Investing

Crowd funding real estate

  • Last Updated:
  • Jul 7th, 2021 8:49 pm
[OP]
Newbie
Apr 20, 2009
86 posts
15 upvotes
Vancouver

Crowd funding real estate

Been hearing more about companies like Addy and BuyProperly. Just wondering if anyone can share their experience investing with them.

Is the process clear and transparent?
Thoughts on the property they pitched?
Do you feel like your investment is safe?
13 replies
Deal Fanatic
Nov 9, 2013
5486 posts
6705 upvotes
Edmonton, AB
I tried to sign up for Addy a year ago but because I was based in AB and most properties are based in BC they told me I couldn’t invest, unless it was an AB property.

Since then one AB property came to market but the cap rate was only 4% (excluding fees, I can’t recall what they were) so I passed.
Buy quality. Keep calm and go long
Deal Fanatic
May 22, 2003
9057 posts
6033 upvotes
Vancouver
Any reason why you would do this instead of a REIT?
Sr. Member
Aug 16, 2013
621 posts
305 upvotes
Toronto
I have invested in 2 AddyInvest properties. I am a new investor so no feedback at this time.
Deal Addict
Jan 12, 2017
1732 posts
1021 upvotes
notenoughsleep wrote: Any reason why you would do this instead of a REIT?
It appears that these platforms take REITs and make them cool and attractive to generate FOMO and social sentiment. I would think most serious investors would straight up buy property or go with REITs. iMO, this is like fractional stocks... A nice sell for specific demographic groups.
Deal Guru
User avatar
Sep 8, 2007
10289 posts
13131 upvotes
Way Out of GTA
The next FOMO millennial black hole like Lending Loop.

I’d rather just throw money out the window.
Deal Fanatic
Nov 9, 2013
5486 posts
6705 upvotes
Edmonton, AB
cartfan123 wrote: The next FOMO millennial black hole like Lending Loop.

I’d rather just throw money out the window.
lol
Buy quality. Keep calm and go long
Deal Fanatic
Nov 9, 2013
5486 posts
6705 upvotes
Edmonton, AB
notenoughsleep wrote: Any reason why you would do this instead of a REIT?
Concentration (which can juice returns but also increase risk) and the possibility of better valuations / higher capital appreciation, compared to a REIT.
Buy quality. Keep calm and go long
[OP]
Newbie
Apr 20, 2009
86 posts
15 upvotes
Vancouver
notenoughsleep wrote: Any reason why you would do this instead of a REIT?
A couple reasons I can think of:
- Investment not subject to capital market fluctuations
- Investment value reflects NAV closer. Although I don't know how REITs trade in comparison to their NAV but I'm going to assume there's a discount
- Direct ownership of property. As someone said, concentration but increased risk.
- Hopefully lower fees due to less regulatory reporting compared to a public REIT?

Happy to hear others thoughts
Deal Addict
User avatar
Dec 8, 2020
1884 posts
2282 upvotes
West Rouge, Ontario
gaofun wrote: A couple reasons I can think of:
- Investment not subject to capital market fluctuations
- Investment value reflects NAV closer. Although I don't know how REITs trade in comparison to their NAV but I'm going to assume there's a discount
- Direct ownership of property. As someone said, concentration but increased risk.
- Hopefully lower fees due to less regulatory reporting compared to a public REIT?

Happy to hear others thoughts
are you affiliated with a real estate crowdfunding?

have you already invested?
wasting time doing unimportant things
Deal Fanatic
May 22, 2003
9057 posts
6033 upvotes
Vancouver
Here's a brief article about this

https://www.cbc.ca/news/real-estate-fra ... -1.6070504

So personally I prefer REIT over this for a number of reasons.

1.) Diversification - with REITs you have multiple properties whereas with Addy you are only holding 1 or 2 properties.
2.) Liquidity - With REITs, I can sell the shares whenever I need to.
3.) Management - You can buy the REITs with history of good management and history of predictable cash flow from their dividends.
4.) Can hold REITs in registered portfolios, don't think you can do this with Addy.
Deal Addict
User avatar
Dec 8, 2020
1884 posts
2282 upvotes
West Rouge, Ontario
OP you asked a question without telling us what research you've done & whether you 'think' it's a good safe investment?

your thoughts please?

my thoughts is its high risk, even down to looking like some affiliate program... I could be wrong.

its not an investment that I would do.

https://www.addyinvest.com/how-it-works/

secondary reading about RE crowdfunding ... read the first page only

https://gowercrowd.com/about
wasting time doing unimportant things
[OP]
Newbie
Apr 20, 2009
86 posts
15 upvotes
Vancouver
Janus2faced wrote: are you affiliated with a real estate crowdfunding?

have you already invested?
No I am not affiliated nor invested. I'm interesting and looking to see if others have done so and their experience with.

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