Did you know that real estate has created more millionaires than any other asset class? This means owning property is the most consistent path to wealth.

Because of this, today’s article looks at the basics of real estate investing and how you can start buying property for as little as $100 a month. That’s no joke either!

If you’re curious about making money in real estate, you’re going to love this article.

Rental Properties: Pros And Cons

When most people think real estate, they think about owning an apartment or some rental homes. This is a great investment opportunity, and one with a long track record for success.

However, there are a few things you need to keep in mind.

The first is that owning any physical property takes work. Pipes clog, windows break, basements flood… You get the idea. As such, you’re either paying someone to maintain these buildings, or you’re doing it yourself.

In either case, you’re spending extra time and money caring for your property. Not exactly passive income.

Secondly, real estate markets change. So if you’re going to buy a building, you need to do your research and make sure you’re investing into a good neighborhood. This takes a lot of research upfront.

That said, if you do your homework and don’t mind maintenance, owning rental properties is a fantastic way to accelerate your wealth.

REIT Investing: The Easiest Way To Buy Real Estate

Real Estate Investment Trusts (also known as REITs) are the easiest and cheapest way to become a property owner.

What is a REIT?

Put simply, they’re shares of a massive real estate fund which trade on the stock market. Buying these allows you to invest into multiple properties at the same time. It’s a good way to diversify your holdings.

Additionally, most REITs pay quarterly or monthly dividends. This means you’re earning passive income just like you would with a traditional rental property.

Cash flow varies between REITs, but most typically pay out with an annual return of 3 – 6%.

So an investment of $10,000 delivers $300 – $600 in cold, hard cash.

There are many REITs on the market, but my personal favorite is the Vanguard Real Estate ETF (ticker symbol VNQ). This is a diverse fund tracking the entire US real estate market, giving you plenty of exposure to a variety of property types.

VNQ covers everything from residential homes and apartments to commercial buildings and shopping malls. It’s the largest US REIT fund, and has a great historical track record.

Lastly, VNQ currently pays over 3.5% in annual dividends. As such, you’re earning over $350 for every $10,000 you invest.

That’s pretty good, especially since you don’t have to worry about property maintenance or managing tenants.

Closing Thoughts

While there are many ways to invest in real estate, REITs are my personal favorite. They allow you to own a wide variety of properties, with no maintenance obligations, and they’re much cheaper than buying a physical building.

If you’re looking for a quality REIT, I suggest VNQ. It currently trades under $100 per share, allowing you to jump into the real estate sector with very little risk.

This the perfect opportunity for anyone who dreams of owning properties, but doesn’t want the hassle of maintaining them.

P.S. Are you ready to become a passive income landlord? If so, check out the Robinhood App. This platform lets you buy and sell REITs (like VNQ) without any commission fees. Best of all? You’ll get a free stock when you sign-up through this referral link.