Ready to invest your hard-earned 50k? As a wise investor, you want to make maximum out of this amount. Therefore, you want to look for the best investment options, which ensure a high return on investment. The good news is investing in real estate can provide you good returns.
Here are the top 5 ways to invest your 50,000 in real estate-
Fix And Flip Real Estate
What does a flipping property mean? The distressed property, which you can buy at a cheap price. So, your 50k will cover the down payment for the property, which would be around 20% of the total cost. You can spend some money to repair and fix the property to enhance its market value.
Let’s understand the concept with a simple example. You buy a foreclosed investment property for $150,000. Its actual market value is $200,000. So, for down payment, you need to pay $30,000 instead of $40,000. You can spend the rest of the money for repairs. Here you will be benefited in various ways. First, you get a property at a cheap price. Second, you own a property worth $200,000 or even more.
Remember, fix and flip is a short-term investment, but can provide high returns. However, the risk factor is high, compared to other real estate investments. So, always do in-depth research before stepping into it. Also, if you’re investing in a property, make sure that you insure your investment. It is always in your best interest to apply for home insurance so all your investments remain protected. You can apply for insurance from Southern Coastal Insurance to ensure that you’re never at the losing end if a tragedy occurs.
Turnkey Rental Properties
It’s the best real estate investment option for beginners. Turnkey rental properties can help you make money by doing the least amount of work. Find a reputed company that has rental properties, which are occupied by tenants and are generating money. By purchasing these properties, you can earn money as a rental income. For turnkey rental properties, you only have to pay the down payment.
Why these properties are great investment options? Because they are already analyzed as investment properties and are generating income. All you have to do is to buy and manage them.
Rental properties situated in cozy, remote areas can also be the perfect holiday destination for visitors. With an insulated home and a kitchen equipped with all essentials to make the perfect holiday recipes, you can earn a fortune, simply by sub-letting your home.
REITs stands for Real Estate Investment Trusts. These trusts allow you to pool your money with other investors. What’s the difference between REITs and other forms of investments? In REITs, you invest in the trusts’ stocks, not on the actual property. Thus, your investment depends on the number of stocks you buy from the company.
In the United States, there’s a wide range of REITs including private REITs, public exchange-traded REITs, and public non-traded REITs. Thus, you have a wide range of options to choose from. But, be sure you choose the best one. Every company is different and has their own rules and regulations, and before investing, make sure you read them carefully.
This is another option to invest 50k in real estate with the least amount of risk. No matter who you ask, you will always hear that investing in rental properties is a great way to make money. Depending on the market value, you can buy one or multiple rental properties.
A rental property can be a duplex, a single or multi-family property, a studio apartment, a regular apartment in a building. When investing in these properties, the best part is you have a variety of options, thus you won’t feel limited.
Real Estate Syndications & Crowdfunds
Investing in real estate syndications & crowdfunds is easy. In fact, it won’t take all your 50k. But first, let’s understand the difference between the two. Usually, they are the same if you look at the definition. Both are used for funding huge real estate projects. However, a real estate crowdfunding is done online. In other words, you can visit an online site, and make an investment. Thus, you can say the only difference is how you pool your funds.
Now, why these investment options are good for investors with 50k? The answer is simple, you don’t require external funding, and they are passive forms of income. 50k is enough for these type of investments. However, you can invest in multiple projects if you want to. So, these kind of investments are pretty good as you don’t have to take the headache of anything such as contacting contractors, purchasing construction materials, etc. except investing the funds and collecting the profits.
In conclusion, investing in real estate is one of the best ways to get good returns. You have a wide range of options available. You can buy flipping properties at reasonable prices, and fix or renovate them to increase their market values. Buying a flipped property worth $200,000 for just $150,000 is a great idea to maximize your returns. Buying rental properties, which are already occupied by tenants, enables you to earn money as a rental income. This investment option is perfect if you are new to the real estate industry. You can also invest in in places near attractions for visitors, such as the Lake District in Cumbria. Here are 6 fascinating facts about the place that attracts visitors. Other options are real estate syndications & crowdfunds, rental properties, and REIT investing. Before making a real estate investment, make sure you do comprehensive research to avoid any problems later on.