How to invest your money in Canadian real estate passively?

Invest your money in Canadian Real estate is a prominent investment option since it is an efficient way to facilitate and improve almost any asset. Investors and financial experts frequently hail it as one of the finest locations to invest 

So, what is passive real estate investing?

Passive real estate investing is a type of real estate investing wherein you put your money into a property that you will not be managing directly.

Who benefits from passively investing in real estate?

Passive investment is suitable for Canadian real estate investors who intend to invest in real estate but lack the desire, time, or skills to buy and manage it themselves. They would still get the perks of genuine ownership, except without the responsibilities and liabilities that come with it. Passive investing tactics will be a better match if you don’t want to examine properties, negotiate deals, or handle the day-to-day operations of real estate maintenance.

Crowdfunding real estate

 Canadian Real estate crowdfunding is an investment platform formulated for harnessing the power of mass investment. It aims to raise an enormous amount of money. Through crowdfunding, the real estate property is made public, so that anyone can invest as little money as they want and be a part-owner of the property.

Fraction ownership

Instead of buying a property when investors share it, this is called fractional ownership. This is the favourite investment model for recreational real estates, especially when the real estate prices are continuing to skyrocket.

Fractional ownership can be broken down into any split, such as quarter ownership or formulas such as 1/10th or 1/12th ownership. 

Joint ventures with your cash

Joint ventures are a great option to enter the real estate market with your cash while someone has industry experience and a history of successful real estate deals. This makes a perfect partnership.

Passive investor

As a passive investor, you invest capital in the real estate project that is managed by someone else. In other words, passive investors invest  funds with a company to earn return on investment (ROI). 

Investing with builders

Investing with builders engaged in development or remodelling of commercial and/or residential properties is a profitable investment strategy where the investors’ can earn passive income without being actively involved in property construction or renovation tasks taking advantage of cedar fence suppliers.  

Land banking

As an investment strategy for passive income generation, land banking enables investors to purchase large lots of undeveloped land. The intention here is to hold the land for a long time, and resell it for a profit. 

Land banking is suitable for home developers and long-term corporate land investors. 

Investing in land development

If you are a wealthy investor, you may opt to invest in any of the ten general categories of land investments like land for housing, land for retail and industry, agricultural cropland (separate category for raw crops and other for vegetables), grazing-land for livestock, timberland, mining land, vineyards, orchards, and recreational land. Each investment option is characterized by unique challenges and opportunities.

I want to invest in real estate, but I do not have the financial resources. Is there anything I can do?

Yes! Canadian can invest in their self directed Registered retirement savings plan (RRSP) and tax free savings account (TFSA). It is recommended to borrow against your principal residence secured by Home equity line of credit (HELOC) to have tax benefits too.

What is the most viable method of passively investing in real estate?

If you are looking for a method to invest in real estate, which is both passive and profitable, you might be interested in looking at pre-sale condo assignments. 

The pre construction is great during the real estate booms only

What is a pre construction assignment?

When you, the investor/buyer, transfer your entitlements of a completed condo or a house to another buyer before the condo or house is completed, this is known as a pre construction assignment. Because you assign your rights to the new buyer, it’s termed an “assignment.” 

Pre construction assignments are common in booming real estate cities such as Toronto, Montreal and Vancouver, wherein property values grow rapidly compared to the rest of the country. It is worth noting that a commonly followed trend by condo developers may involve impositions of a 1% assignment fee to anybody interested in doing so.

In conclusion…

Everyone may benefit from real estate investing; but, not all investment techniques are treated equally. To select which plan best matches your objectives and lifestyle, you must first learn what each plan incorporates.

To assist you with this, we at Flipping4Profit.ca invite you to attend a 3-hour live workshop on How to invest in deeply discounted properties for instant profit by wholesaling, fix and flip and long-term hold for passive and massive income. In addition to this, we also provide our clients with a Membership to join the Professional real estate investors group (PREIG) Canada. 

To schedule an appointment, contact 1-416-409-7300 on Whatsapp. For more details, you can find us on https://www.facebook.com/nav.chandhoke/