How To Invest $10k, $25k, or $50k In Real Estate
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    Congrats on saving a huge chunk of cash, whether that is $10k, $25k or $50k! That’s a big accomplishment. We know how hard it can be to save money when advertisers show up in every channel of your life. They flaunt the latest and greatest gadgets, toys, gear, trips, and more. It can be really hard to hold back on spending.

    But you have grit and perseverance. You know that “future you” really wants to experience the freedom of passive income streams. So you stuck with your plan. 

    Now, it’s time to decide how to invest $10k, $25k or $50k. It’s probably waiting patiently in that high yield savings account You may also be wondering the best ways to invest your money or what you need to be thinking about as you start accruing larger sums of money to invest. 

    In this article, we’ll start by looking at where to start when you begin investing and think about how to invest your money. With this foundation, you’ll be able to better evaluate the best ways to invest. We’ll share our favorite investment ideas and the most popular ways to invest that we’ve seen in our community of financial freedom seekers.

    How To Invest $10K

    Investing your first $10k is a super exciting moment in your journey toward financial independence. However, if you’re new to investing, understanding just how to get that money to its final destination can be difficult to understand. 

    I should know. (Head drops with slight embarrassment with the memory of the story I’m about to tell.)

    When my husband and I decided to start investing (before we found real estate investing), we sat down with a family friend’s financial advisor who did the “work” of setting up a money market account and a traditional IRA for each of us within a major financial institution. We funded minimal amounts to get things rolling that day, but then promptly went back to our busy lives.

    Fast forward a year or two when we had a bigger chunk of change to invest – like $10k – and that financial advisor was MIA. We’re talking no returned calls. I managed to navigate the website and even transfer our cash into those money market accounts. Win! (Or so I thought.)

    Turns out I didn’t actually “allocate” my funds. In other words, I didn’t buy any stocks or index funds. My money sat in that account, doing nothing, for over a year until I figured out there was one more (super important) step.

    I was dumbfounded (and pretty embarrassed).

    So learning the full process of how to invest $10k is just as important as deciding where to invest $10k. 

    Step #1: What type of lifestyle or life-by-design do you want?

    This isn’t a money question. Because investing isn’t really about money. Investing is a pathway to live our best lives. To leverage our passive income streams so that we can have freedom with our own time to pursue our big (and small) dreams. 

    Investing is a way to live life on your own terms. To live a life by design, spending each day doing exactly what you want.

    It’s worth it to spend the time to really work through the following exercises (find more detailed descriptions here). The more you envision and define your ideal lifestyle, the easier it will be to take action in that direction. However, if you don’t have time, set a 5-minute timer and get some ideas on paper. You’ll be evolving this as you go.

    1. Reflect. List the things you love about your life today. Then, list the things you’d love to be a part of your life, but don’t currently exist.  and what you desire for tomorrow. Let joy propel you forward. 
    2. Envision. With that list of things you desire, write a description of your ideal day – from waking up to going to bed. Did you miss anything in your list that you now see yourself doing or having? You may also wish to detail an ideal day while on vacation, or doing something special that is on your list.
    3. Brainstorm. Begin looking at your “today” list and your “desire” list and brainstorm as many ideas as you can to make progress toward your ideal life. Do you need passive income? (We’ll talk more about how much below.) Do you need to move or change jobs? Do you need a puppy? You’ll start to even find ways to bring small elements of your ideal day into your life now.
    4. Build. Pick the top 3 ideas and begin working on one of them. Take small steps – whether that is educating yourself on how to invest passively in real estate syndications or revising your resume for a new job. 
    5. Refine. As you shape and experiment with your ideas, keep track of their progress. If one isn’t yielding the expected results or doesn’t seem suitable, refine and iterate upon it. Consider alternatives or move on to the next idea on your list. Keep the momentum flowing. 

    Come back to your responses from this as you evaluate the best ways to invest $10k, $25k or $50k. 

    Related Article: How To Start Living Life By Design, Today And Every Day

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    Step #2: What are your financial and investing goals?

    This sounds like a big question, but if this is your first $10k investment, then just start by answering a few basic questions that will point you toward the right investment for your ideal lifestyle.

    Financial influencers, pundits, and certified advisors will quickly point you toward an astounding number of investing options (an overwhelming number perhaps). It may seem easy to find options of where to invest $10k. To make a decision that is right for your financial goals, it’s helpful to start by looking at what you’d like to get out of your investments.

    In other words, what are your investing goals, both short-term and long-term? If you’re new to investing, start with these questions:

    1. When do you need to use your investment income or passive income? 

    Are you planning on using your real estate investment income in retirement, perhaps 30 years from now? Or, are you looking to start using your income as soon as possible? 

    Many investors initially look long-term, toward retirement, when they envision living off of passive income. This is, after all, how we’ve been taught – that we must work long and hard to reach the reward of retiring one day.

    Things have changed.

    Today, many professionals want the security of having passive income streams now, not just in retirement. Many jobs are less reliable and it is common to change careers many times while finding something that works for your desired lifestyle. Along the way, we’re all making small changes to work toward our ideal lifestyle (see Step #1). 

    So, you may want to plan on using your passive income from investing earlier than retirement, to give yourself that freedom of time sooner.

    2. How much passive income do you need? 

    You may have heard of the Financial Independence Number, or FI number, which is the amount of net worth you need to have in the stock market in order to start withdrawing your annual expenses indefinitely (without running out of money). To find your FI number you’ll multiply your current yearly expenses (say $60k) times 25, which would be $1.5M in this example. 

    This is a great quick-and-dirty back-of-the-napkin calculation you can do to have a ballpark for your net-worth goal. However, this number is traditionally used in pursuing financial independence through investing in index funds via the stock market. The math changes a bit when you’re leveraging passive real estate investments because your money is working in multiple ways.

    The bottom line is that you actually need a much smaller net worth to begin living off of $60k/year when invested in real estate syndications versus index funds. 

    In fact, if you invested $10k a year in a real estate syndication, you’d surpass $60k in cash flow (not including the profits from the sale of the properties) in year 24, with a total net worth of $1.0M. With index funds, you’d have to wait 34 years to reach that $1.5M financial independence number and safely withdraw your $60k/year.

    It gets better.

    Your real estate investment continues to grow faster. By year 40, your net worth is $3.85M, whereas your index fund portfolio is at $1.67M. This means that you’ll be able to quickly increase your passive income beyond that $60k/year, or start using your cash flow before year 24 and continue to see incredible portfolio growth.

    3. What is your risk tolerance, or risk profile?

    Traditional financial planners paint a picture of a risk spectrum here. From the low-risk portfolio (more bonds than stocks) to the high-risk portfolio. Real estate syndications don’t necessarily label investment opportunities this way. This means that you’ll be looking at the elements within a deal to evaluate if there are risks associated that you are comfortable taking.

    For instance, you may see that a real estate syndication opportunity will be securing fixed-rate debt financing. This means that the deal won’t be impacted by rising interest rates. Many investors find this a great way to mitigate the risk of increasing debt payments due to interest rate hikes by the Fed. You are the only one who knows how much risk to take.

    Now that you’ve saved your money, you likely want to invest it in the best possible way to accelerate progress toward your goals. Let’s take a look at the best way to invest $10k, $25k or $50k. 

    We’ve broken these into different stages of investing based on where you may be if you have saved $10k versus having saved $50k. That being said, you may love an option presented in the $10k options for your $50k investment, so be sure to check them all out.

    Related Article: How To Set Goals For A Strong Year Of Real Estate Investing

    The Best Way to Invest 10k

    The following ideas will help you decide how to invest $10k for passive income. They’re certainly not all the ways to invest $10k, but they are some of the most popular and the ones we, ourselves, have seen to make the biggest impacts. We’ll present some benefits and challenges to each so that you can evaluate them against your goals. 

    #1: Invest $10k In Real Estate Crowdfunding

    When you’re looking for how to invest $10k in real estate, joining a passive real estate syndication investment through a real estate crowdfund is a great way to get started. Thanks to new SEC regulations and technologies, deals that were previously only open to accredited investors are now open to everyone including non-accredited investors, at lower investment minimums (like $10k) than ever before.

    This isn’t the kind of real estate crowdfund you’re likely familiar with. We aren’t talking about investing in a blind fund of properties just as you would a blind mutual fund.

    This kind of real estate crowdfunding investment allows you to invest alongside the experts, talk with the ownership team and ask questions, and evaluate the specific assets where your money will be invested. 

    The best part is that you get all the benefits of investing in real estate without any of the hassles of tenants, toilets, or termites. This is one of the only true forms of passive real estate investing. You get regular distributions (cash flow) from the asset’s income (such as rent), tax advantages that can lower your annual tax bill, and even receive proceeds from the sale of the asset to reap some of those sweet appreciation rewards.

    Pros of Investing $10k In Real Estate With Crowdfunding:

    • Regular distributions (depending on the deal structure) with preferred returns in the 7% – 9% range.
    • Earn proceeds when the asset is sold (appreciation!) in typical hold periods of 5 years.
    • You know exactly which property your money is invested in.
    • You can ask questions directly with the ownership and management team to perform your due diligence on the deal.
    • The process to invest is easy inside the platform that takes care of all income calculation requirements and follows all SEC regulations.
    • Anyone can invest via a crowdfund offering (such as the Goodegg Growth funds) as long as they meet certain income requirements determined by the SEC (don’t worry, these are calculated for you during the investing process).

    Cons of Investing $10k In Real Estate With Crowdfunding:

    • Your initial $10k investment is illiquid for the duration of the hold period.
    • There is often a limited amount of space for crowdfunding investors in a single deal and may fill up quickly.
    • You may not be able to use any of your earnings until the end of the hold period, typically around 5 years.
    • You have to find a new investment for your earnings and original capital once the property is sold (approximately every 5-years).

    Related Article: Real Estate Crowdfunding: Passive Investing For Non-Accredited Investors

    #2: Invest $10k In The Stock Market

    The second obvious choice for to invest 10,000 dollars is to buy stocks through a brokerage account, a individual retirement account, real estate investment trusts, or a health savings account. Most people think about investing in stocks through financial advisors or a brokerage firm and using individual retirement accounts, like an IRA or a 401(k). You’ll be taxed on the earnings you make as regular income, whereas a retirement savings account gets taxed when you go to take those earnings out – after age 59 ½.  These are typically how people buy mutual funds with their investment account.

    There are two broad categories of funds for stock market investing: mutual funds and index funds. If you invest in mutual funds, you may be paying very hefty fees (like 1% – 3%) that greatly handicap your ability to compound your earnings and grow your investment portfolio. 

    Many stock market investors, especially those in the FIRE community, opt to invest in index funds as an alternative. These funds have the lowest expense ratios and are created to track a particular index, like the S&P 500, rather than a group of stocks chosen by someone who thinks they can pick the winners. 

    Spoiler alert: almost no one can pick the winners in the stock market investing game.

    Investing in the stock market (through mutual or index funds) is certainly passive and can be hassle-free after initial account set-up. However, the market fluctuates drastically. Most proponents of the stock market point to the data that shows how the market has steadily increased over the last 100+ years, but that’s an average. Individual stocks are considered high risk investments by most.

    Some years, people see half their stock market portfolio disappear. That would be a hard year to start retirement

    Pros of investing $10k in the Stock Market:

    • It’s easy to set-up accounts or work with an advisor to get started. 
    • It’s easy to automate investing every month directly from an account and reinvest earnings every year.
    • Data shows most mutual and index funds do increase in value over a long time period due to compound interest.
    • You can apply the 4% rule to create a target financial independence number and work backwards to invest enough every year accordingly.
    • Tax benefits exist when using certain retirement accounts.
    • You can withdraw money inside non tax-sheltered accounts anytime.

    Cons of Investing $10k in the Stock Market:

    • Stock prices are volatile (and so are stock values), which makes short-term investing more at risk of large portfolio losses (or gains, on the flip side).
    • Over the long term, stock portfolio growth is slower than a passive real estate investment portfolio. 
    • Large funds include stocks from businesses of all kinds – even the ones you may not want to support.
    • You must rebalance accounts, if investing on your own, which typically happens annually.
    • If investing with a financial advisor, high account fees may lead to large losses over the long-term.

    #3: Invest in Your Kid’s College Fund (529 Plan or Real Estate)

    Parents who save for their kid’s college tuition will be giving a huge gift to their children. The gift of zero student debt. It’s hard to think about our kid’s starting their adult lives with massive amounts of debt to pay off.

    This option may be important to you based on your findings from your ideal lifestyle. Do you value sending your kid’s off to college or believe that having a higher degree is essential to a successful life? If your answer is no, this likely isn’t an option you’ll need to consider.

    Technically, a 529 plan is just another way to invest in the stocks, but with limitations around how you can use your earnings. A 529 plan is typically used to save money for a kid’s college or other education-related expenses.

    Most people only know of this type of account to leverage investing as a savings tool to build their kid’s college fund. However, any type of investment can be used to grow a college tuition fund. For instance, you could place money in a real estate crowdfund to grow, and then into a more liquid form of investment as your kids get closer to college-age. You may be able to purchase stock in real estate investment trusts with these accounts, but keep in mind that you don’t own those underlying assets.

    There are tax-deferral benefits to investing in a 529 plan. But these aren’t often compared to the tax advantages of real estate earnings, which can be substantial. It’s worth it to circle-up with your CPA to see how these two options could impact your tax bill as you save for your kid’s college expenses.

    Pros to Investing $10k in a 529 Plan:

    • Investment grows on a tax-deferred basis (post-tax dollars) much like a Roth IRA.
    • Tax-free withdrawals are allowed to purchase education-related expenses
    • It’s easy to set-up and contribute.
    • You may qualify for state tax benefit for your contributions.

    Cons to Investing $10k in a 529 Plan:

    • You can’t use the money for anything other than education-related expenses without incurring large fees and paying additional taxes.
    • You can only invest in the stock market with these funds, which means this account is susceptible to all the pros/cons presented in the previous section.

    #4: Invest $10k In A Whole Life Insurance Policy

    Whole Life insurance is like the misunderstood family member among insurance products. Many FIRE proponents cite its higher premiums as a waste of money. But, there is great power behind a whole life insurance policy – if you know how to leverage it to amplify your investments.

    With a whole life insurance policy, it is possible to be earning a return in two places with the same dollar. Let me explain.

    When you pay your premium every month or year, they are invested with guaranteed distributions around 3 – 4% typically. Soon, a cash value amount is available to pull out using a simple interest loan. However, your full premium amount is still growing with compounding interest.  

    Meanwhile, you can invest that cash amount (in say a real estate crowdfund with a 7% preferred return) and use the cash flow to pay back the loan. After the loan is paid off, your full cash value becomes available to invest again. 

    When using your cash-value funds to invest, it may be wise to select an investment that has better short-term cash flow, like a hotel investment. This will help you pay back your loan quicker.

    Pros to Investing $10k In A Whole Life Insurance Policy:

    • You can invest your money in two places at once using a loan against your policy.
    • You also get life insurance that can be used in the event of a life-threatening illness or death (that doesn’t go away at the end of some “term”).
    • Death benefit amount can be used in retirement as income.

    Cons to Investing $10k In A Whole Life Insurance Policy:

    • It may take a couple years to build up enough cash-value to begin using your funds to invest.
    • You must be diligent about paying back your policy loans in order to not accrue additional interest (otherwise your death benefit will decrease).

    Related Article: How To Use Whole Life Insurance To Maximize Your Investments

    How To Invest $25k

    You’re onto the next big step in your investing and have saved up $25k to invest. Take a minute to celebrate! Let’s take a look at some different ways to think about how to invest $25k versus $10k.

    First, having a larger sum of money can open up new opportunities that require higher minimums to get started. You’ll see some of those ways to deploy your $25k below. However, you may want to begin thinking about your investment diversification strategy at this stage.

    How To Think About Investment Diversification 

    First, investors seek to diversify their investments so that they are less vulnerable in the case that one investment drops in value. It is the old “don’t keep all your eggs in one basket” advice that we, personally, love (one of the inspirations for our company name – Goodegg Investments). 

    If you are 100% invested in the stock market and we hit several years of a recession or downturn, your entire portfolio will suffer. You may be finding ways to make money even in retirement because withdrawing the same amount from your account will reduce your overall net worth by much more.

    Imagine going from confidently withdrawing that $60k/year we presented earlier from your $1.5M portfolio, to suddenly seeing that portfolio drop to $750k. If you pull out the same amount, you’ll run out of money much sooner.

    Similarly, if you invest all your net worth into one property, you are at risk of losing everything if something unexpected happens, such as a natural disaster not covered by your insurance policy. 

    If you’re ready to deploy a larger sum of money, like $25k or $50k, you can begin thinking about how to diversify your portfolio to reduce your market exposure and risk. This may mean selecting a different investment vehicle as your previous investments. It may also mean that you decide to break up your money into smaller amounts and invest it in multiple places or in multiple real estate assets with different business plans and geographical markets.

    How To Evaluate Your Investment Performance

    If you’ve saved $25k to invest, you may have already invested smaller amounts in years prior. This is a great time to look back at how those investments performed.

    First, look at historical averages, if investing in something like the stock market (via a 401(k), 529 Plan, or money market account). How do those historic numbers compare with your stock market returns? Since the stock market investing game is typically a long-term game, then this may not show much. You can also look at how much of a tax savings you received if investing in a tax-deferred account. Was that tax advantage meaningful for you?

    Second, look at projected returns and the business plan for a passive real estate investment. How do the projections compare with your actual distributions? Have you been receiving updates explaining the implementation of the business plan? If something hasn’t gone according to plan, how did your team respond and how will it impact your return over the life-cycle of the deal.

    Taking the time to look back will help you decide how to invest next. You may find that one investment outperformed another. You may also find that one investment took much more of your time or just left you feeling helpless. Take your findings and use them as guideposts for deploying your new source of capital.

     

    How To Use Your Investing Goals To Update Your Investing Strategy

    Finally, take a look back at your life-by-design goals and your investing goals. How have your previous investments helped you make progress? Do you need to update your goals due to changes in your desires or current situation?

    You may find that you actually want passive income sooner, or you are willing to work harder and make more money now, so that you can reach retirement sooner than you originally projected.

    Take the time to update your goals, timelines, and investing targets. Creating a life-by-design is an ongoing process, not a once-and-done activity. We’re constantly changing and so should our goals. As you uncover new desires, you’ll begin to see common threads or a small handful of priorities emerge as evergreen goals. These will serve as your guideposts. Just don’t expect to see them in your first few years of living intentionally. It takes time to develop, but it’s worth it.

    See Our Open Deals

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     Best Ways To Invest $25K

    Now that you’ve decided to invest $25, what are some additional ways you can put your money to work? Of course, all the options described in the previous section apply here. We’ll present a few new options and expand upon some previously stated.

    #1: Invest $25k In Multiple Real Estate Crowdfunds

    With $25k, you have enough to invest in multiple real estate crowdfund offerings and still meet the minimum investment amount. This is a great way to receive the benefits of passive real estate investing in syndications and also begin diversifying your portfolio across asset types and geographies.

    When thinking about how to invest $25k in real estate, investing in multiple crowdfunds can also help you work toward multiple investing goals. You may select a hotel investment to produce more short-term passive income and a multifamily investment to grow your capital over a longer, 5-year, horizon. You may also test out working with different teams and see what you like best about how they manage your capital and the asset.

    Pros to Investing $25k In Multiple Real Estate Crowdfunds:

    • You can diversify across asset classes and geographies.
    • You can test out different teams to see who you like partnering with the most.

    Cons to Investing $25k In Multiple Real Estate Crowdfunds:

    • You’ll need to evaluate multiple offerings.
    • You may be required to have multiple log-ins to different platforms (or websites used by owners to communicate with investors and distribute funds).

     

    #2: Invest $25k Into Home Improvements For A Live-In Flip

    A creative way to invest $25k is to renovate your home to be able to sell it for a greater profit as a live-in flix-n-flip. When we think of investing, we’re looking to take a small amount of money and grow it into a larger amount of money. If you invest $25k into home improvements and renovations, you may be able to sell your home for an even greater profit, such as $50k. 

    With a profit of $50k from the sale of your home, you could invest a larger sum or invest $25k passively while you take that new $25k and invest it in home improvements for your next live-in flip.

    This is a form of active real estate investing that many people leverage early in their investing. Individuals with skills in remodeling have an extra advantage of leveraging their sweat equity to do the actual work of remodeling, thereby finding a greater profit upon sale. 

    Pros of Investing $25k Into Home Improvements For A Live-In Flip

    • It’s possible to get high returns for a fix and flip project.
    • You can leverage a construction skillset to save on costs and increase returns.

    Cons of Investing $25k Into Home Improvements For A Live-In Flip

    • Returns are subject to local real estate market dynamics and comparables analysis.
    • This is a very active form of investing.
    • You must wait 2-years to sell to avoid capital gains taxes.
    • Requires extensive familiarity with home improvement and the local real estate market.
    • Requires living in a construction zone.

     

    How To Invest $50k

    Now you’re really increasing your savings rate and investing larger amounts. Congrats! When considering how to invest $50k, you’ll want to consider the factors we presented in the previous section (diversification, investment performance, and your goals), as well as a few new considerations.

    Take Time To Reflect On Your Progress

    When getting ready to invest $50k, you have the opportunity to really reflect on how investing has gone for you so far. After looking at the performance of your investments and measuring them against your goals, take a moment to ask yourself how it feels to invest.

    Do you find joy in the process of finding your next investment? Do you feel anxiety or dread regarding the performance of your investments? Has your appetite for risk changed?

    These answers are incredibly valuable for optimizing your investing journey toward a life that you enjoy. Investing can get us closer to our financial goals, but we shouldn’t be sacrificing our mental health or well being along the way. 

    How Much Time Do You Want To Spend Investing?

    You’ve likely already identified that you want your investing to be as passive as possible as you evolve. With every new investment, you likely want to streamline the process. This could be investing in a single market, but different asset classes to diversify. Or you may find that you like working with a single team to invest in multiple real estate syndications.

    Every time you invest capital, you’re going to need to spend some time evaluating your opportunities, keeping up with updates, and ultimately re-deploying your capital and earnings into something new. 

    If you have found that you dislike spending anytime at all, then you may find that automating your investments into the stock market may be the easiest way to satisfy your goals. You’ll want to consider the risks and the lack of diversification. You’ll still need to keep up with rebalancing your portfolio or meeting with your financial advisor. 

    You may start to select investing your $50k into one deal, rather than spreading it out across multiple deals, to make the process more passive. Managing 5 different passive investments rather than 1 will take more of your time.

     

    The Best Ways To Invest $50k

    Here comes the fun part – actually deploying your capital!

    #1: Invest $50k In A Real Estate Syndication

    When evaluating how to invest $50k in real estate, you’ll find multiple options. With $50k, you’ll meet the minimum investment amount for most real estate syndications (outside of a crowdfund). However, you have to qualify as an accredited investor to have access to most of these opportunities. 

    The difference between this type of investment and investing via a real estate crowdfund is the investment minimum amount, and the initial sign-up process which is required to go through a different website to follow SEC regulations. Once your documents are signed and your money is wired, everyone uses the same portal and receives the same communications. 

    Some investment offerings may change the return structure for crowdfunding investors and accredited investors who join directly. In other words, they would receive different returns and pay different fees. At Goodegg Investments, we offer the same returns for our crowdfunding investors. They simply have to go through a different doorway to join the group.

    Pros of Investing $50k In A Real Estate Syndication:

    • This Is a completely passive form of real estate investing.
    • All the benefits of real estate can be gained: income tax advantages, ongoing passive income, and potential for appreciation.
    • You work with expert teams in the best markets across the country.
    • You only keep tabs on one investment rather than multiple at smaller amounts.

    Cons of Investing $50k In A Real Estate Syndication:

    • There is minimal diversification within a single deal.
    • You have minimal control as a limited partner.

    Related Article: Passive Real Estate Investment Terms: Key Lingo You Need To Know To Crush Your Investing Goals

     

    #2: Invest $50k In A Down Payment For Residential Real Estate Properties

    Finally we’ve come to the traditional form of real estate investing where you purchase an investment property, fill it with tenants, and collect cash flow. Well, if you’re lucky at least.

    First, finding an investment property where your $50k covers the entire down payment (typically 25%, which means the property is selling for $200k) is rare. If it does, you’ll still want to have funds in an account in case something unexpected happens, like a busted furnace or a tenant stops all sinks and floods out the home (this actually happened to Annie). 

    There are some markets where this could work, which means you’ll likely be investing out of state. You’ll need to find boots on the ground – from local lenders and realtors to property managers and contractors. Even if you hire a property manager and happily relinquish landlord duties over to someone else, you’ll need to manage those managers. You’ll need to approve expenses, track your budget, and oversee their tasks to be sure they’re caring for your investment properly. 

    Almost everyone starts investing in real estate this way, so we’re highlighting these hassles from experience. If you want to be an active investor and leverage your sweat equity, then this may be a great way to invest $50k in real estate. We just love having weekends free rather than fixing broken pipes or interviewing tenants.

    Pros to investing $50k in a rental property:

    • This is a hands-on (learning) investing experience.
    • Advantages when you go to pay income taxes
    • Potential appreciation can be gained and increase returns.
    • You have full control and responsibility over your investment.

    Cons to investing $50k in a rental property:

    • It can be very time-intensive and is far from a passive form of investing.
    • Your income disappears with a vacancy in a single family rental) and decreases drastically in a small multi-family rental.
    • You’re responsible for unexpected costs associated with maintenance and upkeep of home.

    Before You Invest, Think About This

    We have to mention here that if you are evaluating investment options for your $10k, $25k, or $50k, but you won’t have any money in savings after investing, you should pause and think about a few foundational steps to financial independence.

    We like to highlight these two considerations before investing.

    Financial Foundation #1:  Emergency Fund

    First, be sure you have a fully-funded emergency savings account before you invest. This is likely at least 3-6 months of your expenses. Put this money into savings accounts and close your browser window. Resist the urge to put that money into any type of investment that is either illiquid (like real estate) or vulnerable to large losses (like stocks). That’s not what an emergency fund is for.

    Financial Foundation #2: Pay Off High Interest Loans

    Second, you may or may not want to pay off high interest debt before investing. There are good and bad types of debt and you’re the only one who can determine what types of debt you’re comfortable having. Most people pay off high interest rate credit card debt as soon as possible. You’re losing a lot of money to while you pay interest. However, many people see a mortgage on their primary residence as a good type of debt to carry.

    Take stock of the types of debt, how much you’re paying in interest, and how long it will take to fully pay them off. Consider the feeling of having all your debt paid as well. This can be incredibly empowering, especially when you take the money you had been using to pay down debt and start investing it instead.

    How You Should Invest $10k, $25k, or $50k Is Unique To You

    Ultimately, your investment decisions will come down to what is the best way to meet your goals. With a regular reflection practice on your progress, consistent savings habits, and regular evaluation of your investment performance, you can greatly accelerate your progress toward financial independence, no matter if you’re investing $10k, $25k, or $50k every year.

    Invest Now

    If you’re accredited and ready to invest right now, we invite you to check out our open deals page to learn more about our current or upcoming opportunities.

    Learn More

    If you’re not yet ready to invest but are curious about how all of this works, we invite you to dip your toe in the water with us through our free 7-day email course – Passive Real Estate Investing 101 – or to get a free hardcover copy of our book – Investing For Good.

    Connect With Us

    If there’s ever anything we can do to help you on your journey, feel free to email us at [email protected] or call / text us at (888) 830-1450.

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    Susan Elliott

    Susan Elliott

    Susan is a real estate investor, intrapreneur, adventure athlete, mother, and Director of Investor Education at Goodegg Investments. Susan began her career in real estate investing by house-hacking her first home, managing a short-term rental business, and starting a non-performing notes investing business.

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