With myriad ways to invest in real estate, Canadians looking to earn passive income have more options than ever before. While addy seeks to break down real estate barriers by making investing simple and accessible through crowdfunding, other platforms use different means to allow people to invest.
One such company is goPeer, a Canadian lending site that matches up investors and borrowers. We’ll take a look at how they work and the ways in which they are similar, and different, to addy.
What is goPeer?
goPeer is a platform connecting those Canadians looking to borrow money with those Canadians looking to invest. For investors, they can help fund projects and earn interest on the money they loan. Borrowers, meanwhile, can find up to $25,000 in loans quickly and securely in order for their endeavor.
addy and goPeer similarities
Passive income
Both platforms offer the average Canadian a chance to diversify their portfolio and earn some passive income. You don’t need a wealth of investment experience, financial knowledge or a large bank account to invest.
With addy, members can invest as little as $1 towards a property. Similarly, goPeer allows a minimum investment of $10.
What’s more, both platforms offer investments that are illiquid, and the investment offer carries a term of at least a couple years. That means that once you invest, you cannot access that money. While goPeer states terms typically last from three to five years, addy’s timetable on potential return varies. Properties like Willowglen and Starbucks have seen four quarterly distributions; other properties, like the affordable housing development at 405 Main St. in Hamilton, forecast annual returns in perpetuity.
Investments
Both addy and goPeer are Canadian companies with Canadian investments. While goPeer provides Canadian borrowers with money directly from Canadian investors, addy focuses on institutional grade commercial real estate properties in Canada with investors coming from four four provinces: Ontario, Alberta, Quebec and B.C.
Unlike a REIT, addy members know exactly what properties they are investing in. They can even physically visit the property and in the case of the hotel addy in Montreal, book a night to stay there.
addy and goPeer differences
Crowdfunding
While goPeer operates as a go-between for investors and borrows, addy uses crowdfunding to make real estate accessible for all. Crowdfunding allows the average Canadian to invest an amount they feel comfortable with. By spreading out the cost among more people, the risk for each investor is also lowered.
Unlike traditional crowdfunding platforms, however, there is no risk of an addy property not being fully funded. Members can invest assured their money goes directly to the property.
Costs and fees
There are no hidden or extra fees when you invest with addy. Every dollar you invest goes right into the property. addy makes money through memberships, which are required to invest in any opportunity on the site. A Charter Membership costs $25 for one year; while you need to be a member to invest, you do not need to stay a member to earn any returns that may come down the road after your investment.
While a goPeer membership is free, investors are assessed a 1.5% annual servicing fee deducted from loan repayments.
Invest with addy
addy allows the average Canadian a chance to diversify their portfolio and earn passive income by investing in commercial real estate. The only way to invest is to become a member; signup is quick and easy and our Instant Funds feature allows you to invest right away if there is an available property you like.
