Imagine being the leaseholder for one of the newest Starbucks buildings in Chilliwack.
Usually, to get into that kind of real estate would take some know-how, and plenty of cash flow. But a new way of investing is coming online, and it’s giving a new type of investor the chance to join the market.
The company is called addy, and they’re ready to launch a small investor project in Chilliwack — and yes, it is a Starbucks building. The startup real estate investment platform is open to people who want to invest anywhere from $1 to $1,500 in the building.
Stephen Jagger, co-founder of addy, spoke to The Progress about his company and how it works for investors.
“Addy is a real estate investment platform that enables everyone to invest in real estate,” he says. “Most people are pretty locked out of it, pricing is through the roof and it’s very difficult for your average person.”
He says his company is eliminating barriers to investing, which is normally a transaction “between one wealthy individual to another wealthy individual.”
The Chilliwack Starbucks location they’re investing in is at Airport and Yale Road, which has a drive-thru and is a key corner lot for the new Midtown development and the soon-to-be-built Imagine High. It’s prime real estate in a growing neighbourhood, with a dream tenant.
Those who invest will have online access to an account, known as a wallet, where they can see their investment in action. They’ll see the lease money coming in, and the costs coming out, such as property tax. And there will be distributions from the property, Jagger said.
“There is the potential for a little cashflow there,” he said.
In addition to becoming leaseholders for a major building in town, investors will also gain knowledge they can use for bigger investments in the future. And for Jagger, that’s a great bonus of the platform for those interested.
“There’s no better way to learn,” Jagger said. And addy does the ‘landlording’ for the group of investors, making it even easier than traditional investing.
The company is currently looking for investors, and are launching the project on August 11. They’ve laid out the details on their website, www.addyinvest.com, and he says there are no fees involved. In addition, it’s a very real, local experience for those who are interested in starting out in real estate, or investing in general.
“You can drive by the property. It makes it so much more real for an investor,” he said. “And it’s a gem of a property. The building is brand new. And the fact it has a drive thru, obviously the drive through has become invaluable during this pandemic.”
The is the second property addy has invested in. The first was in East Van and had 305 investors. They’ve used that project as a learning experience as well, and have keyed into what worked to build on their success.
For those who are naysayers, he says “just because it’s different doesn’t mean it’s a scam,” and adds that several CEOs from big organizations are involved at the board level. They aren’t brokers, but also co-owners of the property.
“It’s so new and so different,” he enthused.
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