** Transcript Auto-Generated**

(00:00) 25% tariffs to or secure our border futurized more on this week’s truth about real estate investing show my name is Roman CTO and I’m back sort of Almost 100% post pneumonia which was not fun uh and a whole lot of fleem I’m on antibiotics now today’s the last day and hopefully we’ll be done coughing before our trip to China for a few weeks but don’t worry The Show Must Go On uh speaking of Show Must Go On we hosted a very busy uh hybrid event last week uh a free training event on the subject of investing in real estate while I was
(00:39) feverish and weak from the pneumonia um yeah this the show went on uh a couple friends who attended laughed at me not believing I managed to host and present slpe for about 30 minutes hopefully most of it was coherent thank goodness Andrew uh Andrew Kim the CEO of share was able to carry the other half of the presentation including hosting the post event networking event uh because I and he had to lock up the office because I wasn’t staying I just went straight home to bed I am grateful uh grateful for so many we
(01:12) had about 180 folks T tune in to learn how the best practices on uh how to take care of their financial Futures and in my opinion that’s investing in real estate specifically in the US because they’re the opportunity here does not justify investment anyways uh some even shared with me how some terrible stories of uh months of non-payment rent one couple even bought a house to move into but the tenants won’t leave these are stories I’ve heard of before hopefully everyone else has so that you can Factor these into your own decisions whether or
(01:44) not where where you’re going to buy and invest and spend your hard-earned money uh the majority of Canadian landlords have little than no rights and the winds are blowing towards the us but don’t listen to me uh my friend that one of the Canada’s largest lenders said it uh one friend of mine who has a building under contract up way up North it needs a bridge loan because cmhc has significant delays in underwriting and ensuring apartment buildings the property is in Thunder Bay so let’s call this friend TB my friend who’s bought uh
(02:12) who’s got a property building uh property tied up in in Thunder Bay TB specifically asked me if I had a lender uh lender contacts as he did not want a third-party broker to avoid markups and fees adding to his cost of borrowing uh makes sense everyone wants to save not everyone needs that wants that Ser level of service now the lender is telling me that his commercial his commercial division uh does not have capacity for sub $100 million deals which is a lot of the market out there in terms of volume which I found surprising considering how
(02:47) few transactions are actually being done in the multif family space these days with rates being high and CMC delays is uh a lot of people have their money tied up and again just in my experience and talking to people on the ground there’s not many people writing offers on on apartment buildings uh so yeah my lender friend he’s telling me that business in Canada is unnecessarily harder in Canada and investing in the USA is much easier again uh these are his words and hence he was saying the winds are blowing to
(03:14) the states uh and this is been our experience as well our clients are getting commercial mortgages for under for amounts under $200,000 American so here there’s no love for sub 100 million versus we have plenty of options for sub 200,000 in the US say uh how anyone wants to continue invest in Canada doesn’t make sense to me hence cherry and I have beg searching for our second income property in the USA specifically Tech Texas where uh alongside our exist first uh existing property now but what is that what about all those tariffs
(03:47) that Trump Pro threatened us with keep in mind the threat is attached to what it’s a what if Canada and Mexico do not improve their security at our respective borders including the movement of that horrible drug F Fentanyl and now food for thought I was listening to the Global Mail podcast and the Canadian Border Services compensated 43 pounds of fentel in 2023 compare that to the U US Customs and Border Protection received over 25,500 at the US Mexico border that’s nearly 600 times more fenel at the U at the Mexico border versus the Canadian
(04:29) border and in terms of unauthorized people attempting to cross the border in the US Canada had 6 6,900 in 2023 6,900 compare that to an estimated uh higher than 2.8 million at the US Mexico border that’s about a 405 times bigger problem so me I’m G to pop some popcorn and watch how Elon deals with all this uh I for those who don’t know I am a Tesla owner so the majority of the parts in the Tesla are not from America they’re from China and Mexico so it’ll be fascinating to see how this all works out fascinating times ahead indeed in
(05:08) the end uh I’ve yet to see one expert predict the Canadian economy outperforms the American one hence my investment hypothesis does not change my kind clients in are going to continue buying American uh the world knows it too hence pretty much all the world currencies are suffering versus The Almighty US dollar and many economists predict our dollar may even get worse so if you think these are bad now it’s only going to get worse our plan is to accumulate houses over the long time so we’re we’re basically going to average cost base our exchange
(05:38) rate risk anyways and also our plan is to add to our us Holdings and US income uh which I think pretty much every financial adviser out there would advise to pretty much any Canadian don’t have all your eggs in one basket anyways uh the way I see it there is only one major world superpower uh and there’s no no sign of a peer to ever appear that was terrible anyways I know many talk about uh bricks uh you know bricks as in the acronym for uh Brazil Russia India China but Russia can’t even win a war against Ukraine uh China’s
(06:16) population is aging like that of Japan and South Korea there there’s only hope that China can can age gracefully and no chance for economic and Military dominance like the Americans uh look to the Future it’s bright for those learning and paying attention speaking of we have Canadian leaders of Technology Evolution owning fractional shares of proper real estate including expansion into the US and at the time of recording uh they have applied for their Securities license across Canada I’m talking about ADI invest what
(06:48) that means for in terms of Securities licensing uh so invest does that means that uh investor developers uh like Scott mcgil for example he can uh someone like him Can Work Direct IR ly with Addie without having to engage an exempt Market dealer uh that’s a uh an exempt Market dealer is a firm that’s licensed to trade in Securities staffed by very well educated folks usually they dress really well they have lots of letters behind their names uh and they provide service which comes with the percentage fee now I’m a realtor
(07:18) possibly the most hated professional I use that term loosely and uh we charge uh percentage commission and there’s a whole lot of people out there who uh don’t like paying um extra percentage points on their Investments my friend in TB my friend TB that I mentioned in Thunder Bay doesn’t want to pay fees either to a thir party broker and uh and again lots of people don’t so what Addie is doing is they are disrupting the investment space no different than we are share using technology to make our to make owning US income properties as
(07:49) easy as possible uh this is the future owning real estate without having to deal with tenants especially the ones that with all the rights like they do in Quebec BC and Ontario so please welcome to the show co-founder of Addie Steven Jagger I’m excited to have him if you haven’t heard of Addie before this is going to blow your mind uh likely you have heard of them before so we do talk about the advancements of uh deal offerings how how how uh the deals have evolved and on the technology will surp likely surprise you along with uh one of
(08:22) the investment vendors who went belly up so yeah this is the truth about real estate investing truth about real estate investing show so when deals do go sideways I’m going to ask about them Ste Steven Kudos does not avoid my questions and better yet they’ve actually already publicly address them I have the link in the show notes uh of of a post written by Steven’s Co other co-founder the other co-founder of Addie talking about the strength how they had to change their due diligence and again I’ve posted a link to the show notes it’s
(08:52) actually a great lesson learned for anyone who has ever screening Partners so these are the lessons learned from partnering with the the wrong folks or as the saying goes an ounce prevention is worth a pound of the Cure if they’d simply asked me for a reference check they probably could have saved a lot of headaches to connect with Stephen he’s on he’s on uh Twitter at SJ jagger.
(09:18) comom sorry the handle is s Jagger he’s on Twitter I got a link to his I have a link to his handle he’s Stephen gives his email Stephen that’s a with a pH Addy invest.com website is Addy invest please enjoy the [Music] show hi Stephen what’s keeping you busy these days hi lot lots keeping me busy um yeah which uh which aspect of keeping me busy you want to talk about oh you know whatever you want what I usually let my guest Drive where the conversation goes they say you know family young kids that usually comes up a lot you know dealing with tenants
(10:01) oh well for me it’s is what keeps me the most busy um of course the family but yeah Addie Addie is uh we’re uh it’s go time lot lots of exciting things happening over here how do you quantify Addie to people like deal number of deals assets under management can you give us an idea how many employees you guys have now yeah there’s 14 employees 50 opportunities have come on the platform so far we are Canada’s largest real estate investment platform based on transaction volume um we’ve had opportunities come on the platform in mostly Canada our
(10:43) first American Property a on the platform so as far as quantifying it it kind of depends on what people what what they’re interested in in in learning about us about some kind this employee count you’re right I think what catches most people’s attention is how little one needs to invest to start get started investing in real estate can you share that yeah yeah so we enable people to invest as little as a dollar um the dollar thing it’s not meant to be like a marketing push um or like a marketing stick it’s more
(11:20) about um the goal of the B of the platform is to eliminate barriers to entry and so if we said the minimum inv amount was $500 and you had $400 all of a sudden Addie itself is the barrier to entry for you and so for us making it $1 you can choose what you want to do like if you’ve got $400 you can choose this $50 in a property 505050 does that make sense is it 100 100 100 is it one of them it’s $400 like you Choose Your Own Adventure make your own decision pick an amount that works for you nobody is stretching to achieve some sort of
(11:58) minimum um you can just make a prudent decision for yourself um and and jump in and what I love about this is It’s become you made it so accessible especially to the young people and for a young person in Canada I think you and I both know I think the listener probably knows too what are they supposed to get into what kind of real estate investment can you get into as a young person yeah it’s a tough world out there especially like that’s kind of why how we came across the idea creating Addie was you know when I was
(12:34) 19 or 20 I bought my first investment condo my first prop I lived at home with my parents and I bought my first property which was an investment condo downtown Vancouver I think it was like $195,000 maybe it was 20 years old I put maybe 20 grand down because I’ve been working since grade eight um and I put a renter into it I remember talking to my parents about it and my dad was like nice thank you’re you’re moving out like good for you it’s like no no no I’m not moving out um I can’t AFF this an investment property I was
(13:07) like yeah food here is great I’m not going anywhere um have the rent too yeah yeah um and so yeah but like being a young person like 20 years old or whatever whatever it was early days for me $195,000 20 grand down putting a renter in it worked like the rent covered the the mortgage the insurance the strata of payment there was not a lot of wiggle room as far as you know cash flow maybe 50 bucks or 100 bucks a month maybe but it worked like I I was able to do it um and I think fast forward to today 2024 almost 2025 that same condo it’s still
(13:45) exists I don’t know any I sold it but the same thing it’s like a SE glass building downtown Vancouver it’s one-bedroom in Den it’s probably 750 Grand like if someone was 20 or 23 or 25 or whatever 35 years old today it’s it’s not the same uh experience for them to be able to step into the real estate market and get started right it’s it’s you’re saving a significant amount of money to make the math work even though rents are up from you know over the last handful of years uh it’s still you’re still putting down a significant amount
(14:20) to make it make any sense and so most people can’t do that without now without help from family or maybe you’ve got certain type of role in in Life or business or whatever you’re up to but the vast majority of people are completely locked out um of of that of that experience of being able to own real estate directly like that I even argue the math would would probably direct one to rent and if they had that kind of money they should invest it elsewhere potentially yeah yeah it depends on you know who you are what
(14:52) you’re up to what your your plans are um but yeah like to to make that work you’re you’re still you’re putting down 150 Grand 200 Grand to try and make the the math play out on something like that of a starter condo in quotes MH um it’s uh it’s it’s yeah very difficult for people today now refresh my memory on the first project that that Addie bought I remember it was still pretty expensive it was the very first property to come on the platform was the a trout lake a single family house in Trout Lake um it was the only single family house
(15:27) that we’ve ever brought brought onto the platform actually and and we were the the direct um issuer on it meaning myself and my business partner Mike bought this house because what we were trying to do was validate the idea that people would be interested like regular Canadians that we did not know would be interested in investing a smaller dollar amount into a specific address and the reason why we chose a single family house is because it was something that was attainable for us if this turned out to be a bad idea
(16:00) we could still complete on the contract to purchase the house right so we bought this house on trout lake on the east side of Vancouver backed right under the lake was an unbelievable location but again it was a tear down that we bought for $1.6 million tear down for 1.6 is a yeah essentially a tear down we rented it out for a little bit but it was like it wasn’t it was not a you know really fancy place it was a very old house that needed to needed to be replaced um but it worked we had 305 investors in that
(16:31) property we um we tore it down put a developer in place tore the property down and built a duplex front back duplex sold the the front and the back units recently few months ago and then all of the investors in that property got their return of capital and they’ve gotten their first piece of the profits and then the last trunch of the profits will come once the GST and all the sort of the final pieces are sorted out and the corporation is shut down but it worked um you know for for us and Prov that people wanted to do it and it
(17:04) worked for the investors it was definitely behind schedule probably almost two years behind schedule um some of that was just you know us and not you know totally having a grasp on exactly how fast we were able to do something where we’ve never built before and two we definitely were not expecting Co oh you can see that coming yeah did not luckily though uh we had no mortgage on the house so when Co came and everything stopped and the renter that was in it stopped paying rent um we were reasonably okay because there was no
(17:39) mortgage on the house we we had bought it in in cash um which now looking back on on the co time of you know year and a half two years of not a lot going on in the world and the renter being in the house weren allowed to evict anybody couldn’t do anything the person stopped paying like 11 months they didn’t pay rent um it all you know obviously we’d like to have that rent back would help on part of the profits of the of the opportunity but the lack of mortgage um was for sure a blessing for this unknown thing called Co that was
(18:16) coming now what are the returns that the investors received we don’t know yet we’ll know the final returns when the GST and the final shutdown costs are paid for um yeah I don’t it won’t be massive it’ll be a low double digit like 10ish per something like that we haven’t given out any numbers just because we don’t don’t know there’s some um some of the shutdown cost GST that kind of stuff that still needs to be sorted out and then once it’s sorted out and the entity is shut down the final dividend goes and everybody will know we’ll know exactly
(18:50) the numbers and we’ll publish those numbers that’s not bad for not doing anything not lifting a finger sure yeah yeah um yeah I’m you know I’m not complaining um could you know there’s like anything it it was it was uh longer longer timeline than we expected um but I think this is like anything you go rent on your house rent on your kitchen build a laneway do whatever what do people always say it’s like kind to cost you double or cost you more than you expect and take double the time or whatever it is in in development um so
(19:28) yeah as like we’re happy that people people made money we made money um and it you know overall it it it worked and it helped launch the idea of like this that Addie is the thing that that uh that people were interested in in using now you mentioned that was the only single failing you’ve done and likely the only ever now what are what are the more recent projects looking like what kind of um for The Listener has never heard of Addie what is available platform so not say only ever I hard to comment for the future but
(19:57) it’s of the 50 properties the only single family house that has come on the platform thus far the other properties have all been institutional commercial grade real estate so um the second property was a single commercial building that was built for Starbucks Canada uh with a drive-thru Starbucks tripl net leaste you know like you know a single building with a drivethru that wraps around it um we’ve got multif family buildings across the country that have come on the platform an industrial park we’ve got an 11 building Business
(20:25) Park that just did a its 16th dividend yesterday um we’ve got a handful of developments across the country we’ve got our first American property was a student is a student housing complex in Oklahoma at Oklahoma State University um we’ve got um I think what else yeah like the the developments are kind of all over the place they’ve been in Toronto Vancouver um Calgary we’ve got 40 townhous complex in airri Alberta we’ve got a handful of uh cash fling multif family complexes um there’s a commercial there’s a commercial property like a
(21:05) commercial tower on the on the platform right now in St John New Brunswick which is the first East Coast property that’s come on the platform so that’s kind of the point is is it the the goal of add is to enable not only eliminate barriers to entry but give people access to these opportunities like even if you do have the money in the normal world to be able to participate a lot of times people just don’t even know that the opportunities exist right they just kind of happen you know someone goes and brings in a handful of their wealthy
(21:30) investor friends and they invest in a building and it you know the transaction happens and a lot of those institutional commercial grade properties they trade hands without going for sale like they’re not on the MLS you don’t see them they just kind of quietly trade you never never with a for sale sign outside the building like our our old office here in Kitsilano um down the street from where I am right now we had one wealthy family that owned the building we were on it’s actually this this little building right behind me on the
(21:57) video um we were on the second floor of that small commercial building on Fourth like right in Kitsilano and a sort of a wealthy landlord you know family that owned lots of buildings like that was our landlord and then one day we got a message from low tide which is Chip Wilson the founder of Lou lemon’s his real estate arm his real estate company and we got a notice from low tide that just said hey you know guess what we’re your new landlord here’s you know here’s the details here’s the email here’s the stuff and the building traded hands
(22:25) without us we we didn’t know we didn’t know it was for sale we didn’t know the that the old family that was that owned it was putting it up for sale it just sort of quietly happened with no for sale sign like I said and we are the tenant in the building um and that kind of stuff in this in that in that sort of that commercial industrial um world happens a lot where it’s like you need to be in the no to even have access yeah one of my friends is a project manager for one of the bigger reats in in commercial reats in Canada
(22:53) and I asked her like do you ever have money in these projects she says no the owner of the company just goes to porker buddies and raises all his money there yeah yeah yeah super like super common like the normal world is someone who does this kind of thing goes and buys a $30 million building slaps a $20 million mortgage on it there 10 million of equity maybe they’ll put in two or three million bucks and they’ll go and raise seven million from Seven individual people that will cut a million dollar check each and that’s is
(23:22) it’s very common um and a lot of those guys that cut the $7 million check could do it again next month like they they’ve they’ve got the capacity and the ability to go again um and that’s the the sort of the traditional way is they try and raise as much money as you can from the smallest number of investors as possible because investors cost money to deal with the paperwork cost money the lawers cost money the movement of money costs money the tax slips cost money investor updates cost money and so you know
(23:49) essentially what Addie is is eliminating or automating all of those costs so that if you have seven investors or excuse me or 7,000 investors it doesn’t matter the software the software does all the heavy listing for all of it you know creation of subscription agreements movement of money tax slips investor updates you name it dividends um the software does does all that stuff that would eliminates all of those pains where the real estate operator like oh my God I don’t want 7,000 investors they don’t they don’t
(24:19) even they don’t see the difference now if they have seven or 7,000 it’s kind of the same yeah so you’re making you’re limiting barriers as well for folks who need to raise Capital oh 100% otherwise they wouldn’t they wouldn’t they wouldn’t bring their opportunities on of the platform so like the beginning in the early days of setting up Addie that’s where we learned a lot of the pains was on the issuer side of like what a lot of them were like oh my gosh like no I don’t want 30 investors let alone 300 to 3,000 they just they and
(24:46) they would tell you story after Story of like I don’t want up I want phone calls in the night or you know having to do all the tax slips at the end of the year or when I have to do a dividend we cut checks and we I don’t want I’m want me to write a thousand checks like and mail them all the St yeah I going to wire individual wires to people all of this stuff was the pain points and that’s literally what we did was we had um kind of like a list of all the stuff that needed to be done and we built software around all of it like
(25:21) everything like everything that you can imagine the money movement the add platform moves money in two ways EFT or or interact you can interact funds into your add wallet or you can EFT money through the you know Canada’s EFT system we had to build the tool set to enable that to happen at scale for thousands and thousands of transactions to come in and out of the system every single day at a dollar point that makes it make sense for us to enable someone to invest as little as a dollar so we had to build all of the automation around that so and
(25:52) we we have it now today we can move money at scale thousands of transactions thousands and thousands of dollars back and forth credit and debits for an unbelievably low dollar amount because we automated the entire process right it’s pretty um yeah it’s amazing it is yeah even interact people can interact money into the system and it shows up in your wallet I won’t say instantly but it’s like pretty quick seconds like the money just shows up in your wallet and then there it is and because it comes through interact it’s
(26:24) guaranteed funds so people are able to invest it right you know right away e you know takes technically takes a few days for the money to move and it’s not because of a delay on us it’s just how the EFT system in Canada Works Tak three to five business days depending on which bank or crediting you’re at for the money to actually move right when we launched our first the first American property to come onto the platform it wasn’t as simple as like oh let’s just bring on another you know enable initia or bring on another property we had to
(26:52) basically build the EFT money movement system again you know obviously copy paste some of it but then make it all work again for us dollarss in and out of the system so now we’re able to enable Canadians to move USD from their Canadian domicile Bank like US Dollar Canadian domicile bank accounts and so they can move money in and out of their adding wallet in Canadian dollars or US dollars in the same way through the Canadian EFT system um and and now that we’ve done that first American Property like I said the big piece was the heavy
(27:22) lift was getting the the US dollar EFT system working now that it’s done you’ll start to see more American Opportunity come on the platform for Canadian investors fascinating abely cool like that that the first one was that student housing complex in Oklahoma it just did a dividend the other day so I got I I don’t know what I got 20 $22 or whatever showed up in my US dollar add a wallet for me to deploy again or I can move it back to my can my US Dollar Canadian doas V I have so many questions so for for any midsize real
(27:57) estate investor understands the difficulty moving money around like for example our interact limits are like 3,000 a day there’s limits to how much we can have deposited into our accounts I don’t understand how you got around all this like how Banks didn’t think you’re money laundering it seems everyone seems well there’s there’s limits on interact for sure individuals can usually do $3,000 a day there’s some some banks will let certain retail investors or retail customers go over that 3,000 businesses can usually
(28:22) interact $10,000 I believe um again it depends on who you are and what your relationship is with your bank and then EFT EFT technically There’s No Limit you can you can have like when if you look at the the way that our software Works to move money thousand let’s say a thousand people move a hundred bucks each by EFT that money all shows up from those thousand individual transactions show up into their add wallets let’s say they all chose to invest in the same thing and then once the issuance closes the software then
(28:51) moves that amount of money through EFT again to the dealer and then eventually to the issuer so you can do it in small dollar thousand transactions or $100 transactions but you can also do a million bucks out the out the other way or 500 Grand or whatever the number is that’s going to the to the uh the the end you know the end bank account which is the issuer’s bank account um so the EFT system can move yeah it could move $1 it could move $10 million or whatever doesn’t there’s no limits and the cost is the same
(29:23) yeah we yeah because we built the software to to be able to manage all of those transactions the batch fee that we pay but the batch has got you know thousand dollar in it or a million dollars in it the batch Fe is the same that’s incredible and this is why I this is why I like you you know about the futurized like you know I read uh the price of tomorrow like that book was just Jeff’s book yeah Jeff’s book y Jeff Y and that’s and like before I recording I mentioned you like I’ve been afraid for my job for years especially after
(29:56) reading Jeff’s book and then all these other jobs that are at risk like in just book you really talk literally talked about like Radiologists for example like folks who who read like Radiology images and like those jobs are at risk because AI is coming after you and I use AI all the time in my work I ask it real estate questions all the time yeah and that makes me question why I need certain people in real estate have you played with the Google’s notebook LM what’s that I heard of that I made a video if you look on the Addie YouTube channel
(30:28) made a video of it the other day you can basically stick in a document or stick in a URL into Google’s notebook LMS call called I I stuck in the Scott mcgilvery funds 113 page offering memorandum document I stuck it into you dropped the document in it took about five minutes for Google to like process it and then it created a twers podcast conversation talking about the 113 page offering memorandum and it’s like it’s unbelievable like they’re just they sound like the the podcast the two people sound like they’ve been they’ve been hosting a
(31:05) podcast together for years um they interrupt each other they they like finish each other’s sentences they argue with each other you can hear like you know when people speak which you can probably hear us doing it you hear like the you know like people’s mouths moving before they speak you can kind of hear it does that sound so it like it really sounds real but if you find that if you find that YouTube uh YouTube link um you can watch if I made like a basically a six minute video of it of me saying like this is amazing and then I
(31:35) pushed play on it and you can hear these two people talking about this offering memorandum that it just consumed 113 page document it consumed in minutes and then and now that like I saw an update that came out yesterday I was playing with it this morning where you can now when you stick the document in or whatever you can give it notes and say hey focus on this focus on that um oh here you go so if you click on videos at the top there videos and then scroll down a touch there AI pod on on an OM the one right there I will check this
(32:13) out so that’s if you uh yeah if you check it out it’s unbelievable like I said it’s just it’s mind blowing but now like I said you can now put in um you could say focus on this or focus on that and and it can it it’ll dial in the conversation um it’s it’s like and this is today give it five months give it a year where this is going um is is pretty crazy it’s totally crazy it’s so scary this is why I think also U you know diversification everyone needs to make money needs to make money and another the different ways my first all fav was
(32:54) always been real estate so I don’t care how people get it just get it prefer that one real estate that cash flows even better now we’re talking about SC fun which actually um when we were at the keyspire event uh you you dropped a big bomb on me I didn’t know about Sher is getting their EMD license across Canada can you that we are say yeah yeah yeah yeah that pad is getting it and like to me again because I’ve been in this world for a long time like you’re that’s that’s another middle person another barrier that you’re moving for
(33:30) investors can can you explain what that means yeah so right now there’s there’s third party emds EMD is exemp Market dealer there’s third party emds that are in the atti software right now so if people are making a transaction there’s a third party EMD that would be in behind the software reviewing the transaction looking for suitability kyc basically making sure that the transaction makes sense for that specific investor um again the emds are very similar to the issuers in that when you tell the EMD because emds make
(34:01) usually a percentage of the amount that’s raised for doing the job so if someone puts $100,000 investment into some opportunity the emg’s job is to make sure that that 100 Grand from that person into this investment makes sense like if they say they’re a low-risk investor and looking for a short timeline but they’re putting a 100 Grand into a high-risk investment that’s a 20-year timeline the emd’s job to be is be like you know maybe this isn’t a good idea maybe this isn’t a good fit maybe it should not be 100 Grand maybe you
(34:27) could do two grand what whatever their job is just to make sure that it’s suitable and and it makes sense for the investor and is right yeah yeah and but in the same way that the the issuers would if we said oh you’re gonna have like would you want 30 investors or 3,000 investors the emds would say the same thing of like because they’re they they would they want the smallest number of investors for the larger checks as well because they they have to do their you know their work around understanding and dealing with the suitability and so
(34:56) the less number of people for the large checks it’s obviously it’s more effective for them as well and so we had to build a bunch of software tool sets to make it easier for the EMD to be able to manage volumes of transactions for smaller dollar investors if you look at any of the opportunities that have come on the platform we show what the average investment is the average investment is anywhere from $500 to $800 per property right and so but the job is the same if you’re putting 100 Grand and you’re putting 800 bucks in the emd’s job is to
(35:26) make sure that it’s suitable and Mak sense and Etc and so we had to build a bunch of yeah but we had to you know build a a tool set into the software to make it work for the exempt Market dealers so that they would be willing to do this right and the the the time if they had to if it would take them too much time to run through thousands and thousands of transactions the emds would be like no I just I’m not I can’t do that doesn’t make any sense the M doesn’t work so we had to work uh to make that as streamlined as possible so
(35:59) that we can you know eliminate that barrier by by streamlining it so that so that people can have access to these opportunities while also still um you know keeping the the exemp market dealer satisfied um and obviously not you know taking up a whole bunch of their time where they just say I just can’t do this I don’t want to do it um and like I said this goes on and on and on and on for the software right like the the the signature technology we had to build our own right used to use docu sign or hello sign at the beginning you pay four bucks
(36:31) per signature like that was fine at the beginning but now that we’re at scale you can’t pay them $4 per signature that doesn’t like just for the signature that doesn’t you know that doesn’t work right it’s the same way of like moving money we knew had to automate the movement of money thing very very early in early days because it just doesn’t work you can’t be paying somebody a percentage of the money movement just to move the money and and there’s a there’s a there’s a thing like that all the way through the entire process had to be
(36:59) looked at figured out um automated eliminated streamlined whatever it was um it just sort of goes on and on and on like tax slips we had to build all of the functionality to be able to automatically generate T5 t50 13s at the end of the year um now it’s push of a button for an issuer to say generate you know the system can generate 20 or 2,000 tax slips doesn’t matter it’s all all happens so for the listener who’s just to bring up the speed we’re reducing costs anded reducing barriers and we’re reducing uh touches human touches
(37:34) involved and and so there’s less people are getting paid as well making the investment cheaper for the end user and for the issuer this is and by by doing that you gain access to it because otherwise you go back to the old world where they’d say minimum investment is 50 Grand like I can’t I can’t take your $5,000 investment because I’m I’m going to lose four bucks on the signature I’m going to lose 20 bucks on the wire I’m going to lose this I’m going to lose this so it needs to be a certain dollar amount for
(38:02) those for that all to make sense Stephen understand I’ve had people say with me with a straight face minimum a million but because I like you 500,000 that’s the minimum yeah that phone call superon it’s it’s very very common and this is this to me this is why it’s so exciting for me this is a futurized myself a capitalist I so consider myself partly a socialist because I want to see this you know the underdog get ahead because they’re the one that most at risk at all this they’re the ones who need hard asset Investments more than
(38:38) anyone else right the rich the rich don’t necessarily need to get richer which Sly happens a lot well it’s like once you’ve got assets yeah you can it’s it it becomes easier you know the government drives the value of the dollar down if you don’t have any assets like the assets go up but not really going up it’s just because the the dollar is kind of going down so it looks like the oh now my house is worth $2 million but it’s like is it or is it just because the dollar is worth less than 10 years ago right the buying the buying power is off so
(39:12) people with the assets Everything feels nice you know things are going up but it’s like the people without any of the assets and are just sitting on cash your cash is worth less every single day and life gets harder um so it’s about you know enabling people to be able to participate in the asset class and invest like to you know have have access to something that the wealthy generally you know in in our case it’s a it’s a the wealthy wealthy person’s game is this sort of institutional commercial grade real estate um and like you said
(39:43) you know minimum half a million bucks minimum million bucks like that’s that’s very normal for for how this world typically operates and that’s in one project that’s that’s not a diversified investment one building yeah yeah like how we how we got to Addie I told you about that trout lake house and we were trying to figure out a proof of concept if you back us up a couple years before that an opportunity came our way Mike’s way my business partner’s way to invest as an LP investor behind a real estate developer
(40:15) here in Vancouver the guy was you know owned buying four houses on a on a on a street ripped them down and build 30 or 40 Town whatever it was and he was raising money for the development and the offer and the the the investment looked good looked interesting and he wanted a million minimum million dollar check and so Mike had asked him he like hey like I’d like to get involved but a million bucks is a bit much can I you know Syndicate it basically can I set up a corporation put a few friends money into this Corporation and then we invest
(40:44) and the developer said yes you can do that but I only want to talk to you like one investor you your company’s the investor I don’t want to talk to your buddies like I just I don’t I can’t I don’t want to deal with that and so Mike said okay yeah no problem I’ll set up this company so Mike texted me and a few other people and you know we ran through the stuff and said yes so um I put money in Mike and a few other people did and the developer wanted a minimum of a million dollars and the way The Syndicate was set up it was minimum of
(41:13) $50,000 slice to get into the million dollar slice that was going to go in and one of our employees at the time had 10 grand and he wanted to participate with $10,000 and unfortunately for him the answer was no and it was him kind of losing his mind being like what’s the difference between 10 grand and 50 Grand like 10 Grand’s a lot of money like why can’t I why can’t I do this thing that you guys can do it’s like I don’t get it like $10,000 is a lot like what what’s the problem and we got into the conversation of like wow like the notary
(41:43) or the lawyer touches it and there’s costs there and the movement of money there costs there and the tax whatever there’s cost cost cost and it’s like you know there’s a there’s a few hundred bucks that get chopped off the the 10 grand and that’s why there’s these minimums and it was literally that conversation that kicked off this whole idea of like hm like maybe maybe there is a way to build a technology platform that eliminated all of those barriers to entry and do let not only a $10,000 investment but can we drive it down
(42:11) where the business model actually works enabling people as little as $1 and that’s what kicked this whole thing off and now we’re like I said we’re 50 properties in um and kind of of and running and scaling scaling up uh the platform but that’s you know that those those large minimums are very very real they still go on today now what’s the appetite like for more us us um issuers from the Anie Community I think good um you know people like the idea around diversification diversifi you know diversifying out of the Canadian
(42:46) dollar into the US dollar out of you know Canadian real estate into US real estate earning dividends or distributions back in US Dollars I think there’s there’s always um interest there from a certain subset of of of the community um just like there’s people that always want to invest in Vancouver and Toronto and then there’s other people that will never invest in Vancouver and Toronto there’s people that like the idea of American Real Estate and there’s other people that don’t that’s kind of the whole purpose of the platform is you Choose
(43:10) Your Own Adventure um pick what makes sense for you uh but yeah people want to get access to it and it’s very difficult for your average Canadian to go and buy and invest or you know get involved in American Real Estate right because it usually if you’re doing it you get involved in having to deal with American taxes and all the extra costs that go with with doing that um unless you’ve got access to someone usually it’s a Canadian that’s buying American Real Estate but sets up a Canadian structure so that you can invest in the Canadian
(43:40) structure and they handle the corporate taxes um between the two entities over the Border um but you know it’s it’s like you go buy a house in Florida or you know Arizona or somewhere all of a sudden now you’re dealing with you know crossb stuff that you have to deal it’s not just as simple as buying a you know a house in Calgary added added complexity if you’re collecting rental income in a US property yeah you now have a crossb business yeah that’s what I mean yeah and then most people when they hear oh gosh that’s like that’s a lot I don’t
(44:14) want to do that and then you know some people definitely clearly do it but there’s a there’s a whole other chunk I’m just like nah gosh I can’t even be I can’t no I don’t want to do that and I think that’s where the the neat thing of the ID platform comes in where it allows you to to get involved in American Real Estate US Dollars um but not any of those headaches speaking of headaches what about like uh come tax season like for example uh people need their form their tax forms and whatnot and they need their bookkeeping like is that all
(44:46) available to them to your all automated all shows up in the platform so I’ve invested in all 50 properties that come on the platform I will get a T5 or t513 for every single one of them that’s that’s obligated to do so it’s all automated all automated yeah so they show up in my add account I can download the forms and I’ve got them give them to my accountant put them in my tax software whatever I do to manage my own taxes easy but again all all automated right any of these issuances have anywhere from 500 investors to 3,000
(45:19) investors um seriously and so that’s that’s all aut of me if it wasn’t could you imagine that paperwork well like I said it’s one of the many reasons why if that was not automated the issue would be like nope not doing this I can’t do it I like I’m my my my finance team or my bookkeeper my whatever what are they gonna sit there for a week creating check flips like nope no chance and that’s one of the beauties of Addie is that you have so many offerings people can easily diversify should there be losses so you know where I’m going no
(45:58) one gets way on the show without talking about uh Lessons Learned uh can I mention the name before we’re recording I mentioned the name of the company y Forge and Foster so I I’ve known them forever because I’ve been in a Hamilton investor for you know since 2005 so I’ve been in the community uh I know I know the the people involved uh and then Forge and Foster was initier on the ID platform how did that go not Well they um they got caught up when interest rates went up rapidly um they got caught with a bunch of their
(46:42) properties with variable mortgages on it and put them into some challenges put them underwater across um from what looks like a quite quite a few of their Holdings um we we put we put out so it it for sure affected uh the Addie community that chose to invest in their opportunity um or opportunities the if you look again on our on our blog back in I don’t know July or something we put out a blog post of like hey like sometimes things go wrong this is like you know this is considered high-risk investing um and what we always try and
(47:26) try and do is like how what have we learned how do we make the software better how can we improve some sort of process how can we make it you know more transparent whatever it was and so there’s a there’s a blog post that’s up on the platform that basically talked about um lessons learned and you know steps moving forward um for for for for dealing with any of these challenges that we’ve had and we’ve like like I said we’ve come across the 50 opportunities that come on the platform some of them are like challenges like
(47:56) that uh um with the forge group and other times it’s just stuff that we’ve learned around like gosh like that was a mistake not automating that and then like we we’ve dug ourselves like a manual hole that we’ve had to fix and like okay we now we fix it manually and let’s now also build software to automate that feature or like now our real estate team pulls title on every property every year and loads it into the system so that all of the investors can see the title we didn’t do that at the beginning um we just we only you
(48:26) know we we added that to the to the steps or the systems and procedures um as we learned the value of like hey there’s value for us to just pull title and stick it into the due diligence system so people can see each year here’s the title like did anything change did anything not change is it good change is that change like what it’s just like here’s the here’s the title so people can have a have a look um and there’s like lots and lots of things like that that as we continue the the system and the software gets better
(48:58) for for the community I’m just I’m just looking at the blog post now at least you addressed it I’ve just seen so many yeah like we’re pretty transparent compan no like we we we are I would think pretty transparent if you go on to our Discord are you are you in our Discord server I’m not no the Discord server for that yeah there’s like three or 4 thousand of our members that in there each property has its own channel um I would say we’re pretty transparent um about what you know what what we’re trying to do mistakes that
(49:38) have been made how the software is improved new systems and procedures tests we’ve run hypothesis that have happened um outcomes of those things like we’re the goal is to always just continue to get you know better and better how do we how do we do that how do we um how do we grow and how we learn from any mistakes and how do we make the software more helpful to not only the issuers the dealers the investors the whoever just try and try and make sure that the system is is as powerful as it can be and and a helpful tool in this in
(50:11) this journey of you know enabling people to participate in this asset class and then what is is there is it finalized yet is there an outcome with the with with the investments in Fortune Foster one of them was taken over a power sale by the first mortgage holder um one um yeah so one of them that that has happened there’s another one that is in trouble we’ve heard of others that they’ve got that the at Community was not involved in that are that are in trouble um yeah there’s been those guys had it looked like quite a
(50:54) um a book of of pro properties in the Hamilton area they brought five they brought five onto the ADI platform of I don’t know 30 plus that they had they had owned something like that don’t don’t quote me as like I know you’re recording so it’s like I don’t know 30 is accurate could be 40 could be 20 I don’t know but they had they had a bunch of a bunch of properties for anyone who’s read the book the psychology of money it’s always interesting in that like one of the questions in Psychology money is one is enough enough because they could have
(51:26) walked away both brothers with 10 million in the bank account each of them before they got to this the level of scale they got to right very safely but they just kept going so I just find that’s always interesting well and to not to be necessarily defense of anybody but like maybe you could have argued interest rates were going to go up and everybody knew that I don’t know the bank can also just said well at some point earlier of like hey go the rates are holding for for a long time like you know that hadn’t have
(51:58) happened um maybe yeah maybe they would have skated through this taking a taking a risk on what they were doing right it’s like it’s like imagine owning a strip mall with a bunch of mom and pop restaurants and Co comes and shuts them all down right it’s like what do you do all of your tenants are now closed they can’t pay rent because they’ve got no revenue and it’s like you didn’t plan on that this thing called Co happened right there’s there’s lots of things that can go on that um you know are out of your control in
(52:30) your control but I you know again at the end of the day not specific to any one of our operators but when I look at any of these opportunities like who the operator is is a big piece what’s their skill set do they know what they’re doing have they done this before how do they treat their investors um you know it’s like someone says I’m building an 80 Story Tower it’s like what first question have you ever done that before like what’s your what’s your track record in doing this um you know just like someone moving from like
(52:58) oh I’ve done a bunch of stuff in Vancouver and now I’m operating in Edmonton it’s like well how does that work what’s what does that mean do you have the same infrastructure you have the same team how are you Outsourcing stuff there now because you don’t have the same structure that you would have your you know your main city um but yeah the operator is like I think a really key piece of these op like you can have a really great operator take a a really poorly run property and make it amazing in the same way that a poor operator can
(53:24) take a great property and kind of drive it to the ground um the operator is for sure a key piece of of of each of these opportunities how many issu has come to you lots um and then how many do you take one in 10 one in 100 yeah just say one and one and 10 probably and sometimes it’s not because we didn’t like something it’s um the timing didn’t work the asset type didn’t work they they didn’t want to make minimum $1 thing [Music] um you know there there’s many many different reasons why it may or may not have made sense um you know our goal is
(54:08) to to understand the opportunity and then enable it to come out of the platform but enable it with all of the due diligence and the transparency so that the community can make an investment decision for themselves they need to be able to read the offering document review the risks um understand the opportunity and and then then they can choose and it’s again it’s like a big piece of that minimum $1 it’s like you can choose there’s no minimum 50,000 bucks and if you’ve got 40 Grand like you squeeze another $10,000 to hit the minimum that maybe
(54:39) you shouldn’t be squeezing to hit like it’s like maybe you should put $1,000 and maybe it should be 5,000 whatever your number is it doesn’t matter but the kind of I think the big benefit is that you can you can choose your own adventure you can pick an amount that works for you you can read the due diligence you can learn along the way you know you can learn about all these different operators how they do updates who’s good at doing updates who’s delayed in updates how often their dividends come do the dividends come on
(55:03) time are they what they said what’s the track record all that stuff is you know as the community grows and as these opportunities grow you can start to get a a handle on the track record of different operators and and like some people like certain cities and not other cities and certain provinces have different tax regimes like BC Ontario of um types of rent control Alberta has no rent control some people think one or the other of those is good or bad like it’s there’s a whole bunch of learning that goes on um within the platform of
(55:31) just people being able to understand how the stuff all works across a whole bunch of different asset classes um within the space before we recording you mentioned free education and you got my attention tell me more about free education available on Addie well that’s kind of what I talking about is like the Discord server is a great place to start you know Addie members once you create an account you there’s like join the chat is all through the app you click join the chat it’ll pop you over to Discord you can connect your Discord
(56:03) account into your Addie account and then within Discord there’s a channel for every single property has its own channel right then there’s like a there’s a there’s a news channel there’s a Greater Vancouver Channel there’s a GTA Channel there’s a fire movement Channel there’s a earning interest Channel there’s a crypto Channel like there’s just and so if you’re interested in chatting about stuff like there’s a whole bunch going on there and so when opportunities come on the platform or different news articles come out or whatever people are
(56:32) in there they’re running their own performance they’re questioning the mat they’re saying hey the rents for this one say in 2028 they’re going to be this but I don’t think they’re going to be that I think they’re going to be this and there’s a lot of that goes back and forth like there’s I find it super interesting and if you if you are into that and want to engage with the community and there’s lots of people that are in there but don’t engage but they just read right they’re just there we we talk to people all the time time
(56:56) in real life and we see them around and they say they’re in add and we ask them about Discord there’s a lot of people that say oh yeah I’m in there but I’ve never said anything but I I’m in there and I read it um and then the issuers are in there the exempt Market dealers are in there like it’s pretty interesting when you can ask a question directly to the issuer or to directly to the dealer and they can respond also in the same way that like we’ve had someone you know an example I came across the other day someone reported a bug in the
(57:22) software on the Android app that we have and they were they they pointed it out in Discord and our lead engineer Chris responded publicly in Discord so now you’re like you’re having a direct conversation with the person who’s on the keyboard who can fix that bug like it’s that’s pretty cool like it’s it’s pretty it’s a I think a pretty neat way to to enable the community to interact on a whole bunch of different levels and then outside of Discord of course property updates come out from different issuers all the time you know they push
(57:54) it out through their app or through through through account that shows up in the app for the investors so you can see are they on target for their whatever their projections were are their vacancy numbers sorted out is the what all this government you know regulation changed and this is how it’s helping or hurting us or whatever whatever it is and there’s there’s all these ways that people can you know get involved read learn um and see what what’s going on in different provinces what’s going on with different asset types what’s going on
(58:23) with different issuers um who’s doing a good job who’s who could do a better job that kind of stuff so I I think there’s a there’s a ton of really great opportunity um within the platform within the Discord and then of course we do in-person events all over the place where we try and do educational events where like we had the BC housing Minister come to an event where I did like a fireside chat with Rabbi Callan and just asked him a bunch of questions and we had 150 people in the room and Chip Wilson from lemon
(58:50) was in the room like you know asking all these questions or we’ve had the mayor of Vancouver show up or we’ve had other political leaders show up we’ve had um we’ve had Jeff boot um you know talk about talk about the the Bitcoin world and and what’s going on there like we just we try and do a bunch of in-person events to bring the community sort of into real life and learn some stuff around around you know a whole bunch of different topics that are related to investing real estate investing education learning that kind of Stu
(59:18) there lots of opportunities I’d like to see some events in Toronto Stephen we’ve done a few we did uh we did the Scott mcgilvery we had an event with him at the what’s that uh Club on the water called Beautiful um we had about 40 150 members come and I did a far side chat with Scott there in Toronto we’ve done a couple downtown Toronto um we definitely lean a little Vancouver heavy because we’re here we’ve done Calgary events but we will do more um spread them out especially next year we’re setting up the schedule now so we could publish it
(59:53) more in advance than we’ve done in the past now Stephen uh we’re running out of time so I want to ask you what do the future for Addie look like or even just in general the futurized yeah um so we’ve got you know lots to do now that we’ve we’ve added more opportunity types to the platform we’ve we’ve we started with Equity investment opportunities into institutional commercial grid real estate we’ve done now private credit has come on basically the debt side of institutional commercial grade real estate we’ve done our first hard money
(1:00:27) loan and we’ve let our first fund onto the platform which was the Scott mcgil fund came on um there’ll be more across those different categories um you’ll start to see a lot more on the hard money loan side where people can invest in basically home equity loans you know some homeowner that needs to borrow 100 Grand 200 Grand because they’re building a laneway house or doing a basement Renta or whatever it is that they’re up to um where people can invest in a in a secured you know second mortgage um so there there’s going to be more of
(1:00:58) those opportunities usually they’re shorter you know 8 to 18 months type type opportunities um this whole missing middle Multiplex thing is happening I think very fast is very exciting where every level of government is essentially saying let’s go let’s build let’s build that missing middle or that infill housing let’s build six plexes or eight plexes on single family lots they don’t need to be on the main road with a yellow line they can be in the middle of blocks and sort of within the communities and sort of that gentle
(1:01:31) density we are seeing a ton of um opportunity there um we’ve got a a whole bunch of opportunities like we have municipalities that are that are involved now with what we’re doing with with the atti platform of so that they can enable you know what we call the citizen Builder and the Community Capital to come together to facilitate these four six eight plexes in their in their cities um like the city of cola’s got we’ve got a few coming with them city of mission um looks like there’s G to be some Calgary Edmonton Regina like there Barry
(1:02:05) of heard Barry Ontario like we’ve got lots of that type of stuff coming and I think that’s going to be um really really exciting and it’s a it’s it’s great because the add platform can enable the Community Capital to come in and participate in the ownership and the creation of this density but also tie them into the you know the dividends and and sort of financial benefits that come from that densification um which is pretty I think pretty special normally you know developer shows up builds a tower builds whatever makes the money and then leaves
(1:02:36) and they leave behind the density and they change the bit of the community but they they they they sucked out you know a lot of the economic benefits and using the add platform enables the community to participate so that the community is is also on that side of it not just feeling the effects of the density but participating in it as well um and I think you’re going to see lots and lots of of opportunities like that where yeah like this this what we call like the citizen Builder and the Community Capital can come along and tie them you
(1:03:03) know tie together through the platform and make things happen so how does a citizen Builder get on Addie then like do they have to have a reputation do they have to have I don’t know how do they get on yeah so it’s a good question so we think of the citizen Builder let’s say it’s there’s lots of people like I’m in Vancouver so I’ll use a Vancouver example of someone who owns their house maybe their kids have moved out maybe they had no kids but they’re in a house maybe it’s a little too big for them but they’re still happy to be there they
(1:03:30) like the neighborhood they like the neighbors but they’ve got a lot of their wealth tied up in that specific property and so they they want to stay but they get it that you know maybe they could you know enable a few extra units on their property and so like a simple version of that would be is they do a deal um with with the developer or a builder who could build the mainway house you know that that can be cut off from the main property so they can move from their main house into the laneway house maybe they get that they own it
(1:04:00) outright and they get another million bucks in cash and then the developer gets the front half builds a fourplex rental and then they run the fourplex so that that couple is still in their neighborhood still on their street still in their spot but they’re now on the back of the property in the laneway house with some cash in their pocket and a smaller footprint of a property and they’ve got three four whatever renters in the front on the front half of the building and that sort of gentle densing has happened leaving them still in the
(1:04:28) neighborhood but solved maybe their cash needs because maybe they were house Houser but cash poor um and it kind of checks the boxes on a whole bunch of different angles of this of enabling three or four other families to now move into the neighborhood um and and sort of you know be that up incoming family in in that specific there’s lots of neighborhoods in Vancouver where there’s not a lot of kids running around because the like a tear down house it’s $2.
(1:04:52) 5 million right so this and it hurts everything hurts the school the Little League Baseball hurts everything because it’s just not like there’s not enough kids in that in that neighborhood and so stuff like this I think it’s going to help with that of of enabling you know the the restaurants to survive and all that sort of the little retail that’s in these communities a lot of them struggle because there just not enough people running around so it’s um so that’s anyways that’s what we think of as the citizen Builder is like they own the
(1:05:18) property they own the land and they don’t know how to necessarily build but there’s lots of these midsize builders that can build um and then usually a big problem with the everything I just explained is there’s usually a capital piece that’s missing of like maybe the developer you know need you need an equity partner for 500 or $750,000 it’s not a massive amount of money but there is a a chunk of money that is needed to make this thing happen or a chunk of money that’s needed to make it happen so that that midside
(1:05:47) developer can do two or three or four of them usually you know many times they can do one or two but they can’t do number three because their money is still tied up in number number one and so it slows them down so by enabling the Community Capital to participate with that citizen Builder and the developer tie it all together and you can do you know a a bunch more of these things quicker um and you know start to solve some of the the housing affordability by creating you know more of that gentle density not not the big towers in the
(1:06:19) neighborhood it’s just four six eight plexus that s pretty awesome yeah where where can citizen citizen developers learn more about how to get on Addie and then and then after that how do how do investors want want to be part of AD invest yeah so if you go to add invest.com or whatever and for borrowers people are looking to do home equity home equity loan um yeah there’s the Scott mcgil event but yeah for issuers for uh investors for borrowers those are kind of the top three places to start um and if you’re if you’re interested in
(1:07:04) learning more there’s there’s a whole bunch of different ways that you can engage with us email us at supported invest.com join the Discord you can find me in there um that’s Thomas berer that’s Thomas berer yeah he’s brought two properties on the platform very cool yeah because I’ve had a lot I’ve had a couple people on the show who want to you know build like five plexes or eight plexes after they buy a single family home tear it down five Plex eight Plex or turn a building their fourplex add a laneway suite for the fifth or the
(1:07:36) six and maybe a basement for a six and this this would be for them yes and the realtor like we think about it the realtor the realtor is the one doing the deal like so like if I’m going to buy a single family house in Hamilton and you’re my realtor right you get paid your commission and your clip on the deal but then you’re kind of out you’re just you’ve done it you’re on your way and now I own the single family house that maybe I’m going to rip down with a builder partner and do my thing in the atti world you could take a percentage
(1:08:07) of your commission that you just got Circle it back through the community capital and now you’re able to invest in that opportunity of that of that property that you just sold so you as the as the realtor can can participate on the Community Capital side the Builder can can participate the the trades like the individual people on the tools they can participate in the ownership of the building that they’re building the Carpenters the plumbers the tyers all of those people can participate right it’s not the the sort
(1:08:35) of the old way is that the the developer usually the person at the top makes the money yeah and they pay their pay their trades their Fair wage and whatever and those people get get you know their paid for their their time of their work but in in our world of being able to participate on the Community Capital side you can also not only do the work but also get a piece of The Upside because you’re invested in the opportunity in the same way that any large investor would be just the platform enables you to participate at a
(1:09:03) dollar amount that makes sense for you lots of our issuers come to us for that main reason is they don’t need money they’re not interested it’s like not a problem for them they’re trying to figure out how do they enable their employees to invest in the opportunities that they’re the building of the buildings or they you know how do I get my tenants to be able to invest in the building that they are the tenant in right and there’s like it’s it’s stories like that when the issuers show up and like this is what I’m trying to solve
(1:09:27) for and I think your platform can do it and for us the answer is yes like you can enable the tenants of the building or the the you know the the people on the tools all the way down to the whoever onsite security guard could technically choose to be able to participate in the opportunity pretty powerful this wow this really is empowering the small investor including the the community Builder and the all having challenges with this yeah yeah that’s if you think of that 468 FX there is there is small medium-sized Builders
(1:10:08) every in every single municipality everywhere there’s not a lot of builders that can build an 80 story cement Tower you know that’s that’s that’s a a big developer game not a lot of like your regular siiz developers go do that um but there’s tons of those small and Med medium siiz builders that can build small apartment buildings six plexes you know or they’re customed to doing single family houses like custom single family homes you know they’ve got the skill set to do a fourplex instead of a single family home they just need they just
(1:10:38) need a couple extra pieces some of it’s just in little little Community Capital to help them sort of get the equity sorted out and the other side of it is they they need that that citizen Builder someone who might already own the land or own the property wants to stay but doesn’t know how to build but owns the proper like just it’s just putting those pieces together and that’s what platform does we can we can facilitate the different parties to participate together and this is why these municipalities are reaching out to us
(1:11:03) because they see it and they’re like oh my gosh this is amazing if we can plug the add platform into what we’re doing of of changing Zone like the city of Colona changed the zoning on 1300 single family houses that if you use one of their designs you’ll get a building permit 10 days right and and if it’s one of those 1300 single family lots and that’s their goal it’s like let’s go we need we need four six8 flexes let’s we we need them let’s let’s get moving and they’re trying to simplify it and they get one of those
(1:11:29) constraints is the is the capital constraint of you know this 500 Grand 600 Grand 700 Grand of equity that needs to go into these things to kind of make it all tie together and that’s where the Community Capital aspect of the Addie platform can be of assistance all right Stephen one last time where can people get more information on Addie add invest.
(1:11:57) com account you can start your investment Journey on the platform reach out to me I’m happy to answer any questions so people reach out to you on Twitter I follow you on Twitter it’s called now Twitter’s fine discord’s fine my email is s Jagger add invest.com and it’s also s Jagger on Twitter as well this was this wow you have a lot of followers I didn’t know you were an influencer you almost have 700 followers on in on LinkedIn fantastic Stephen thanks so much for doing this thanks for the work that you’re doing you know keep fighting the good battle
(1:12:37) like you must get uh this work must feel rewarding you would you wouldn’t have got into this otherwise no yeah no it’s great I think the like the stories we hear from the community are unbelievable like we get we get great messages we get when people show up at the event like like we we’re yeah it’s I think it’s what keeps us motivated moving forward is we’re yeah the goal is like I said is eliminate barriers so everybody can participate just even it out for everybody amazing thanks again for doing this Stephen no problem thank
(1:13:13) you all right friends that wraps up another episode of the truth about real estate investing show for Canadians hope you got as much out of this one as I did remember that whether you’re just starting out or a seasoned investor there’s always something new to learn and it’s always about building that practical knowledge base that gets you closer to Financial Freedom if you found value today please do us a favor and leave us a review or a rating share this episode with a friend or better yet join our community of Real Estate Investors
(1:13:38) who are taking action and making moves and hey if there’s a topic you want us to cover or have uh there’s a certain guest you’d like us to have on the show drop me a line my DMs are open on social media reply to this email that this have arrived on I’m not hard to find uh you know we’re all about getting you the unfiltered truth to help you on your journey thanks again for tuning in and we’ll see you in the next episode until then stay Smart Stay curious and keep building that future catch you later

On iTunes: https://itunes.apple.com/ca/podcast/truth-about-real-estate-investing…/id1100488294

On Spotify: https://open.spotify.com/show/6Z8yd37AQfQI5DK0J0Xwzz

Amazon Music:https://music.amazon.ca/podcasts/40fe627d-dec7-4f5d-b7e5-90a550fffe46/the-truth-about-real-estate-investing-for-canadians

Audible:https://www.audible.ca/podcast/The-Truth-About-Real-Estate-Investing-for-Canadians/B08JJS91WR

Youtube: https://youtu.be/qThep87LkNA