The Canadian real estate market has long been a cornerstone for investors seeking stable returns and portfolio diversification. As an accredited investor, you gain access to exclusive opportunities, including investments in private real estate platforms. If you’re wondering how to get started, this guide will help you navigate the process effectively.
What Is an Accredited Investor?
Before diving in, let’s clarify who qualifies as an accredited investor in Canada. According to the National Instrument 45-106, accredited investors meet at least one of the following criteria:
- Net Financial Assets: Own financial assets worth over $1,000,000 (excluding real estate), net of related liabilities. Source: CSA – National Instrument 45-106
- Net Assets: Own total net assets exceeding $5,000,000, either alone or with a spouse.
- Income: Have a gross annual income of $200,000 (or $300,000 combined with a spouse) for the last two years, with a reasonable expectation of maintaining the same level of income.
Being accredited allows you to access investment opportunities unavailable to the general public, such as private placements and real estate platforms tailored for accredited investors.
Step 1: Identify Your Investment Goals
As an accredited investor, the real estate market offers a wide range of opportunities. Determine what you want to achieve, for example:
- Income Generation: Look for rental properties that provide steady cash flow.
- Long-Term Appreciation: Invest in growth markets to benefit from property value increases.
- Diversification: Real estate platforms like addy enable you to diversify across asset types and locations.
Step 2: Choose a Canadian Real Estate Platform
Real estate investment platforms like addy, allow investors to access institutional-grade commercial real estate deals including commercial, mixed-use, industrial and development projects to name a few.
Here’s how to join addy as an accredited investor:
- You will need to verify your status as an accredited investor in order to comply with Canadian Securities law. This involves providing financial documentation, such as:
- Recent tax returns
- Investment account statements
- Proof of net worth or income
- Your documents will be reviewed and approved by the Exempt Market Dealer of record for that opportunity
- Once approved, you will be able to invest in the deal with generally no investment limits.
Step 3: Browse Available Opportunities
One of the greatest advantages of being an accredited investor is the ability to diversify across high-quality real estate opportunities.
Consider spreading your investments across:
- Asset Classes: Residential, commercial, industrial, or mixed-use properties.
- Locations: Major cities like Toronto and Vancouver, or emerging markets such as Kelowna and Saint Johns
- Investment Types: Equity deals, debt offerings, home equity loans or real estate funds
Step 5: Monitor and Manage Your Investments
Once your investments are complete, it’s essential to stay informed about their performance. Inside your addy account you’ll be able to track property updates and progress on each investment.
Regularly reviewing your investments ensures you can make timely decisions, whether reinvesting dividends or rebalancing your portfolio.
Benefits of Investing Through Real Estate Platforms
As an accredited investor, the advantages of using platforms like addy include:
- Accessibility: Invest in institutional-grade properties with minimal effort.
- Reduced Barriers: Skip the hassle of direct property ownership while enjoying similar benefits.
