5. Bring in a partner. If you are big on ideas but short on cash, bringing in a partner who will provide the funding and allow you to do the managing might be an attractive option. You will need to write up a contract that establishes who is responsible for what, and how the profits will be divided.

• If your partner is in place strictly for financial support, make sure you retain all control over the day-to-day management of your investment.

6. Invest with a building contractor. If you lack carpentry, plumbing and electrical skills to fix up and resell a property, partner with someone who does have these skills and could help with the down payment. Once you make a profit on the sale, you will have the down payment for your next real estate investment.

Northwood investors

7. Borrow money from family or friends. If you have little or no money on hand and you want to make a real estate investment, borrowing money from family and friends is another option. Be sure to write up an official promissory note with payment due dates, a specific interest rate, and what ownership, if any, the lender will have in the property. If you pay back the loan on time and with interest, these lenders might be willing to lend to you again for future projects.

• Consider whether the relationship you have with your lender could be harmed if you were unable to repay the loan. Ask yourself if securing real estate is worth endangering your relationship with someone close to you.

8. Take out a home equity loan. Find a bank who will allow you to take out a loan for a down payment on top of the mortgage loan you have on your own house. This could be a line of credit or a second mortgage using your home as collateral. Look for a low interest rate that will allow you to purchase the property economically enough that you can still make a profit later on your investment.

• Make sure you can pay back this loan or you risk losing your own home. You will also have to have a credit score in the high 600s to take out this type of loan.

Northwood investors

9. Consider a micro lender. Internet micro lending services (also called peer to peer lending) help borrowers find lenders for relatively small loans, usually under $35,000. Research these sites and familiarize yourself with all of the rules and regulations in order to avoid misunderstandings later.

• Popular micro lending sites include Kiva, Prosper and Lending Club.

10. Work with an experienced real estate broker. It will cost you nothing to work with a real estate broker experienced in finding properties that have the potential of not requiring a down payment. Ask people experienced in real estate investing for names of brokers they have worked with. Look for details about a particular agent’s background on the real estate company’s website.

Read also: 10 Tips to Finn Alpine Investors for Business

11. Seek out motivated sellers. These people are desperate to sell for reasons such as bankruptcy, divorce, death of a relative, an out-of-town new job, poor condition of the property, behind on payments, etc. They will be more open to providing funding to close the deal quickly. Your local real estate broker can help provide information on who might be in this situation.

Northwood investors

12. Search online for properties that offer incentives. These can include little or no down payment or seller financing. Check out homepath.com, a resale marketing site. Fannie Mae also lists thousands of properties they acquired through foreclosure.