Trying to start a real estate business in Canada can be a daunting task, especially if you don’t have any initial capital outlay. However, with the right strategies and knowledge you can start this venture without having a single dime in your pocket.
Yes, it’s absolutely true. You can easily kickstart a real estate investment business in a country like Canada. This complete guide will offer you some valuable insights and steps to get you on the path to success in the Canadian market.
So, let’s get started and explore how you can make your real estate business dream a reality with zero investment.
Is Real Estate in Canada a Profitable Business?
Before entering any business it is important to know the industry inside out. You might have tons of questions related to the real estate business. Let’s see how many we can solve for you. Don’t worry if you have some more. Just comment down below and we will answer all your queries.
Did you know that the real estate market is worth billions of dollars. So, starting a new business in this arena is definitely worth it. You will make profits if you invest your time and energy.
It is such a vast sector that you need to make up your mind regarding the sector in which you want to go ahead. It can be selling commercial properties or dealing with family homes. There is ample opportunity for everything. So, do not lose hope in the beginning because of the competition. It is definitely a risk but some risks are worth taking. Isn’t it?
Benefits of a Real Estate Business
Having a real estate business is a big deal. It is one of the catalysts that lead to economic expansion. What do you think real estate investing means? Keep on reading to know the answer! Undoubtedly, owning any kind of business is like having a piggy bank that helps you in times of need.
Here are some key benefits of having a real estate business.
1. Regular Income Flow
Imagine you are retired and for money you rely on your pension. Now imagine a second situation in which you are constantly getting rental incomes from your properties. Which one is better? The second one, obviously. Having a property business will ensure that you have a regular passive income flow.
2. Property Always Appreciates
Do you think property prices will ever go down? Or even the rent? In a country like Canada, it will never happen. The real estate here is always on boom and the value is ever appreciating. Think about the profit you can book just with a single sale!
3. Inflation never Affects
Inflation spares no one, right? You are wrong, because Real estate is one sector where inflation never hits. Yes, it’s true. It doesn’t matter if the economy struggles or wages go down. The property market never stops
“Fortunately for property investors, rents go up when these prices increase, and so do house prices..”
4. Be your own Boss
If you don’t want to work under someone else then running a business is the best thing. You can be your own boss. In fact, you are free to make a team and run the business how you like. Real estate investing businesses are profitable, so you will enjoy the ride.
How much money is needed to start a Real Estate business?
In reality, starting a real-estate business involved no set amount. It depends on where you are starting it. Every region requires something different, hence the amount required is also different. So,if you are planning to enter this business, decide what type of real-estate work you want to do.
Here is an example to make it simple. In the United States, you might need a minimum $10,000 to start a real estate brokerage firm. But if you are doing it in partnership then a minimum $5,000 is a requirement.
In short, the amount of investment depends on two things.
- What kind of work do you want to do? You can become a realtor, broker, property manager etc. (All options are given in this guide to help you choose.)
- What do you expect out of your business? For example: Whether you want to make it big and promote your services on a larger scale, then marketing expenses will increase.
8 Tips to Start a Real Estate Business with Zero Investment in Canada
It is important to understand that the process of starting as a real estate agent is different from opening a real estate business. Becoming a realtor or an agent requires an educational degree, licenses and even a mentor.
What we are dealing with here is how to start your business with zero business. Before doing anything just sit with a piece of paper or maybe a laptop. Try to jot down basic things you know. For example:
- Is real estate good for me?
- How much money can I put into it?
- Is there a backup plan for you?
- How much do you know about the real estate market?
Then move ahead with advanced information after some research like:
- Commission rates prevailing in your region.
- Nearby brokerage firms and their rates, etc.
After you have done that try these 8 tips to help you to take the first steps.
1. Get a CRM
Every business has a set system. There are some principles on which it operates. You cannot just randomly do things. The first step therefore is to develop a CRM system. It means a Customer Relationship Management System.
The idea is to get insights, organize your contacts to get potential customers. People who have successfully got a CRM have sold almost 240 homes in the earliest stages of their real estate business.
2. Make a Personal Plan
Before making financial goals, try making your personal plan. Think about what you want to do, when you want to do it and how you want to do it. Selling homes and getting commissions is good. But let’s face it, you came into the property market to do something big. Like if you want to retire at 65 then plan how you will save money. Or if you want to buy a yacht, how big it will be.
3. Frame a Real estate business Plan
Once you are done with the personal plan, it’s time you make the business plan. A business plan is one that includes your mission and vision. Try writing the following:
- How will your business be different from others?
- What are your values and ethics in conducting the business?
- Who will work with you to handle other things?
- Will you hire an assistant?
4. Build a Marketing Plan
Can you sell anything without marketing? No. How will you sell a house then? Hence, it is time to develop a marketing plan. Find a way to make your item more appealing and salesy in the eyes of potential buyers. Your plan should be unique, interesting, cheap and add value to the properties you sell.
5. Start a Website
Nowadays everything is online. People love to Google. Therefore, to increase your engagement and reach, you can start your very own real estate investing website. In a survey it was found that almost 97% of people will prefer to search the property online before visiting it personally.
But opening a website is not enough. You have to constantly put posts, add blogs and adopt a social media strategy to improve your indexing and visibility.
6. Work Consistently
Did you know that in the real estate market shiny object syndrome exists? Nevertheless the realtor with the most consistent record and hard work always wins. The Graham Seeby Group made $90 millions with just 279 contacts. You want to know the reason? It’s just hard work and consistency.
7. Find out Leads
Leads is just another word for potential buyers. If you get any leads or someone contacts you, do reply to them. Building communication is the key to securing a sale. Regardless of whether they seem interested or not, keep the relationship for the future. It’s believed that if the buyer hasn’t responded in 180 days then he never will. So, keep the deadline in mind.
8. Time Management Skills
Time Management skills are important in every work. By managing skills you can devote more time and energy to a particular task. Usually the most struggling realtors are ones who don’t stick to a plan. Thus, they keep on going door-to-door for leads. One way to save time is by automation.
You may also like to know 10 Real Ways to Make Money Online in Canada
Other Options in Real Estate Business
When you think of real estate business, the first thought that pops in your mind is about a realtor. You only believe that it’s about listing houses and showing houses to buyers. That’s not true, There are more opportunities in this business than you think.
Obviously, a realtor is one of them. But it’s not confined just to it. Here are some more options in real estate business that you can explore.
a. Developer
A Developer is someone who works on an empty land or space and develops it. He can also restore or revitalize spaces already occupied. Usually he works with a real estate firm or can work individually. Once the development is done, he sells it to buyers or the firm directly he is working with.
b. Real Estate Agent
Agents are the commission based middle-men that facilitate the deal/sale on behalf of the firm. They are usually paid commissions. You might not think it’s a big deal. But drumming up potential clients to buy a house is not at all easy!
c. Real Estate Broker
Are agents and brokers different? While in some regions the term is used interchangeably, in others the roles change. A broker is someone who has more knowledge and education as compared to an agent. Did you know that In Ontario, Canada, a broker must complete a specific educational course to be called one.
d. Property Managers
Property Managers have to be the most responsible of all. They have to look at all the nitties gritties of the property they are assigned. For example: If they are responsible for managing a rental property, they must screen tenants, look for rents, repairs and whatnot. In most cases, they get salaries plus commissions.
e. Lenders
Lender can be a bank, NBFC, individual or even a group of people. Now you must think, how is a lender related to real estate business? A lender is the body that provides funds to the buyers to buy the property. After which the buyer pays back the amount along with interest. So, aren’t they a key part?
f. Investing
There is no difference in real estate investing and investing in real estate. Most of the people are confused but it’s the only phrase that is different. The meaning is the same. It is like an umbrella phrase which covers all the businesses that buy, sell, manage, lend, rent, own and purchase real estate.
g. Professional Services
Did you know that in the real estate business, there are accountants, lawyers, managers, and marketing teams that have expertise in it? Yes, it’s actually similar to the rest of the professions. So, if you don’t wanna be a real estate agent, try these profiles.
Starting a Real Estate Business in Canada: Is it worth it?
Is the real estate business in Canada the right option for you? Hopefully now you don’t have to wonder about it again. It’s a very rewarding business option, if done right. But getting success instantly? Definitely not simple.
The property investing market of Canada has its own charm. It is continuously growing and even attracting the eyes of foreign investors. In short, the growth as well as earning potential is absolutely never-ending.
So, if you are ready to build your name in the real estate investment sector then now is the right time to get started.
What do you do about being a real estate business owner in Canada? Comment down below.
Your points about the profitability of the Canadian real estate market and the various benefits of owning a real estate business are spot-on. The idea of generating a regular income through property rentals and the potential for property appreciation are particularly appealing aspects.