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 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.

If you’re wondering how to invest 50k in real estate and want to diversify your portfolio, this is the post for you.

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.

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.

And, the great news is you don’t have to round-up a group of investors and research properties to buy yourself. There are actually several popular online real estate crowdfunding companies, many of which let you invest in real estate with 50k or even less.

Fundrise is one of the most popular crowdfunding platforms you can consider. 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.

There are also Fundrise alternatives you can consider if you have different investing goals. For example, with Arrived, you can invest in rental properties and earn from rental income and property appreciation.

Like Fundrise, Arrived only requires $100 to begin investing, and there’s a variety of rental homes you can help fund, each offering different locations and rental income potential.

Arrived reports historical returns between 5.4% and 12.6% depending on the property, and investors don’t need to manage the properties themselves. Plus, with a $50,000 investment, you can diversify across multiple properties to help reduce risk and build a steady stream of passive income.

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. 

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.

So, if you want to invest $50,000 in real estate and like the idea of predictable dividend income, REITs could be the right choice.

Alternatively, you can invest through companies that offer their own REITs if you want more simplicity. For example, Streitwise is an excellent way to invest in real estate with $50,000, especially if you want dividend income.

Streitwise primarily deals with commercial real estate, and there’s a $1,000 minimum investment for properties. The company has paid over 7% in dividends to investors since 2017, and you don’t have to be an accredited investor to get started.

For fees, Streitwise charges a 2% annual management fee which is around the same as other real estate investing platforms.

Ultimately, if you want dividend income and more liquidity, investing $50,000 in REITs is an excellent choice.

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. This means tenants pay more rent over the lease term, which actually increases cash flow for investors. CRE generates steady cash flow through the collection of rents from tenants. This is significant because alternative investment options like gold or cryptocurrency don’t generate any cash flow for you. 

Additionally, these leases are triple-net (NNN); costs like taxes and maintenance are passed on to the tenant instead of the investor, which insulates investors from price increases that negatively affect the bottom line. 

First National Realty Partners is a real estate crowdfunding sponsor that specializes in grocery-anchored retail properties. This means that they offer commercial real estate investments in retail shopping centers, anchored by essential needs tenants.

With FNRP, you can invest in institutional-quality commercial real estate investment opportunities both on and off-market.

By leveraging their relationships with top-tier national brand tenants, they compete directly against these institutions to provide you with deals that achieve those superior passive returns.

The process is simple, once you sign up and find a deal you love, you attend a webinar to learn more about it. You can then make your investment through a 100% secure digital process and then sit back and enjoy your quarterly distributions.

4. Motley Fool Epic

Want another way to build real wealth? If you’re ready to rack up returns like 13.4%, 14.1%, and 16.7% per year – Motley Fool Epic can help.

The Motley Fool Epic is a subscription package that combines three of the company’s top stock-picking services—Stock Advisor, Rule Breakers, and Everlasting Stocks—into one comprehensive offering.

While primarily focused on stock market investments, the Epic Bundle can also serve as an excellent resource for those looking to learn how to invest in real estate. Through Stock Advisor, subscribers gain insights into Real Estate Investment Trusts (REITs), which offer a way to invest in real estate without the need for direct property ownership. This allows individuals to gain exposure to real estate markets through stocks that generate income from properties.

Rule Breakers introduces subscribers to innovative companies, including those in the real estate technology space, providing insight into emerging trends and disruptive models in real estate investing.

Additionally, Everlasting Stocks encourages long-term wealth-building strategies, principles that apply equally well to real estate investments, emphasizing the importance of compounding, diversification, and a long-term approach.

Together, Motley Fool Epic helps investors not only learn about stocks but also discover opportunities in real estate through REITs and other related sectors.

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 then generates wealth through rental income and potential appreciation.

Real estate syndication is similar to crowdfunding, except you’re investing with a group of people you know and have more ownership because there’s fewer investors.

Usually, real estate syndication needs two roles: A syndicator, also known as a sponsor, and investors.

The syndicator is responsible for researching real estate properties for potential investment and managing the property after acquisition. Usually, the syndicator puts up less capital and relies on the pool of investors to raise enough money. Sometimes, the syndicator doesn’t even put in capital, and instead earns a small acquisition fee for completing the deal.

Whatever the arrangement, real estate syndication is another option to invest in real estate with 50,000. You can also become a syndicator if you know how to manage properties.

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.

In a nutshell, real estate wholesalers make money in three steps:

1. The wholesaler creates a contract with a seller to find a buyer for their property
2. The wholesaler finds a buyer for the property and offers a higher price than the seller agreed to
3. The wholesales keeps the difference in profit if the deal closes

This is arbitrage, and it’s an attractive business model for some because you don’t need your own capital as a real estate wholesaler.

Additionally, you don’t always have to put in work flipping properties or increasing the value somehow; you can just charge the buyer more than the seller was asking for.

Usually, real estate wholesalers deal in properties that are distressed, meaning they’re undergoing foreclosure or pre-foreclosure. This is because sellers are under more pressure to sell their property at a bargain, widening your potential margin.

You still need money to fund a real estate wholesale business. For example, you probably need legal advice to ensure your contracts are in order and you’re following state laws. Advertising costs to get your first clients are also worth factoring in.

But, if you want to start a side business that involves real estate, consider real estate wholesaling.

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.

For example, family members, two friends, or even work colleagues might decide to go in on a property together. This could be a rental property or a property that is flippable with the right renovations.

If you’re wondering where to find potential properties you and a partner can invest in, you can check out Roofstock.

Roofstock is a marketplace of rental properties across the United States, including single-family rentals to multi-unit condos. Making an offer on properties is free, and Roofstock only charges 0.50% or $500 of the contract price for accepted offers.

8. Try Airbnb

While this real estate investment idea doesn’t always require $50,000, it’s another way to create a new income stream.

Thanks to the gig economy, you can now make money renting out assets you own. And, one of the poster boys for this movement is renting out your home or a spare bedroom as an Airbnb host.

So, if you want to earn passive income and don’t mind renting, you can invest money in making your home more Airbnb-friendly. 

Usually, this includes finishing an unfinished basement or bedroom so you can rent it out. But if you spend $10,000 finishing a bedroom and then rent it out for $150 per night, you only need 66 rentals before you recoup your money. After that, every rental is pure profit.

9. Renovation Projects

A home renovation might seem like a money sink, but did you know some renovations usually increase the value of your home?

According to HGTV, renovation projects that can turn a profit when you sell your home include:

• Kitchen remodels
• Landscaping
• Minor bathroom remodels
• Exterior improvements

Usually, your returns are only a few percent at most, and you have to avoid going over budget if you want your renovation to yield a return.

But you can also consider things like making your home more energy efficient with better windows, or looking into projects that get you an energy efficient tax credit.

The bottom line is that investing $50k in real estate doesn’t have to be for other properties; you can improve your home and make money in the process!

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. But you can also invest in real estate stocks for free with platforms to begin building wealth.

How to invest in real estate crowdfunding?

To invest in real estate crowdfunding, create an account with online crowdfunding websites like Groundfloor or Fundrise. You can then deposit funds from your bank account and begin investing in real estate, even if you don’t have experience with this asset class.

Can I buy land with 50k?

You could also invest your 50K in farmland. Investing in farmland is a profitable venture because of one key reason: land is scarce and its demand will always exceed its supply.

We reviewed AcreTrader, as well as FarmTogether, which are two of the most common platforms used to invest in farmland.

Where to invest 50k in 2024?

Investing $50,000 in 2024 is a wise move to begin growing your wealth. But you need to determine your investing timeframe, risk tolerance, and goals for returns. Stocks, cryptocurrency, bonds, and real estate are just a few examples of places you can invest $50k.

Summary

Investing $50,000 in real estate is an excellent way to diversify your portfolio and create multiple income streams. And, the great news is there are more avenues to invest than ever before.

Just ensure you have your ducks in a row before investing. This includes tasks like building an emergency fund or working to become debt free. Real estate can create serious wealth, and it’s also a more beginner-friendly investment than you might think!