Investing in real estate is one of, if not the, best way to invest your money. Stocks can be risky, savings accounts won’t pay much interest, but investing in real estate can be a great investment! By investing in real estate, you can earn money year-round by renting out your property to tenants, and you’ll also be earning a ton of money in the future due to long-term appreciation of real estate.

For many of us though, becoming a serious investor and buying a lot of real estate is out of the question. We just don’t have the money to be able to do so. Rather than giving up, let’s explore a few other alternatives to just buying houses.

Invest in a Real Estate Investment Trust

Real estate investment trusts (REITs) are similar to investing in stocks, and an easier way (with less money) to invest in real estate. When you invest in a REIT, you aren’t owning a property but rather a portion of a property or several properties. Large REITs are publicly traded and can even be held in brokerage accounts or retirement funds.  

For people who have little money to invest with, this is a great way to get started in real estate investing because you don’t have to buy an entire property. It’s also a great way to diversify your portfolio and get introduced to the world of real estate investing. REITs by law have to pay out 90% of their profits as a dividend, so you’ll be getting regular (month or quarterly) dividend payments – essentially the rent! For example, one that I invest in is $APLE, Apple Hospitality Group. It’s a REIT that owns hotels across the US. The management companies that run them pay monthly rent to Apple Hospitality, who in turn pays a a $0.10 dividend (per share ) each month.

Invest in Your Own Home

If you’re really strapped for cash, you should consider looking to your own home as an investment. For example, if you’re buying a home for yourself, consider a duplex so you can rent out the other half and earn profits each month. You can also rent out a room or guest house on your property using sites like Airbnb to make some extra income. Or perhaps you can do some upgrades to the kitchen or living area to increase the value of the home.

Look for Great Deals

If you’ve got some money saved up, you can invest in a property on your own if you find a great deal. Not all real estate deals have to be expensive! Look for homes that are in bad shape but have the potential to be of great value with a little TLC. Sometimes a little bit of elbow grease and a bit of handy work can go a long way!

You can either flip these homes after fixing them up or hold onto them if you think the area is going to grow in popularity down the line. By finding great deals, you can reap the rewards of real estate investing even with a small budget.

Use Investment Apps or Websites

There are plenty of apps out there to help you become an entrepreneur and real estate investor. They’re similar to a REIT but allow for more direct investment. For example, this app for investing allows you to control where your money goes, whether it be to real estate, your savings account, or the stock market.

You can also use apps like Property Fixer which helps you flip homes by factoring in costs and analyzing potential gains.

Investing doesn’t have to require a lot of money

You don’t have to be rich to get started in real estate investing. But while there are a few ways to learn how to invest in real estate with little money, it’s still a good idea to be financially stable before investing. As with any investment, there is a financial risk and you want to protect yourself in case your investment doesn’t earn you a profit.

Want to learn more about how to grow your money and make smart investments? Check out the rest of our blog today!

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