Addy Real Estate
Allowing the Crowd to invest in Real Estate for as little as $1.
– Done to reduce the barrier to entry for all Canadians
– Differentiated from a REIT because you can pick and choose which property to own a portion of, rather than a basket (REIT).
– Each properties ownership/investment opportunity is different; have to read the offering memorandum.
– How is money made? Liquidation Event (property sold) and Distributions (after collecting rent from tenants and then paying taxes and maintenance fees is distributed to addy owners).
– How we choose real estate? In every region that addy purchases property, there will be an investment committee of regional experts that will temporarily join the addy investment committee.
– Addy the real estate company also puts its own money into the deal as well.
– In 2018, 1956 East 13 AVE Vancouver, BC. Proof of concept for fractional real estate ownership through technology. Put this property on the platform, enabling the crowd to invest in the property. Do the people on the internet actually want invest this way? Overwhelming response was yes! 305 investors.
– Took a whole year to reinvent the software and company to make it more efficient and launched a second property (Starbucks Drive thru building).
– Just did a Toronto acquisition which sold out in 72 hours.
– Live on the platform right now is Calgary business park property.
– Advisory board, prior CTO of Uber.
- Why is there a $1500 imposed maximum per a property? Because they want a large amount of people to participate in the deal, instead of large whales dumping large quantities of money. They want as many people as possible to participate in each opportunity.
- What are the fees? Put simply there are currently no fees charged by Addy. They make their money through liquidation events and distributions because they also participate in the investment along with the crowd. They will later have a membership model. Charging a “small membership” fee to have access to the platform and the deals they offer. But as of the moment no fees are charged.
- Will there be leverage on the properties? Yes, the general partner determines the leverage on the property further detailed in the offering memorandum.
- What about liquidity? As of right now, there is no platform or market to trade these securities, but there is a plan in the future
- Are you able to hold these securities in a registered account (RRSP, TFSA)? No, the current structure of each offering doesn’t allow for it.
- When will other province open up? (Currently Alberta, BC, Ontario) We unlock each province based on how many users from that province are currently registered to use the platform. Showing interest by registering for an account even if you can’t invest quite yet.
- 3 Properties coming quickly right after the current Calgary – Vancouver multi family, North Vancouver multi family, Kelowna Town house.
- When you invest in a property you are locked in for a specific time period unable to sell quickly.
- The general partner has say over when the property is sold. If the market is hot before the locked period ends they can still sell.
- The distributions are given to Addy and then addy distributes it to all the owners based on how many shares you own.