Did you know that you don’t need a massive pile of cash sitting around to start investing in real estate? It’s true!
The traditional image of a real estate investor might have you thinking of someone with deep pockets buying entire apartment buildings or luxury properties.
But here’s the truth: Some of the smartest investors started with very little capital and leveraged creativity, hustle, and the right strategies instead — myself included.
The beauty of real estate investing today is that there are more accessible entry points than ever before. Technology, new financing options, and innovative investment structures have opened doors that were previously locked to everyday investors.
You don’t need to be a millionaire to start building wealth through real estate.
So, here are the 5 best low-cost real estate investing methods you can use today.
1. Real Estate Notes: Become the Bank Without Owning Property
Investment Level: Varies (can start small)
If you’ve been searching for a way to earn real estate cash flow without dealing with tenants, toilets, or termites, then mortgage note investing might just be your new best friend.
Here’s the concept: Instead of buying property, you buy the note on a property. That means you become the lender and collect payments from the borrower. You get steady cash flow without any of the headaches that come with property ownership.
When someone buys a property, they typically get a mortgage. That mortgage is a “note” — essentially a promise to repay the loan with interest over time. These notes can be bought and sold on the secondary market, and when you buy one, you step into the lender’s shoes and start collecting those monthly payments.
You can pursue different strategies based on your goals:
- buy notes at a discount and quickly resell them for immediate profit
- hold notes long term and collect monthly payments
- or wait for the full payoff when the property sells or refinances
Why It’s Low Cost: Unlike buying physical property, you don’t need to qualify for a large mortgage yourself, pay for property inspections, cover insurance premiums, handle repairs, or deal with property taxes. Your capital goes directly into purchasing the note itself, and you can often find notes at significant discounts to their face value.
Notes can be found through banks and credit unions, note brokers and marketplaces, direct marketing to property owners, and networking with other note investors.
2. REITs: Real Estate Investing for the Price of a Cup of Coffee
Investment Level: As low as $10
Real Estate Investment Trusts (REITs) are hands down one of the most accessible ways to get into real estate investing, and you can literally start with less money than you’d spend on lunch.
REITs are companies that own and operate income-producing real estate:
- apartment buildings
- shopping centers
- office buildings
- Hotels
- industrial warehouses
- and more
By law, they must distribute at least 90% of their taxable income to shareholders as dividends.
Translation?
Regular income payments straight to your pocket, often on a quarterly basis.
You can buy REIT shares through any brokerage account just like buying stocks. Many REITs trade for under $100 per share, and with fractional share investing now available on most platforms, you can start with as little as $10.
You get instant diversification across multiple properties and locations without having to research individual markets, negotiate deals, or manage anything yourself. Plus, REITs are highly liquid: You can sell your shares any day the market is open, unlike physical real estate, which can take months to sell.
3. House Hacking: Live for Free While Building Wealth
Investment Level: $5,000–$15,000 (with FHA financing)
House hacking is one of the most powerful low-cost strategies out there because it solves 2 problems at once:
- Where you live.
- How you invest.
Here’s the deal: You buy a multifamily property (duplex, triplex, or fourplex), live in one unit, and rent out the others. The rental income from your tenants covers most or all of your mortgage payment, meaning you’re essentially living for free while building equity every single month.
Let’s run through a real example…
You buy a duplex for $350,000 with a 3.5% FHA down payment ($12,250). Your total mortgage payment comes to $2,400 per month. You live in one unit and rent the other for $1,600. Your actual out-of-pocket housing cost? Just $800 per month while you’re building equity and gaining valuable landlord experience.
After living there for a year, you can move into another house hack and keep the first property as a rental. Rinse and repeat every year, and you could own four properties in four years with less than $50,000 total invested.
You’ll be living next to your tenants, which isn’t for everyone. But if you can handle being a live-in landlord for a year or two, house hacking is an incredible wealth-building strategy with minimal capital requirements.
You can read more about house hacking in our guide.
4. Real Estate Crowdfunding: Pool Your Money for Big Deals
Investment Level: $10–$25,000 depending on platform
Real estate crowdfunding platforms have democratized access to commercial real estate deals that were once only available to ultra-wealthy investors and institutions.
Through crowdfunding, you pool your money with other investors to fund large-scale projects: apartment complexes, commercial developments, or portfolios of single-family rentals. Professional developers and operators manage everything while you collect your share of the returns.
Popular platforms include Fundrise (start with as little as $10), RealtyMogul (mix of debt and equity investments), Crowd Street (institutional-quality commercial deals for accredited investors only), and Arrived (single-family rental homes starting around $100).
The benefits are compelling: zero property management responsibilities, professional oversight from experienced operators, diversification across multiple projects and markets, and access to deals you’d never be able to participate in on your own.
Your money is typically locked up for several years (usually 3 to 7 years depending on the project), so this isn’t liquid like REITs. Returns aren’t guaranteed, but for passive, low-maintenance real estate exposure with the potential for solid returns, crowdfunding is tough to beat.
5. Wholesaling: Turn Deals Into Cash with Zero Property Ownership
Investment Level: $500–$2,000
If you’re willing to hustle and don’t mind getting your hands dirty with marketing and negotiations, wholesaling offers one of the absolute lowest barriers to entry in real estate investing.
Here’s how it works: You find motivated sellers with distressed properties, get the property under contract at a below-market price, then assign that contract to an end-buyer (usually a fix-and-flipper or landlord) for an assignment fee.
You never actually buy the property yourself. You’re the matchmaker who brings together sellers who need to sell quickly and buyers who are looking for deals, and you get paid handsomely for finding and facilitating the transaction.
Your main investments are time, energy, and marketing dollars. You don’t need to qualify for financing, pay for expensive renovations, cover holding costs, deal with property management, or even close on the property.
Success in wholesaling comes down to 3 things:
- finding motivated sellers
- analyzing deals quickly to know what they’re worth
- building a solid buyers list of active investors who are ready to purchase
Your first wholesale fee could be anywhere from $3,000 to $15,000 or more depending on the deal size and how much value you’re bringing to both sides of the transaction.
Wholesaling is not passive income. You’re running a lead generation and deal-finding business that requires consistent hustle, dealing with rejection, and following up relentlessly. But if you’re willing to put in the work and develop the skills, you can generate significant income with minimal upfront capital.
You can read more about wholesaling in our guide.
The Bottom Line: Low Cost Doesn’t Mean Low Value
Being low on cash doesn’t disqualify you from real estate investing. Not even close.
Each of these 5 strategies offers a legitimate path to building wealth through real estate without needing a 6-figure bank account. The key is choosing the strategy that fits your available capital, time commitment, risk tolerance, and long-term financial goals.
Start with one strategy, master it, get some wins under your belt, and then expand from there. Many successful investors use multiple strategies simultaneously, spreading risk while maximizing returns across different investment types.
Take it from me: Don’t let a lack of capital hold you back from getting started. The knowledge, skills, and experience you gain from your first deals are worth far more than the initial investment.