Willow<\/a> features a new investment model called PropSharing, offering the opportunity to buy and sell fractions of property as if they were shares on the stock market.\u00a0The Toronto-based company is\u00a0the first and only real estate investing platform to receive Ontario Securities Commission approval to operate as an exempt market dealer.<\/p>\nProperties are split into 100,000 units of ownership that are available for purchase through the platform, allowing investors to own up to 10 per cent of an individual property.<\/p>\n
\u201cWith real estate prices continuing to skyrocket across the country, investing in property is becoming further out of reach for most Canadians,\u201d\u00a0said Logan Yergens, Willow\u2019s CEO and co-founder. \u201cWe believe property investment should be inclusive to all. PropSharing will offer all Canadians a unique opportunity to invest in the real estate market.\u201d<\/p>\n
Willow aims to invest in and manage purpose-built apartment, office, retail, and industrial properties.<\/p>\n
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Each Willow property has a targeted sell date ranging between five to 15 years. When the property sells, it\u2019s removed from the platform and investors receive a proportional payout from the proceeds. Until that point, investors receive monthly returns for any rental profits<\/p>\n
Investors who sign up for Willow pay a one-time 2.5 per cent origination fee, 0.75 per cent management fee, and a $4.99 transaction fee per trade.<\/p>\n
\u201cCommercial real estate has always been the golden egg of investment vehicles, but right now it\u2019s exclusive to either the top one per cent or pension funds,\u201d Yergens told Livabl<\/em>. \u201cSo how do you make those assets available to regular people like me and do it as efficiently as possible?\u201d<\/p>\nRaised in Estevan, Saskatchewan, Yergens took an early interest in finance. Prior to starting Willow, he thought the idea of fractionalized investment made sense because real estate\u2019s high cost of entry continues to grow, pushing it further out of reach for the majority of the population.<\/p>\n
\u201cMy mom\u2019s a financial advisor and my dad\u2019s a farmer, so I was always at that intersection of regular people and their investments,\u201d Yergens said. \u201cI was interested in changing the method of ownership so that more people can participate regardless of income, as well as increasing liquidity in a useable experience that breaks down information barriers.\u201d<\/p>\n
Current properties<\/h4>\n
Willow currently has two properties in its profile \u2014 a mixed-use building in downtown Toronto featuring an outdoor retailer at the ground level and four residential units on the second and third floors, as well as a Scotiabank on a long-term lease located near downtown Ottawa.<\/p>\n
The company aims to expand its property portfolio over time, enabling Canadians to build an investment portfolio that suits their personal interests and goals.<\/p>\n
\u201cWe\u2019re looking to expand and have an asset mix across the country as quickly as possible, depending on what our clients want and which deals present themselves,\u201d Yergens said. \u201cSo any investor, whether they want to own a piece of property they can drive past on the way home from work or build a sophisticated profile across the country, ultimately they can do that and come to a one-stop place to choose their own adventure.\u201d<\/p>\n
![\"willow\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2022\/01\/marcin-skalij-AhmLdXl_azU-unsplash.jpg\")
<\/a>Photo: Marcin Skalij<\/a> \/ Unsplash<\/a><\/em><\/p>\n