Hamna understands the details of the niche.