• How it works
  • Features
      • Rental Accounting

        Full trust accounting is at the core - accounting made for property management.

      • Property Management

        From lease application to move-out, streamline your property management.

      • Work Order Management

        Streamlining your work orders won't just save you time. It'll end up saving you a lot of money

      • Leasing

        Whether you're pre-leasing or trying to fill vacancies, RentPost has you covered.

      • Because using run-of-the-mill payment solutions is like trying to run a marathon in flip-flops.

      • Tenant Screening

        Ultrices ultrices libero semper eget. Elit non ut porttitor tortor quis dolor et.

  • Resources
      • Property Manager

        Become a property management expert; landing clients to managing vendor relationships

      • Landlord

        Everything you need to know about being a landlord, from leases to DIY repairs

      • Rental Maintenance

        Handling repairs can be stressful.
        Whether it's the DIY approach or hiring contractors, learn more.

      • Renter Advice

        Learn to navigate the waters of being a model tenant and knowing your rights.

  • Pricing
  • Contact
Log in Free Trial
Log in Free Trial
  • How it works
  • Features
    • Rental Accounting
    • Property Management
    • Work Order Management
    • Leasing
    • Payshift
    • Tenant Screening
  • Resources
    • Property Manager
    • Landlord
    • Rental Maintenance
    • Renter Advice
  • Pricing
  • Contact
  • How it works
  • Features
    • Rental Accounting
    • Property Management
    • Work Order Management
    • Leasing
    • Payshift
    • Tenant Screening
  • Resources
    • Property Manager
    • Landlord
    • Rental Maintenance
    • Renter Advice
  • Pricing
  • Contact
Home/Resources/Free Resources for Landlords/5 Investments in Real Estate for New Investors

5 Investments in Real Estate for New Investors

1008 views 4 Updated on March 2, 2024 Karina Jugo

karina Updated on March 2, 2024 1008 views 4

Traditionally, real estate investment involves a decent chunk of cash. Although you can sometimes purchase a property with zero money down, it’s not easy. It leads to a higher monthly mortgage payment, which can make it more difficult to achieve positive cash flow.

Fortunately, there are a few ways to invest in real estate without ponying up a lot of money upfront. Even though these don’t offer as much control as you may like, it’s an excellent way to get into the market to build up capital.

The Best Real Estate Investment Options

Investment #1: Crowdfunding Sites like Groundfloor

Groundfloor is pretty cool. Here’s how the process works:

  1. Someone decides to either purchase a residential property or fix one up to flip.
  2. They go to Groundfloor with a business plan, seeking funding.
  3. Investors who are members of Groundfloor invest money to fund the project. They can donate anything as low as $100.
  4. Once all of the funds are raised, the business owner uses the money to buy or fix up the property.
  5. The entrepreneur repays the money to Groundfloor, who takes a cut and gives the rest back to the original investors.

It’s a win-win-win. Investors are able to invest money in a property without too much risk. The business owner gets the financing required to buy or flip the property. And Groundfloor makes money by handling the process.

You can partake on either side of the coin. You can either use the site to raise money for your real estate investment or add funds to help pay for someone else’s new venture.

Robert Allen once said, “You can actually borrow your way to wealth.” Sites like Groundfloor make that possible for all levels of investors, even if they have trouble getting money at the bank. But being on the other side- the money-lender charging interest- isn’t bad either.

real estate investment

Investment #2: Real Estate Investment Trust

A REIT is a chance to invest in a company that owns and manages a portfolio of real estate investments. According to reit.com, they are usually sold on the stock exchange.

There are specific regulations a REIT must follow. These are to protect the investors, as they are usually considering REITs to diversify their portfolios.

Investors also love REITs for dividends. People who are on a fixed income and not looking for fast growth will often use REITs so that the dividends can provide regular cash flow. Regular cash flow without all of the risk associated with owning and managing a property yourself? Not a bad deal at all.

The biggest downside is the lack of control. But if you are new in the world of real estate and have never managed property before, this is an excellent way to get some money into the market without excessive risk.

Investment #3: Get a Partner(s)

“Finding good partners is the key to success in anything: in business, in marriage and, especially, in investing.” -Robert Kiyosaki

My uncle Jason didn’t have enough money when he was younger to buy a beach condo as a vacation home. He was just getting started in his career and had a young family.

But he found he could easily afford his portion when he got a few other families involved (his in-laws). This was great because he didn’t have to worry about renting it out all summer long to help pay for expenses. Instead, his biggest concern was scheduling it ahead of time and making sure he wasn’t trying to use it the same week as his in-laws.

It’s obviously a little different when you’re talking about investing in real estate as a business, but the idea is similar. Being responsible for all of the costs by yourself is tough. But if you can share the burden with someone else, it will be easier to come up with the money you need to buy a rental property.

There are a few ways to find real estate investing partners:

  • Friends and family – do you know anyone who is financially savvy? They may be interested in going in on investment with you. Especially if you make a strong case that your venture would be profitable.
  • Investing clubs – the power of the internet makes it easy to find other people nearby who invest in real estate. Just searching on Google is a start, but the best place to check out is Meetup.com. Every large city will have some kind of group that meets to discuss real estate investing. And if you find that your town doesn’t – go ahead and make one!
  • Property managers and real estate agents – do you know anyone that works in the real estate industry? Chances are good that they know a number of people interested in investments in real estate. Just know what kind of value you bring to the table when you talk to the investor. Have you already found a great property? Are you great with your hands, meaning you can do all of the labor to flip the property yourself? The investor will want to know how you can help the partnership.

Investment #4: Use What You Already Have

We put an article together on how to rent out your house. That’s how a lot of new landlords get started because they don’t have to worry about getting another mortgage. Instead, they can just rent a different home for a while and find tenants for the home they already own.

If you aren’t willing to scale down to rent out your home for a while, another option is just to rent out part of your house. Do you have a finished basement? How about a big backyard where you can put a tiny house? What about that room above the garage? Can you make it a small apartment?

Depending on what you already own, you may need to invest a chunk of change in finishing the basement or building that tiny house. But the cost would be a fraction of what it takes to purchase another house, and you may be able to get a loan from your existing mortgage lender to cover the upgrade.

Once you have a place to rent out, you can either try to rent it on a long-term contract or use sites like Airbnb. Even though sites like Airbnb may not provide the same kind of consistent cash flow as renting it long term, the benefit is you can choose when to rent out the space, and you’ll get paid more per night.

Perhaps the best part about using this method to get started in real estate investing is that if you rent the unit out long term, you get to practice being a landlord without having to learn the hard way with a bigger, more expensive property.

Investment #5: Tax Liens

Last but not least, you can choose to purchase tax liens from your local government. The basic idea is that you’re buying the right to collect taxes from a homeowner that’s behind on their property tax bill.

When the payments are made, you collect them with interest. If the payments are not made, you have the right to foreclose on the home, making it now your property and responsibility.

This method does have risks, and most real estate investors don’t get involved with tax liens. But if you’re willing to learn about the process and undertake the risk, you can purchase these liens without a lot of cash.

Conclusion

Getting started in real estate investment isn’t easy. There’s a huge learning curve on top of the fact that you need some form of capital. But these investments in real estate can help get you in the market without taking on a huge mortgage, making them attractive options for those who are risk averse.

Authors

  • karinba jugo rentpost
    Karina Jugo

    Karina Jugo is a content administrator at RentPost who works directly with real estate and property management experts to create resources and guides for property managers. She has more than 15 years of experience in content research and writing for various industries.

    View all posts
  • jacob thomason rentpost
    Jacob Thomason

    Jacob Thomason is the CEO and co-founder of RentPost, a powerful software platform designed to streamline property management for landlords, property managers, and owners. A seasoned software entrepreneur, Jacob brings a wealth of expertise spanning business concept design, software architecture, and development. Since 2009, he has been at the helm of RentPost, helping property professionals simplify operations and maximize efficiency.

    View all posts CEO

Simplify your property management with RentPost. Free 30-day trial.

Start Free Trial
Description of the image
Tags:investment real estatereal estate investmentstart investing in real estate

Was this helpful?

4 Yes  No
Further resources
  • How Much Can You Raise Rent in Illinois in 2025?
  • How Much Can You Raise Rent in Chicago in 2025?
  • Oregon Landlord-Tenant Rights (2025)
  • San Diego Landlord Tenant Rights You Need To Know
  • Texas Landlord Tenant Rights: Rules, Laws, & Regulations

No luck finding what you need? Contact Us

Manage Your Property With RentPost
Join thousands of happy property managers and landlords (30-day Free).
See Pricing
Free Resources for Landlords
  • 5 Investments in Real Estate for New Investors
  • How Much Can You Raise Rent in Illinois in 2025?
  • How Much Can You Raise Rent in Chicago in 2025?
  • Oregon Landlord-Tenant Rights (2025)
  • San Diego Landlord Tenant Rights You Need To Know
  • Texas Landlord Tenant Rights: Rules, Laws, & Regulations
View All 100  
Popular Articles
  • Texas Landlord Tenant Rights: Rules, Laws, & Regulations
  • How Much Can You Raise Rent in Illinois in 2025?
  • How Much Can You Raise Rent in Chicago in 2025?
  • San Diego Landlord Tenant Rights You Need To Know
  • Oregon Landlord-Tenant Rights (2025)
Latest Articles
  • Estimating Moving Costs & Preparing for a Move-Out Inspection
  • Should Landlords Incorporate?
  • The Pros and Cons of DIY Pest Control
  • Property Management Training
  • Landlord Insurance: 18 Top Questions and Answers

  Mortgage Refinancing Guidelines for Investment Properties

Mobile Home Park Management: 4 Tips to Maximize Investment  

About RentPost

RentPost is a property management software company based in Tampa, FL.

Our software platform enables property managers and landlords to increase efficiency and make the process of renting more enjoyable.

Contact

hello@rentpost.com
(858) 333-RENT

Resources
  • Property Manager
  • Landlord
  • Rental Maintenance
  • Renter Advice
More Links
  • Home
  • Product Tour
  • Pricing
  • About Us
  • Blog
  • Copyright © 2025 RentPost | All Rights Reserved.

Try RentPost risk-free

Schedule a walk-through today

RentPost Logo

Tampa, Florida

+1-858-333-RENT

Youtube

RentPost

  • About us
  • Contact Us
  • Pricing

Features

  • Rental Accounting
  • Property Management
  • Work Order Management
  • Leasing
  • Payshift

Resources

  • Property Manager
  • Landlord
  • Rental Maintenance
  • Rental Advice

Company

  • Resources
  • Blog
  • Support & FAQs

Copyright © 2025 RentPost | All Rights Reserved.

  • Privacy Policy
  • |

  • Terms of Conditions
  • |

  • Refund Policy
  • |

  • Data Protection Policy