We were taught that real estate investing meant buying a house, finding tenants, collecting rent, and handling repairs.
There is another way.
A Real Estate Investment Trust, commonly called a REIT, allows you to invest in companies that own income-producing real estate. That may include shopping centers, warehouses, hospitals, apartment communities, casinos, hotels, or data centers.
Instead of buying an entire property, you purchase shares of the company that owns the properties.
Through fractional shares, you may be able to start with $10, $25, or another amount that fits your budget.
Watch: What Is a REIT?
This short Fidelity Investments video gives a clear beginner-friendly explanation
REITs offer access to professionally managed real estate portfolios while the company handles the properties and tenants. (YouTube)
Why People Invest in REITs
Dividend income
Many REITs pay shareholders dividends from the income their properties generate.
Some pay quarterly. Others, such as Realty Income, are known for monthly distributions.
Dividend payments can change, so a high yield alone never makes a company a strong investment.
Real estate ownership with less money
Purchasing physical real estate may require a down payment, financing, inspections, insurance, repairs, and ongoing property management.
Fractional shares allow investors to purchase part of an eligible stock instead of paying for a full share. Robinhood currently supports fractional investing in many securities for amounts starting as low as $1. (Robinhood)
Professional management
The REIT handles property purchases, tenants, leases, financing, and operations.
You own shares in the company rather than managing the buildings yourself.
Easier access
Publicly traded REITs can be purchased through brokerage platforms such as Robinhood, Fidelity, or Charles Schwab, much like other stocks.
Four REITs to Research
These are companies to study rather than automatic buy recommendations.
Realty Income — O
Realty Income owns thousands of commercial properties and is known for paying monthly dividends.
VICI Properties — VICI
VICI owns entertainment and hospitality real estate, including major casino resort properties.
Prologis — PLD
Prologis owns warehouses and logistics facilities used throughout global supply chains and e-commerce.
NNN REIT — NNN
NNN owns single-tenant retail properties leased through long-term agreements.
Before buying any REIT, review:
- The properties it owns
- Its largest tenants
- Its debt
- Its dividend history
- Its occupancy rate
- The risks affecting its industry
How Fractional Shares Work
Suppose one full share costs $60.
You can enter a purchase amount of $25 instead of buying the entire share. Robinhood calculates the fraction your money purchases based on the execution price.
Fractional shareholders may also receive dividends based on the percentage of the share they own. (Robinhood)
How to Buy a Fractional REIT Share on Robinhood
1. Open and fund your account
Create a Robinhood brokerage account, complete verification, link a bank account or debit card, and deposit the amount you plan to invest.
Use money designated for long-term investing rather than upcoming bills or emergencies.
2. Search for the company
Enter the company name or ticker symbol.
Examples:
- Realty Income: O
- VICI Properties: VICI
- Prologis: PLD
- NNN REIT: NNN
3. Select Buy
Open the company page and tap Buy.
4. Enter a dollar amount
Choose the option to purchase by dollars and enter your amount.
Example:
$25
5. Review the order
Confirm the company, ticker symbol, amount, and estimated fractional shares.
6. Submit the purchase
Follow the prompts to complete the order.
You now own part of a publicly traded real estate company.
Turn On Dividend Reinvestment
Dividend reinvestment, also called DRIP, automatically uses eligible dividend payments to purchase additional shares of the same investment.
Robinhood allows eligible dividend-paying stocks and ETFs that support fractional shares to participate in dividend reinvestment. (Robinhood)
The process is simple:
Own shares → receive a dividend → reinvest the dividend → own slightly more
Reinvesting can support long-term compounding, although investment performance and dividend payments remain variable.
A Simple Starting Plan
A beginner plan could look like this:
- Invest $25 on payday.
- Research one REIT before purchasing.
- Turn on dividend reinvestment when it fits your plan.
- Repeat consistently.
- Review the company’s performance and financial condition.
The first $25 will create a small position.
The larger value is learning how ownership, dividends, and consistent investing work.
Ready to Explore Robinhood?
Readers who choose to open a Robinhood account can use my referral link:
https://join.robinhood.com/marendh2
Eligible new customers may receive between $5 and $200 in stock value after opening an approved individual taxable brokerage account and linking an eligible bank account or debit card.
Robinhood states that approximately:
- 99% receive $5
- 0.9% receive $10
- 0.1% receive $200
I may also receive a stock reward when an eligible reader successfully completes the referral requirements.
Promotion terms, eligibility, and rewards can change. Review Robinhood’s current terms before signing up.
Real estate ownership can begin before you have enough money to purchase an entire property.
A fractional REIT share allows you to start learning, investing, and building with the amount available to you today.
Start small. Learn the business. Build consistently.
Disclosure
This article is for educational purposes and reflects my personal research and experience. It is neither individualized financial, investment, legal, nor tax advice. Investments involve risk, including loss of principal. Dividends may increase, decrease, or end. This article contains a Robinhood referral link, and I may receive a reward from eligible referrals.
