The opportunity to participate in real estate investments is exciting and transformative for many Canadians, particularly those who would otherwise face high barriers to entry. However, investing in real estate is not without risk, and as a platform, addy is committed to educating investors about both the rewards and the potential for losses. A few recent conversations in a community Discord channel highlight questions around addy’s role when an investment underperforms or incurs a loss. I’d like to address these points candidly, as transparency is central to our mission.
The Nature of Private Real Estate Investments
Investing in real estate, especially in private offerings, is inherently riskier than traditional stock market investments. Private real estate opportunities—like those available on addy’s platform—can offer high potential returns but also come with the possibility of total losses. Private real estate investments, unlike many public market investments, aren’t insured, and their outcomes are heavily influenced by the market’s cycles and, in some cases, volatile economic conditions. This risk was underscored in recent years, as many pre-development projects across Canada, regardless of the experience level of the investor, issuer, or developer, faced widespread losses.
We are not here to provide financial advice or to guarantee returns. Our mission is to provide access: to make real estate ownership more inclusive and educate individuals about the realities of investing. We are here to allow Canadians to learn about real estate investing first-hand, but we’re also clear about the associated risks.
The Responsibility and Power of Choice
Everyone who participates on addy’s platform is investing as an informed, consenting adult. Each investor is responsible for reading and understanding the offering documents, risk disclosures, and terms of each investment. These documents transparently outline the risks and remind investors that they should only invest what they are prepared to lose. While the decision to invest is empowering, it must come with an understanding of potential losses.
As a platform, addy enables access to real estate investments, but again, it does not offer financial advice. It’s important to remember that the decision to invest lies with each individual. Investing is inherently risky, and not every investment will yield a positive return. Our platform provides the tools and transparency needed for investors to conduct their own due diligence, assess risks, and make informed choices.
I want to address a crucial point: no one at addy is conducting due diligence on behalf of investors. We empower you with information, but the responsibility to assess each opportunity is ultimately yours. Each person must understand and accept the possibility of a total loss when investing, and that risk tolerance is a personal measure that varies widely among investors.
It’s important to recognize that not every investor will be suited to the higher risk profile associated with private investments. If the idea of a potential loss, even a total one, is not acceptable to an investor, then private real estate may not be the right fit. We encourage all investors to consider their own financial situation, risk tolerance, and investment goals carefully.
Learning and Growing As a Community of Investors
One of addy’s core values is curiosity and that is why we strive to provide a learning environment for our community. This commitment to transparency means that investors have access to all available data on our platform to conduct thorough due diligence. In our town hall meetings and community Discord Server, we actively discuss successes and challenges to foster a more robust understanding of real estate investing. Our goal is to cultivate well-informed investors who can navigate the ups and downs of this asset class.
While we understand that losses can be disappointing, they also serve as opportunities to refine our investment approach and broaden our financial acumen. For those interested in more detailed conversations about their investment journey, we’re always open to hearing feedback and discussing ways we can further support our community’s growth and education.
Moving Forward Together
As we continue to grow, we remain committed to our mission of providing access to real estate investment opportunities. For those who are still eager to learn more about the nuances of private investments, we are here to support you with the resources and community to make informed decisions. And, of course, we’ll continue to evolve our processes to create a more informed and educated investing community. In fact, you can read a previous article I wrote about recent changes to the platform here.
addy exists to provide an accessible, transparent platform for real estate investment, enabling you to learn, engage, and make informed decisions. Remember, invest responsibly, invest wisely, and invest only what you can afford to lose. That’s the cornerstone of a sound investment strategy, one that we encourage every member of our community to embrace.
Investing carries both opportunity and risk, and we are proud to support Canadians who choose to embark on this journey with us. Thank you for your trust in addy, and let’s continue to learn and grow together as we navigate the dynamic world of real estate investing.
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