The COVID-19 pandemic has caused many problems; people have lost their jobs, their source of income, schools have closed, etc. The said reasons are some of the barriers that prevented people from entering into real estate investment opportunities. Also, the pandemic has cost the investors lower rental income because of the transaction fees people have to cater to because of the rising prices of different goods essential in everyday lives.
This article aims to tackle how you can get into the real estate industry with a minimum investment of $1. So stay tuned as we tackle how a new prop-tech start-up company will get you into real estate investing and help you with your investment decisions.
What is addy?
addy is an online investment platform that is based in Vancouver, BC. The mission is to enable Canadians and every human to invest in real estate for an amount that fits their budget without thinking about the costs it brings when investing in real estate properties that require life-altering decisions.
The company offers a chance for everyone to get into real estate. It may seem that it is out of reach for most people because of the high barrier to entry and workload involved by many; addy aims to change the game by making it more affordable – offering different institutional-grade commercial real estate investment opportunities. You can buy shares for as little as $1 and up to $1500.
Getting into the real estate market requires knowledge of the market environment, hot areas, how real estate works, and so much more – no more since you have a direct link with addy.
But unfortunately, in the current years, people are primarily investing in cryptocurrencies without studying them; some are losing all their money, buying coins with no value. But in real estate investing, since there are finite land sources in this world, where could you go wrong? Of course, there are challenges, but addy removes the barriers for you.
How does addy work?
You might be wondering how addy works; well, it’s not as easy as one-two-three. First, it takes time for listings to get vetted, process all documents and get accepted.
- They start with identifying a real estate investment opportunity. Then, the diligence documents and investment decisions are shouldered and made collectively by the acquisitions team and an investment committee.
- addy will divide the investment into increments valued at $1 and list them on the platform
- The increments can be referred to as units sold by addy, which are listed on the platform, wherein investors can buy from $1 to $1,500.
The evolving technology helps addy to accomplish this goal – opening up an opportunity for everyone, with experience or not.
Who can invest with addy?
“Everyone is Welcome”
As much as addy wants to accommodate the demands, they are currently offering their services to residents of the following provinces:
- British Columbia
If you’re not living in the areas listed, you may opt to create an account so that addy will notify you of future updates and when your area is unlocked.
Step-by-Step to Invest with addy
Your curiosity in real estate investments will lead you to something great, and addy can get you there. The following will teach you how to invest with addy in just a few simple steps:
- First, create an account by clicking this link.
- After creating your account, there will be an email and profile verification.
- Set up your account by providing your legal name that would appear on legal and tax documents.
- Add money to your wallet by linking your bank account. It can take up to 7 business days to fund your wallet.
- Once your profile is approved, click on Properties for Sale and see the listed properties crowdfunded by different members. The listings will include the estimated distributions and the estimated investment returns in the description per property.
- The Offering Memorandum will include all of the details on the investment opportunity.
- Once you have decided what to invest in, type in how many shares you want to invest in and click “buy now.”
addy Referral Program
Members have been requesting a referral program, so addy answered their calls. The addy refer-a-friend program will enable members to wallet credit and unlock certain prizes based on how many friends are referred. You will earn wallet credit if you refer a friend and they become an addy member; $25 will be added to your wallet and your friend’s.
- Five addy referrals will give you a $10 Starbucks gift card bonus.
- Fifty addy referrals will give you a PS5 console plus the $1250 in your addy wallet (limited availability)
- One hundred addy referrals will give you a Macbook Pro
How much does addy cost?
addy is a membership-driven platform. A prospect member could choose from:
- Charter membership costs a $25 annual membership fee. This would give you access to all addy properties and the addy community.
- Believer membership that costs $500/5 years. This would give you access to a Believer-only online community.
As you become a member, you will and can invest in properties as they become available on the platform – and they sell out fast!. All the properties are listed on the website.
There are no hidden fees, transaction fees, and acquisition fees.
What are the risks of investing with addy?
When using the addy platform, every member will be asked for email verification, profile verification that includes a requirement of a government ID photo, and a verified linked bank account under the same name.
In every investment a person should make, there is a choice to seek professional advice if unsure about the investment decisions. Investing with addy will not guarantee returns since it is all based on the current market conditions linked with the stock market prices since they reflect real estate markets.
addy is like any other investment; there are no guarantees that it is safe. addy invests alongside its members in every deal, so they share the risks and rewards alongside investors.
Every transaction will give you about 60 days if you change your mind. This is addy’s sixty-day cancellation policy. Also, addy may refund the membership you choose if you are not satisfied with the company’s products and services at any time.
How is addy different from a REIT?
addy, unlike a REIT (real estate investment trust), is focused on creating investment opportunities with identifiable properties (e.g. you know the address). The properties you invest in are ones you can drive by and take a look at. You are not investing in a collection of unknown properties – these are properties YOU PICK. Also, we are not a broker; we invest together. addy maintains ownership of each property we sell on the platform, so our interests are always aligned.
How is income from addy taxed?
Since addy is an online investment platform, you have to include your income or loss from the platform, and this money will contribute to your taxes. Therefore, you cannot invest with your TFSA, but you can contribute to your RRSP to offset the gains from your investments.
Every member can purchase shares for as little as $1 per unit, to a maximum of $1500 per property.
Each property sold is usually done as part of its exit strategy, but it differs for every investor and results in capital gains or losses.
Moreover, investment incomes are considered ordinary income, so they will generally be taxed according to your standard income tax rate.
What’s the final addy review?
People have different choices in their lives, deciding whether to take it or not. Some would instead not care, but some would get out of their comfort zone and try something new. This is what it’s like in the real estate industry – people who love being a landlord and those who hate being bothered by people who have complaints.
Now you can have the best of both worlds with addy. First, you can believe this is truly passive income since it can be quite lucrative to be part of a successful project; imagine investing in a multi-million property even if you don’t have that much cash. It’s almost as if it’s too good to be true, but the thing is, it’s real, and it’s there, waiting for you to take the initiative and invest.
More properties have been added, and some are selling within hours. So if you want to invest in Canadian real estate but don’t want to deal with saving for a large down payment, addy might be the answer you have been searching for all this time.
The minimum investment you can throw in is just $1; why don’t you try something more extensive? An opportunity is opening up for you. You have to take it and do something about it. It would be better to have your money on something that will lead you to progress rather than let it sit on your wallets with nothing to do.