Practical guide · General Questions · Basic level · 6 min read ·
How to start investing in real estate with little money?
You can start in real estate without buying a whole property: you take a small stake in a project, from about 190,000 pesos (around 50 dollars), and receive a share of its results. First, have an emergency fund and use money you won't need soon. Then choose a type of project, read its documents and start small, at your own pace.
In 30 seconds
- You no longer need to buy a whole flat: you can take a fractional stake in a project.
- Your base comes first: an emergency fund, no expensive debt and money you won't need soon.
- Start small, in one project you understand, and learn before adding more.
Before you start
Participating in real estate is a medium- to long-term decision. Before putting in your first peso, make sure your financial base is in order. If you're not sure where to begin, the guide How do I know if I'm ready to invest? helps you check.
- You have an emergency fund of three to six months of expenses, in an account you can draw on quickly.
- You have no high-interest debt, such as credit card balances you pay off in instalments.
- You won't need this money in the next few years: a participation has low liquidity.
- You know how much you can put in without affecting your monthly expenses. The free financial check-up gives you that number.
Step by step
- 1
Understand how participating with little works
Instead of buying a whole property, you take part in the company that owns the project, alongside other people. Your share of the results is proportional to what you put in. This model is called fractional real estate, and it's what makes starting with small amounts possible.
- 2
Decide how much you'll put in
Choose an amount that won't change your life if it takes a while to come back. The guide How much money do I need to start? explains how to work it out. Many people start with a project's minimum to learn the process from the inside.
- 3
Choose a type of project you understand
Each type produces results differently: Airbnb-style short-term rental apartments, coliving, solar energy or land that aims to appreciate. Start with the one you could explain to someone else in two sentences.
- 4
Evaluate the project before deciding
Read the project sheet, the documents and the risk disclosure. The guide How to evaluate a project before participating gives you a checklist, and How to read a project sheet explains every number you'll find.
- 5
Create your account and verify your identity
Every serious platform asks you to verify who you are and where your money comes from. At Circular Urban it's done online, with your ID and a facial check. This process is known as KYC.
- 6
Make your first participation and follow it
You pay, for example through PSE, Colombia's online bank transfer system, and your shares are registered in your name. From then on you follow the project in your portfolio: occupancy, income and news. The first months are for learning, not for drawing conclusions.
An example
Laura is 28, already has her emergency fund and wants to start in real estate. Instead of waiting ten years to save a down payment on a flat, she decides to start small in a project she understands, such as Circular Houses in Medellín.
| Emergency fund | Done, 4 months of expenses |
|---|---|
| Expensive debt | None |
| First contribution | The project's minimum |
| Type of project | Short-term rental and coliving |
| Next step | Follow the report for 6 months before adding more |
Laura doesn't put everything in at once: she starts with the minimum, learns to read the project's reports and only then decides whether to add more or spread into another type of project.
Questions you'll have
Can you really start in real estate with little money?
Yes. Buying a whole property takes a large down payment and a mortgage. Participating in a project lets you come in with a fraction: at Circular Urban, from about 190,000 pesos depending on the project. In exchange, you don't get the deed to a flat but shares in the company that owns the project, with the rights set out in the participation agreement.
What do I get for my participation?
You get a share of the project's results. If it's an operating project, such as short-term rental apartments, it may distribute profits regularly. The asset can also appreciate, and that appreciation materialises when the project exits or sells. Both depend on the project's actual performance.
How long should I leave the money in?
Think in years, not months. Real estate produces results over time, and a participation isn't sold with one click. If you need to leave early, you can transfer your shares to someone else on the terms the company's bylaws set, but nobody can promise a buyer or a timeline. See how to sell your shares.
Is it better than leaving the money in a CDT?
They're different things. A CDT, Colombia's certificate of deposit, has an agreed rate and a fixed term. A participation has no agreed rate: its results depend on the project, and its liquidity is low. Many people use both: the CDT or savings account for what's safe and near, and real estate for the long term.
What are the risks?
That the project performs below projections, that construction runs late, that the market changes or that you can't leave when you want. That's why each project has a risk disclosure you sign before participating. Read it calmly: it's the most honest document in the process.
Should I put everything in one project?
To start, one is fine: that's how you learn how it works. Over time, spreading your contributions across several projects and asset types reduces the weight of any single one doing badly. That's the idea behind diversification.
Common mistakes
- Myth
Real estate is only for people with a lot of money.
- In reality
Buying a whole property does take a lot of capital. Participating in a project lets you start with small amounts and learn with little at stake.
- Myth
If I start small, it's not worth it.
- In reality
The first contribution isn't about getting rich: it's about learning to read a project, its reports and its risks. That learning is what lets you decide better when you put in more.
- Myth
I can take my money out whenever I want, like from a savings account.
- In reality
A participation has low liquidity. That's why only money you won't need in the next few years should go there.
Your first step
Look inside a real project
You don't have to decide anything today. Browse the projects, open one that catches your eye and read its sheet calmly. A good place to start is Circular Houses.
See projectsKeep learning
This content is educational. Every participation carries risks inherent to the project, including the possibility of partial or total loss, and results are subject to each project's actual performance.
