It’s never been easier to invest in real estate online, with a wealth of platforms available that aim to increase the size of your bank account through this popular asset class.
addy aims to make real estate for everyone by breaking down traditional barriers to investing. We’re not the only ones in the market as another Canadian platform, NexusCrowd, has been around for over five years. While there are some similarities with addy, it’s the differences that are most significant. Here’s how addy and NexusCrowd stack up.
Crowdfunding real estate
Both addy and NexusCrowd are crowdfunding real estate platforms, in which a group of investors can pool their money towards a single investment. This operating mechanism allows more people to get involved in deals that would otherwise be too expensive to invest in on their one.
What’s more, it allows for fractional ownership and lowers the barriers for investors. When you invest in a property with addy, you become one of many Canadians – sometimes over 1,000 – to be a part owner of that property.
Who can invest?
addy and NexusCrowd differ on who can invest in the properties. That’s because NexusCrowd is only open to accredited investors. These are typically individuals or couples who earn a certain substantial amount of money over the course of a year; they must meet one of several different thresholds in order to qualify as accredited investors as defined by Canada.
As such, NexusCrowd is not accessible to the average Canadian.
addy does indeed welcome accredited investors to the platform. They play an important role in topping up issuances and helping average investors potentially earn a profit. However, addy welcomes more than just accredited investors to take part in fractional property ownership..
addy welcomes anyone of legal age in our four unlocked provinces to invest as little as $1 in a property. That minimum makes it most accessible to the average investor, while the maximum amount a nonaccredited investor can put towards a property is capped at $1,500. This is so there’s room for everyone to invest.
Properties
addy currently offers properties in four provinces across Canada: British Columbia, Ontario, Alberta and Quebec. addy does not get involved with single-family homes or individual condo units, but instead focuses on institutional grade commercial real estate. These are often sizable properties that come with high price tags; some examples include an affordable housing development, a smart hotel or even a Starbucks.
NexusCrowd also offers access to commercial real estate investments, with many properties available across Ontario.
Property Management
With both addy and NexusCrowd, those that have the chance to invest aren’t involved in the direct management or maintenance of the property. One of the appeals of addy is that members aren’t required to have a wealth of knowledge about real estate. They also do not need to concern themselves with renovations, utilities or other expenses that comes with owning a property.
When investing with addy, the GP sets forth a plan aimed at earning distributions, which typically involves collecting rent or eventually selling the property (or both). You just have to invest and then wait for their potential returns to make their way to your wallet.
Invest with addy
Through crowdfunding real estate, you can enjoy fractional ownership of a piece of commercial real estate in Canada. The only way to do so is to become a member. What’s more, if you don’t like your investment, we’ll give you your money back with no questions asked.
