Once reserved for those with deep pockets and plenty of business experience, now just about anyone can get involved in commercial real estate investing. A variety of platforms and companies have forged ahead to remove the barriers to such opportunities, most notably using crowdfunding to spread the cost, as well as the risk, across multiple individuals.
addy believes in real estate for everyone, which is why we welcome all those of age of majority in Alberta, Ontario, B.C. and Quebec to invest as little as $1 in properties. Cadre, meanwhile, operates in the U.S. and has some similarities and key differences with addy. Here’s how they stack up and whether addy is truly a version of Cadre for Canada.
What is Cadre?
Cadre is a fintech company that allows for commercial real estate investments in the United States. This includes office, multifamily and retail assets, similar to investments addy seeks out. What’s more, both addy and Cadre look for value-driven properties, where upgrading specific components of a property can yield financial gains in the months and even years to come if done efficiently and smartly.
One of the biggest differences between addy and Cadre is in terms of who can invest. Cadre only allows for accredited investors to take part, with offerings directed solely to those in the United States. Typically, an accredited investor in the U.S. is someone who has a realized income over at least US$200,000.
While addy does have a membership for accredited investors, our belief in real estate for everyone means that we welcome non-academic investors as well.
Cadre focuses on value-add properties, which typically present a medium to high level of risk. These properties are in U.S. cities where they’ve identified growth opportunities. While some investments may be liquid and could be sold on a secondary market, Cadre does not guarantee liquidity.
Fees vary with Cadre depending on the investment, but they may include a one-time 3% commitment fee, annual admin fee of 0.5% and an annual asset management fee of 1.5%.
How addy works
addy uses crowdfunding to help people achieve the dream of property ownership. Those of age in four provinces across Canada (ON, BC, AB, QC) can sign up for a membership to start investing anywhere from $1 to $1,500 in a property. This investment range is set in place to allow as many people as possible a chance to invest. addy is not designed to only support the super-rich.
Investment objectives and associated risks are generally divided into four categories: core, core-plus, value-add and opportunities. addy seeks out all four of these opportunities; Cadre mainly looks for value-add models.
The cost of a Charter membership is only $25/year; addy also offers a referral program where you and a friend can both earn $25 in funds for each successful referral. What’s more, every dollar you invest goes directly to your property; there are no extra associated fees.
With addy, you don’t need a wealth of money or real estate knowledge to invest. Simply sign up, fund your wallet, start investing, and sit back and wait on potential returns.