How to start investing in Real Estate with a $100

Note: Don’t consider this post financial advice. Always look to talk to a professional and do your own research before taking action.

I have always thought that we don’t achieve things in life because we don’t have the means but because we don’t know how to get the means. For example, in order to start investing in real estate you will need money, as simple as that.  So, you may be thinking that if you don’t have enough for downpayment you won’t be able to buy a property. And if you don’t have the full amount to pay off the property, then you most likely will need credit.

If you think about it, both funds and credit are built with time. Unless you got an inheritance, or you received a great gift when we talk about money, or someone supported you to get a good credit history. But I have great news for you if you only have $100 or even less. You can start investing in real estate with that little.

How? Well, there are a couple of ways. You don’t need to start investing all by yourself. You can join other investors and create a pool that will allow you to buy what you can’t buy by yourself. Like everything in life there are pros and cons. You can look for REITs funds. Some of them are public, some are as easy to find as just browsing on the internet. Please be careful and do proper research before investing your hard-earned money.

The key is to start with what you can now and add more and more as you can. Just like a savings account where you put some money every month. Remember this should be your base, and once you have enough to cover emergencies ( Think 3 or 6 months of your expenses) then you can start investing with the same process.

I personally invest with Fundrise, which is an online platform that allows you to invest in real estate with a minimum of $10. It is online and they offer different options depending on your total investment. They take care of everything for you and will charge a fee. I have been using it since 2020 and my results have been good, you can reinvest your dividends and let your assets grow in value over time. On e great advantage of this platform is that there is a good amount of diversification.

You can set an auto deposit and/or add more funds whenever you consider. For me, I add money every first of the month and whenever I have some extra funds, I transfer them to  Fundrise. I think is great that you can start building your net worth that easily. Please keep in mind that you should invest money after you have taken care of your needs and debts. Click here to learn more about Fundrise

There are other options, for example. You can open a brokerage account and select REITs funds that are offer publicly. Or you can select specific REIT companies and invest in them. For this, you should do careful research to make sure you know the risks and what kind of company you are investing with. Always check their financials and try to stay up to date with the latest news about the companies you invest in. The fact that they are good companies today doesn’t mean it will always be like that. Some funds will charge you a fee, but they will take care of selecting the companies.

I like to have as much diversity as possible and I am fascinated to see how they operate in real life. Whenever I can I check the properties managed by these companies. For example, I like to visit the malls of Kimco Realty Corporation and MGM Hotels owned by MGM Resorts International. Both are public and they are obligated to give you access to their financial information. Brokerages offer fractional shares purchased that allows you to invest as little as you want. Imagine telling your friends that you are part owner of MGM Resorts in Las Vegas.

Let me be honest with you. Please be careful where you put your money. You are looking for a long-term investment and a good strategy to grow your wealth and generate income. Like any other investor you will face ups and downs and you will have to take decisions and enjoy moments of profit and moments of loss. That’s why it’s so important to do proper research and connect with specialists, especially before investing and in tough times. I have seen many investors pull their money out and lose money because they didn’t know the true value of their investment in the long run.