August 8, 2025
You can start building wealth for $100 or less
Real estate investing used to mean saving for years, obtaining a mortgage, and managing properties full-time, putting it out of reach for many. But how to get started in real estate investing has changed. With more beginner-friendly options available, you can start small, skip the headaches of property ownership, and still work toward long-term wealth. The trick for first-time investors is finding the approach that fits your budget and goals.
Understanding the Basics of Real Estate Investing
Real estate investing is a battle-tested way to build wealth by putting your money into properties or property-backed opportunities that generate income and grow in value over time.
There are several ways to get started. You might buy a rental property, try house flipping, or take a more passive route by investing in real estate loans that pay interest over time. That last option is especially appealing for beginners, thanks to its low barrier to entry
Real Estate Debt as a Path to Passive Income
Real estate debt investing, also known as investing in real estate loans, is a lending-focused alternative to owning rental properties, fractional ownership, or real estate crowdfunding.
Instead of buying or managing a property, you’re helping fund short-term, real estate–backed loans and earning interest as the money gets paid back.
It’s a way to skip the headaches of co-owning or managing real estate while giving you more control over your risk, timeline, and level of involvement.
How to Start Investing With Little Money
Your investment journey doesn't have to mean putting tens of thousands down or managing a property yourself. Groundfloor offers multiple ways to put your money to work, each with low minimums, clear terms, and flexibility to match your goals.
Hands-Off, Automated Portfolio
Groundfloor's Flywheel Portfolio is ideal for those who want a set-it-and-forget-it approach.
You start by opening an account with $100, and your money automatically distributes across a curated mix of short-term, real estate-backed loans, similar to an REIT.
As borrowers repay, your share of the interest is paid directly to you. Plus, if you're looking to build momentum, you can reinvest and keep the cycle going. It's a significant first step toward earning passive income.
Direct Access to Individual Projects
If you prefer a more active role, you can invest directly in individual loans. Groundfloor's Loan Repayment Obligations (LROs) let you browse available projects, typically residential renovations or new builds, and choose where your money goes.
Here's how LROs work: Each loan listing reveals property and financial details, timelines, and borrower profiles. All this informational goodness allows potential investors to make more informed decisions while earning higher returns backed by real property. This path provides transparency, control, and the satisfaction of knowing exactly what you're helping to build.
Short-Term, Predictable Returns
Notes offer another path: fixed-term, real estate-backed investments designed for steady returns. Choose a 30-day, 90-day, or 12-month term and lock in your interest rate upfront, currently up to 7% annually, but keep in mind rates may vary.
Because Groundfloor Notes aren't tied to the stock market, they offer a more stable way to grow your savings while staying liquid. They're a good fit if you want predictable outcomes, flexibility, and a clear timeline for returns.
Choosing the Right Real Estate Investing Path for You
Whether you find owning property irresistible or prefer a more hands-off way to earn, the best approach depends on your goals, time, and appetite for risk. Here are the top considerations.
How Involved Do You Want to Be?
Buying and managing property requires time and effort, everything from tenant communication to repairs and upkeep. If you prefer to skip all of the hands-on responsibilities of property ownership, investing in real estate loans or portfolios may be a better fit.
What’s Your Budget?
Traditional real estate investing typically requires a significant upfront investment. Remember, down payments, closing costs, and ongoing expenses can quickly add up. Real estate debt options typically have much lower minimums, sometimes starting at just $10 or $100.
How Soon Do You Want to See Returns?
Property values generally grow over the long term, and rental income builds gradually. With real estate loans or Notes, you can often see returns more quickly, especially with short-term investments that pay interest as borrowers repay.
How Much Risk Are You Comfortable Taking On?
Every investment carries some level of risk, but owning property comes with market swings, vacancies, and unexpected costs (Hello, broken water heater). Lending-based investments offer an alternate risk profile, one tied more closely to loan performance than to property values.
One Last Bit of Advice
There's no one-size-fits-all answer when it comes to investing, and you don't have to stick to just one path. Many people start small, then mix and match different strategies as their goals and confidence grow. If you're unsure where you fit, understanding the difference between accredited and non-accredited investors can help you determine the options available to you. The important thing is to start in a way that feels right for you.
