This is a question we get asked all the time, and the short answer is:
“No addy is not a REIT.”
addy, unlike a REIT 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.
Why is knowing the address important?
British Columbia real estate prices and growth rates are clearly different than that of, for example, Manitoba. However, real estate prices and growth rates in Burnaby are also different than those of VIctoria. So, people who want to maintain their purchasing power in Victoria should invest a portion of their portfolio in properties in Victoria.
The highly respected investor, Peter Lynch, was a strong advocate of “Invest in what you know”. People know their communities better than anyone. People know which neighbourhood is going to grow and why because they actually live there, have spent time there, or they just feel good about that city or neighbourhood. Unfortunately, a typical REIT does not provide the option to invest in these types of opportunities. At addy, we want people to be able to invest in the communities they know and love.
What is a REIT?
According to Investopedia, a real estate investment trust (REIT) is a company owning and typically operating real estate which generates income. Most REITs specialize in a specific real estate sector, focusing their time, energy, and funding on that particular segment of the entire real estate horizon. However, diversified and specialty REITs often hold different types of properties in their portfolios. Properties included in a REIT portfolio may include apartment complexes, data centers, health care facilities, hotels, infrastructure—in the form of fiber cables, cell towers, and energy pipelines—office buildings, retail centers, self-storage, timberland, and warehouses. But the reality is, you don’t truly know what you’re buying – it’s a basket of properties.
What is addy?
addy allows anyone to invest in real estate for as little as $1 in addresses they know.
We believe everyone should have the opportunity to become a homeowner through access to real estate investing at any amount, regardless of income, age, or other conflicts.
What makes addy unique?
You invest alongside us and your community in properties you know have been pre-vetted by our real estate experts with decades of experience. Our regional and global investment committees review and approve each property before it is listed, then we buy the property outright before selling shares in it, so we share in the risks and the benefits.
We also remove the unexpected headaches that come with owning property. From contracts to closing, from being a landlord to juggling maintenance—we handle all the details, so owners can just pick an address and go.
You can learn more about addy here.