Last Updated on May 31, 2021 by Yetty Akindele
For Canadians who are interested in real estate crowdfunding, the question of if there is a Canadian version of Fundrise (a notable real estate crowdfunding platform in America) usually arises. The good news is that while there is no Fundrise Canada, we do have addyinvest.com, a relatively new prop-tech based out of Vancouver, Canadas’ hub of real estate.
To put it simply, crowdfunding gives an opportunity for small-time investors to own parts of big projects. It is also known as equity crowdsourcing.
How does addyinvest work?
In the case of addy, the company identifies a real estate opportunity that is vetted by a team of experts and goes through a very thorough due diligence process. If approved, addy divides the investment into equal parts valued at $1 (for example, a $500,000 opportunity would be divided up into 500,000 units). addy then lists the opportunity on its platform and you can decide how much you want to invest from $1 to $1500 per property. You don’t need to deal with any management of the building – this is all taken care of for you. Although never guaranteed, you have the opportunity to generate passive income from any excess cash flow generated from rents and/or the eventual sale of the building.
This is what real estate crowdfunding entails with addy.
Real estate crowdfunding platforms usually give investors a piece of property for a $1000, however, addy will give you a piece for as little as $1
Undoubtedly, real estate has proven time and again to be a good source of creating wealth (good stability). This makes real estate crowdfunding of interest to lovers of passive income since it is an excellent way to generate some income while investing just a little amount of money.
addy has made the impossible now possible… by offering investment amounts starting at $1 and up to a maximum of $1500 per property! Talk about a total demolition of the monetary barrier to entry…lol. Additionally, you do not need to be an accredited investor to invest with addy unlike most other real estate crowdfunding platforms.
What are the benefits of real estate crowdfunding?
- It gives an opportunity for small-time investors to participate in funding an investment by a pooling of resources often for a diverse range of investments.
- Individual investors do not need market specializations or expertise since all due diligence is carried out by the platform’s facilitators
- It is an excellent way to generate passive income. As a participant of a real estate crowdfunding investment, you are partaking more with a hands-off approach. You are not involved in property management or having to deal with tenants. However, your money invested keeps working for you since you are expected to get a return on investment.
- It allows investors to find the level of risk they are willing to bear. Take for instance addy offers investment amount ranging from $1 to $1500. Small-time investors can choose their comfortable risk level themselves by deciding on the amount they want to invest.
- A diversification of investment portfolio is one method used by investors in wealth creation. Asides from stocks, crypto, gold, just to mention a few, crowdfunding platforms offer an excellent way to diversify your portfolio. You can invest in top-quality real estate properties without making a life-altering sacrifice. For instance, that comes with a large down payment for example.
Benefits of Investing with addy
While investing with addy offers all of the benefits of investing in real estate crowdfunding as stated above, addy still stands out from other crowdfunding platforms in the following ways;
- addy is not in the business of making the rich richer. Hence, in line with their tagline of ‘real estate for everyone’, they have set the minimum amount to buy a share at $1 and a maximum of $1500.
- addy is a co-owner of all properties listed on the platform. This implies that addy shares investment risk with you. So, you can rest assured knowing that you are investing on a crowdfunding platform where the facilitators are also investors.
- addy charges no transaction fees, no commissions, no property acquisition fees, no withdrawal fees, no promotion fees, no lifts on the property … nothing. You only need to sign up one of their membership plans. Additionally, addy offers a 100% money-back guarantee on their membership plan if you are not satisfied with their services.
- You do not need to be an accredited investor to invest with addy. I found this to be a major restriction on most other real estate crowdfunding platforms. This is a bonus for addy in my opinion!
So, if you are on the lookout for Fundrise in Canada, addyinvest is very much closely related. It offers a low-cost way to invest in quality real estate properties using smart technology.