There are several ways to invest in real estate, either directly or indirectly. Depending on the route you take, not all types of real estate investments will require a ton of time or capital. “The amount of money needed to invest in real estate varies depending on the property, location, market conditions, and investment avenue,” says Graham. “In some cases, investors might need as little as a few thousand dollars to get started.”  

A few common ways to get in on the real estate game, include: 

• Direct purchase: This is when you buy all or a stake in a specific property such as an apartment, home, housing complex, shopping center, or commercial office building. 
• REIT: Real estate investment trusts (REITs) are companies that own, operate, or finance income-producing real estate and then collect rent, operating expenses, or interest payments from the properties in its portfolio and use those funds to pay dividends to shareholders. You can buy shares of a REIT in a taxable brokerage account, as well as a tax-advantaged retirement account such as an IRA or employer-sponsored 401(k) (if the plan allows it). 
• Real estate sponsor: A sponsor is an individual or company in charge of finding, acquiring, and managing a property on behalf of investors. Sponsors will typically invest in the property as well, but won’t have to invest as much capital as the other investors involved. “For investors seeking to reap the benefits of owning real estate without enduring the obligations of operating the property, partnering with an experienced real estate sponsor is an ideal choice,” says Graham.
• Investing apps: There are also brokerages and investing apps that offer fractional investment options, which allow you to buy small shares of an individual property or real estate fund at a relatively low cost, and even earn monthly dividends. Of course, this route likely won’t generate the same amount of revenue that you’d earn by owning 100% of a property or piece of land, but it’s an easy way to get your foot in the door of real estate investing. 

According to Capital One, when a property is pending, it means the seller accepted a buyer’s offer, and both parties agreed to a contract and met their shared requirements. 

A pending home is in the final stages of escrow and the closing process, which involves transferring property ownership, completing the purchase and signing final documents. 

A short sale in real estate is an offer of a property at an asking price that is less than the amount due on the current owner’s mortgage. A short sale is usually a sign of a financially distressed homeowner who needs to sell the property before the lender seizes it in foreclosure.