How to Buy Real Estate with No Money Down, Legally & Ethically

Buying real estate with no money down might sound like a scam, but it’s a real, legal strategy that savvy investors across California are using to build portfolios without draining their bank accounts.
If you're in San Luis Obispo, Paso Robles, or anywhere in California looking for ways to buy property without huge upfront capital, you're in the right place.

What Does “No Money Down” Really Mean?

Buying property with “no money down” doesn’t mean there are zero costs involved—it means you’re using creative financing methods to avoid traditional down payments.

You’re not using your own cash, or you’re deferring the need for it through methods like:

Subject-To Deals
Seller Financing
Lease Options
Private Money Loans
Partnerships or Equity Splits

At The Hegney Group, we specialize in creative real estate deals that use little to no bank involvement—and we’ve helped dozens of buyers and investors acquire properties with minimal capital out-of-pocket.

5 Legit Ways to Buy Real Estate with No Money Down in California

1. Subject-To the Existing Mortgage

You take over the seller’s mortgage payments while the deed transfers to you. No new loan. No bank approval. No traditional down payment.

Perfect for:

Sellers in foreclosure
Buyers looking for properties with low fixed-rate mortgages

Learn more: What Is a Subject-To Deal?

2. Seller Financing, aka Owner Carry

The seller becomes the bank and finances the property for you. You negotiate the terms, interest rate, and payment schedule.

Key Benefits:

No credit check
Flexible down payment (or none at all)
Close faster than with a traditional lender

3. Lease Option, Rent-to-Own

You lease a property with the option to buy it later. Often structured to credit part of your rent toward the purchase.

Why this works:

Locks in a future price
Gives you time to build credit or raise funds
Minimal upfront cost

4. Private Money or Hard Money

Use funds from an investor or private lender who gets a lien on the property. Often used in flips or BRRRR deals.

Why it’s powerful:

Fast closings
Asset-based approval (not income or credit)
No bank red tape

5. Partnerships

Partner with someone who brings the money while you bring the deal, the work, or the management.

Common structures:

50/50 equity split
Debt + interest repayment
Equity with preferred return

Is It Legal to Buy Property with No Money Down?

Yes. Every strategy above is 100% legal and ethical when structured correctly.

You’ll need:

Full disclosure to all parties involved
Proper contracts (purchase agreement, promissory notes, escrow instructions)
An experienced real estate advisor (like CJ Hegney) to walk you through it

Why This Works in California

With home prices and interest rates at all-time highs, California is the perfect market for creative financing:

Sellers need fast exits or can't sell traditionally
Many homeowners have 3–4% loans they can’t transfer—so buyers take them over
Traditional buyers are locked out due to strict lending guidelines

Expert Tip from CJ Hegney

"I’ve bought homes in San Luis Obispo County without putting a single dollar down on day one. The key is knowing how to structure the deal so everyone wins. That’s where the real strategy comes in." – CJ Hegney, Subject-To & Investment Specialist

Real Examples -Deals We’ve Closed

Paso Robles Subject-To: Acquired a $675,000 loan at 4% interest—no bank financing, no money down, no new debt.
Arroyo Grande Seller Finance: $0 down, $0 interest, $3,000/month for 5 years. That’s how you build equity fast.
Grover Beach Flip: Private money funded 100% of purchase and rehab—investor earned 16% return.