You can start investing in real estate with as little as $10 through crowdfunding platforms, or the price of a single share through a publicly traded REIT. If you want to buy physical property, low down payment mortgage programs let you get in with as little as 3% to 3.5% down. And a few strategies, like wholesaling, let you participate in real estate deals with almost no capital at all. Here’s how each approach works and what it actually takes to get started.
Buy Shares in a Publicly Traded REIT
A Real Estate Investment Trust (REIT) is a company that owns income-producing real estate, such as apartment buildings, office towers, warehouses, or shopping centers. Publicly traded REITs are listed on stock exchanges, and you can buy them through any brokerage account the same way you’d buy a stock. The minimum investment is one share, which can be anywhere from $10 to $200 depending on the REIT. Many brokerages also offer fractional shares, meaning you could invest even less.
REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends, which makes them popular with people looking for regular income. You get exposure to large-scale commercial real estate without managing tenants, dealing with repairs, or tying up a large sum of money. The trade-off is that you have no control over which properties the REIT buys or sells, and share prices fluctuate with the broader stock market. But as a low-barrier entry point into real estate, publicly traded REITs are hard to beat.
Use a Real Estate Crowdfunding Platform
Crowdfunding platforms pool money from many investors to buy or develop real estate. They sit somewhere between buying a REIT share and owning property yourself: you get more targeted exposure to specific projects or property types, but your money is typically locked up for a set period.
Fundrise is one of the most accessible options, with a $10 minimum for standard brokerage accounts and $1,000 for IRAs. It’s open to non-accredited investors, meaning you don’t need to meet income or net worth thresholds to participate. RealtyMogul offers two non-accredited REIT options (an income-focused fund and an apartment growth fund), though both require a $5,000 minimum. Other platforms focus on accredited investors and set higher minimums.
The key difference from publicly traded REITs is liquidity. When you buy a REIT on the stock exchange, you can sell it any time the market is open. Crowdfunding investments typically have holding periods ranging from one to five years, and early withdrawal may come with penalties or simply not be available. Read the redemption terms carefully before committing money you might need sooner.
Buy Property With a Low Down Payment Loan
If you want to own physical real estate, you don’t need 20% down. Two major loan programs make homeownership possible with far less.
FHA loans, backed by the Federal Housing Administration, require just 3.5% down if your credit score is 580 or higher. That’s $7,000 on a $200,000 property. If your score falls between 500 and 579, you can still qualify but will need 10% down. FHA loans are popular with first-time buyers and investors who plan to live in one unit of a small multifamily property (up to four units), which is one of the most common ways to start building a rental portfolio with limited cash.
Conventional loans offer 3% down payment options on single-family homes with a fixed rate, though you’ll need a credit score of at least 620. The advantage over FHA is that conventional loans don’t require an upfront mortgage insurance premium, and the private mortgage insurance you do pay can be removed once you reach 20% equity. FHA mortgage insurance, by contrast, typically stays for the life of the loan if you put less than 10% down.
Both loan types work well for a “house hacking” strategy, where you live in the property (or one unit of a multifamily property) and rent out the remaining space. The rental income offsets your mortgage payment, effectively lowering your housing cost while you build equity.
Negotiate Seller Financing
Seller financing means the property owner acts as the lender instead of a bank. You make monthly payments directly to the seller based on terms the two of you negotiate: purchase price, down payment, interest rate, repayment schedule, and loan length. This can work when a traditional mortgage isn’t an option or when you want more flexible terms.
These arrangements typically run five to 10 years and often end with a balloon payment, meaning you pay smaller amounts monthly and then owe the remaining balance in a lump sum at the end. The expectation is that you’ll refinance into a conventional mortgage before the balloon comes due. Sellers usually charge higher interest rates than banks to compensate for the added risk they’re taking.
The down payment in a seller-financed deal is negotiable. Some sellers accept 5% to 10%, while others may want more. Because there’s no bank involved, the terms depend entirely on what the seller is willing to accept and what you can negotiate. Both sides need a written agreement that spells out the purchase price, down payment, interest rate, payment dates, what happens if you default, and who handles property taxes and insurance. A promissory note and a mortgage or deed of trust should secure the deal. Skip the legal paperwork at your own risk.
Wholesale Properties Without Buying Them
Wholesaling is a way to make money in real estate without actually purchasing property. You find a motivated seller, sign a purchase contract at a below-market price, then assign that contract to another buyer (usually a rehabber or landlord) for a fee. Your profit is the difference between your contract price and what the end buyer pays for the assignment.
The capital required is minimal. You may need a small earnest money deposit to secure the contract, sometimes as little as a few hundred dollars, but you never close on the property yourself. Your job is to find deals, negotiate contracts, and connect with buyers who want them.
The legal side matters here. In most states, you can legally wholesale as long as you have a legitimate purchase contract and you’re assigning your contractual right to buy, not marketing the property as if you’re a real estate agent. The distinction is important: you can advertise your right to purchase the property under the contract, but you generally cannot market or sell the property itself without a real estate license. Rules vary by state, so understand your local requirements before doing your first deal.
How to Choose the Right Approach
Your best starting point depends on how much money you have, how much time you’re willing to invest, and whether you want to be hands-on or passive.
- Under $500: Publicly traded REITs or Fundrise let you start building real estate exposure immediately with very little capital. You won’t get rich overnight, but you’ll earn dividends and gain experience watching how real estate investments perform.
- $5,000 to $15,000: You’re in range for a low down payment mortgage on a modest property, especially with FHA financing. House hacking a duplex or small multifamily building gives you both a place to live and rental income.
- More time than money: Wholesaling requires hustle, not capital. You need to learn your local market, find distressed properties, and build a network of buyers. The learning curve is steep, but the financial barrier is the lowest of any strategy here.
- Somewhere in between: Seller financing can bridge the gap when you have some cash but not enough for a traditional down payment, or when your credit profile doesn’t fit neatly into conventional lending boxes.
Many successful real estate investors started with one of these low-capital strategies, built equity or savings, and then moved into larger deals over time. The important thing is picking a path that matches your current financial situation and getting started rather than waiting until you have a larger sum saved up.