If you searched for Addy's current fee structure, there's critical information you need first. Addy stopped operating under its previous investment-platform model by early 2026. After filing a Notice of Intention in April, Addy Technology Corp. completed a court-approved restructuring transaction on June 11, 2026. Separate related entities entered bankruptcy.
While the platform once offered some of the lowest advertised fees in the industry, its restructuring illustrates why fee structure alone does not determine platform quality or investor safety. Understanding what Addy charged, and what official records say about its financial difficulties, provides essential context for anyone evaluating fractional real estate platforms today.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Key Takeaways
Addy historically advertised no platform transaction fees for Canadian-dollar investments, alongside optional memberships of $25 annually, later $50 annually, or a $500 lifetime membership during an earlier period
The platform facilitated approximately $26 million in securities transactions while unregistered between July 2018 and February 2025, resulting in a $100,000 regulatory settlement in March 2025
Official trustee records describe rising compliance and operating costs, declining investment activity, and adverse real estate conditions as management-reported contributors to Addy's difficulties
Addy Technology Corp. completed a court-approved restructuring on June 11, 2026; the bankruptcy of related entities does not establish one uniform outcome for every property investment
mogul offers property-specific LLC membership interests, management co-investment, and conditional first-year loss protection of up to $10,000 for eligible new members
Understanding Fractional Real Estate Investing Fees
What Is Fractional Real Estate?
Fractional real estate investing allows individuals to purchase interests associated with income-producing properties without buying entire buildings outright. Instead of needing substantial capital for a down payment, investors can access real estate through smaller allocations with potential rental distributions and appreciation.
Investments may be issued through LLCs, corporations, limited partnerships, or other special-purpose entities. Investors generally hold interests in those entities, not individually deeded fractions of the property. Economic rights, voting powers, distributions, and tax treatment depend on each investment's governing documents.
This differs from a diversified REIT fund, where investors generally own shares in a vehicle holding a broader real estate portfolio.
Common Fee Structures in Real Estate Platforms
Fee structures across fractional real estate platforms generally fall into several categories:
Acquisition or sourcing fees: One-time charges connected with property acquisition
Annual asset management (AUM) fees: Recurring percentages charged on a defined asset or equity base
Property management fees: Costs of operating rental properties, sometimes calculated on rental revenue
Transaction or platform fees: Charges for subscribing to or transferring investment interests
Exit or disposition fees: Charges when a property or eligible investment interest is sold
Membership fees: Optional or required payments for access or additional platform features
Total cost over a multi-year holding period depends on the fee bases and applicable offering terms. A recurring fee and a one-time fee cannot be compared reliably by percentage alone, especially when one is based on invested capital and another on property purchase price.
What Addy Charged: Historical Fee Breakdown
Membership Tier Structure
Addy operated a tiered membership model that affected access and per-property investment limits. According to the 2025 BCSC settlement, paying for membership was not required to invest during the period reviewed.
Free tier ($0): Investors could access eligible offerings without paying a membership fee, subject to offering-specific investment limits
Paid annual membership: Addy charged $25 per year from 2018 until October 2022, increasing the annual fee to $50 after October 2022 for early access and additional features
Lifetime membership ($500): During the earlier period, Addy offered a lifetime membership for investors who chose that paid option
Transaction and Operating Fees
Addy's historical marketing advertised no transaction, acquisition, withdrawal, or promotion fees for Canadian-dollar investments. Contemporaneous independent reporting also described the absence of those investor-facing transaction charges. Several important qualifications applied:
U.S.-dollar transactions: Banking or currency conversion charges could apply
Offering-level expenses: Individual issuers and properties could incur expenses separate from Addy's own platform charges
Property management: Operating expenses varied by issuer and property rather than following a single platform-wide percentage
Exits: No broadly available, guaranteed liquid resale market existed for all investments
The regulator also documented another revenue source: from October 2022, Addy charged software licensing fees to issuers and exempt market dealers of $100 per month or one-time fees of up to $25,000. This means its business model was not supported solely by optional investor memberships.
The Optional Membership Cost Consideration
For investors who chose paid membership but made small allocations, the subscription could be meaningful relative to the amount invested. For example, $50 in annual membership fees alongside only $500 of investments would be equivalent to 10% of that allocation in a single year.
That example is not a mandatory 10% investment fee. Free membership was available, and a paid subscription could provide features across more than one investment. Its relative cost depended on the investor's usage and total allocations.
What Happened to Addy in 2026
Timeline of Addy's Restructuring
The platform's restructuring followed regulatory and operational challenges documented in official records:
July 9, 2018 to February 14, 2025: Addy engaged in securities trading activity requiring dealer registration while it was unregistered, facilitating approximately $26 million in securities transactions, according to the BCSC
March 17, 2025: The BCSC announced a $100,000 settlement for admitted registration breaches
March 9, 2026: Addy Dealer Corp. entered bankruptcy
April 16, 2026: Addy Technology Corp. filed a Notice of Intention to Make a Proposal, a restructuring proceeding rather than a bankruptcy filing
April 29, 2026: The Supreme Court of British Columbia approved the sale process and a reverse vesting order
June 11, 2026: The court-approved transaction closed, ending Addy Technology Corp.'s proposal proceeding
June 15, 2026: 1591725 B.C. Ltd., the residual-liabilities entity, entered bankruptcy
The separate legal entities and dates matter. Addy Technology Corp. completed a restructuring transaction; Addy Dealer Corp. and the residual-liabilities company entered separate bankruptcies.
Impact on Investors
The restructuring created uncertainty about administration, reporting, and the future of some existing investments. However, property investments issued through separate entities or special-purpose vehicles did not automatically become part of the bankruptcy estate simply because an associated platform company faced insolvency.
The court-approved transaction transferred specified debts and obligations into the residual company. Individual investor outcomes still depend on:
The entity that actually issued the security
Any ownership links, guarantees, or intercompany obligations
The underlying property's condition and performance
The terms governing distributions, administration, and exits
The public record does not establish a single recovery percentage or timeline for all Addy investors.
What Official Records Say About Addy's Financial Difficulties
Documented Contributing Factors
According to the proposal trustee's report available through Crowe MacKay, Addy Technology Corp.'s management identified several factors contributing to the company's financial difficulties:
Increasing legal, regulatory, compliance, operational, and financial costs
Declining investment activity on the platform
Adverse real estate market conditions affecting activity and the broader business
The trustee specified that these descriptions relied on management information that had not been independently audited or verified to auditing standards. The records do not isolate one factor as the definitive cause of the company's financial difficulties.
Regulatory Compliance Costs
The BCSC settlement established that Addy's activities required dealer registration during the stated period and that the exemptions it sought to rely on did not apply.
Management later told the trustee that bringing dealer registration in-house contributed to rising legal, compliance, and operating obligations. The documented $100,000 settlement was a separate regulatory payment, not a calculation of total compliance costs or investor losses.
Business Model Considerations
Addy's model combined optional investor memberships with software licensing fees charged to issuers and dealers. These revenue streams supported a platform with ongoing operational and compliance obligations.
When investment activity declined, as management reported to the trustee, supporting those obligations became more difficult. The available records do not establish that optional membership fees alone caused the restructuring or that any particular fee model guarantees long-term business stability.
Limited Secondary Market
Addy did not provide a broadly available, guaranteed liquid resale market for every investment. Investors generally depended on offering-specific exit terms, potential transfers where permitted, or property-level events such as sales and refinancing.
The restructuring underscored how limited liquidity can complicate exits. However, the impact on any particular investor depends on the security and underlying issuer, not solely on the status of the platform operator.
How Fees Impact Your Real Estate Investment Returns
Comparing Fee Structures Over Time
Fees accumulate differently depending on whether they are optional memberships, one-time transaction charges, or recurring asset-based fees. Consider these simplified five-year illustrations:
Membership Fee Model: An Addy investor who voluntarily paid $50 per year for five years would have paid $250 in membership fees. An investor using the free tier would have paid $0 in membership fees. These charges were for platform access and features, rather than a uniform percentage of a particular investment.
One-Time Platform Fee Model: A fee assessed once at acquisition does not recur annually merely because the investment remains outstanding. For example, a hypothetical 5% fee on an individual $10,000 contribution would equal $500, but that is not a universal rule for property-based platforms. mogul's one-time 5% fee is calculated on property purchase price and capitalized into the transaction, so an individual investor's contribution is not necessarily the fee base.
Annual AUM Fee Model: A hypothetical 1% annual fee on a constant $10,000 fee base would equal $100 per year, or $500 over five years, before changes in investment value and other charges.
The key distinction is the timing and calculation base of each fee. Upfront platform fees are assessed once under the relevant terms, while recurring asset-based fees may continue through the holding period. Property-level operating expenses remain relevant regardless of the platform fee model.
Fee Impact on Net Returns
Fees affect net investor returns, but a headline percentage can only be subtracted from a return figure directly when the two use comparable calculation bases.
For example, a hypothetical 8% annual gross return on invested equity combined with a 1% annual management fee on that same equity base would produce approximately 7% before other costs. If the fee were instead calculated on property purchase price or gross rents, the result would differ.
A one-time 5% acquisition fee over five years is not automatically equivalent to a 1% annual AUM fee because the charge dates, denominators, cash flows, and investment performance may differ.
Property-level operating expenses are separate from platform fees and can include property management, maintenance, insurance, taxes, reserves, and financing costs.
What to Look for Beyond Fees
Regulatory Compliance and Registration
Addy's regulatory settlement illustrates the importance of understanding an investment's securities-law framework. Relevant considerations include:
The issuer of the securities and applicable offering exemption or registration requirements
The role and registration status of any required broker-dealer or intermediary
Available offering documents and risk disclosures
Material regulatory history and relevant compliance responsibilities
Registration and compliance processes can provide safeguards, but neither is a guarantee of investment performance or principal protection.
Management Experience and Track Record
Platform operators' capabilities can be evaluated through:
Real estate transaction experience
Whether management co-invests in offered properties
Underwriting methodology and property-selection criteria
Completed investment outcomes and investor reporting
Liquidity Considerations
Real estate investments can remain illiquid even when a platform supports transfers or publishes periodic valuations. Relevant factors include:
Available secondary-market features, if any
Expected holding periods and restrictions
Potential property sale or refinancing exits
Conditions under which early transfers are permitted
Risk Mitigation Features
Some investment platforms describe features intended to manage selected risks:
Conditional promotional loss protection for eligible investments
Platform or manager co-investment
Property-specific legal structures and governing documents
Property valuations, operating reserves, and investor reporting
These arrangements may affect incentives and available information, but none removes the possibility of investment losses.
Why mogul Stands Out for Fractional Real Estate
mogul addresses several considerations important to fractional real estate investors through property-specific residential investment opportunities, institutional underwriting, and a different platform fee model.
Institutional-Grade Underwriting
Founded by former Goldman Sachs real estate executives with over $10 billion in collective transaction experience, mogul applies institutional selection standards to property evaluation. Less than 1% of reviewed properties pass the company's stated diligence process.
One-Time Platform Fee
mogul charges a one-time 5% platform fee, calculated on property purchase price and capitalized into the initial transaction. It does not charge a recurring annual mogul platform fee.
This structure means:
The platform fee is charged once rather than annually on investor balances
There is no recurring mogul AUM-based charge on invested equity
Applicable property operating costs and reserves still affect distributable net rental income
Conditional First-Year Protection for New Members
mogul offers up to $10,000 in loss protection for qualifying investments made within a new member's first seven days. Eligible losses are assessed based on aggregate total return after one year, and coverage is subject to the promotion's terms. The program does not guarantee principal or protect against every type of loss.
Management Co-Investment
mogul states that it invests its own capital in every property offered on the platform. This approach provides financial alignment because management participates in the property's investment economics alongside members. Co-investment does not eliminate conflicts or guarantee returns.
Blockchain Ownership Records
mogul uses Avalanche as an additional ownership-record layer, providing digital records associated with the underlying LLC membership interests. These records supplement the legally governing LLC agreements and property-title documentation rather than replacing them.
The infrastructure is intended to support future trading functionality. The platform's secondary share-trading market remains planned and does not currently guarantee investor liquidity.
U.S. Market Property Focus
mogul offers selected residential real estate opportunities across U.S. markets. This provides access to different local property markets, although an investor's actual diversification depends on the specific properties and allocations chosen.
For more detail on the differences between the two historical models, see mogul's comparison with Addy.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions
What happens to existing Addy investors after the platform's restructuring?
Addy Technology Corp. completed its court-approved transaction on June 11, 2026, while separate entities entered bankruptcy. Investors may hold securities issued by property-specific entities that did not automatically become part of those bankruptcy estates. Outcomes depend on the particular issuer, property economics, legal rights, and any relevant intercompany obligations. The public trustee records do not establish a single recovery rate for all Addy investors.
Were Addy's annual membership fees required to invest?
No, the BC Securities Commission settlement states that paid membership was optional throughout the period reviewed. Addy historically offered a free option, a $25 annual tier that later increased to $50, and an earlier $500 lifetime option. Any membership cost depended on whether an investor chose paid access and the period in which they subscribed.
How does mogul's one-time fee compare with Addy's historical membership model?
mogul charges a one-time 5% platform fee calculated on property purchase price and capitalized into the investment, with no recurring mogul platform fees. Addy's optional historical memberships were instead priced as subscriptions for access and added features, alongside its advertised absence of platform transaction fees on Canadian-dollar investments. Comparing their total costs requires considering the applicable fee bases, offering-level expenses, and holding period.
Does mogul provide monthly income and property-specific ownership?
mogul investors hold membership interests in LLCs associated with identifiable residential properties rather than individually deeded shares of those homes. Monthly distributions may be made when an operating property generates sufficient distributable net rental income, but payments are not guaranteed. Governance rights and other investment terms are established by the applicable LLC documents.
How does mogul's first-year loss protection work?
Qualifying new mogul members may receive up to $10,000 in first-year loss protection for eligible investments made during their first seven days. Coverage is based on aggregate total return assessed after one year and is subject to the promotion's terms. It is a conditional program, not a guarantee that real estate investments cannot lose value.