The ever-growing world of online real estate investments in Canada and the United States means there are plenty of opportunities to make some passive income. Finding the right platform, however, isn’t necessarily easy.
addy believes in real estate for everyone, making investing in institutional grade commercial real estate simple and accessible. Crowdfunding real estate with addy gives investment access to average Canadians so they can take part in fractional real estate and actually know the physical property they are buying into.
addy isn’t the only real estate investment platform in the neighbourhood; another popular option is Roofstock. We’ll take a look at what they offer and how they compare and contrast with addy.
What is Roofstock?
Roofstock is a U.S.-based company offering real estate investment opportunities where people can buy and sell houses. They welcome both new investors and seasoned professionals to their marketplace. Properties are listed and a wealth of information is included so that anyone can make an informed decision.
These investments are meant to expand portfolios and earn passive income. These are not meant to be homes to live in. Listed properties come with inspection details, tenant history, 3-D tours, floor plans, property management options and much more useful data to assist in virtual, online real estate transactions.
This is a fairly big departure from what addy does, which is offer fractional real estate investments through crowdfunding. However, the goal is the same for both platforms: earn some passive income through real estate.
Property types
Roofstock focuses on single-family homes. This is decidedly different from addy, which instead deals in institutional grade commercial real estate.
As it becomes increasingly difficult for the average Canadian to buy a home with supply dropping and prices skyrocketing, addy believes competing with potential homebuyers puts them at a huge disadvantage. addy focuses on CRE properties that come with massive price tags; these previously inaccessible investments now offer new means to passive income without hurting those individuals and families looking for a home.
Property locations
Roofstock offers properties in 19 states, including North Carolina, Michigan, Arizona and New Jersey. Roofstock is designed for those out of the local markets to invest as all the information and resources are available online. International investors may have opportunities to purchase property upon contacting Roofstock directly.
addy meanwhile, operates in Canada, where members can invest in properties in Alberta, Ontario, British Columbia and the recently unlocked province of Quebec. Only those of legal age in the four provinces can invest in an addy property.
Investment Process
Both Roofstock and addy aim to simplify the process of real estate investment, but “simplify” can be somewhat relative. Purchasing a property is often a fairly complex and lengthy process, so in a sense Roofstock simplifies it.
However you still need to read up on a fair amount of material, potentially acquire lender pre-approval unless you’re paying cash, make an offer that’s accepted and stay informed all along the way. Roofstock welcomes those new to real estate investing, but you will need a bit of money and time to achieve success. Once you close, you’ll start earning rental income while your property manager does the work.
Buyers pay the greater of $500 or 0.5% of the purchase price as a fee as well.
Crowdfunding real estate with addy
addy aims to break down the barriers to real estate investment by allowing members to crowdfund investments. addy enters into a deal with a General Partner as a Limited Partner, where the GP does all the heavy lifting and management.
addy enables members to invest anywhere from $1 to $1,500 into a particular property; there are no associated fees. Each listing comes with an Offering Memorandum as well as a projected timetable on potential returns. We also provide news, facts and anecdotes about the area so that members can make an informed decision and take pride in their investment.
Only members can invest. Sign up today, review investments and hopefully earn some passive income.
