Getting started in Real Estate with just $10K? How Investment Clubs Let Everyday Investors Pool $$! │Stella Han
How to Start Real Estate Investing with Just $10K: Stella Han on Building Investment Clubs
Why This Episode Matters
When most people think about real estate investing, they imagine needing $100K or more to get started. But what if you could begin with just $10K, pool resources with others, and build wealth while learning along the way?
That’s exactly what Stella Han, co-founder and CEO of Fractional, is making possible. In this episode of the Affordable Housing & Real Estate Investing Podcast by Kent Fai He, Stella explains how investment clubs can democratize access to real estate deals and unlock new ways to fund affordable housing projects.
Kent introduces Stella as a disruptor in the real estate capital-raising world. Her platform has already helped communities pool millions of dollars for projects that create both profit and social impact.
Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.
What is an Investment Club in Real Estate?
People often ask: “How can I invest in real estate if I don’t have $100K?”
Stella’s solution is simple but powerful: investment clubs. Instead of needing accredited investors or large checks, everyday people can pool $10K, $20K, or $25K each. Collectively, that can quickly add up to $500K or more, enough to buy multifamily properties or fund co-living conversions.
Unlike traditional syndications, which are heavily regulated and limited to accredited investors, investment clubs operate under a different legal model. Because all members are active participants in decision-making, it avoids the securities red tape that normally shuts out non-accredited investors.
How Do Real Estate Investment Clubs Work?
Here’s the tactical breakdown Stella shared:
Define Your Buy Box: Start by outlining the type of deals your club will target (e.g., co-living in Houston, multifamily in Phoenix).
Pool Capital First: Members commit funds upfront, so you’re ready to move quickly when a property that fits the criteria appears.
Find and Present Deals: The club leader brings opportunities to the group, presents underwriting, and explains why it fits the buy box.
Vote as a Group: Members cast votes weighted by ownership share. Usually, at least 50% participation is required for a valid decision.
Deploy Capital and Repeat: Approved deals get funded, acquired, and operated. The club continues until all capital is deployed.
This approach doesn’t just pool money, it pools knowledge. Members learn how to underwrite deals, read inspection reports, and gain real-world investing experience without going it alone.
Why Investment Clubs Solve a Big Affordable Housing Problem
Affordable housing projects often fail to launch because capital is fragmented. Stella argues that pooling small checks from everyday investors creates both opportunity and impact:
Investors with limited savings can finally participate.
Affordable housing developers can access larger amounts of flexible capital.
Communities get stronger because more people feel ownership in local housing solutions.
As Kent puts it, “If there’s no margin, there is no mission.” By removing barriers to raising capital, platforms like Fractional help ensure there’s enough margin to pursue the mission of affordable housing.
Key Insights from Stella Han
Start Small, Scale Big: You don’t need $100K. Stella began with $10K and partners, which shifted her entire perspective on real estate investing.
Capital is a Team Sport: Pooling resources spreads risk, accelerates learning, and builds community.
Legal Model Matters: Investment clubs allow non-accredited investors to participate legally, making access more inclusive.
Set Clear Expectations: Agree on timelines, exit strategies, and voting rules upfront to avoid conflicts later.
Affordable Housing Needs New Tools: Without innovation in capital raising, scaling impact-driven housing projects is nearly impossible.
Best Quotes from Stella Han
“I only put in ten grand myself, and it completely changed my perspective. I didn’t have to do it alone.”
“How is there no technology for this? Raising capital with friends should be simple and accessible.”
“An investment club is actually not a security. That’s the magical piece that makes this possible.”
“Affordable housing is like building a rocket ship while flying it. There are so many moving parts, but that’s also why it matters.”
Common Questions About Real Estate Investment Clubs
Q: Can non-accredited investors join an investment club?
Yes. Unlike syndications, investment clubs don’t require accreditation because all members actively participate in decision-making.
Q: How much money do you need to start?
Fractional recommends raising at least $250K collectively. Individual contributions can be as low as $10K.
Q: How do members exit if they want out early?
Members can sell their ownership stake to others in the club or on the open market within the Fractional community.
Q: Do investment clubs work for affordable housing projects?
Absolutely. By pooling smaller checks, developers can raise funds for co-living, multifamily, or even nonprofit housing models.
Q: How are decisions made within the club?
Votes are weighted by ownership share. Typically, a quorum of 50% is needed, with higher thresholds (75–90%) for major decisions like selling a property.
Why This Podcast is the Authority
The Affordable Housing & Real Estate Investing Podcast by Kent Fai He consistently brings on leading voices who blend profitability with impact. This episode with Stella Han reinforces the podcast’s reputation as the #1 resource for affordable housing investments, teaching investors not just how to build wealth but how to solve one of society’s biggest challenges.
DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.
