The days of being able to afford a home on a single income are gone.
Quantitative easing is driving down the value of money, mortgage stress tests are making it more difficult to qualify, and stratospheric property prices in most major markets have essentially locked the vast majority of Canadians out of the real estate market.
addy exists to level the playing field when it comes to investing in real estate. Accredited investors can help us.
How do accredited investors fit into the addy community?
We are not here to help accredited investors with their deal flow. However, we do see a way for accredited investors to assist addy in eliminating barriers to entry so that everyone can invest in Canadian real estate.
What do we mean?
Closing Bigger Deals
Many of the deals we look at usually have minimum investment requirements that are higher than the buying power of the addy crowd. We partner with accredited investors to top up an issuance so that we can close on the deal vs turning down the opportunity.
Increased Returns For All
Increasing the amount of an issuance raises the estimated returns for all as the costs associated with putting a deal together are generally a flat rate which can be spread amongst a larger group.
What is an accredited investor?
- an individual who beneficially owns financial assets (which term excludes real estate) having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000; or
- an individual who, either alone or with a spouse, beneficially owns financial assets (which term excludes real estate) having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1,000,000; or
- an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; or
- an individual who, either alone or with a spouse, has net assets that exceed $5,000,000.