You can get started by going through – the leading marketplace in single-family rental units. They make browsing for a home ridiculously easy. You can look through their catalog of homes and click on ones you like. You’ll be given important details like current rent, how highly the neighborhood is rated, and more.
That means you’ll have an income stream as soon as you purchase a rental home. Investing in a REIT isn’t that different from investing in a stock. As an investor, you give money to a trust or corporation which purchases a property. You’ll get a portion of the dividends as the property appreciates.
This is the easiest way for a beginning investor to get into the commercial real estate world. It comes with a potentially high yield. Corporations payout at least 90% of their incomes on the property as dividends to investors. Plus, your investment is liquid; you can sell your shares and cash out without having to deal with selling the building.
Most likely you’ll be dealing in publicly-traded REITs. Accredited investors with a high net worth may be able to access private REITs — these trusts aren’t registered with the SEC and the upfront investment required is much higher. REITs can be part of a beginner investment portfolio. A publicly traded REIT only requires a few hundred dollars, and you can sell at any time.
If you want to wade into the real estate market without committing to property management, this is a good place to start. To buy shares, you’ll go through a brokerage firm just as you would buying other stock. An increasingly popular option for small-time real estate investors, crowdfunding platforms are passive investments similar to REITs.
There are platforms for commercial and residential real estate. Since these investments are illiquid — you can’t sell them easily — and depend on the variables of the real estate market, they can be riskier than REITs. But they can also get you dividends on properties you wouldn’t be able to access as an individual.
Many established platforms like are only available to accredited investors—those with an income over $200,000 or a net worth of over $1 million. But real estate investing is no longer limited to those who meet that criteria. Crowdfunding opens opportunities to any interested investor. If you want to get into the real estate investment market, there are plenty of options.
Diversy, Fund creates investment funds of private market assets like real estate that are designed for the everyday investor. There are no net worth restrictions, and the minimum investment starts at just $500, making this an accessible option for investors of all income levels. Another option is , which lets you get started with as little as $5,000.
The company founders have more than four decades in the industry, so you’ll know your investments are in good hands. With a useful mobile app and the ability to invest using cryptocurrencies, Streitwise stands out as a great real estate investment tool for new investors. If you want to keep your initial investment low, is a great option.
Fundrise’s investment strategy is based on real estate investment trusts (REITs), which are bundled investments in commercial properties. is another great option, offering a few different REITs with minimum investments ranging from $1,000 – $5,000. They also offer the ability to invest directly into commercial real estate projects or you can opt for one of Crowd, Street’s tailored portfolios that diversifies your investment across multiple projects.
Note that dividends on crowdfunded properties aren’t always quick. Most companies highly recommend that investors commit to the long haul (at least five years). Short-term investments are inherently risky, while long-term investments balance out your risk. What if you don’t want to go through the stock market or buy a property, but you’d still like to generate some real estate income? Try renting out a room on a nightly or weekly basis.
The amount you’ll earn will vary depending on the local rental market. If you live in an area with high tourist traffic, whether the traffic is seasonal or year-round, you can really turn a profit. You don’t need a ton of cash to get started; just the extra space. And you’ll start seeing a cash flow pretty quickly compared to a stock investment.
You’re responsible for furnishing and maintaining the property and bringing it up to code, as well as communicating with renters. Lots of renters find it easier to go through a third-party website. is the most well-known. There’s also VRBO, or Vacation Rentals By Owner. The website does lots of the management for you, like finding and screening tenant matches, providing some form of damage protection, and helping handle renter complaints.