Believe it or not: you can invest in commercial real estate with less than $100

Many people buy residential homes and rent them out, either short or long term. But it requires a fair amount of capital in the form of a down payment.

Likewise, owning commercial real estate usually means having to set aside a large sum of money. And if you don’t have thousands (or hundreds of thousands) of dollars to your name, you might assume that investing in commercial real estate is pretty much irrelevant.

But in fact, there is a way to invest in commercial real estate on a budget, even if you have less than $100 to work with. And best of all, it’s super easy to get started.

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Get ready to make money with REITs

Buying a commercial property requires a lot of money. Investing in companies that own commercial properties requires much less.

That’s why it pays to look to REITs or real estate investment trusts if you’re short on funds but still want to diversify into commercial real estate. When you buy REITs, you get shares of companies that make money by operating different types of properties.

In the context of REITs, there are different sectors that you can choose to focus on. You may decide to look into industrial REITs, which are companies that operate warehouses and distribution centers. The massive shift to e-commerce that has occurred over the past two years makes these specific REITs a good bet.

Another option to consider is data center REITs. With so many companies now allowing workers to do their jobs partly from home, partly from an office, it has become more important than ever to have a way to securely share and store data. This demonstrates that data center REITs are a solid buy.

Finally, you might want to look into healthcare REITs, especially because healthcare is considered a recession-proof industry that doesn’t depend on growth trends in the same way that healthcare REITs do. Industrial or data center REITs. Healthcare REITs operate properties such as hospitals, nursing homes and urgent care centers.

There are many advantages

Owning REITs could allow you to diversify your portfolio if you don’t currently have money in real estate. And not only could you benefit financially if your REIT shares gain in value over time, but you can also expect generous dividend payouts along the way.

REITs are actually required to pay out 90% of their taxable income as dividends to shareholders. So it’s money you’ll have the option to cash out or reinvest to expand your portfolio – the choice is yours.

Either way, you should know that it doesn’t take a lot of money to start investing in commercial real estate. If you have a brokerage account, you already have access to a wide range of publicly traded REITs whose shares you buy and sell in the same way as you would common stocks. And the earlier you start investing in REITs, the more potential you have to make money, even if you start with a small sum.