5 Ways To Invest in Real Estate With $50,000
TL;DR - It’s easier than you think to start investing in real estate. With $50,000, you can begin with REITs, crowdfunding, syndication, turnkey rental property, or wholesaling. What are you waiting for?
So you have $50,000 saved up…
And you want to invest it in real estate.
But where do you even begin?
There are so many choices that it can seem like a headache to start listing them all.
To help you out, we’ve rounded up five of the simplest ways to invest in real estate with $50k.
Let’s dive in!
5 Ways To Invest in Real Estate With $50,000
It’s Easier Than You Think
You might be thinking that you need a ton of money to get started in real estate investing.
On social media, the people you follow are posting about the multi-million dollar home they just purchased.
But that’s not the case at all! You can begin your real estate investment journey with $50,000.
Of course, you might be a little more limited when you first begin investing in real estate. But if you play your cards right, you’ll be adding those million-dollar homes to your portfolio in no time.
Don’t let a perceived lack of funds hold you back from getting started!
There are plenty of ways to get started in real estate investing with $50,000. And we’re going to show you five of the best ones now.
The 5 Ways
When investing in real estate, your options are almost limitless. There are so many different markets, property types, and investing styles to choose from.
This can allow you to tailor your real estate experience to your exact wants, needs, and other criteria.
But it can also stop you from the most important thing — taking action and investing.
So to narrow your options and give you more focus, we’ve picked five of the best ways to invest $50k in real estate.
#1 - REITs
A REIT, or real estate investment trust, is a type of company that owns and operates income-producing property.
REITs can be traded on major stock exchanges. This offer investors a way to invest in large-scale properties without having to purchase them outright.
These trusts own a portfolio of properties, which range from:
Office buildings, apartments, warehouses, shopping centers, hotels, and more.
Some REITs also engage in financing real estate projects.
A good thing about REITs is that they have to pay out at least 90% of their taxable income to shareholders in the form of dividends. This makes them an attractive investment for income-seeking investors.
REITs can be a great way to get started in real estate investing.
They offer a liquid investment that can be bought and sold on major stock exchanges.
Because they must pay out dividends to shareholders, REITs can provide a steady stream of income.
However, there are some downsides to investing in REITs.
They can be traded on major stock exchanges, so their share prices can be volatile. This means that investors could lose money if the REIT's share price falls.
And because REITs must pay out dividends to shareholders, they may not have as much money to reinvest in their properties. This could limit their ability to grow and generate higher returns for investors.
Altogether, REITs are a great investment tool. But just like any, they aren’t perfect.
#2 - Crowdfunding
Crowdfunding is a way for real estate investors to pool money together with a group of other investors. Pooling allows them to buy larger properties. From multi-family homes to office buildings to highly-valued properties.
This type of investing can be attractive. It allows you to diversify your investment portfolio and get exposure to a wider range of property types.
It can also be a good way to get started in real estate investing, as you can pool your money with other investors to purchase larger properties.
And generally, you can expect a higher return from crowdfunding than you can with REITs.
However, there are some downsides to crowdfunding.
The fees associated with this type of investing can be high and you may not have as much control over the property as you would if you owned it outright.
Plus, some of the best deals are only available to investors that are accredited.
#3 - Syndication
Syndication is similar to crowdfunding in the sense that you pool your money together with other real estate investors. Which allows you to buy larger and more expensive properties.
How it differs is that the group of investors you’re pooling with is more tight-knit. You might know them better or become closer with them as you get more involved with the syndication.
This is because the group of investors is much smaller than a crowdfunding pool.
Which means that you have a higher stake of ownership in properties that your group invests in. And that you have more say in which type of properties get purchased.
However, you still won’t have as much control over your investment as much as you would if you owned a property yourself.
#4 - Turnkey Rental Property
A turnkey rental property is a property that has been completely repaired and updated. It's renter-ready.
This type of property is best for buy-and-hold investors.
The reason being is that, for the foreseeable future, you won't have to put any additional work into the property once it's rented out. And you can expect a steady stream of income from the rent payments.
However, turnkey rental properties can be expensive since they’re 100% ready out of the box. And these properties are highly-competitive to get since everybody wants a steady stream of income.
#5 - Wholesaling
Wholesaling is when you find a discounted property, get a deal to buy the property, and then sell the deal to another investor for a higher price. Or they pay you a finder’s fee for your time and effort.
The appeal of wholesaling is that it doesn’t require a lot of money to get started — just time. You can find discounted properties by reaching out to motivated sellers and negotiating with them.
And because you’re not the one buying the property, you don’t have to worry about getting financing.
The downside of wholesaling is that it can be difficult to find buyers for the deals you’re trying to sell. And even if you do find a buyer, they might try to low-ball you on the price.
Take Action
If you have $50,000 to invest in real estate, there are a number of different ways you can go about it.
You can invest in REITs, crowdfunding, syndication, turnkey rental property, or wholesaling. And these are just five out of the many methods to begin with!
All of these methods have their own benefits and drawbacks. But the bottom line is that if you have $50,000 to invest in real estate, it’s completely possible to start.
So what are you waiting for? Instead of waiting for the perfect moment, start investing today and begin building your real estate empire! Wealth is just one decision away.
Happy hunting!
How We Can Help You
Does investing in real estate sound intriguing to you? Would you like to learn more? We’d love to be of value!
At Undoor, we pride ourselves on teaching new and experienced investors how to maximize their gains with minimal stress. Our goal is to help you fall in love with real estate and real estate investing. What we’re most passionate about is maximizing investment gains for people like you.
Do you want to get key insights and advice that’ll help you get ahead of the game? Don’t hesitate to contact us for any and all real estate wants or needs.
