Real estate has long been considered one of the most reliable ways to build long-term wealth. However, buying physical property comes with high upfront costs, ongoing maintenance, mortgage debt, and market complexity. The good news? Thanks to modern finance and technology, it’s now possible to invest in real estate without owning physical property.
From REITs and real estate crowdfunding to tokenized assets and real estate stocks, there are plenty of accessible ways to gain exposure to the real estate market—without becoming a landlord.
In this guide, we’ll explore the top ways to invest in real estate without buying a home or commercial building. You’ll learn the pros and cons of each method, how they work, and how to get started—even with just $10. If you’re looking for passive income, portfolio diversification, and hassle-free real estate investing, this article is your roadmap.
What Does It Mean to Invest in Real Estate Without Buying Property?
Investing in real estate without owning property means putting your money into real estate-related assets that generate income or appreciation—without purchasing or managing a building yourself.
These methods allow you to:
Start with low capital
Diversify across regions and property types
Avoid responsibilities like maintenance, tenants, and taxes
Access liquid, passive investments
Let’s break down the most popular options available today.
REITs: Real Estate Investment Trusts
What Are REITs?
REITs (Real Estate Investment Trusts) are publicly traded companies that own, operate, or finance income-producing properties—like apartments, office buildings, shopping centers, and industrial warehouses.
By law, REITs must pay out at least 90% of their taxable income as dividends to shareholders, making them an attractive source of passive income.
You can buy shares of a REIT on major stock exchanges, just like any stock.
Advantages of REITs
Low barrier to entry (invest with $10–$100)
High liquidity (buy and sell anytime on the market)
Regular dividends paid monthly or quarterly
Diversification across real estate sectors and geographies
Types of REITs
Equity REITs: Own and operate physical properties
Mortgage REITs (mREITs): Invest in real estate debt and loans
Hybrid REITs: Combine property ownership and lending
Public vs. Private REITs: Public ones are traded on the stock market; private ones are not
Popular U.S. REITs
Realty Income Corp (O) – Retail and commercial real estate
Prologis (PLD) – Industrial and logistics facilities
American Tower (AMT) – Cell tower real estate
Simon Property Group (SPG) – Shopping malls and outlets
Real Estate Crowdfunding
What Is Real Estate Crowdfunding?
Real estate crowdfunding allows multiple investors to pool money online to fund real estate development projects—without buying property individually.
Investors choose from a variety of projects listed on platforms and earn returns based on rental income, interest, or property appreciation.
How It Works
Developers list projects on crowdfunding platforms
Investors review the offering details and contribute funds
Projects get funded and executed
Investors earn a return, often over 3–7 years
Benefits of Crowdfunding
Start with as little as $10–$500
Access exclusive real estate deals
Earn higher potential returns than REITs
Choose from residential, commercial, and mixed-use properties
Best U.S. Real Estate Crowdfunding Platforms
Fundrise
CrowdStreet
RealtyMogul
Groundfloor
DiversyFund
Risks to Consider
Less liquidity (most platforms require long-term commitment)
Project-specific risk (e.g., delays, cost overruns)
Returns are not guaranteed
Tokenized Real Estate Platforms
What Is Tokenized Real Estate?
Tokenization converts real estate ownership into digital tokens on a blockchain. These tokens represent fractional ownership in a property and are bought and sold like cryptocurrency assets.
It’s an innovative way to make real estate more accessible, secure, and efficient.
How It Works
You buy tokens representing a share in a specific property
Tokens are stored on blockchain platforms
Investors earn rental income or appreciation, distributed via smart contracts
Key Platforms
Lofty.ai – Tokenized rental homes in the U.S.
RealT – Ethereum-based real estate ownership
HoneyBricks – Commercial property tokens for accredited investors
Benefits
Fractional ownership for $50 or less
Automated income payouts in crypto
Global access with low transaction costs
Blockchain transparency and smart contracts
Drawbacks
Regulatory uncertainty
Limited secondary markets/liquidity
Tech-savvy approach may not suit all investors
Private Real Estate Funds
What Are Private Real Estate Funds?
These are professionally managed funds that buy or develop real estate assets using capital from multiple investors. They’re not traded on public exchanges and typically have higher minimums ($25,000+).
Many private funds are only available to accredited investors, but some platforms are lowering the entry barriers.
Features
Focused on long-term investments (3–10 years)
Often provide higher returns than public REITs
Income may come from rent, debt interest, or asset appreciation
Fund managers handle all operations
Pros and Cons
Pros:
Access to exclusive high-yield projects
Hands-off investing
Diversified asset pools
Cons:
Low liquidity
Long investment horizons
Higher risk if the market turns
Investing in Real Estate-Related Stocks
Another indirect way to gain real estate exposure is to invest in publicly traded companies in the real estate ecosystem, including:
Homebuilders (e.g., Lennar, D.R. Horton)
Construction suppliers (e.g., Home Depot, Lowe’s)
Real estate tech platforms (e.g., Zillow, Redfin)
These stocks tend to perform well when the housing market is strong, and they can complement REITs and crowdfunding in a diversified portfolio.
Comparison Table: Which Strategy Fits You?
How to Choose the Right Option for You
When selecting your strategy, consider your:
Investment goals (income vs. growth)
Risk tolerance
Need for liquidity
Comfort with technology
Investment horizon
For beginners, REITs and crowdfunding platforms like Fundrise are great places to start. If you’re looking for innovation and potentially higher returns, tokenized real estate or private funds could be your next step—just be sure to do your due diligence.
Conclusion
Thanks to modern financial tools, you no longer need to buy property to invest in real estate. With options like REITs, crowdfunding platforms, tokenized real estate, and real estate-focused stocks, anyone can access the wealth-building potential of this market.
Whether you have $50 or $50,000, there’s a way to diversify your portfolio, earn passive income, and invest in property—without ever owning a building.