With hidden fees, complex jargon and a general feeling of exclusivity, investing in real estate can be tough. For many millennials, barriers to property ownership may feel insurmountable, as if the game is simply stacked against you.
Online real estate investment should not only be convenient, but accessible to everyone, regardless of their cultural background, financial experience or educational history. That belief forms the foundation of addy.
The addy alternative
addy allows for simple online investment for all of its members through crowdfunding real estate. Investing with addy doesn’t require a ton of money upfront or market expertise. Instead, addy’s acquisition team seeks out investment opportunities and makes them available to members. The transparent process allows members to learn about the property, potential plans put forth by the General Partner, and an estimated return.
Members can invest as little as $1 or as much as $1,500 so that they can feel comfortable and confident.
Membership benefits
There are two main membership options available: you can opt to join addy for $25 per year as a Charter member or for $500 for five years as a Believer. addy offers a third option to accredited investors. Firstly, it’s worth noting that addy offers a money-back guarantee if you’re not satisfied with your membership. Secondly, there are no hidden fees associated with the membership or any potential investment; all the money you put into a property goes directly to that property. What’s more, addy extends the window for cancellation to its members up to 60 days instead of the standard two as required by the securities commission.
In terms of properties, members are alerted ahead of time about forthcoming investments, giving them a chance to learn about the area and a forecast return. It’s worth reading up on properties early because when they drop – and you’ll know the exact time and date – they tend to sell out quickly.
Opportunity types
addy makes online real estate investment easy by dividing opportunities into four different categories. Core and Core-Plus are the more conservative investments. Core properties tend to require little management and are usually occupied by long-term tenants, while Core-Plus opportunities often call for some minor property upgrades.
Value-Add investments, meanwhile, offer moderate to high risk: there is likely little or no cash flow initially, but the property can significantly increase cash flow with upgrades, such as managerial or physical changes. Lastly, Opportunistic investments present high risk and high reward with a potential return on investment possibly taking three years or longer. It’s important to note that addy does not offer financial advice or guidance; always consult a professional to assist in investing. There is no obligation to invest in a particular property.
addy properties
As of this writing, addy has offered 19 properties that members were able to invest in online. Here are a couple recent highlights.
231 Bay Street – Hamilton
This popular investment with a Value-Add opportunity is located in the heart of Hamilton, right near a comprehensive revitalization project by the city. The property is located just across the street from the Tiffany Barton Lands that looks to welcome green space, recreation outlets and live-work buildings with a vast production and training center in years to come.
St.George Place – North Vancouver
This luxury apartment building in B.C. presented a Core opportunity to members; 22 units were all fully occupied and featured modern appliances in a convenient location. This property sold out quickly and addy continues to offer updates to all members on the progress of the plan.
Invest online with addy
Only as an addy member can you get access to these crowdfunded online investment opportunities. Signup takes a few minutes and requires a piece of government I.D; you can quickly fund your wallet using the Instant Funds feature to start investing online in Canadian real estate right away.
