Lotly is a new way to buy a home. We know crazy high costs are keeping too many people out of the market. We want to make it easier for you to buy your dream home and build wealth for your future.
We pair up homebuyers with investors who want to invest in real estate. Homebuyers bring part of the down payment, and investors bring the rest. In exchange for this cash contribution, investors get part of the home’s future increase in value (if any).Homeowners get to keep their share of the change in value plus what they've paid down on their mortgage.Homeowners will pay investors either using a home sale, refinance, or some other source of capital.
Use our payout split calculator to calculate how much money you will receive when you buy out investors.
We try to keep our costs low for homebuyers, but we do need to cover things like marketing and legal. We charge a 3.5% set up fee (up to $5000). This set up fee is calculated based on the investor down payment contribution.
We are currently accepting customers on our waitlist.
To buy a home, you will need a minimum of 5% of the purchase price toward your down payment. You will need an additional ~3% for taxes, legal, and facilitation fees.
Once you are pre-approved for a mortgage and for Lotly, you will know how much you can spend on a home. From there, you can shop homes that are listed for sale within our supported regions. We do have some exceptions, like no mobile homes, but most homes are eligible. You can go shopping with a Lotly approved real estate agent, and once you find a home you love, we’ll help you buy it!
Investors can contribute a maximum of $250,000 to your home purchase.
Lotly supports homebuyers seeking to purchase homes within the GTA. We plan to expand to other regions in the near future.
Yes, there will be a mortgage on the home. The mortgage allows you & your investors to buy more with less out of pocket money.
Yes. You will need to qualify for a mortgage through a Lotly preferred lender. We will walk you through these steps once we are working together.
Yes. Think of Lotly as an easier way to buy your home. Once you own the home, you are responsible for it in the same way as if you bought it without Lotly’s help.
Yes! You are on the title of the home as its owner and have sole occupancy rights.You and your investors will enter a co-ownership agreement that entitles them to their share of the property's increase in value.
Yes. You will be responsible for maintenance and the other costs of ownership (e.g. taxes, insurance, bills). Your agreements will require you to perform basic maintenance on the home.
Absolutely! No Lotly approvals are required to renovate your home and we have a program to help you reap the financial benefits of your renovations. Talk to our team about the Upgrade Adjustment for more information. If you do choose to renovate, you will have to follow applicable condo or bylaw regulations.
In short, no. Lotly’s program is for first time homebuyers who are buying a principal residence. We do not allow fixed term or formal leases.
There are no rules for how long you have to stay in the house. You can sell anytime.
Investors are paid out when you sell your home, refinance the home, or if you come up with some other source of funds to buy out the shared equity. Investors will be paid their original contribution plus or minus a part of the home's change in value. You and your investors win and lose together, so if the home's price falls, investors are only entitled to what remains of their initial contribution. Your mortgage pay-down stays in your pocket.
Investors are paid when you choose to sell, refinance, or if you come up with some other source of funds and want to buy out your investors.
Use our Lotly versus rent calculator to see how Lotly helps you build wealth compared to renting.
Buying a million dollar home on your own requires you have a massive amount of cash up front ($250,000!). Not only is that a lot to save, it’s a lot to put in one place.
Lotly is a new, innovative way to buy a home. It’s a win-win for everyone and will help many people leave behind the days of renting. You should keep in mind that you'll need to buy out Lotly's share at some point and you must be willing to enjoy the home as its primary resident - which will hopefully be easy since your home will be beautiful!
Lotly is a revolutionary new way to invest in real estate. We’ve created a financial product that allows investors and homeowners to co-own homes. When you invest with Lotly, you own a share in multiple owner occupied properties.
To invest with Lotly, you buy units in a Lotly fund. These units give you an ownership stake in multiple owner occupied properties. More specifically, the Lotly fund contributes to the down payments of homebuyers, and in return, owns a share in each of their homes. When the price of these homes increases, so does the value of the Lotly fund, and your investment. You are paid out when a home in the fund is sold or refinanced.
With Lotly, you’re betting on the continued appreciation of prime real estate. If the value of the properties in Lotly’s fund goes up, so does your investment.
The fund’s ownership interest varies by property, based on how much of the down payment the fund covered. The fund’s ownership interest is calculated as its original contribution (as a percentage of the home’s price) times 3.25. For example, if the fund contributed 5% of the property’s price toward the down payment, it would own 16.25% of the property's appreciation.
When a home in the Lotly fund is sold or refinanced, fund holders are paid out. Let’s dig into how the payout works using a single property as an example.Assume the fund contributed 5% of the property price to purchase a property worth $500K. The fund’s ownership stake varies by property based on how much of the down payment it covers, but in this case, the fund owns 16.25% of the property's appreciation. In five years, assume this homeowner decides to sell their property for $700K. The fund would be paid out its initial investment plus 16.25% of the price increase (i.e. 16.25% of $200K appreciation). Note that the fund is not entitled to any equity created from paying down the mortgage, because the homeowner makes the monthly mortgage payment.
With Lotly, investors participate in the upside and downside alongside homeowners. If the price of a property decreases, you would lose part of your initial investment. You are not on the hook for the mortgage, so your downside is capped at your initial investment. Keep in mind that the Lotly fund does hold a share in multiple properties to help diversify exposure across multiple homeowners, markets, and property types.
We charge a 2% origination fee to investors and 0.5% annual management fee on capital still invested. We also charge the homebuyer 3.5% on capital raised for their property to a maximum of $5K. The up-front fee covers our costs of marketing and facilitation. The ongoing fee helps us monitor the portfolio and make sure Lotly homes are impeccably maintained.
Worst case scenario 1: Lotly goes out of businessLotly deals are done between the homeowner and the Lotly fund. If Lotly goes out of business, your investment in the home is unaffected. We would appoint another company to service Lotly contracts until they all exit, ensuring you get paid.Worst case scenario 2: The real estate market falls dramaticallyIf the real estate market falls dramatically, you could lose some or all of your investment. Your liability is capped at what you invest.Worse case scenario 3: The homeowner defaultsLotly will work with the homeowner to resolve these situations in a way that is best for their interests and the interests of our investors. Everyone’s interests are aligned and there are several ways to turn around a situation like this, and rest assured, we will do everything we can to protect your investment.
Lotly is a technology start up backed by Canada’s leading venture capital funds, including N49P, Panache Ventures, and Forum Ventures. We have partnerships with some of Canada’s leading financial and housing institutions. Our team collectively has experience in technology, finance, and real estate.
The minimum investment with Lotly is $100,000. We are currently only accepting investment from accredited investors.
Sign in and fill out your investor profile to see how much you qualify to invest.* Lotly GTA Fund I is closed as of December 2023. We will update you when the next fund opens.
Lotly accepts investments Canadian residents who are accredited investors living in Ontario, British Columbia, and Alberta. Fill out your investor profile to check how much you are eligible to invest with Lotly.* Lotly GTA Fund I is closed as of December 2023. We will update you when the next fund opens.
We place restrictions on who can invest with Lotly because Lotly is a new investment type best suited for those with investing experience.
Sign up online become a Lotly investor. Once you complete your profile and follow the setup process on our website, you will be able to purchase available Lotly fund units.* Lotly GTA Fund I is closed as of December 2023. We will update you when the next fund opens.
Sign up on our website using your email address to become a Lotly investor. You will have to follow a short series of steps before you can make your initial investment. These steps are all necessary and required by law. The steps will include setting up your investor profile and speaking with our securities dealer Meadowbank Asset Management.* Lotly GTA Fund I is closed as of December 2023. We will update you when the next fund opens.
Meadowbank is an established exempt market dealer and portfolio manager in Ontario, Canada. They are Lotly’s exclusive partner for the Lotly GTA fund. Meadowbank’s role is to conduct all know-your-client (“KYC”) and identity verification on the Lotly Fund investors in accordance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (“PCMLTFA”). They also make sure the Lotly investment is right for you. They will ask you a series of questions about your investing knowledge and risk tolerance. Meadowbank helps protect both you and Lotly, and their involvement is required by securities law.
You can reach out to our team by emailing team@lotly.com or send us a message using our support chat.
There are many different reasons why you may not be eligible to invest based on securities regulations. Only Meadowbank can determine whether you are eligible to invest in the Lotly fund. If you are ineligible, we will contact you via email to give you an option to keep or delete your account. If you have already sent a payment, you will receive a full refund.
You will be an official Lotly fund unit holder. You will be able to sign in to Lotly.com and see your dashboard where you can see how many units you have, plus additional fund details & documents.
Yes, there is a mortgage on homes within the Lotly fund.
No. Homeowners qualify for the mortgage.
No. Homeowners are responsible for the full cost of ownership.
The Lotly fund signs a co-ownership agreement with our homeowners. Therefore, the fund is a real owner in each home. The fund’s ownership interest varies by property, based on how much of the down payment the fund contributed. The fund’s ownership interest is calculated as its original contribution (as a percentage of the home’s price) times 3.25. For example, if the fund contributed 5% of the property’s price toward the down payment, it would own 16.25% of the property.
Yes! Homeowners are able to renovate their properties as they wish.
Similar to owning real estate outright, the Lotly fund is a long term buy and hold investment. You get paid out when each home in the fund is sold or refinanced over time. Historical data shows that most homebuyers sell their first home within 7 years of purchase. We expect 50% of the homes in our fund to exit around the 6-7 year mark, and the rest should exit by the 10-12 year mark. Homeowners benefit from appreciation alongside investors, so they will be motivated to sell when prices are high.
When a home in the Lotly fund is refinanced or sold, fund holders are paid out. Let’s dig into how the payout works using a single property as an example.Assume the fund contributed 5% of the property price to purchase a property worth $500K. The fund’s ownership stake varies by property based on how much of the down payment it covers, but in this case, the fund owns 16.25% of the property. In five years, assume this homeowner decides to sell their property for $700K. The fund would be paid out its initial investment plus 16.25% of the price increase. Note that the fund is not entitled to any equity created from paying down the mortgage, because the homeowner makes the monthly mortgage payment.
Currently when you buy units in the Lotly fund, you are making a long-term investment. Real estate returns are maximized over a long period of time. Short-term real estate investing is not recommended as it can result in high-transaction costs and may not yield any return depending on the market cycle.As homeowners sell or refinance their homes, you will be paid out after each sale. If there are still homes in our fund after the 10 year mark, Lotly will do everything commercially possible to provide liquidity to our investors. We may do things such as facilitating a sale of your position to another investor (via our exempt market dealer).Disclaimer: This is a highly illiquid asset. It’s possible that you will not be able to exit your position.
There is no lock-in period for homeowners; however, your incentives are aligned. Very few homeowners sell very quickly, and when they do, it's typically for the best.
Lotly will do everything we can to work with the homeowner in this situation. It’s in everyone’s best interest to get the homeowner back on track or get the property sold in an orderly fashion.
If the homeowner damages the home in any way, there will be a maintenance adjustment and the cost of damages will be deducted from their stake in the home.
