How $125 Can Unlock Passive Income and Build Wealth Through Real Estate in 2025

As the holiday season settles in and the chilly Nashville mornings remind us of the year ahead, I find myself reflecting on investments and financial growth. Thanksgiving always brings a time of gratitude, and this year, I’m especially thankful for the opportunities real estate has brought into my life—and how accessible it has become for others to join in on this wealth-building journey.

Recently, I came across an insightful article by Matt DiLallo at The Motley Fool that caught my attention. It’s about a simple, affordable way to start building wealth through real estate—even if you’re not ready to purchase a property. It reminded me of a pivotal moment years ago when my financial advisor showed me a chart of various investment vehicles. Each investment was color-coded, with a clear breakdown of how they performed over time.

Consistently at the top of that chart was a black square labeled “REIT.” The only year it didn’t rank near the top was 2009, during the financial crisis. That was my lightbulb moment. From then on, I’ve focused my investments on real estate—probably to the slight frustration of my financial advisor! If you’re considering starting your journey in real estate investing, this article—and my reflections—might just be the nudge you need.

What Are REITs?

Real Estate Investment Trusts (REITs) are a fantastic way to dip your toes into real estate without needing to buy a property. Think of them as companies that own, operate, or finance income-producing real estate. By purchasing shares of a REIT, you essentially invest in a slice of these properties.

The beauty of REITs lies in their accessibility and potential for both passive income and wealth growth. For as little as $125, you can own a piece of real estate and reap the benefits through:

    •    Dividends: REITs are required by law to pay out at least 90% of their taxable income as dividends, giving you regular cash flow.

    •    Appreciation: As property values increase and income grows, so does the value of your investment.

Here are two standout REITs that showcase the power of this investment vehicle.

1. Camden Property Trust (NYSE: CPT)

If you’ve been following the migration trends across the U.S., you’ll notice that major metro areas in the South have seen explosive population and job growth. Camden Property Trust focuses on multifamily apartment communities in these fast-growing cities, making it a smart investment choice.

    •    Focus: Multifamily apartment communities in metro areas with above-average growth.
    •    Cost: Around $125 per share.
    •    Dividend Yield: 3.3% ($1.03 per quarter).
    •    Annualized Return: 11.3% over 30+ years, combining dividends and share price growth.

Example of Growth: If you invested $125 in Camden today, and it continued its 11.3% average annual return, your investment could grow to approximately $363 in 10 years. That’s nearly tripling your initial investment—without the headaches of property management.

Camden’s success comes from high demand in the rental market, steady rent increases, and new developments. With several projects currently underway, the company is poised for continued growth in both income and share value.

2. Sun Communities (NYSE: SUI)

Sun Communities takes a unique approach, focusing on properties like manufactured home communities, RV parks, and marinas. These often-overlooked sectors have proven to be incredibly resilient and profitable.

    •    Focus: Manufactured home communities, RV parks, and marinas across the U.S., Canada, and the U.K.
    •    Cost: Around $125 per share.
    •    Dividend Yield: 3% ($0.94 per quarter).
    •    Annualized Return: 12.8% since its inception.

Example of Growth: Investing $125 in Sun Communities today, with its average annual return of 12.8%, could grow to approximately $413 in 10 years. That’s more than triple your investment—all while benefiting from steady dividends.

Sun Communities stands out for its niche focus. Manufactured housing, for instance, benefits from stable demand, as it’s costly for residents to relocate their homes. RV parks and marinas tap into the growing demand for outdoor and leisure experiences. These durable and expanding markets give Sun Communities a solid foundation for growth.

Why REITs Are a Smart Investment

For many, the idea of investing in real estate feels out of reach—particularly with today’s high housing costs and interest rates. But REITs break down those barriers, offering an affordable, low-risk entry point into the real estate market.

Here’s why they matter:

    1.    Accessibility: You don’t need a large upfront investment—just the cost of one share.
    2.    Passive Income: Dividends provide consistent cash flow, making REITs a great option for building wealth.
    3.    Diversification: REITs give you exposure to real estate markets without tying up all your assets in a single property.
    4.    Growth Potential: Historically, REITs have delivered strong returns, making them an attractive long-term investment.

Whether you’re just starting your investing journey or looking for ways to diversify, REITs are a proven tool for building wealth.

A Personal Perspective

I’ve always believed that real estate is one of the best tools for financial growth. It’s why I’ve dedicated my career to helping others buy, sell, and invest in properties. REITs, however, offer a unique angle: the ability to participate in the real estate market without the responsibilities of ownership.

For anyone feeling unsure about where to begin, REITs provide a straightforward way to start building wealth. They’re simple, effective, and backed by decades of proven performance.

What Other REITs Should I Know About?

I’ve highlighted Camden Property Trust and Sun Communities because of their strong performance and growth potential, but there are so many options out there. If you’ve had success with a REIT or know of one worth exploring, I’d love to hear about it! Hit reply and share your insights—I’m always eager to learn from others.

And if you’re ready to explore real estate investing—whether through REITs, rental properties, or another avenue—I’d be thrilled to help you navigate the process. Real estate is one of the most powerful tools for building wealth, and there’s no better time to get started than now.

Final Thoughts

Real estate has always been a cornerstone of wealth-building strategies, and REITs make it accessible to everyone. Whether you’re investing $125 or building out a larger portfolio, REITs provide an opportunity to generate passive income and grow your wealth over time.

As we step into 2025, let’s make this the year you take that first (or next) step toward your financial goals.

Here’s to building wealth and creating opportunities in the new year!