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Chase C. Hunter became a real estate investor after a Google search and a $3,800 initial investment. At the time, while living in Houston, she searched for places she could buy cheap property and found ample opportunities in Detroit, with homes selling for as little as $1,000.
“I closed on my first two properties the same day in June of 2021,” she told Realtor.com in an article published in August 2024 (1). “The day I closed was my very first time in Detroit.”
Both properties came with significant issues. She paid $2,000 for one and $1,800 for the other, renovated them, found renters, and began her career as a landlord. She has since repeated this process for eight homes.
Hunter’s journey was a successful one, thanks to a lot of effort and a little luck, but it wasn’t easy.
While Hunter paid very little for the two homes she purchased, that was far from the end of the story.
She had to invest $85,000 in renovations for the house she bought for $2,000 to ready it for renters. On the second house, purchased for $1,800, she spent $130,000 to convert it into her office because of unexpected water line problems.
But you don’t need to get your hands dirty to profit from a fixer-upper. With the Arrived’s Private Credit Fund, you can invest in short-term loans that are used to fund real estate projects, such as renovations, property rehabs, or even new home construction projects.
All of the loans are secured by residential housing as collateral — meaning you don’t have to worry about the safety of your investment.
Historically, Arrived Private Credit Fund has paid 8.1% annualized dividends to investors, distributed on a monthly basis. Dividend returns on stocks don’t even come close — the long-term average dividend yield of S&P 500 companies is 1.83%.
Barely a decade after it declared bankruptcy, The Wall Street Journal stated Detroit is emerging as “America’s most unlikely real-estate boomtown.”
While her business has been a success so far thanks to this hard work, Detroit’s real estate boom helped fuel this success. The median price plummeted to $58,900 in 2009 and the city filed for bankruptcy in 2013. Now, with prices soaring to $250,000, according to Realtor.com, investors like Hunter find it much easier to profit in this rapidly appreciating market.
If you don’t have $130,000 to renovate a fixer-upper, there are other profitable ways to invest in real estate, like the rental market, for example. If you prefer passive income to dealing with tenants or large down payments, you could look into crowdfunding platforms.
In addition to their Private Credit Fund, Arrived also allows you to invest in shares of rental homes and vacation rentals for as little as $100, without taking on the responsibilities of property management.
Getting started is simple: browse a curated selection of homes, (each vetted for their appreciation and income potential), and choose the number of shares you want to buy.
However, for accredited investors looking to invest larger sums, you aren’t limited to residential properties.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
For those who want to invest in real estate without turning it into a full-time job, there are plenty of convenient alternatives.
Investing in real estate investment trusts (REITs) and exchange-traded funds (ETFs) can offer a more accessible and diversified way to participate in the real estate market without the direct ownership and management responsibilities of individual properties.
REITs are publicly traded companies that own properties and distribute profits as dividends. ETFs, on the other hand, pool money to invest in REITs or real estate-related businesses. Both options provide a way to benefit from real estate without the responsibilities of individual property ownership.
Want to tap into the expertise of former hedge fund analysts for top real estate stock and ETF picks? Try Moby.
The team of former hedge fund analysts and experts at Moby spend hundreds of hours each week sifting through financial news and data to provide top-tier stock and crypto reports to keep you up-to-date on what’s moving the markets.
If you’re serious about investing in real estate for passive income, Moby’s superior research can help you reduce the guesswork when selecting REITs or ETFs. In four years, across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by almost 12% on average. With their easy-to-understand formats, you can become a wiser investor in just five minutes, backed by a 30-day money back guarantee.
Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
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Realtor.com (1)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
