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How to Start Investing in Real Estate with 50k

Wondering how to invest 50k in real estate? There’s a common misconception that you need to be rich to invest in real estate. However, nothing is further from the truth. In reality, you can start...

Wondering how to invest 50k in real estate? There’s a common misconception that you need to be rich to invest in real estate. However, nothing is further from the truth.

In reality, you can start earning passive income and building wealth through real estate investing without much starting capital. And, with around $50,000, a surprising number of real estate investing opportunities become available.

How to Invest in Real Estate with 50k Online

In recent years, numerous online real estate investing platforms have grown in popularity. With $50,000, you can now get in on the action, even if you’re a beginner real estate investor.

1. Real Estate Crowdfunding

With real estate crowdfunding, a group of investors pool money together to buy income-generating real estate. Typically, this means buying multi-family homes, office buildings, or other properties that generate rental income.

Real Estate Crowdfunding Image Source: Fundrise

There are several advantages to real estate crowdfunding. Firstly, it lets you invest in real estate with less capital. Secondly, because of lower capital requirements, you can often invest in several properties to diversify your real estate portfolio.

One popular crowdfunding platform to consider is Fundrise. You only need $10 to start with Fundrise. But if you invest $50,000, you unlock the Advanced plan which provides a customized portfolio strategy, IRA investing, and more investment properties to choose from.

Historically, Fundrise has seen 8% or higher annual returns. The platform charges a 0.15% annual advisory fee and 0.85% annual asset management fee, so it’s also a low-cost way to invest 50k in real estate.

2. Real Estate Investment Trusts (REITs)

A real estate investment trust, or REIT, is a company that owns and usually operates income-generating real estate properties. REITs are similar to crowdfunding because they usually invest in multi-family homes and commercial real estate to generate rental income.

Real Estate Investment Trusts Image Source: M1 Finance

However, REITs are legally required to pay at least 90% of profits back to investors in dividends. Additionally, many REITs are publicly traded on a stock exchange, so you can buy REIT shares through your bank or an online broker. Because of this, REITs are often more liquid than investing in real estate through a crowdfunding company.

If you want to pick specific REITs to invest in, a commission-free online broker like M1 Finance lets you buy shares of different REITs. And, M1 Finance usually has sign-up bonuses for new investors who deposit $1,000.

3. Grocery-Anchored Commercial Real Estate (CRE)

CRE, particularly grocery-anchored CRE is a highly stable asset class that is predictable and able to grow over time despite inflation levels or economic volatility. CRE property leases have built-in rent increases, which actually increases cash flow for investors.

Grocery-Anchored Commercial Real Estate Image Source: First National Realty Partners

One platform specializing in grocery-anchored retail properties is First National Realty Partners. They offer commercial real estate investments in retail shopping centers, anchored by essential needs tenants. By leveraging their relationships with top-tier national brand tenants, they provide deals that achieve superior passive returns.

4. Millionacres: Real Estate Winners

If you’re looking to build real wealth, consider Millionacres: Real Estate Winners. With almost unbelievable tax breaks, government-mandated payouts, and limited supply, Real Estate Winners can help you achieve returns like 13.4%, 14.1%, and 16.7% per year.

5. Real Estate Syndication

Another option to invest $50k in real estate is to form a real estate syndicate. With real estate syndication, a group of people pool resources together to purchase properties that generate wealth through rental income and potential appreciation.

Other Methods to Invest 50k in Real Estate

Crowdfunding, REITs, and real estate syndication are three popular ways to generate real estate income. But if you’re still wondering how to invest in real estate with $50k, you have plenty of other options to consider.

6. Real Estate Wholesaling

If you want to make money in real estate without ever owning properties yourself, real estate wholesaling could be for you. Real estate wholesalers make money by creating contracts with sellers and finding buyers for their properties.

7. Find a Real Estate Partner

A real estate partnership is similar to real estate syndication, except you usually work with one other person and it’s often less formal. Family members, friends, or work colleagues might decide to go in on a property together.

8. Try Airbnb

Renting out your home or a spare bedroom as an Airbnb host is another way to create a new income stream. By making your home more Airbnb-friendly, you can earn passive income.

9. Renovation Projects

Some renovations usually increase the value of your home, such as kitchen remodels, landscaping, minor bathroom remodels, and exterior improvements. Investing in home renovations can yield a return when you sell your property.

Frequently Asked Questions

  • Can I invest in property with 50k? Popular ways to invest in property with $50,000 include methods like crowdfunding, REITs, and real estate partnerships.

  • What are the best assets to buy with 50k? Buying shares in income-generating real estate with companies like Fundrise is one of the best assets you can buy with 50k.

  • How to invest in real estate crowdfunding? To invest in real estate crowdfunding, create an account with online crowdfunding websites like Groundfloor or Fundrise.

  • Can I buy land with 50k? You can also invest your 50K in farmland. Investing in farmland is a profitable venture because land is scarce and its demand will always exceed its supply.

  • Where to invest 50k in 2024? Stocks, cryptocurrency, bonds, and real estate are just a few examples of places you can invest $50k.

In summary, investing $50,000 in real estate is an excellent way to diversify your portfolio and create multiple income streams. And, with various online platforms and investment options, real estate investing is more accessible than ever before. Just ensure you have a solid understanding of your goals and seek professional advice if needed. Happy investing!