More than half of all American adults currently own stock.
While investing in the stock market can be a great way to start saving for the future or make the most of your savings, it’s far from your only investment option.
When you invest in real estate, your investment is a less-risky, yet equally rewarding. Unfortunately, it often gets a bad reputation for being out of reach financially for many people.
But what most people don’t realize is that you don’t have to be able to buy a home, business, or even a piece of land to start investing.
Keep reading to learn how to invest in real estate for $500 or less.
How to Invest in Real Estate for $500 or Less
The first thing you need to learn about investing in real estate is that you don’t have to purchase a single property in order to get started.
Instead, you can invest in real estate in much the same way that you would invest in the stock market.
When you buy stock, you’re essentially buying a small share of a business. You can buy many pieces of a single business, or spread out your investments over many different companies.
It’s possible to invest in real estate in the same way. Rather than buying an entire property, you can instead purchase a small piece of property. Or, rather, a small piece of a portfolio of investment properties.
No worrying about screening tenants or managing the property!
There are a number of ways to get started in this type of real estate investing.
Invest in a Portfolio
One way to invest in a collection of real estate rather than a whole property is by using a platform that allows you to invest in a portfolio of real estate.
Platforms like Fundrise, DiversyFund, and Groundfloor all allow users to start investing for $500 or less. In fact, with Groundfloor, you can start investing with just $10.
These platforms purchase commercial or residential real estate. Then, they allow users to buy into the investment at an amount of their choosing, though you do have to meet platform minimums.
You’ll receive payments for returns on your investment each quarter.
Use an App
Similar to investing through a real estate platform, you can also get started investing using an app.
An app called Stash allows you to start investing in real estate portfolios using just your small change. While the returns will obviously be lower with these lower investments, this is a great way for anyone to get started investing in real estate.
Search for Small Pieces of Land
If you’d rather own your own property instead of investing in portfolios, you do have another option. Vacant lots or pieces of property in remote areas may sell for less than $500.
While these properties are unlikely to be immediately valuable, if you can get a good deal on them, they may still be a good way to start investing for the future.
While the properties might not be in popular areas now, over time, those pieces of land may become more valuable as cities expand.
Websites like eBay and Craigslist are great places to start your search for vacant properties under $500.
Get Started Investing in Real Estate
More than 90 percent of the millionaires in the world today invest in real estate. Getting started with real estate investments is easier than you might think.
Whether you have $500 ready to invest or even just $50, these investment options make it possible to get your own small piece of real estate.
If you’re ready to start to invest in real estate, check out the latest rental news for more tips like these.