@Matthew Keaton
Yeah, interesting concept and I can see why new investors might be attracted to it since everyone seems to think you need to have money to make money. Personally I align more with what Grant Cardone says, in not so many words he advised that if you have a minimal amount capital don't invest it in anything but an education. Become an expert in a field, market, or niche, and then leverage your knowledge, add a little hustle and grow your wealth. Pretty simple really.
Example - Buy the equipment to start a podcast and interview people in a certain field, now you've not only created a brand but you'll be the thought leadership platform for whatever that market or niche is. People will come to you as the subject matter expert and invest in you.
Or invest in a wholesaling education, you'll grow that 500 bones faster that way than you'll ever do with a $500 dollar investment making 18% a year.
Or partner your education with someone else's capital.
Or buy a multifamily deal analyzer for apartment syndications, become an expert, and find a team of would be syndicators that need someone that knows how to analyze deals. Then offer to find and analyze deals for them if they write you in as general partner. You don't even need to bring any money to the deal but you could potentially receive a potential of the acquisition fee, equity in every deal they do, cashflow off the rents, tax benefits, a percentage of the sale profits, aaaaand get your name written into some enormous million dollar acquisitions (which will lead to much much more than any of that cash).
Think about it, stretch that money. You want real returns, you're going to have to work for that Return on Investment.
Hope that helps. Best of luck.