Real estate investing doesn't require $500,000 and a development company. Six accessible paths exist for investors with budgets ranging from $10 to $100,000.
Real estate investment trusts (REITs) offer the lowest entry point. You can buy REIT shares through any brokerage account for the price of a single share, sometimes under $50. REITs hold portfolios of commercial or residential properties and distribute rental income as dividends. You own real estate exposure without managing tenants or repairs.
Fractional ownership platforms like Fundrise and RealtyMogul let you pool money with other investors to buy actual properties. Minimum investments start at $500 to $1,000. You receive a share of rental income and eventual sale proceeds, though your money ties up for years.
Hard money lending pairs you with real estate investors who need quick loans for purchases or renovations. These loans carry higher interest rates (8% to 15%) than traditional mortgages. Peer-to-peer lending platforms connect lenders and borrowers, though default risk exists.
House flipping partnerships let you provide capital while experienced flippers handle the work. You contribute $10,000 to $50,000, the flipper renovates the property, and profits split after the sale. Timelines typically span 6 to 12 months.
Rental property crowdfunding platforms bundle investor capital into single properties. Minimum stakes range from $500 to $25,000 depending on the deal. You own fractional stakes in apartment buildings, retail centers, or other income-producing assets.
Traditional rental property ownership remains viable with a mortgage. A 20% down payment on a $200,000 house requires $40,000. You collect monthly rent, build equity through mortgage paydown, and claim tax deductions for expenses and depreciation.
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