I think real estate investing is a big pill to swallow and it’s better to have your first investment be something more manageable. Much like REITs, real estate limited partnerships allow groups of investors to pool their funds to invest in real estate. Like investing in the stock market, a passive real estate investment involves putting in money but then largely remaining uninvolved. Even if you go the FHA route and only put down 3% , it's still a relatively large capital outlay to get started. Real estate investing is, by far, one of the most lucrative long-term investment strategies a person can employ. Before you start in the real estate investment game, you will need to first do some research and understand the ins and outs and ups and downs of the real estate market. Start Investing in Real Estate with Diversyfund DiversyFund is a tech enabled platform allowing the everyday investor to invest like the 1%. This article is about building and growing a real estate portfolio over time that will fund a wealthy retirement lifestyle through cash flow. The Steps – How to Invest In Real Estate. Potential returns aren't as high as the stock market: From 1991 to 2019, the S&P 500 gained over 600% while housing prices increased only about 160%. Which is good news, because getting started in real estate investing does take some work! Decide which type of real estate investor you want to be. The steps to start investing are going to be broken up into a couple of podcasts, because there are so many steps I want to give you so you get a good understanding of how to invest in real estate. A good wholesale deal could drive $5,000, $10,000, $20,000 or even more. While you’re young, you tend to have a more flexible personal life, without the time demands of young children or elderly parents. Many people would love to be real estate investors, but they lack the cash for down payments. From wholesaling to buying and renting real estate — finding the right real estate investment opportunity for you is a great way to add supplemental income or parlay into becoming your sole income. Investing in Real Estate can be a lucrative and rewarding business. I’m a 21 year old who has always been interested in real estate investing. A catastrophe on your first investment will set you back quite a lot while a good but not killer first property will help set a good foundation for your future acquisitions while allowing you to decide whether or not real estate investing is for you. With crowdfunding, you can start investing in real estate deals with as little as $10 with Groundfloor, or only $500 with Fundrise or DiversyFund. Essentially, real estate investment is a long-term investment wherein you purchase real estate with the intent of keeping properties to rent out, while real estate trading is a short-term investment, wherein you buy a property that needs fixing up and flip it for a higher price soon after. When I speak of real estate, I’m talking about rental real estate that produces a positive cash flow. Instead of asking one investor to lend a lot of money, crowdfunding allows large developers to raise capital through lots of smaller individual investments. Real estate is a great alternative investment that isn't weird (like burial plots, which are technically real estate too!). If you’re willing to invest your money and time, there are even more ways to invest $5k. Active real estate investing takes patience and hard work, but it also comes with a lot of enticing perks. They think that buying and holding, or buying and flipping, are the only ways to make money. When you invest your first $5, you’ll get another $5 bonus to invest — on us.