It really doesn't have to be that involved or that expensive. There are good collectors out there who can sell you fine old Japanese swords in great shape for less than you're talking about. For the kind of money you're talking about Michael Bell could probably guide you through making one of your own.
That's assuming you want a Japanese sword. Just looking at eBay I found a beautiful (antique) wootz shamshir with ivory scales for under $700.
That's assuming you want a Japanese sword. Just looking at eBay I found a beautiful (antique) wootz shamshir with ivory scales for under $700.