Elon Musk once vowed to ‘own no home.' How to invest in real estate without buying property

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Tesla’s CEO Elon Musk remains the richest man in the world, with a net worth of over $467 billion.

His leadership has created the world’s first $1 trillion electric vehicle maker, though Musk would tell you Tesla is far from just an EV company.

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Elon Musk’s lifestyle is unconventional, to say the least. The Tesla CEO claims he works 120 hours per week (more than 17 hours per day, all seven days of the week). He’s also previously stated that he will “own no home,” choosing instead to sell almost all his physical possessions and live a nomadic lifestyle.

But it appears Elon Musk remains a property owner, with reports stating he bought a house in Austin, Texas in 2022. This house was previously bought in 2018 for $4.5 million (which can get you quite the house in Austin) and was sold to Elon Musk in a private sale.

Following this, Architectural Digest reported that the billionaire made a transition from his luxurious estate to a s $50,000 tiny home in Boca Chica, Texas.

If you want to follow in the footsteps of Musk, here are some ways to invest in real estate without purchasing a property outright.

The rich own real estate for a reason

We all need a place to live, and that’s true for the poorest and wealthiest. While Elon Musk undoubtedly has quite the Rolodex of friends with very comfortable couches to crash on, most seek permanence.

Aside from the personal element, real estate has proven to be an asset class that provides the majority of most households’ wealth over long periods. A National Association of Realtors report shows consistent wealth generation numbers across the low, medium, and high-income thresholds over time. Generally, those who own their own houses build equity over time, as asset prices increase.

Owning stocks, bonds and other investments in a 401K or similar retirement account is great. But for many households living paycheck to paycheck, that sort of savings vehicle is out of reach. Making a monthly mortgage payment, however, is something that’s achievable for many, and can help build an important nest egg when the time comes to retire.

For those with a low rental payment, or who don’t want to venture into the real estate market given where interest rates are (even those who may have the down payment saved), there are options to consider in the rental market.

Backed by world-class investors like Jeff Bezos, Arrived allows investors to buy shares of rental homes and vacation rentals without taking on the similar responsibilities of direct homeownership and property management.

Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, choose the number of shares you want to buy.

You can get invested with as little as $100 — a price tag that might look more appealing than the one associated with owning and managing a property yourself.

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For those with a little more capital to put to work, First National Realty Partners (FNRP) is dedicated to providing accredited investors access to commercial real estate. The properties held within the FNRP’s portfolios are institutional-quality grocery-anchored real estate — the kinds of malls and outlets many investors may want exposure to, but don’t have the tens of millions of dollars (or more) to put a deal together.

Qualified investors can benefit from the fund’s structure, which can provide quarterly distributions and the potential for stable, positive cash flow growth over time.

The FNRP team rigorously assesses each deal, only picking the best. This can be a great choice for diversification purposes for investors aspiring to be the next Elon Musk.

Elon Musk’s investment portfolio is notoriously concentrated in the companies he owns and runs. But aside from commercial real estate and rental properties, there are other crowdfunding platforms that take an alternative approach by allowing you to invest directly in owner-occupied residential properties.

For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.