The Best Ways To Make a $100 Investment Count in Real Estate
Written by
Jordan Rosenfeld
Edited by
Renee Ross
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Real estate can be a super lucrative investment if you’re able to get into it. However, if you don’t have much money to invest, is it still possible to make any money at it?
While certainly having more money to put toward a real estate investment can have a bigger payout in a quicker time frame, it’s possible to get started with as little as $100.
Real estate experts explained the best ways to invest as little as $100 in real estate.
Real Estate Investment Trusts
Start with real estate investment trusts (REITs), according to Mike Roberts, mortgage broker, loan originator and co-founder of City Creek Mortgage. He said this is a “less intimidating” way to invest with only a small amount of money and “lets you get a taste of real estate investments without needing a ton of cash upfront.”
With as little as $100 you can start earning dividends, which is a great way to grow your investment over time and get comfortable in the process, he explained.
Fractional Real Estate Investing
Then there’s fractional real estate investing. Check out platforms like Arrived Homes, where you can buy shares in single-family rentals for about $100, Roberts said.
“This means you can own a piece of property while someone else manages it for you. You get the benefits of real estate investment without the day-to-day responsibilities which is really cool.”
Real Estate Crowdfunding Platforms
Another option is real estate crowdfunding platforms, in which investors pool money for specific projects, according to Alexei Morgado, realtor and CEO and founder of Lexawise Real Estate Exam Preparation.
“Some sites have very low minimum investment requirements and are open to smaller investors,” he explained. “However, the investor should study each site’s history and know what risks are associated with each site.”
Real Estate Courses or Workshops
Of course, a safer investment is signing up for real estate courses or workshops, Roberts said. “If you want to feel confident about your moves before investing hard-earned money, take a course.”
These courses can teach you about everything from market trends and investment strategies to how to analyze properties, Roberts said.
Additionally, most courses offer some kind of community access where you can network with other investors. “That connection itself is often more valuable because it can lead to partnerships or mentorship opportunities down the line.”
Furthermore, with additional knowledge, you could pull together a group of likeminded friends or family, pool your money and make a real estate purchase, according to Paul Gabrail, a real estate investor and founder and host at Everything Money.
Gabrail pointed out that resources on real estate investing are numerous and readily available via the internet.
“I’ve personally seen so much demand for resources and interest in real estate investing through the Everything Money investor community that we recently launched a masterclass on the subject.” (He noted that their class is $500, however).
He said that learning from someone who has “been there, done that” is invaluable when you’re just getting started.
Open a Growth Mutual Fund
While $100 doesn’t go far in real estate, according to Mark Charnet, founder and CEO of American Prosperity Group, if you treat it as the seed for an account that can help you grow a down payment, that $100 is a great in your real estate future.
After the fund reaches $10,000, he said, “I would transfer the funds into a money market account for a real estate down payment or a refinance application. This is but one way where the applicant may start their real estate opportunities.”
Of course, the more often you add money to such an account, the more quickly that money will grow.
Join a Real Estate Investing Association
With not a lot of money to invest, consider joining a local real estate investing association, according to Holden Andrews, founder of Helpful Home Group. “This will open the door and allow a complete beginner to start networking and talking with real estate investors so they can start learning the real estate investing game, and they will get to meet people who are actually doing it and potentially find partners,” he said.
While these can cost more than $100 for a yearly membership, Andrews thinks it well worth it.
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