Did you know that 90% of the world’s millionaires owe their wealth to real estate investing? That’s an eye-opening figure! However, as many are aware, purchasing even a single property has become increasingly challenging for many Canadians due to high prices. The aspiration to own multiple properties and generate passive income may seem far-fetched for many, but with the introduction of Willow, that goal could be more achievable than you imagine.
What is Willow?
So, what exactly is Willow? This Canadian company is dedicated to simplifying the journey of real estate investment for individuals across the nation. Historically, the realm of commercial real estate investing has been dominated by affluent investors and pension funds, but Willow is innovating the process through their PropSharing model. This approach allows individuals to invest in commercial properties similarly to purchasing stocks. The concept arose when CEO and Co-Founder Logan Yergens found himself priced out of the market. Recognizing that he wasn’t alone in facing these financial hurdles, he sought to develop a model enabling people to invest in fractional ownership of real estate, making it a more attainable venture for Canadians.
How does Willow operate?
Willow provides investors with the opportunity to engage in PropSharing, which allows for investment in commercial real estate properties in a manner akin to stock market transactions. However, instead of shares in a company, you’re investing in tangible assets – shares of actual buildings.
Willow fully owns the properties, dividing them into 100,000 equal units, which are then made available on the Willow Platform for purchase. This setup allows Canadians the flexibility to buy whatever number of units they desire, akin to selecting shares in a corporation. Thus, you are effectively acquiring ownership stakes in commercial real estate ventures.
PropSharing alleviates numerous financial obstacles typically associated with real estate investments. If one opts to purchase a property outright, financial considerations such as down payment, mortgage obligations, and costs for renovations and maintenance can be overwhelming.
By investing through Willow, you can sidestep these concerns. Willow streamlines the process of real estate investment, transforming it into a straightforward and affordable option.
Is Willow a secure investment?
While there’s always some degree of risk with investments, Willow stands as a legitimate business. Approved by the Ontario Securities Commission (OSC), the company is on par with other secure investment options. In contrast, similar platforms like Addy and BuyProperty lack similar approvals from OSC or other regulatory bodies like the British Columbia Securities Commission.
Willow is operated by a dedicated team of experts from finance, real estate, and technology sectors, committed to democratizing real estate investment opportunities. Based in Toronto, the firm adheres to the same regulations as other Canadian financial entities.
In addition to its security, Willow prides itself on being a conscientious landlord. The organization makes it clear that it isn’t just another entity vying to profit from real estate, which can complicate home ownership for ordinary Canadians. Instead, Willow focuses on investing in properties such as multi-family residences, commercial offices, retail spaces, industrial sites, and mixed-use buildings.
This emphasis means you can not only feel secure about your investment but also take comfort in knowing the integrity of the company backing it.
How to begin with Willow?
Eager to dive into investing with Willow? The first step is to set up an account on the Willow platform. Their compliance and investment team will assess your profile and investment objectives before approving you and suggesting options tailored to your goals. You should receive an email with your approval status within a few days, at which point you can transfer funds from your bank to the platform and start investing in the property units that interest you.
Investor funds contribute to covering the properties’ mortgage. Following the payment of expenses, investors receive monthly dividends. It’s also important to note that Willow’s platform offers good liquidity, allowing you to buy and sell units at your convenience.
Regarding fees, Willow boasts one of the industry’s most competitive fee structures:
- $4.99 transaction fees + $0.65 HST
- 0.5% management fee (calculated based on property value)
- 1% one-time property acquisition fee for each new property listed on the platform
- 0% performance fees
Presently, Willow features six properties in Canada. As of this writing, two are operational with available units—one located in Downtown Toronto and the other in Ottawa. Additional properties in Halifax, Calgary, Montreal, and Vancouver are in the works. If you’re considering starting your investment journey with Willow and PropSharing, now is an opportune moment.
Embark on your investment journey with Willow today!
Willow overview
Real estate investing has long been a favored and profitable venture, and that trend continues. However, as inflation peaks and property values soar, traditional real estate investment becomes unattainable for many Canadians. Willow’s innovative PropSharing model offers a more affordable and accessible method for anyone looking to invest in real estate.