How Does addy Work?

Imagine for a moment that you are presented with an opportunity to make an investment – a real estate investment in an amount that suits your budget, your risk tolerance level and your desire to make a meaningful contribution to your community.  As with any investment, there is no guarantee of immediate profit. There is, however, the comfort that comes from knowing that real estate has historically proven to be the most lucrative asset available to everyday investors. addy is revolutionizing the real estate industry by opening doors to all those investors who thought they were blocked from realizing their dreams due to lack of capital and lack of access to quality deals.

condos

The best thing about starting to invest through addy is that you will never be alone.  You will be partnered in your venture with experienced investment professionals who have done the hard work of thoroughly vetting property conditions and history, current income and expenses and, most importantly, the potential for income and appreciation.  All you need is a small amount of investment capital (and we do mean “small”) and an understanding that today’s global economy demands a new paradigm – a new model that reflects our rapidly-changing world. The hard, cold truth is that until recently, real estate investing seemed out of reach for most of us.  The conventional wisdom was that you needed tens or even hundreds of thousands of dollars to even get started. How is someone supposed to raise that kind of capital when you are already paying your own exorbitant rent while still paying off things like student debt? And who has the time to find good properties when you are already working full-time?

At addy, we are all about removing the traditional barriers facing investors.   We are democratizing real estate investing so that anyone can start building a real estate portfolio today. Think of it as crowdfunding for investment properties where we all can share in the returns. Here are the important “Basics”  as to how we make it happen:

  • Fully-vetted properties are listed on our platform. addy has already identified the property and performed rigorous due diligence tasks.
  • addy invests in each of the properties and investment is also made available to our members who are free to stake as little or as much as they want to (up to $1500).   Start with as little as $1 and you can own a share in a property. 
  • addy takes care of all the details.

How do we pick properties?

lake view property

addy invests in properties in up and coming neighbourhoods with solid growth potential – properties we can truly be proud of.  In fact, every tenant in the buildings we acquire can invest in the building — even if it’s only $1. We feel that investor-tenants will take just that much better care of the place they live in if they have a stake in the success of the property.

addy’s team takes care of everything for you, working with top advisors to draft purchase documents and file all paperwork to ensure the correct compliance with securities regulations.

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32 thoughts on “How Does addy Work?

  1. laine trudeau says:

    If I invest some money where is it held, in a trust account? What protection is there for an individual that invests money to ensure that the money is not diverted and stolen? Is IMBY licensed by the government or overseen by the securities commission – what protection from fraud can an investor rely upon when investing in IMBY?

    • Stephen Jagger says:

      Hi Laine,
      Thanks for your questions. When an IMBY member invests in a property, they get shares in that property in exchange for their funds. As we own the property outright at the start, there is no risk of the property not closing. Regarding securities, yes, the appropriate security commissions are aware and kept up to date with transactions on each property. We will work on a longer, more detailed blog post on this topic, but let us know if you have any other questions.
      Thanks,
      Steve

  2. Brad says:

    I presume this is not automatically reinvesting – when you sell the property everyone is cashed out, however what if I can’t wait and need to get out sooner?

    • Stephen Jagger says:

      Hi Brad – yes, when the property is “done” the funds are paid back to IMBY members wallet. They can then choose another investment, move the money from their IMBY wallet back to their bank account or wait til another investment comes up that they choose to invest in.

      If an IMBY member wants to pull their investment out before the end of the investment they can contact IMBY support to see what might be able to be done. It does depend on the specific property as each one is unique.

    • Stephen Jagger says:

      Hi Karen – great news. You will be notified the moment the next property comes onto the platform. From there, you can choose to invest in it.

  3. David Brodie says:

    How long is it until properties are sold and distributions from the sale paid out to investors and what if the property decreases in value by the time of the sale?

  4. Ben says:

    1. Let’s say you invest in $1000, at end of the project you get $1100. How is this 100 determined? is there documents that states you are entitled to 0.01%, for example, of the total profit ? And how transparent is the disclosure, if any ?

    2. The profit you earn, how is that translate to tax? as investment income? will there be tax slip issued?

    • Stephen Jagger says:

      Each property has an Offering Memorandum that breaks down the deal and how it works. Depending on the type of deal will depend on the T slips for CRA and/or capital gains. Check out the last Offering Memorandums here https://www.addyinvest.com/properties/ – and if you have invested in any of them you will see the monthly updates that show up within your portfolio. Let us know if you have any questions.

    • Stephen Jagger says:

      Hi Navtaj,
      Thanks for your message. We don’t have a referral program setup at this moment – but, we would love your referrals. 🙂 Let me know if I can assist with anything.

    • Stephen Jagger says:

      USA residents can create an account on addy. We will send you an email when we are available for you to participate. Thanks for your interest in addy!

  5. Don Suel says:

    If I sign up and decide it’s not for me, am I able to get out?
    Is a person required to or obligated to invest in a given time period?

    • Stephen Jagger says:

      There is an estimated term for each property, so you are locked in for that. When the property is liquidated your returns are deposited into your addy wallet.

  6. Jon says:

    What property management firms do you use to manage Addy properties? Are you – or any of your board of executives – investors, owners or employees in the property management firms you use?
    Is Addy required to report an MER (Management Expense Ratio)?

    • Stephen Jagger says:

      Thanks for the questions Jon. Each property is different. You can see the breakdown of the opportunity, risks, and fees that a General Partner charges within the Offering Memorandum. For property management specifically, details are within the OM including fees involved. As for MER – addy does not charge any fees on the opportunities at this time. In the future we will have an annual membership fee.

  7. John Russell says:

    I noticed in some of your literature that I can invest from $1 to $1,500. Is there some way to invest more than $1,500 in a single property?

    • Katie Kernahan says:

      If you want to invest more than $1,500 you can invest in multiple properties! We have two for sale right now and a third one coming in downtown Vancouver. We restrict the maximum amount to enable as many people as possible to invest in these properties so, at this time, you cannot invest more than $1,500 in a single property. That said, if you are an accredited investor we do have a path for you. Please email hello@addyinvest.com if you qualify as one. You can learn more here: https://www.addyinvest.com/accreditedinvestors/

    • Stephen Jagger says:

      Each property is different, be sure to read the Offering Memorandum for each one as it breaks down the opportunity. But yes, generally leverage is always a part of a properties structure.

  8. Gagan says:

    Is Any one living in Canada can buy property anywhere in Canada…??

    Is it kind on subscription like u have to invest on monthly basis…??
    Is there any time frame for you to sell property…??

    • Stephen Jagger says:

      Right now, BC, AB and ON residents can invest. Your membership is $25/year and give you access to invest in the properties that we bring onto the platform. Each property has a different timeline projection.

  9. Estel Dussault says:

    Hi. I was just wondering if the $1 to 1500 $ investment. Is it a one time payment or you pay that monthly?

    • Stephen Jagger says:

      You can invest up to $1500 per property. It is your choice how much and which property you invest in. 🙂

    • Cameron Rogers says:

      You decide if you want to invest any amount between $1 to $1500 in any given property (addy) offered. You can only invest in a property while it is open for investment. Once sold out it is sold out. This is not an ongoing commitment. Of course you can invest up to $1500 in additional properties as they come up on the platform. Right now the team seems to be shooting for 1 to 2 property offerings per month. Membership growth is massive and the last two offerings proved too small for all the new members, selling out in less than a day. The offering next Tuesday is for a Mission BC apartment build and has a little larger $500,000 equity raise so maybe it will stay open a little longer, but with all the new members coming on, pretty sure it will go quick too.

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