In business, every penny makes a difference. So if you think that an investment of 10,000 euros is not possible in real estate, you are wrong. In this article, we’ve rounded up all the ways you can put $ 10,000 into the service of income. Here’s where to invest 10,000 euros in real estate:
Real estate partnerships
The easiest way to buy investment property with only 10,000 euros is through a real estate company. Draw up a business plan, analyze some real estate and calculate the amount of down payment required for the purchase of a capital property. Perform real estate market analysis as well as the calculations needed to analyze capital assets, such as rate of return on investment and cash flow, to ensure you find the most profitable investments. To do this, you can use a real estate for rent calculator. With this tool, you will find the best investment goods that are sure to convince anyone to partner with you!
Next, present your options to someone who you know might be interested in investing in real estate with you. You don’t know how or where to find a business partner? Read the section “Getting Started in Real Estate”: How to Find a Business Partner with Money to find out how.
If you can find a reliable partner to invest with, you won’t have to worry about how to invest $ 10,000 in real estate if that’s all you have in the first place. Your new partner will provide the necessary funds to acquire a capital property.
Real estate crowdfunding
Real estate crowdfunding is one of the best types of passive investing online. Finding platforms that deal with crowdfunding is as easy as searching on Google. 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. You may even be able to branch out and select more than one project to invest your money in.
Real estate syndication
Another way to invest 10k in real estate is through real estate syndication. Real estate syndications are a form of investment property financing that relies on pooling funds from real estate investors who want to get involved in the business effortlessly. Of course, it focuses on large-scale projects that a regular investor cannot finance alone.
The syndicator (the person responsible for acquiring funds, investment properties and generally management) typically invests between 5 and 20% and the remainder comes from investors.
Now, in this type of investment, you are the investor. Your only job is to provide the minimum amount required by the syndicator. This means looking for a real estate syndication that charges 10k or less from its investors.
REITs are another way to invest 10k effectively. Being the stock market investment it represents, the effort required is practically zero. All you have to do is buy the shares of a REIT. Of course, you will have the choice of the type of REIT. There are residential REITs and others that invest in commercial real estate, etc.
Over time, REITs have performed very well and provided ordinary people with passive income. This makes it the best way to grow your capital and then buy rental properties on your own.
Rental property below market value
Owning a rental property is the best way to invest in real estate for beginners. There is no doubt that this is a low risk and affordable long term investment.
Plus, 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 into action.
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties within your budget in minutes!
Related: Real Estate Investing Tips: How To Find An Investment Property For Sale Below Market Value
Here’s how to invest 10,000 in real estate without owning an investment property: wholesale. With this real estate investing strategy, 10k will go a long way since you will only need to spend it on marketing and travel.
Wholesaling real estate is when you find a cheap property, put it on a contract, find a buyer, and get your commission. Now, as simple as it sounds, finding a property cheap enough to leave a profit margin isn’t that easy, especially if you’re dealing with real estate investors. Make sure you calculate everything carefully so that your commission doesn’t go down. Also, be sure to meet the deadline specified in the contract. Otherwise, you risk losing what you worked so hard for (as well as the money you put into the process!).
Rent a room on Airbnb
Do you have a guest bedroom, an empty attic or a basement in your house? Well, here’s how to invest 10k in real estate with that space available!
Go ahead and furnish that space if it doesn’t already have furniture. Buy linens, new towels, toiletries and add some accessories. Go to Airbnb.com, create a profile, upload photos of the space, set a price, write an engaging description, and you’re good to go. After that, you sit back and enjoy receiving Airbnb booking inquiries and rental income. Do the same if you have a separate property attached to your own. Or, if you are occasionally out of town, try renting out your entire house. This way you can earn money from your own home and spend a lot less than 10k.
Remember to check your local Airbnb regulations to make sure it’s legal to rent on Airbnb.