The world of online real estate investment affords plenty of opportunities for those looking to make some passive income, but not every platform is created equal. CrowdStreet has established itself as a major player in the world of crowdfunding real estate, but how does it compare to and differ from addy? And which one is right for you? Let’s take a look.
Crowdfunding real estate
Both addy and CrowdStreet operate on the idea of crowdfunding real estate, where individuals invest together in order to take part ownership in a property they otherwise couldn’t own alone. Crowdfunding real estate involves spreading out the cost through multiple parties and opening up real estate opportunities previously unavailable to many investors.
Property type
addy and CrowdStreet focus on commercial real estate, a sector that most individuals can’t afford to invest in on their own, and many others don’t even realize is ripe with opportunity.
Among addy’s institutional grade commercial real estate properties are apartment buildings, hotels and even rural parkland. addy does not involve itself in single family homes or condos; there is no competition with families and young generations of hopeful property owners seeking out a home.
Similarly, CrowdStreet investors and addy members are not involved in the direct management of the properties. They are passive investors, not landlords or managers.
Property location
The biggest difference between addy and CrowdStreet is the countries they currently operate within. addy is a Vancouver-based technology company that offers properties across Canada, with options having been available in Ontario, Alberta and British Columbia. The latest property is a boutique hotel in Montreal, the first such property in Quebec.
CrowdStreet, meanwhile, only offers properties in the United States.
REIT
A real estate investment trust typically manages or operates investments, with investors having no control over the specific properties they’re invested in. addy and CrowdStreet are not REITs. addy members know the exact address and makeup of the property; they can even take a look at the property in person if they’re in the neighborhood, taking pride in their ownership.
Cost
Membership
You can become an addy Charter Member for $25 for one year or a Believer for $500 for five years. addy welcomes all those of age in their respective provinces in British Columbia, Alberta, Ontario and Quebec, regardless of their financial background or real estate experience. addy also offers a membership avenue for accredited investors.
CrowdStreet, meanwhile, only welcomes accredited investors to its marketplace at this time.
Fees
For addy members, 100% of their investment going into the property; there are no extra fees attached. With CrowdStreet, fees may come with particular investments in order to gain access. CrowdStreet investors can opt into advice from CrowdStreet advisors, which also comes with associated fees.
Returns
addy members invest in a specific property, and once a member invests, their work is done. If the proposed plan is successfully realized, a potential return on investment can be earned. Members are granted a forecast timetable concerning when and what the return could be. Some opportunistic investments may take a few years according to predictions, while others may offer a more immediate return.
CrowdStreet pays out their investors depending on the type of investment, and may be when profits are earned or a property is sold.
addy vs. Crowdstreet
While there are some similarities, there are key differences between crowdfunding real estate platforms addy and CrowdStreet. Most notably, only U.S. accredited investors have access to CrowdStreet while addy believes in real estate for all, offering opportunities to those of age in Canada for as little as $1.
