How To Make Money Using Other People’s Money

Many people believe that it takes money to make money. However, it is not always the case. Sometimes, smart strategies and efforts are all it takes to prompt a person’s financial growth. You may opt to use other people’s money if you cannot make investments.

There is no single rule established where you can only use your money to run a side hustle or business.

In this article, let’s go over different wealth-building strategies when using other people’s money.

How To Make Money Using Other People’s Money

Grow your net worth by leveraging their financial capacity. It might seem ridiculous for other people but it works. Here’s how. 

Rental Real Estate

real estate

You can benefit from this strategy in two ways. First off, you are borrowing money (a mortgage) from a bank and using their money for a place to live. Second, you can rent our a portion of the home to make passive income and help offset the fees of the mortgage.

In this way, you can use their rental fees as a payment for the building.  

The money you get from your tenants should suffice to cover most of your mortgage. Sometimes, you can even make big profits from rental income depending on how much you charge. For example, you can choose to live in the basement and rent out the main floor of you home. However, you should consider maintenance before you proceed with this strategy. 

Saving some money for rental repairs is a good way to ensure you do not get losses. Maintaining the building attractive and robust would guarantee loyal tenants. Consequently, it can give you multiple streams of income. 

Look for Silent Partners

Problem solving and creativity are some of the most crucial characteristics a businessperson should possess to ensure company success. However, not everyone who wishes to enter the business world has that capacity. Silent partners also exist in money-making programs. They are people who solely finance business, in case you are not familiar with them. Their only responsibility is to supply money to keep operations running. 

Some people have the skills to establish a profitable business. However, they lack the financial stability to start one. If you are one of them, what you can do is to look for silent partners. You offer your expertise on the table while they give you capital to start a business. Once an agreement is done and the business succeeds, you share the profit.


The Internet has become one of the greatest avenues for entrepreneurs and business people. If you do not have money to start your business with, there’s no harm in considering crowdfunding. Give a glimpse of your business idea to reach out to the masses and persuade them in helping you. You can also make it reward-based crowdfunding where you promise a future reward once your business becomes successful.

Apply for Government Grants

Some state/provincial and federal governments give grants. This has become especially important and common during these difficult times with Covid and restrictions for businesses. These are funds that you do not necessarily have to pay back (it all depends on the program). Although it is difficult to get, trying would not bring you any harm. If you are chosen to receive grants, you do not even have to give up equity, which is another advantage.

Give justice to the grant that you applied for by preparing a well-written business plan. It should include an explanation of how you plan to use the funds and the outcomes you wish to achieve.

You should also keep in mind that grants are not free money. It is from taxpayers’ income so work hard to achieve the goals you set in case you are chosen.

Look for Angel Investors


Look for Angel investors if you are confident enough about your ideas and the growth potential of your startup company. These investors invest their money in exchange for a percentage of equity or ownership in your business. They usually make the seed investment so you can start your operations. 

Aside from the seed money, they can also invest more in case your business quickly grows. This is an option you can always explore if you can pitch your idea well. So make sure you prepare enough before meeting up with a potential investor. 

Final Thoughts

Making money often requires capital, but it does not always have to come from your account. If you do not have enough money yet, look for people to partner with. But before you do so, make sure you are well-aware of how partnerships work. Some investors want a percentage of equity while some require a return on investment in terms of cash. 

Knowing all these things can help you gauge if the people you are partnering with can help you grow your net worth. You always have to be wise about it since losses are also possible in business. One wrong move and you can find yourself in debt. If you do not want that, always be smart about your decisions involving money.

C. James

C. James is the managing editor at Wealth Gang. He has a degree in finance and a passion for creating passive income streams and wealth management.