Rather than parking any extra money you may have in a low-interest savings account, there are various investment channels out there to help you build wealth over time. In particular, real estate has long been a lucrative way to invest money. Not only can you create regular cash flow through rent, but you can also take advantage of the appreciation in the value of the property you own.
But buying real estate requires significant capital, which many Canadians simply don’t have available. Fortunately, a lack of sizeable capital doesn’t have to stand in the way of investing in real estate thanks to investment platforms like addy.
Let’s take a closer look at addy to help you decide if this is an opportunity you may want to invest your money in.
Who Is addy?
addy was created by a group of industry professionals and tech-savvy individuals who recognized the difficulty of getting into the real estate market. With home prices through the roof, affordability issues are a real threat to those who otherwise would love to be homeowners or invest in real estate.
In order to solve this issue, addy was created to help even the playing field for Canadians who want to get into real estate without the overwhelming costs and hurdles to overcome to make that happen.
addy is helping people become homeowners through real estate investing with minimal capital, no matter what type of income a person is generating.
The addy App For iOS
The addy mobile app for iOS is available for residents of Alberta, British Columbia, Ontario, and Quebec (must be the age of majority). Users of the app can now get notifications about new investment opportunities directly to their phones from anywhere. This means you’ll never miss out on an opportunity that meets your investment goals.
With the addy app, users will also have access to the newly launched addyverse, a digital version of all the investments you’ve made. Create a name for your digital city, and watch your investments grow as you add to your portfolio.
Main Features of The addy App
- Invest in commercial real estate in Canada for as little as $1
- Get notifications for every new property added to the addy platform (must opt-in for notifications)
- Invest in as many properties as they want
- No fee transactions
- Access to the addyverse
How Does addy Work?
There are 3 simple steps in the addy real estate investment process:
Step 1: addy identifies a real estate investment opportunity.
addy identifies investment opportunities in the real estate market. The real estate acquisitions team behind addy will scan the market and decide which properties would make great investments. Decisions are made only after a rigorous due diligence process takes place.
Step 2: addy splits the investment into equal increments.
The value of the real estate investment is divided into equal parts of $1 each. So, a $600,000 investment, for instance, would be split into 600,000 units, valued at $1 each.
Step 3: addy sells each unit for $1.
Once the real estate investment is equally divided into units, they are each sold for $1 on the addy platform to willing investors. Investors can invest anywhere from $1 to $1,500 per property.
Main Features Of addy’s Online Investment Platform
Investing with addy comes with a few perks, including the following:
- Risk-free. If you’re not happy with your real estate experience at any time, you can get a full refund on your membership.
- No hidden fees. There are no individual fees to invest with addy, such as purchase fees, transaction fees, or promotion fees. Instead, you’ll pay a nominal annual fee of $25 to become a member. And if you’re sure you want to invest with addy for the long haul, there’s a $500 5-year membership that comes with many more investment perks.
- Invest in multiple properties. There’s no limit to the properties available to invest in with addy. You’ll have the same access to real estate investment opportunities as serious and experienced investors with sizeable capital.
- Invest in local properties. Keep your investment close to home by investing in properties in your neighbourhood.
Types Of Properties You Can Invest In With addy
Virtually all real estate property types are available to invest in with addy, and the one you choose will depend on your appetite for risk. To help you decide where to park your capital, addy has 4 different categories of investments:
Core
- Very low risk
- Best for conservative investors
- Generates stable income
- Requires minimal management from owners
- Typically already occupied with long-term tenants
Core Plus
- Low to moderate risk
- Best for investors looking for minimal risk with some opportunity for additional gains
- Increases cash flow through minor upgrades to the property, improvement in property management, or by finding higher-quality tenants
- Typically already occupied by long-term tenants
Value-Add
- Moderate to high risk
- Best for investors comfortable with higher risk to achieve higher gains and willing to wait longer to receive returns
- Has little to no cash flow when first purchased, but has the potential to generate sizeable cash flow after value has been added through upgrades, improved management, better marketing, and additional services
Opportunistic
- High risk
- Best for investors comfortable with complex, high-risk projects that may not bring immediate returns
- Has little to no cash flow when first purchased, but has the potential to generate sizeable cash flow after value has been added, such as developing land or repurposing the use of a building
Learn how to avoid the capital gains tax.
How Much Does It Cost To Invest With addy?
The only cost to invest with addy is the membership fee. There are 2 memberships to choose from, Charter and Believer. Both allow access to all properties, the ability to cancel at any time, and the chance to get details of properties prior to investing.
Charter Membership: $25/Year
- Up to $500 in instant funding
- Unlimited transactions
- Cancel investment within 60 days
Believer Membership: $500/5 Years
- Up to $1,500 in instant funding
- Unlimited transactions
- Cancel investment within 60 days
- Secret perks
The Benefits Of Investing With addy
Why should you invest your money with addy? Here are a few reasons to consider:
- Anyone can invest. Whether you’re a newbie investor with little to invest with or already have a few real estate properties in your investment portfolio, you’ll find addy highly accessible and easy to invest with.
- No management requirements. Unlike traditional real estate investing, there’s no need to manage any properties you have a stake in. Instead, the properties will be professionally managed by a team of experts.
- Pre-vetted properties. Before investing in real estate, it’s essential to scope out the investment. and the best way to ensure this is to properly vet potential properties, which addy does for you.
- Invest in tangible assets. While the stock market and other similar investment vehicles may offer the chance for sizeable returns on investment, the tangible aspect of real estate investing offers the chance to invest in something that you can see, visit, and keep tabs on to ensure it continues to be a fruitful investment.
Learn how to calculate your net worth.
There are 3 simple steps in the addy real estate investment process:
How Does addy Work?
Step 1: addy identifies a real estate investment opportunity.
addy identifies investment opportunities in the real estate market. The real estate acquisitions team behind addy will scan the market and decide which properties would make great investments. Decisions are made only after a rigorous due diligence process takes place.
Step 2: addy splits the investment into equal increments.
The value of the real estate investment is divided into equal parts of $1 each. So, a $600,000 investment, for instance, would be split into 600,000 units, valued at $1 each.
Step 3: addy sells each unit for $1.
Once the real estate investment is equally divided into units, they are each sold for $1 on the addy platform to willing investors. Investors can invest anywhere from $1 to $1,500 per property.
Additional Reading
addy FAQs
Which provinces is addy available in?
Is addy a REIT?
Can I earn money by investing with addy?
- Upon the sale of the property, after which any appreciation of the property will be paid out to you as an investor.
- Through rent collection that is passed onto you as a distribution.
Final Thoughts
Real estate investing has long been a tried and true way to build wealth over time but it can be far too expensive for the average Canadian to get into. addy helps to break down this financial barrier to make real estate investing available to everyone, regardless of how much capital they’re able to commit.
