How Do You Fund a Real Estate Development Without Using Your Own Money?

June 2, 2025 | Kristi Kandel

ASK:

Can I really start a real estate project without draining my savings or using all my own money?

ANSWER:

Absolutely. You don’t need a trust fund or a rich uncle to get started. At Local Real Estate Developer (LRED), we show you how most developers actually fund their projects. By building what’s called a capital stack.

That’s just a smart way of combining different funding sources to bring your project to life. And here’s the best part: you’re not doing this alone. You’re teaming up with people (think friends, family, lenders, and local programs) who already want to see projects like yours happen in your community.

You just need the right plan to pull it together. We can help you with that.

Creative funding options can include:

• Private investors who believe in you and want to put their capital to work. 
• Local banks or CDFIs (community lenders who actually get small-town projects)
• Seller financing (when the seller helps you with part of the funding)
• Grants or city incentives (like tax abatements)
• Equity partners who bring money in exchange for ownership

You don’t need to start with your own money. You need to start with your own plan. LRED shows you how to build it.

KEY TAKEAWAYS:

• Most developers fund their projects using other people’s money, not their own.
   
• Building the right capital stack is about relationships and strategy, not just dollars.
   
• You can mix funding sources like banks, grants, and private investors to make your project work.
   
• LRED’s Accelerator shows you the funding options for building your capital stack.
   

PEOPLE ALSO ASK:

What is a capital stack in real estate development?

• A capital stack is the mix of funding sources—like loans, grants, and private investors—that you layer together to finance a real estate project. It’s the structure that shows who gets paid, when, and how.

How do I find investors for my first project?

• At LRED, we teach you to start local. Investors are often people you already know, like friends, family, or community leaders, plus local banks and CDFIs that want to support projects in your area.

Are there grants for local real estate development?

• Yes! Local Real Estate Developer (LRED) helps you explore grants, especially for projects that create affordable housing, revitalize downtowns, or meet community needs. Many cities and counties offer real incentives for local developers.

Unlock more tools, templates & case studies—get free access to the Developer Vault.

SHARE THIS