Jul 25, 2024
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
A million-dollar home often conjures images of a mansion, but in Silicon Valley, things can be a bit different.
At 10036 Carmen Road in Cupertino, California, sits a one-bedroom, one-bathroom home with 384 square feet of living space. The tiny home went viral in April due to its $1.7 million listing price. But despite the sky-high price tag, listing sites show the home has sold for considerably more at $2 million.
Advertisement
The tiny house received an “insane amount of attention,” listing agent Faviola Perez told SF Gate. But she insists the key to the property's value is in its land.
The description on Zillow highlighted the property's location as being in a top-tier school district, its 7,841-square-foot lot surrounded by $4 million to $5 million homes and its close proximity to major commuting routes, underscoring the land's significant investment potential.
This story showcases the soaring values in certain real estate markets, but it’s important to remember that investing in real estate doesn’t always require buying a house. Here’s a look at three alternative strategies that don't involve hefty upfront investments.
Invest using a crowdfunding platform
Crowdfunding has become a buzzword in recent years. It refers to the practice of funding a project by raising small amounts of money from a large number of people.
These days, many crowdfunding investing platforms allow you to own a percentage of physical real estate — from rental properties and commercial buildings to parcels of land.
Because of the higher stakes involved in some real estate crowdfunding, some platforms — like First National Realty Partners(FNRP)— require investors to be accredited.
Advertisement
At a minimum investment amount of $50,000, FNRP allows accredited investors to get their hands on necessity-based commercial real estate without having to do the legwork of finding deals on their own.
FNRP’s team of experts have developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods and they will act as the deal leader through their entire life cycle while you passively collect potential distribution income.
If you’re not an accredited investor, certain platforms allow you to invest small sums, so you can still enjoy the convenience of crowdfunding — and Arrived is one of those platforms.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes and vacation rentals without having to deal with all the work and risk that can come from having tenants.
Advertisement
You can start by browsing a curated selection of homes, vetted for their appreciation and income potential.
Once you find a property you like, choose the number of shares you want to buy and get started with as little as $100.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Private real estate funds
With private equity real estate funds, you can get access to a wide range of different real estate investments, such as residential, commercial or real estate debt, meaning you aren't keeping all of your money tied to the fortunes of a single property.
With Fundrise , you can invest in several different real estate funds, each calibrated for consistent growth. Fundrise's real estate funds include a wide range of assets, including residential and commercial properties and real estate loans, ensuring diversification within your portfolio. Unlike most private real estate funds, which require institutional-level capital to get into, Fundrise has a minimum investment threshold of $10.
You can start investing with Fundrise by signing up and answering a few questions about yourself and your investing preferences and risk tolerance. Then Fundrise will suggest a portfolio best suited to your goals
Invest in ETFs
Picking the right REIT or crowdfunded deal requires plenty of due diligence on your part. If you’re looking for an easier, more diversified way to invest in real estate, consider exchange-traded funds.
Advertisement
You can think of an ETF as a portfolio of stocks. And as the name suggests, ETFs trade on major exchanges, making them convenient to buy and sell.
When you open a brokerage account with E*Trade, you can use ETFs to gain access to a diversified portfolio and won’t need to worry about which stocks to buy and sell.
E*Trade is an investment platform from financial giant Morgan Stanley. Through their brokerage account, you can invest in ETFs and enjoy $0 commissions on online U.S.-listed ETF trades. Opening an account takes just 10 minutes — you’ll gain access to timely research and analysis to support your investing choices.
Plus, if you open and fund a new brokerage account by July 31 using the code REWARD24 you can get up to $1,000 credited to your brokerage account.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
