Comparison: Real estate investing alone vs with Lotly

Comparison: Real estate investing alone vs with Lotly

Last updated
Jan 2023
4 min
Written by
Chrissy Kapralos
  • Everyone wants a piece of the real estate appreciation pie — but you’ll fight tooth and nail to get it with sky-high property prices and rising interest rates. 
  • Real estate investing is a consistently high-return, long-term investment that offers appreciation and flexible options.
  • You’ll need an impressive credit score, a big down payment, and regular income to acquire a mortgage.
  • Real estate investing with Lotly makes the market more accessible to investors who don’t care to deal with mortgages, maintenance, or tenants.

Another day, another scroll-sesh through You’re monitoring the market and checking for properties that fit your investment needs. 

But the looming responsibility of a mortgage, maintenance, and tenants feel unsettling. You’re in real estate for the appreciation, but will your bank actually lend you a mortgage? And even if they did, do you even want to deal with it? 

Lotly investors reap the rewards of real estate appreciation without the headaches of a mortgage. But the two investment models offer unique pros and cons. We’ll cover everything you need to know about real estate investing alone vs. with Lotly. 

Real estate investing in Toronto

Let’s face it: Toronto real estate investing can feel impossible. 

I mean, check out this abandoned home listed for $1.2 million in Toronto this past year. 

Or, consider the fact that Scarborough homes are now worth $1.35 million. And don’t forget about that $4,000 property tax bill!

Pro tip: Check out our GTA market insight tool. We’ll help you find the neighbourhoods that have cooled a bit!

This can feel even more discouraging when you start preparing your mortgage application. Any credit score dip, slow business month, or new income source might make lenders think twice before approving your loan. Unfortunately, it’s not easy to pass that stress test, especially in a high interest rate environment.

On top of that, if you rent out the property, you’ll still deal with maintenance, interest rates, and tenant calls. Not to mention the risk of rent non-payment. 

Regardless, investing in real estate is a smart move

Countless experts attest to this, and of course, we agree. Just a few years holding onto a Toronto home can garner serious appreciation, plus the freedom to tap into it for other investments. 

But what if you can’t or don’t want to deal with a mortgage? Lotly has a new, innovative path for real estate investors. Best of all, our investment model is completely accessible to seasoned accredited investors and first-time, retail investors alike.

Real estate investing with Lotly

Imagine quietly reaping appreciation profit without calling one plumber or checking one mortgage statement. 

Hello, Lotly real estate investing! Our unique investment model gives you the freedom to keep your debt-to-income ratio nice and free while generating appreciation. 

You’ll still earn your solid return without the hassle of paying a mortgage every month or answering tenant calls about the broken toilet. 

How? Three simple steps. 

First, you put up an initial investment into Lotly’s fund. Every $1 invested earns you an additional $2.25 in assets, or in other words, 3.25x in leverage! 

You can start investing with as little as $1,000. . Lotly’s investor fund then assists with the down payments of multiple homebuyers, in exchange for equity in their home. As the price of the homes in the fund increases, so does your investment. Then any time one of the homes is refinanced or sold, you’ll receive your initial investment in that home plus your appreciation share. 

Nobody will bother you with mortgage bills, interest increases, or other home maintenance concerns. Spend that time enjoying your freedom, not tied down to a mortgage while your investment is diversified across multiple prime properties.

So, when do you feel that return? When the home eventually gets refinanced or sold, you'll receive your initial investment plus your share of appreciation right into your bank account. Our data shows, most people refinance or sell around the 7-10 year mark.

Curious as to how? Check out our appreciation split calculator so you can see what the numbers might look like based on your investment.

Of course, between buying an investment property on your own or investing with Lotly, both investment models can be lucrative. Let’s explore how they differ.

Real estate investing alone vs Lotly real estate investing

You’ll have the potential to make more if you purchase a real estate property alone. However, you’ll also be tasked with managing a property and mortgage, and let’s not forget the upfront down payment for buying an entire GTA property. 

Here’s a quick look at how real estate investing looks alone versus with Lotly:

Lotly real estate investing:

  • Projected IRR (internal rate of return): 15%+
  • Flexibility: Fixed. You can’t withdraw your investment until the homebuyers refinance or sell.
  • Ongoing costs: 0.5% annual management fee; 2% initiation fee
  • Mortgage: Not your problem.

Traditional real estate investing:

  • Projected IRR: 20%+, with higher potential since you can hold on longer than ten years
  • Flexibility: Flexible. You can buy, sell, or refinance at any time
  • Ongoing costs: Hefty. Mortgage, property taxes, and maintenance can be prohibitive for most investors.
  • Mortgage: Your responsibility for up to 30 years.

Become a Lotly investor!

Your cash savings aren’t earning you the long-term wealth appreciation you deserve. If you want to experience the power of real estate appreciation, it’s time to invest with Lotly. 

We cater to every investor. You can put down as little as $1,000 and still tap into property appreciation in the Greater Toronto Area. Plus, you can feel assured that the homeowner is equally invested in maintaining the property, as you’re helping them buy their dream home. Shared equity through down payment assistance is the win-win scenario homebuyers & investors alike have been waiting for.

It’s time to jumpstart your real estate investing journey. Become a Lotly investor today!

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Chrissy Kapralos
Writer & Editor
Chrissy Kapralos runs a Toronto-based writing agency called No Worries Writing Co. She loves writing about personal finance and real estate topics and helping businesses communicate effectively with their customers. When she's not working, you can find her travelling, practicing yoga, or watching horror movies.