First, we’ll address the elephant in the room. Does investing in real estate require loads of money? The quick answer is no! As you probably know, smartphones have made it extremely easy to invest your money. You’ve probably heard of apps like Robinhood, Acorns, and Stash; which are platforms that enable you to invest in stocks and other assets with your phone. Nowadays, you can find apps that allow anyone to invest in real estate.
Several new apps have made it possible to invest in real estate without a life’s savings. Each app has its own creative way in which it achieves this. It comes down to preference and deciding what you want to invest in. For example, some apps will offer residential properties while others will only show commercial real estate.
1. Landa
How does collecting monthly rent sound? It sounds even better when you realize that Landa handles all the tedious work needed to get to that point. Yes, this app does all the research and finds the best rental properties and tenets. Then each property is divided into shares to be traded by investors like you. Every month, rent is collected and returned to you like dividends from stocks. In addition to collecting rent monthly, investors can also trade their shares as if they were stocks!
Landa divides every property into 10k shares. Investors may then buy and sell as they please. Needless to say, the more shares you own, the more rent you’ll collect monthly. Overall, Landa is still growing and perfecting their app. As stated before, it’s purely up to preference. If you like their model and platform, you can begin investing with as little as $5.
Check out Landa for yourself!
2. Happynest
Happynest serves as the alternative to the turbulent stock market. Instead of residential real estate, Happynest focuses on commercial real estate. Similar to Landa, Happynest and its experienced investors find quality commercial real estate and tenets. For example, FedEx is currently part of its investment portfolio. As standard, you’ll be paid quarterly dividends. The app is easy to use and has plenty of information to answer any questions users might have.
Happynest needs to be treated as if it’s a long-term investment. As a result of this, once you invest with Happynest, you’ll automatically be placed in a dividend reinvestment program. Not only will this help to grow your “nest egg” quicker, but it also earns interest. The only “downside” is you won’t have access to this money until after a minimum of six months. This minimum holding period is crucial to realizing compounding interest and capital appreciation. Still, for just $10 anyone can invest in real estate—which is why Happynest is great.
Signing up is free and easy, so look into Happynest.
3. Fundrise
Unlike Landa and Happynest, Fundrise is not a micro-investing platform. To explain, your minimum initial investment will be larger than the previous platforms named. The larger investment allows Fundrise to invest your money in a diverse, carefully selected list of projects and real estate. Projected returns tend to be more promising as well.
Fundrise has three account levels: Starter, Core, and Advanced. Starter’s minimum investment starts at $500 and diversifies your portfolio with 5-10 projects. Next, is Core which starts at $1000 (40+ projects). Finally, Advanced, whose initial investment opens at $10,000 (60+ projects). Your portfolio will reflect your focus. Whether your goal is to generate income or realize capital appreciation, both are possible. Overall, you’ll find the platform and model intuitive and most importantly, rewarding. Additionally, you’ll have access to a demo account, allowing you to learn the ins and outs of the platform.
4. Up&Up
Not to confuse with the Target brand. Up&Up is a platform that gives renters an ownership stake in their property and other benefits. Should you choose to rent with Up&Up, you’ll have access to 10k+ properties. The first step is finding one you love. Next, understand your security deposit and initial investment. You’re investing in the property and building equity, thus Up&Up doesn’t require a security deposit.
At this point, you may be wondering what’s the difference between Up&Up and rent-to-own. First, there’s no obligation to purchase the property. You can simply liquidate all the equity you’ve earned. In addition to rent, you can invest more into the property, further building your ownership stake. All Up&Up asks is a minimum investment of 2x the rent.
If this is confusing, check out the Up&Up website and use their nifty calculator!
This post’s main intention was to show that anyone can invest in real estate. Although these are long-term investments, you’ll likely see consistent growth and more stability than the stock market. There’s also just something exciting about investing in real estate. Even though it’s through your phone, you’ll probably feel similar emotions. In closing, these options may not work for you. If that’s the case, you could always invest in a REIT. Today, there are many other ways to invest in real estate than before. Do your research, and pick one that stands out the most to you.