The real estate sector has not stopped growing. The success and notable growth of this sector may interest entrepreneurs, and perhaps for this reason you are thinking of entering this market.
And if you have in mind to undertake in this area, perhaps joining a major real estate franchise is the most convenient, so that it offers you the business comforts to start with everything you need. But, although franchisors offer a complete information package, you may have some questions such as can you open a real estate franchise without investment?
Aspects to consider
The truth is that to join any franchise, you must make a minimum investment. This is understood if we review the very concept of franchise.
According to this notion, it is a contract between two parties, in which one, called the franchisor, assigns the rights to use a trademark to the other party, called the franchisee.
Together with the brand, the franchisee can make use of the entire commercial system of the franchise, from the operation channels to the training to learn how to use them properly.
This use of the franchise system is not free, but must be paid by the franchisee as royalties established in a legal contract.
Types of franchises
There are luxury real estate franchises, which are highly expensive. You can also opt for a traditional real estate franchise. And even new models that take advantage of the advancement of ICTs.
Similarly, whatever the model chosen, there are various advantages and limits when deciding to enter the real estate market with a franchise.
Characteristics of a real estate franchise
Although it is true that on paper it is not possible to open a real estate franchise without investment, the reality is very different. Currently, belonging to a real estate franchise entails certain benefits that can make the difference between success or failure, which will help you more quickly or slowly to recover that investment or to pay a possible credit requested to join it.
And be careful, because there is not only the initial investment, but each franchise model has major and minor fees and royalties, as well as conditions that can help you afford the payment to join them. Here are some options that can help you!
To open a real estate through a franchise model without initial income, you can ask the franchise about the possibility of making the canon payment in parts, so that paying the initial amount is more bearable by having your own income as a franchisee.
Remember that, although in principle you should invest in the franchise, in the medium and long term this will mean a reduction in costs. The support of the franchise itself will allow you to save substantially on expenses, so you will have greater benefits from the first moment.
The bank is always a resource for any business model. For him to trust you, you will need to convince him about the viability of the project. The franchise can provide you with a good business plan, which will help you obtain this credit.
In addition, you can consult entities that already have personalized plans for franchises. In fact, Banco Sabadell and BBVA have lines of business for this type of operation that include very interesting conditions.
ICO lines of credit and government aid offer you very favorable conditions to start a business model. This is done by the administrations and governments to favor the generation of employment and boost the economy in the different areas and sectors.
There are very interesting aids and ICO credits are designed exclusively for business activity. Getting information about it is as simple as visiting your local Business Association or the provincial Chamber of Commerce.
●Partner with an investor
Seeking the association with an investor can give you the financial support you need. In addition, new technologies currently include technological finance companies that were born with the objective of participatory financing. They are called fintech.
If new technologies do not offer you much confidence, you can always resort to patronage. This practice has existed since the 27th century BC, so its solidity is already more than proven.
The most current version is the so-called crowdfunding, or micro patronage, which is a way of collective financing that is governed by collaborative operation. That is, independently, lenders contribute a certain amount of money to a project, cause and company. In return, they receive some benefit or reward.
In addition, you can also resort to the figure of crowdlending, which is financing between individuals and companies. The loan
Home insurance provides various solutions when it comes to protecting a house for rent, but also as a property. For a long time, insurers have been launching these policies on the market that are easily adapted to both renters and owners.
A home that is for rent can have home rental insurance that, although not mandatory, is recommended. Why? Because it will allow us to have a series of precautions to cover the damages of the house that has been rented.
Home insurance is the best option for both parties. In this way, in an unforeseen situation, it is possible to protect yourself from extra expense. Hence the importance of knowing what options are available for this type of policy.
types of home insurance
Within the world of insurance policies for housing rental cases, the most popular are rental non-payment insurance. This type of contract allows shielding the payment of the corresponding monthly payment.
It is a guarantee to prevent landlords from receiving rent from tenants if they breach the contract.
You will be interested to know that, according to the Spanish Rental Insurance Observatory, one in four rental contracts is signed with non-payment insurance to prevent possible problems in the future.
● It may interest you: How to rent a flat safely?
For the owners of a rented home, any damage that occurs within it, generates an additional cost of their initial investment. But it is important to note that, although the owner would be responsible for signing a housing policy, depending on the damage, the tenants must be responsible for the damage caused according to what has been agreed in the lease.
If there is a policy, the insurer will bear the costs in full or reduce the costs of the repair for the landlord or tenant (depending on the nature of the breakdown).
So well, if you are the owner of a rented home or you are a tenant, you will be interested in knowing some of the characteristics of the different home insurance policies:
1. Multi-risk home insurance: Homeowner
You must insure the value of the fixed elements of the home (walls, electrical installation, kitchen furniture, bathrooms, doors, etc.) according to their reconstruction value, not their market value. In this way you will have coverage in case of: fire, water damage, breakage and other damage, and above all, civil liability that may be required of you as the owner of the home (for example, in a fire caused by the electrical installation of the home you will be responsible for the damages that occur to neighbors, community and property owned by the tenant).
2. Home multi-risk insurance: Home tenant
You must insure your property, appliances, trousseau, furniture, etc.
With this rental home insurance you will have coverage for any loss that is not caused by the fixed elements of the home (example: a surge in voltage or abnormal current causes damage to appliances, robbery on the street or theft inside the the house) and you will also have your civil liability as a tenant included (for example, you forget to turn off a tap and the neighbor's house floods)
3. Income protection insurance
This type of rental home insurance has become the most viable and perhaps most necessary option for landlords, since it not only protects in the event of non-payment by tenants, but also offers extensive legal defense coverage. We can find in this policy coverage designed to give owners greater peace of mind in the face of the possible risks that may arise in any situation of non-payment.
In addition, rent protection insurance guarantees compensation for acts of vandalism caused by tenants.
In this policy, the person in charge of contracting this insurance will be the landlord, while the tenant must meet a series of requirements that vary depending on the existing lease.
Finally, remember that if you are thinking of renting your property, do not hesitate to contact us! At PRIMER GROUP Centroval real estate we take care of all this and more, and we will advise you throughout the process.