Real estate has long been seen as a wealth-building strategy, but many believe it requires a large investment to get started. The good news is that even with just $100, there are ways to enter the real estate market and start growing your money.
From REITs to crowdfunding, here are some smart ways to make your small investment work for you.
1. Real Estate Investment Trusts (REITs)
One of the simplest ways to get into real estate with a small budget is by investing in REITs. These are companies that own and manage income-producing properties, allowing investors to buy shares and earn dividends without dealing with the complexities of property ownership.
According to mortgage broker Mike Roberts, REITs offer an easy entry point for beginners. “This is a less intimidating way to invest in real estate without needing a huge amount upfront. With just $100, you can start earning passive income,” he explains.
2. Fractional Real Estate Investing
Fractional investing lets individuals buy small shares in rental properties. Platforms like Arrived Homes allow users to invest in single-family rentals with as little as $100. This method enables investors to enjoy property ownership benefits while professionals handle the management side.
“This means you can own a portion of a property without the stress of maintenance or tenant issues,” says Roberts. “It’s an ideal way for beginners to experience real estate investing.”
3. Real Estate Crowdfunding Platforms
Crowdfunding platforms provide another way for small investors to participate in real estate. These platforms pool funds from multiple investors to finance real estate projects. Some options have low minimum investment requirements, making them accessible for those with limited capital.
Realtor Alexei Morgado suggests researching different platforms before investing. “Each site operates differently, so it’s important to understand their track record and risks before committing any money.”
4. Real Estate Education and Workshops
Education is a valuable investment for those who want to build long-term wealth in real estate. Courses and workshops teach essential skills like property analysis, market trends, and investment strategies.
“Learning from someone who has been through the process can save you from costly mistakes,” says real estate investor Paul Gabrail. “Many courses also offer networking opportunities that can lead to future partnerships.”
5. Growth Mutual Funds for Future Investments
If direct real estate investment isn’t feasible right now, consider putting your $100 into a growth mutual fund. Over time, this fund can grow into a substantial amount for a future down payment or property purchase.
Mark Charnet, CEO of American Prosperity Group, suggests this approach: “Once the fund reaches around $10,000, you can transfer it into a money market account and use it for real estate investments.”
6. Joining a Real Estate Investing Association
Local real estate investment groups can be a great resource for beginners. These associations provide networking opportunities, market insights, and potential partnerships. Membership fees may exceed $100, but the connections and knowledge gained can be invaluable.
“Joining a real estate group is one of the best ways to learn from experienced investors and find potential opportunities,” says Holden Andrews, founder of Helpful Home Group.
While $100 may not seem like much, it can be a powerful first step in real estate investing. Whether through REITs, fractional ownership, crowdfunding, or education, there are multiple ways to get started. The key is to choose the right option based on your financial goals and risk tolerance. Over time, even small investments can lead to significant financial growth in the real estate market.