You don't need hundreds of thousands of dollars to invest in real estate. REITs (Real Estate Investment Trusts) let you invest in commercial real estate for as little as $10, crowdfunding platforms start at $10-500, and house hacking can get you into a rental property with a standard FHA down payment of 3.5%.
Bottom line:
Key Takeaways
- REITs let you invest in real estate through the stock market with no minimum
- Real estate crowdfunding platforms start at $10-500 minimum investment
- Rental properties can generate passive income but require active management
- House hacking (living in one unit, renting others) reduces or eliminates your housing costs
- Real estate provides diversification, inflation protection, and potential tax advantages
REITs are companies that own and operate
REITs are companies that own and operate income-producing real estate — apartments, offices, warehouses, hospitals, data centers, and more. They trade on stock exchanges just like regular stocks and are required by law to distribute at least 90% of taxable income as dividends.
You can buy individual REIT stocks or diversified REIT ETFs like VNQ (Vanguard Real Estate) or SCHH (Schwab U.S. REIT). With no minimum investment and high liquidity, REITs are the simplest path to real estate exposure.
Key Strategies
Platforms like Fundrise, RealtyMogul, and CrowdStreet pool investor money to fund specific real estate projects. Fundrise starts at just $10 and builds a diversified portfolio of commercial and residential properties. Returns have historically been 7-12% annually.
The tradeoff is liquidity — most crowdfunding investments are illiquid for 3-5 years. This works well for money you won't need soon but want earning returns above what stocks or bonds might deliver.
House hacking
Owning rental property is the most hands-on form of real estate investing but offers the highest potential returns through rental income, property appreciation, tax deductions, and mortgage paydown by tenants.
House hacking is the most accessible entry point: buy a duplex, triplex, or fourplex with an FHA loan (3.5% down), live in one unit, and rent the others. Rental income from the other units can cover your entire mortgage payment, effectively letting you live for free while building equity.
Choose REITs if
Choose REITs if: You want passive, liquid real estate exposure with no management headaches. Best for hands-off investors who want diversification.
Choose crowdfunding if: You want higher returns than REITs with moderate illiquidity. Good for long-term money you can lock up for 3-5 years.
Choose rentals if: You want maximum returns and are willing to put in work managing properties (or hiring a manager). Best for people who want to build a real estate business.
How We Evaluated
Return estimates based on historical REIT performance (NAREIT data), crowdfunding platform reported returns, and rental market analysis using the 1% rule and cap rates.Frequently Asked Questions
Who is this guide designed for?
This guide is for anyone looking to improve their financial situation, from beginners to experienced individuals. We explain concepts clearly with actionable steps.
How much money do I need to get started?
Many strategies here require little or no upfront cost. Where money is needed, we note minimums and offer alternatives for different budgets.
How quickly will I see results?
Some strategies produce immediate benefits; others build wealth over months or years. We indicate the expected timeline for each recommendation.
Are there risks I should know about?
We highlight potential downsides throughout the article. No financial strategy is risk-free, but we focus on approaches with favorable risk-reward profiles.
Where can I learn more?
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Editorial Disclosure: WalletGrower may earn a commission from partner links. Our editorial content is independent and not influenced by advertisers. We research products independently and only recommend what we believe in. Updated April 2026.