If you have 10k and have no idea how to spend it, you might want to read this guide on how to invest 10k in real estate for maximum profit!
In business, every penny makes a difference. So, if you think a 10k investment is not possible in real estate, you’re wrong. In this article, we have put together all the ways you can put 10k to work for revenue. Here’s where to invest 10k in real estate:
Real Estate Partnerships
The easiest way to go about buying an investment property with as little as 10k is a real estate partnership. Put together a business plan, scan some real estate properties, and calculate how much you need for a down payment for investment property. Perform real estate market analysis along with the necessary calculations for investment property analysis such as the rate of return on investment and cash flow to make sure you find the most profitable investments. You can do this by using a rental property calculator. With this tool, you’ll find the best investment properties that are sure to convince anyone to partner up with you!
Once you’ve done that, present your options to someone who you know might be interested in investing in real estate with you. Not sure how or where to find a business partner? Read Getting Started in Real Estate: How to Find a Business Partner with Money to learn how to do just that.
If you manage to find a reliable partner to invest with, you won’t have to worry about how to invest 10k in real estate if that’s all you’ve got in the first place. Your new partner will contribute the necessary funds for acquiring an investment property.
Online Real Estate Ventures
Here’s how to invest 10k in real estate without stepping outside your door: Go online! Some of the best types of real estate investments can be found online like real estate crowdfunding and real estate syndication.
Real Estate Crowdfunding
Real estate crowdfunding is one of the best types of online passive investing. Finding platforms that deal with crowdfunding is as easy as a Google search. Type in “real estate crowdfunding” and you will get all the platforms working in the field.
One of the significant advantages of real estate crowdfunding is that it gives you access to the housing market with small amounts of money, sometimes even less than 10k. So you might even be able to diversify and select more than one project to invest your money in.
Real Estate Syndication
Real estate syndication is another way to invest 10k in real estate. Real estate syndications are a form of investment property financing which is based on pooling funds from real estate investors wishing to get involved in the business without exerting any effort. Of course, it focuses on large scale projects which a regular investor cannot fund on his/her own.
The syndicator (the person responsible for acquiring funds, the investment properties, and typically the management) usually invests somewhere from 5-20% and the rest comes from investors.
Now, in this type of investment, you are the investor. Your only job is to provide the minimum amount the syndicator requires. This means looking for a real estate syndication that is asking for 10k or less from its investors.
REITs are another way of investing 10k efficiently. Being the stock investment it is, the effort it requires is close to none. All you have to do is buy the stocks of a REIT. Of course, you will have the choice as to the type of REIT. There are residential REITs and others that invest in commercial real estate and so on.
Over time, REITs have shown excellent performance and provided regular people with a passive income. This makes it the best way to grow your capital and then go about buying rental properties on your own.
A Below Market Value Rental Property
Owning a rental property is the best way to invest in real estate for beginners. There is no doubt it is a low-risk, affordable long-term investment.
What’s more, you can find rental properties for sale in all price ranges. So, for the 10k in your hand, target investment properties that cost less than $100,000. Use the 10k as a down payment and stop worrying about how to invest 10k in real estate. All you have to do is find that investment property and put it to work.
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties within your budget in a matter of minutes!
Here’s how to invest 10k in real estate without owning investment property: wholesaling properties. With this real estate investment strategy, 10k will go a long way since you’ll only need to spend it on marketing and travel.
Wholesaling real estate is when you find a cheap property, assign it to a contract, find a buyer, and boom, you get your commission. Now, although it sounds simple, finding a property that is cheap enough to leave a margin for profit is not that easy especially if you are dealing with real estate investors. Make sure you thoroughly calculate everything so that your commission won’t get cut. Also, make sure you stick to the time limit that is on the contract. Otherwise, you risk losing what you’ve been working so hard for (as well as any money you invested in the process!).
Rent Out a Room on Airbnb
Do you have a spare room, empty attic, or basement in your house? Well, here is how to invest 10k in real estate with that available space!
Go ahead and furnish that space if it does not have furniture already. Buy some sheets, new towels, bathroom supplies, and add some accessories. Go to Airbnb.com, create a profile, upload some photos of the space, set a price, write an attractive description, and you are good to go. After that, you sit back and enjoy receiving booking requests and Airbnb rental income. Do the same thing if you have a separate property attached to yours. Or, if you are occasionally out of town, try renting out your entire house. That way, you can make money from your own home and spend way less than 10k.
Just don’t forget to check local Airbnb regulations to make sure it’s legal to rent out on Airbnb.
Now that you know how to invest 10k in real estate, what are you waiting for?! Real estate investing is open to practically anyone, even if you have as little as 10k to invest.