6 Smart Investment Strategies With $50K That Make Profits Consistently
As a property investment company, we get many questions for Investment Strategies With $50K.
During our webinars, the attendees ask, “what do I do when I have some money that isn’t necessarily enough to buy real estate – in my own country?”
Let’s say you have a 9 to 5 job, and you receive a windfall of $50K. Of course, you are excited and can’t wait to celebrate with your family and friends.
The money is excellent, but it is not sufficient to give up your career or transform your life completely.
However, it is positive enough to enhance your degree of comfort.
Like some help figuring out what you can achieve with your little nest egg?
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So, What Would You Do With A $50K Windfall? Do You have any Smart Investment Strategies With $50K?
After the thrill of winning and putting away a receipt for a lavish banquet, you get started thinking of what you could do with the balance of the $50K.
Or is that $45Know?
Easy come, easy go?
It depends on how you see things.
What’s the likelihood of another immediate windfall?
Not sure what to expect?
Here’s what you could consider before splurging on a shopping spree or buying air tickets or a cruise for an overseas vacation.
Holding too much Cash isn’t growing your wealth. Get on the right track For Your Investment Strategies With $50K instead!
Leaving too much money in your wallet means runaway expenditures. And this hinders you from growing your wealth for early retirement.
If you aren’t sure if you are saving and investing enough for your retirement – there are a few things you can do to assess your situation.
No. 1 – Make sure you have at least a three-month emergency savings fund.
No. 2 – Contribute to retirement or provident fund account.
No. 3 – Educating yourself on saving and investing to meet your goals.
No. 1 – Consider Creating An Emergency Fund
Many financial planners suggest your first goal should create an emergency fund that can cover between three to six months’ worth of expenses.
No. 2 – Contribute To Retirement Or Provident Fund Account.
Some pension funds may allow individual participants to choose investments and contribution amounts.
Most provident funds have compulsory contributions and centrally-run investments.
If an employee wants, they can add more into their EPF or CPF account by opting for Voluntary Provident Fund (VPF).
No. 3 – Educating Yourself On Saving And Investing To Meet Your Goals.
“Risk comes from not knowing what you’re doing.” – Warren Buffet.
Investor should always do their homework before deciding.
It’s a vital piece of advice that ties in nicely with the following quote.
“Never invest in a business you cannot understand.” – Warren Buffet.
Working towards financial freedom means – eliminating bad debts investing in precious metals and US real estate.
Before You Start With Some Smart Investment Strategies With $50K
After the euphoria of winning that windfall, when things settle down before you settle down to live a quiet and steady life – think about what would happen if you invested your $50K for five years?
Best Ways To Invest $50000
You can do three things to eliminate bad debts at the top of your to-do list.
The other two are investing in Silver and US real estate.
Let’s dive in to understand how this benefits you.
Eliminate bad debts
“Good” debt is money owed to things that can help build wealth or increase income over time.
These are your student loans, mortgages, or business loan.
“Bad” debt refers to things like credit cards or other consumer debt that do little to improve your financial outcome.
The debts you should pay off first are these types of bad debts that keep growing exponentially.
Think credit card balance where you pay the minimum amount every month.
If you are not paying off your balance quickly, over time, you wind up paying twice as much for a shopping spree or a dinner you don’t remember having.
Maxing out on credit cards or financing a purchase you can’t afford, and soon you find yourself under a massive amount of debt.
There are a few things as disheartening as mounting debts.
So, if you have a windfall, you will need to use all the money to pay down your loans early.
It’s okay to have debts such as a student loan, car repayments, and a mortgage – those types of repayment typically stay the same from month to month.
When you consider the alternative ways to spend your excess Cash versus high-interest credit card debts, you know that’s the first that’s got to go.
Invest In Precious Metals
One way to invest in precious metals is to buy Silver, not Gold.
Gold gets all the glory as the go-to when investors want an alternative investment into traditional stocks and bonds in the investment world.
Periodically, the financial spotlight falls on Silver, and it shoots up in price, even outperforming Gold in the market.
Silver is less expensive than Gold.
Silver has intrinsic worth as a physical asset, unlike the dollar or other currencies.
Silver is a haven investment in uncertain times, a hedge against inflation and stocks.
The precious metal holds its value long-term, fares well when interest rates are low, and fixed-income investments aren’t earning much.
Often dismissed as “the poor man’s gold,” – Silver offers investment advantages in its own right.
We classified Silver as a commodity — a publicly traded, tangible asset.
Aside from its use in jewelry and silver tableware, Silver is used in medicine, dentistry, LED chips, nuclear reactors, photovoltaic (or solar) energy, RFID chips (for tracking parcels or shipments worldwide), semiconductors, touch screens, water purification, electrical contacts, and batteries.
The Advantages of Silver
- Historically, Silver has excellent purchasing power
- Silver is cheaper than Gold. Silver is portable and transportable.
- Silver has practical uses for products and industries
- The perfect investment for uncertain times
- Great hedge against inflation
Many investors turn towards commodities like Silver in times of economic recession, political turmoil, or when the stock market has a poor outlook.
Silver can diversify and counterbalance your portfolio with equities or other paper securities.
While the quick answer is Silver is a cheaper alternative to Gold, – it has risks and unique considerations investors need to consider.
Tangible assets like Silver prices move in the opposite direction from stocks and bonds.
Silver has very high conductivity; it’s used widely in technological applications for solar energy, the electric automotive industry, glitzy jewelry, humble home batteries, and the clean energy movement.
Of course, every investment brings its fair share of risks.
An economic slowdown of industrial growth can drive down the price of Silver.
Silver is more volatile than Gold but less liquid.
The Silver market is much smaller than the Gold market.
Buying is somewhat easy, but offloading Silver is more difficult in locating a purchaser.
Hence, Silver can offer far greater volatility and fluctuate up to 13% in a single day!
Investors can invest in physical Silver as bars, bullion coins, or even junk silver bags as the purest form of silver investment – but this incurs storage-related problems and expenses.
Best Investment Strategies With $50K In US Real Estate
$50k may not be enough money to venture into real estate in Asia.
In major cities investing in real estate requires hundreds of thousands of dollars; some city condominiums are priced well over $800K.
Many potential investors shy away even when they have enough down payment money to get started.
Are there investment opportunities in the USA for foreigners?
6 FACTS on Local Real Estate Investing
- Unaffordable: Paying close to market value
- Inaccessible and Debt-focused: Requires excellent credit profile
- Limited: Difficult to acquire multiple properties for investments
- Low Returns: Low or negative cash flow
- Duties Payable: Increase purchase price and lower profitability
- Title Ownership: Not full ownership, land title issues
To realistically Use Investment Strategies With $50K is possible.
Real estate is an attractive investment as a source of a steady flow of passive cash flow income.
Investment properties can realize capital gains for investors as the property value increases over time.
A capital gain is a profit that results from price appreciation.
Professional real estate investors own multiple properties.
They use one as their home, while the other properties generate rental income.
Many run this as a business and set up companies or LLCs to file their taxes as tax implications for investment real estate are different from personal income tax.
Time In The Market Is More Important Than Timing The Market
Six Ways For US Property Investment Strategies With $50K
There are plenty of options and ways to invest with 50k.
You can choose to invest in real estate syndicates and crowdfunding, fix and flip properties, turnkey properties, rental properties, REITs, and real estate partnerships.
- Real Estate Syndication and Crowdfunding
- Fix and Flip Property
- Turnkey Property
- Rental Properties
- Real Estate Partnerships
You could buy your property, put a down payment on a house, take a mortgage and rent it out yourself.
For many beginner investors, the rarefied world of real estate development is both attractive and daunting.
Most of us have little experience in the real estate world outside of dealings with landlords and home bank mortgages.
Crowdfunding property investment in the USA for foreigners enables people from Asia to participate and benefit from having a share in an extensive property portfolio.
#1 Real Estate Syndication and Crowdfunding
Technically, real estate syndication and crowdfunding are almost similar.
Both methods involved getting real estate investors to pool their financial resources to fund large projects that each investor cannot afford individually.
Best of all, you can share a piece of the pie in several projects with an investment capital of the entire $50K.
Crowdfunding is one of the best passive income ideas in real estate.
With crowdfunding, you can invest via an investment website without visiting the project site.
A crowdfunding deal is an investment property project in which the fiduciary oversees the purchase of the property, leasing, management, financing, and disposition when it’s time to sell.
Remember about having a financial goal and time horizon for your investment?
If having the ultimate control over real estate projects and drive it to get the desired returns you want, then crowdfunding is not for you if you are a property developer.
For newbies, real estate crowdfunding is a great way to get a taste of the real estate market without you putting in too much money or risk.
If property liquidity and control over any property you invest in are top priorities for you, keep reading for more ways to make money off a $50K investment in real estate.
Crowdfunding allows for portfolio diversification.
Since each project’s minimum capital requirements aren’t prohibitive, you can build and diversify by investing in multiple properties, which spreads your investment risk.
Since the organization handles everything from research, sourcing, buying, flip, and rehab to management for rental and sale – you don’t need to input more time to monitor your investment.
As an investor, you have three simple steps to take:
- Have a financial goal and time horizon
- Choose a Flip or Rental project
- Collect your earnings
You can choose to go for a Flip or Rental project or even do both.
Crowdfunding allows you to invest in US real estate from anywhere around the world that would otherwise be out of your reach.
With traditional real estate investment methods, you will need to manage the properties by yourself.
If property liquidity and control over any property you invest in are top priorities for you, keep reading for more ways to make money off a $50K investment in real estate.
#2 Fix and Flip Property Investment Strategies With $50K
House Flipping television shows imply that the United States is full of incredibly cheap houses to buy to make money over a few weekends.
The truth of being the only bidder at the foreclosure sale and buying bank-owned properties and just waiting for house flippers to make an offer is over.
There may be properties available to buy online for $300 at foreclosure sales.
BUT what you don’t know is where to find these properties, what the estimates cost to fix it up, and can you sell it for a profit?
While it is a creative way to invest $50K in real estate and buy a distressed property, few properties will go for $50K in the current market.
Your $50K may not be sufficient to cover the closing costs and the repairs.
Worst still, can you work US hours from Asia to monitor and supervise the works on site.
Here’s an example of how you can invest $50K in real estate by fixing and flipping property.
Picture this scenario.
After some research, you come across a foreclosed investment property and decide to buy it with a traditional bank mortgage.
The property is in a distressed condition.
Market value: $200,000
Property price: $150,000
20% Down payment: $30,000
In the ideal scenario, you bought the real estate cheap, saved on the down payment, and invested the savings by allocating it to repairs.
Now you own property worth $200,000
Property paid: $30,000
Sell at Market Value: $200,000
Time: 15 months
Annualized ROI 203.14%
As you can see, fixing and flipping property is one of the best ways to make quick money where you can invest as little as $50K.
With this kind of strategy, keep in mind that it comes with a higher risk than other ways of investing in real estate.
As such, you’ll want to do in-depth market research and property analysis before venturing into investing.
You will want to keep the total expenditure, the purchase price, closing costs, including the cost of repairs, and miscellaneous expenses to less than 80% of the property’s value.
With reasonable expense control, you get the best chance of making a decent return within 9 to 15 months.
After the first flip, you can roll the profits into your next property to flip.
The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Method
BRRRR is a real estate investment strategy that involves flipping distressed property, renting it out, and then cash-out refinancing it to fund further rental property investment.
You can refinance the property using the BRRR and then use the rent to pay the mortgage.
After seasoning the property for a few years, you can refinance the property and then use that money to get your second and even third property.
The BRRRR method works best with repetition.
Alternatively, Turkey properties can be profitable to invest 50k in real estate if you’re a passive investor.
#3 Invest in Turnkey Property
Turnkey Property is one of the best options for a novice real estate investor.
An utterly hands-off strategy is to avoid the hassle of rebuilding the property and do the least amount of work.
Look for a reputable turnkey company with several profitable rental properties under its management.
To be on the safe side, look for properties generating rental income (should already have tenants).
Next, use your $50K for the down payment, borrow the remainder from your bank, and buy the property.
Investing in turnkey properties is a great way to make $2,000 in a month almost passively.
Once you acquire ownership of your investment rental property, the Turnkey or Project Management company will manage the parcel for you.
Since the property is tenanted and generates rental income, there’s little risk of failing to secure tenants for your property.
You won’t have to deal with the hassles of being a landlord.
Investing in turnkey properties may be a breeze.
However, If you’re not familiar with the real estate issues and prices in a particular area – such properties tend to be priced higher upfront and could end up with an overpriced buy.
Often turnkey companies have more frequent than necessary repairs.
Ensure you do enough research before settling on a particular turnkey company.
#4 Invest in Rental Properties
Traditionally you can choose to invest $50K in rental properties without risking too much.
You can do this by investing solo (i.e., without partnerships or syndicates).
A good starting point is to use 50k as a down payment if you can determine the rest of your financing by getting a mortgage loan.
If you are a permanent resident with a green card or a non-permanent resident with a valid work visa, you can qualify for a US home loan.
The Federal Housing Administration (FHA) offers home loans to non-U.S. citizens with the same loan terms as other buyers.
Another way to leverage your $50K investment in rental property would be using the fix and flip strategy.
You buy a property that needs repairs, but instead of selling right after remodeling, you keep the property for rental for a few years.
#5 REITs Safe options to invest with $50K
If you want to invest in US property in the safest way possible, you can purchase REITs.
Real estate investment trusts (REITs) own or finance income-producing real estate across several property sectors.
These real estate companies must meet many statutory requirements to qualify as REITs.
REITs own hundreds of different properties and trade on major stock exchanges.
While REITs offer several benefits to investors, and anyone may invest, public non-traded REITs typically have a minimum investment requirement of $1,000 to $2,500.
Typically, REITs invest in a specific class of real estate assets like retirement, industrial, residential, and healthcare properties.
The REIT market is extensive, with more than 200 different companies in various specializations.
REITs are total-return investments that provide high dividend yields along with moderate long-term capital appreciation.
Many REITs are traded on the stock exchanges.
REITs are a vital consideration when building any equity or fixed-income portfolio.
How big is the REITs market?
$2 trillion of this is owned by publicly traded equity REITs, while non-listed or private companies own the rest.
Real Estate Investment Trusts companies come in many forms: public-exchange traded, public non-traded, and private REITs.
The main benefit of investing in real estate through REITs is liquidity.
As long as the market is open – you can buy or sell REITs shares online. The two most affected REITs are Retail REITs and Office REITs.
Finding suitable REITs makes all the difference to your ROI.
#6 Invest Through Real Estate Partnerships
Two or more investors who form a real estate partnership can combine their capital and expertise to purchase, develop, or lease property.
The partnership agreement can require each investor to be actively involved in the partnership as equal members.
Real Estate Partnerships can be a simple agreement between two or more investors.
They can structure it with deals involving many partners with varying capital contributions.
The biggest advantage of investing through Real Estate Partnerships is gaining access to bigger real estate deals than if you went solo.
With this flexibility, you can invest as little as $50K and still make some money off bigger properties.
By pooling financial resources, you can invest in large-scale real estate that leads to better returns.
If you have business partners with in-depth knowledge of the industry, you gain from their experience.
At Noble Sky International (NSI), as an experienced partner, we use our strategies to help investors interested in foreign property find and negotiate real estate deals to secure property on the cheap.
If you want to contribute $50K as capital, we can help you with the partnership to minimize losses as you’ll make fewer mistakes (which sometimes leads to losses).
You’ll have the chance to leverage the workload of planning and managing the business, which frees up your valuable time to focus on other investments.
NSI helps our investors with the day-to-day project management tasks from securing the deal, buying profitable investment property for sale, rehab, flips, rentals, and Airbnb.
Last, you can leverage your capital to help finance some deals for the partnerships.
With this unique strategy of investing as a pool of like-minded individuals from Asia, all the members in the investment community get compensated by percentage shares when they fund a particular property deal.
When you have a specific investment goal in mind with a time frame planned, you can re-invest to grow your share of future earnings as an Egg Nest for your child’s education and have Cash Flow Income for your retirement.
To answer all your questions about Real Estate Partnerships with Noble Sky International, you can attend our webinar to find out more.
How the Housing Market Has Changed Since the 1960s
According to a study by The Zebra, a home insurance comparison site; Urban areas of the United States have gained nearly 150 million inhabitants in the last six decades.
Today’s increasingly unaffordable dream of homeownership has affected the lives of Americans.
One standard measure of housing affordability is the relationship between the median cost and the median income (price-to-income ratio). Housing costs have far exceeded growth in wages.
Since the 1960s, when the median income was $5,600, the median home cost was $11,900, showing a price-to-income ratio of 2.1.
In 2019, the price-to-income ratio became 3.5, with the median house cost $240,500 and median income at $68,703.
According to a report from the US Department of Housing and Urban Development (HUD), the racial disparity has widened since 1960.
The homeownership gap increased between both white and Black Americans.
Living alone is more prevalent among Americans.
Today, 35.7 million Americans live alone, 28% of households.
According to the US Census Bureau, that is up from 13% of households in 1960.
Researchers have found many affluent, single-person households in urban areas spend more per person than those in more prominent families.
28.3% of Americans now live alone compared to 6.4% in 1960.
Sixty years ago, less than 0.1% of women ages 18–34 lived solo in their own homes.
By 2019, the same group represents 1% of all homeowners in the United States.
Over 70% of Americans lived with a spouse in 1960, but now much more life as unmarried partners — 7.3% in 2020 compared to only 0.4% 60 years ago.
More than half of all young Americans now live with their parents.
Among 18 to 34-year-olds, in 2020, 22% of 18-34-year-old men live at home now instead of just 10.9% in 1960.
Older Americans live alone rather than with family — in 1960, 20% of men and 40% of women over age 75 lived with their families.
In 2020, just 6% of men and 19% of women over 75 live with their families.
Today, one in every two older American women live alone, and 4.5% of all Americans over 65 live in nursing homes or other similar facilities.
The report’s authors surmise that 2021 presents its share of obstacles for Americans who hope to achieve and maintain homeownership.
The researchers conclude that the rising housing issues are affordability, foreclosure, eviction, racial inequality, and homelessness.
Is $50K Enough to Invest in US Real Estate?
You might think that $50,000 is not enough to buy a property in your city, but it is more than enough to invest in real estate for profit.
To turn a profit quickly, you need to have the right strategy and leverage your business partner’s expertise and the pool of capital from the community of investors.
The pace of multifamily housing construction in the United States has exploded since the recent recession, with most of the growth concentrated in the rental sector.
You can spin a profit quickly by focusing on low-income rentals and real estate assets with a lower upfront cost.
Section 8 of the Housing Act of 1937
With the growing demand for public housing rentals, most public housing authorities have a waiting list of tenants under Section 8 of the Housing Act of 1937.
The original program, established by the Housing and Community Development Act of 1974, consisted of new construction, substantial rehabilitation, and existing housing certificates.
In general, eligibility is also based on family size. The applicant must be 18 years old, a US citizen, or an eligible noncitizen with a household income of less than 50 percent of the area median income.
Under the Section 8 Housing Choice Voucher program, most tenants will pay 30% of their monthly income.
The Public Housing Authority that issued and approved the voucher will pay the landlord the rest of the rent and utility costs.
To be a Section 8 landlord, you must certify that the rent you are charging the Section 8 tenant is not more than the rent for any comparable units in your property.
While becoming a Section 8 landlord is a great way to build stealthier wealth in real estate, the units might not appreciate as quickly as a traditional single-family rental.
You can only attempt to raise a tenant’s rent once a year.
However, you will have positive cash flow faster, with most rent payments coming from the government and HUD.
Conclusion: Are you able to Make Profits Consistently? Innovative Investment Strategies With $50K is Possible.
Making and growing your $50K capital by investing in real estate is possible and doable with our strategies outlined in this article.
You require the knowledge of what best fits your financial situation.
With several investment models to choose from, you can either grow your wealth passively or get a Cash Flow income with a retirement rental property in the US – the choice is yours.
To summarize, we’ve identified real estate syndicates and crowdfunding, fixing and flipping property, turnkey properties, rental properties, REITs, and real estate partnerships as the Best Investment Strategies With $50K in US real estate.
If you are searching for a target market for real estate investors, the US Property Market, valued at $36.2 trillion, is where you want to focus.
Strong demand drove intense competition among buyers, causing homes to fly off the market at the fastest pace since the coronavirus pandemic – turning it into a buyer’s market.
Have you ever dreamed of buying an investment property —for cheap—in a foreign country and renting it out?
Invest your money by getting a fixer-upper and flipping it for big bucks down the road?
In the USA, you can buy undervalued assets at a good discount and lock in the potential for income and appreciation.
When looking for real estate, Noble Sky International’s Chief Investment Strategist, Rauf Said, says it’s essential to focus on three top strategies for investment properties.
- Flix and Flip
We invite you to attend our 2-hour value-packed webinar that shows you the EXACT Investment Strategies With $50K on how you can research, find, and invest in US properties for Flipping or Rental Income.
The only questions you need to ask yourself before attending are:
• What is your investment objective or goal?
• When is your capital investment ready?
Using traditional down payments and bank loans, investing in your local real estate market is expensive and inefficient.
It is much easier and more affordable in the US, even if you are a non-US Citizen and have limited capital!
Noble Sky International has detailed investment property research that starts with a location online on where Americans want to work and live!
We then use 17-Data Points for shortlisting.
Data-driven decision-making is the code for Investment Strategies With $50K in US real estate investment.
Next, our US Team on the ground will check for eligibility, verification, and an accurate estimate for renovation – all these processes are done before we buy any property!
We have a list of well-researched properties that are profitable for investors to select.
You can start a new business you run yourself or Start a new company that is managed for you when it comes to taking advantage of investment opportunities in the USA for foreigners.
We hope you’ll find an ideal way to invest and grow your windfall from any of these proven strategies.
You can reach out to us here.
All the best!
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Year-to-date total return on equity (ROE) REITs in the United States in 2nd half 2020, by property type.
How the Housing Market Has Changed Since the 1960s
Demand for Rental Housing at New High
Leading apartment owners in the United States in 2020, by units, owned.
DISCLAIMERS: Any information or advice available on the Noble Sky International website is intended for educational and general guidance only. Noble Sky Core LLC and Noble Sky Institute Pte. Ltd. shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising from accessing or using any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.