Real estate investing no longer requires $200,000 down payments or ownership of entire properties. Six specific strategies now open doors to investors with budgets ranging from $10 to $100,000.
Real Estate Investment Trusts (REITs) represent the lowest-barrier entry point. Investors can buy REIT shares through standard brokerage accounts starting at the share price, often between $20 and $100 per share. REITs pool money from multiple investors to purchase commercial properties, apartments, and warehouses. Dividends typically yield 3 to 5 percent annually, though some REITs pay higher rates.
Crowdfunding platforms like Fundrise and RealtyMogul let investors contribute $500 to $5,000 toward specific projects. These platforms handle property selection, tenant management, and maintenance. Returns typically range from 8 to 12 percent, though investors face liquidity constraints—money often stays locked in for 5 to 10 years.
Fractional ownership companies including Arrived and Roofstock let multiple investors buy shares of single-family homes. A $100,000 home might be divided into 1,000 shares selling at $100 each. Investors receive proportional rental income and appreciation gains without managing tenants.
House-hacking involves purchasing a small multifamily property, living in one unit, and renting others to cover the mortgage. First-time buyers with $20,000 to $40,000 down can qualify for conventional loans on duplex or triplex properties, with tenant rent paying most or all housing costs.
Private lending lets investors fund mortgages directly. Hard money lenders and peer-to-peer platforms offer 8 to 12 percent returns by lending to property flippers or landlords. Minimum investments typically start at $5,000