Wealth Migrate – Wealth Migrate

How To Fund Your Investor Wallet Securely Online

Blog, Company, Document Guidelines, Investing, Investor Basics, Portfolio, Real Estate, Real Estate Investment, Resources, Uncategorized / Wealth Migrate

Now that you have completed the Know Your Client (KYC) part of creating an investor account, funding your wallet is the next step to becoming a Wealth Migrate investor. Diversify your portfolio on our FinTech platform with a personal digital wallet.

The diverse investment deals available on Wealth Migrate’s marketplace range from as little as $100 (USD) or more, and from time to time we may run exclusive offers where the minimum investment amount is reduced.

As an investor, you can access a complaint and well-regulated platform to invest in a range of diverse institutional-quality real estate or structured note deals. Usually, individual investors lack the access and wealth to invest in such deals, but this digital platform creates an opportunity for a more accessible method of wealth creation.

Our partnership with Lemonway ensures your financial transactions are safe and secure

Through our partnership with our European wallet and cash custody provider Lemonway, we provide a digital wallet that is accessible and secure for our you to create and preserve wealth. Lemonway enables us to offer a FinTech platform where you can fund a single transactional wallet and invest in opportunities that meet your personal investment portfolio requirements.

This is what our partnership with Lemonway means for you:

Lemonway holds a Payment Institution Licence – DSP2 Regulation 2015/2366. This licence is valid in all European countries including the UK. Article 10 details Lemonway’s obligations to comply with client money rules, and Lemonway upholds compliance with CASS and the Financial Conduct Authority’s client money rules.

The contractual relationship with our partner allows Lemonway to hold our investors’ money (under CASS 6) – this also ensures there is strict control over the movement of funds (under CASS 8).

Records, accounts, and reconciliations – Lemonway keeps records of all individual investor transactions and balances, this includes additional security measures pertaining to electronic signatures and further internal checks and balances.

In case a business partner or Lemonway goes insolvent there is support for firms in terms of CASS 7A (client money distribution and transfer) and CASS 11.13 (debt repayments). Where all funds are attributed to individual accounts and Lemonway transfers obligations to one or more run-off management designated firms.

Your personal and financial information and transactions are protected

In short, our procedural operations cover two countries for data jurisdiction: South Africa and France. Most of our administrative team resides in South Africa and France is the location of our KYC and wallet service provider.

For South Africa, our team upholds the Protection of Personal Information Act (POPI Act 4 of 2013) as gazetted by the South African Government. In respect of France, as part of the terms and conditions agreed to during the create a personal account process, you consent to having your information shared with Lemonway.

The information you provide is used to verify your identity and create a digital wallet in your name and Lemonway adheres to the General Data Protection Regulation EU 2016/679. If you would like to read more on Lemonway’s data protection policy, click here to access it.

Follow this process to fund your digital wallet

In terms of our business, we have chosen the currency of US Dollars to fund investment deals on Wealth Migrate’s platform. All our deals require you to have US Dollars to invest and that’s why you will need to have a digital wallet.

Ensure your wallet has enough funds for your investments by wiring US Dollars to your US currency digital wallet, you can do this by logging into your account, and clicking on the wallet icon. In the wallet section, the term ‘deposit funds’ means that you are completing a wire transaction to ensure you have US Dollars in your wallet. Unfortunately, you can’t go to your bank or to an ATM to do this step, as this is an overseas financial transaction and requires a wire transfer.

To fund your digital wallet, use your unique payment reference number starting with WM – this shows Lemonway this is from a Wealth Migrate client to ensure the payment goes through. The unique payment reference number will ensure that there is no misallocation of funds to your wallet.

If there’s an investment deal that you want to invest in before it closes, you will need to fund your wallet in advance. It’s important to note that there is a wait time of three to five business days to receive approval from Lemonway, only after that period will the US Dollars from the wire transfer reflect in your online wallet.

We’ve also made some visual guides available as a downloadable PDF or video to help you with this process. Download our thorough step-by-step guide here for an in-depth overview of the KYC process or view our quick “How to fund your wallet” tutorial video here.

Explore the investment deals available on Wealth Migrate’s Fintech platform and use these visual tutorials as a guide on your wealth creation journey – click here to learn how to invest, and learn to understand and interpret your investment portfolio, here.

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Wealth Migrate: Know Your Client (KYC) Process And Its Importance

Blog, Company, Investing, Investor Basics, Knowledge Base, Portfolio, Resources, Uncategorized / Wealth Migrate

As an investor you want the peace of mind to know that any financial transactions you complete on the Wealth Migrate platform are secure and comply with all necessary legal regulations. It’s for this reason that Wealth Migrate requires you to complete the Know your client (KYC) process before you can officially start crowdfunding real estate and structured note investments online.

KYC is an important part of the trust-building process between Wealth Migrate and its investors, as it allows potential investors to identify and verify themselves.¹ This is the first step in Wealth Migrate’s due diligence process which ensures that not only do our investors have peace of mind with their financial transactions, but that Wealth Migrate is a licenced company that upholds the laws applicable to its business and investors. On behalf of the company, it also needs to ensure it’s not dealing with investors that may be involved in illegal activities such as money laundering or fraud.²

A crucial part of this process is by aggregating our global investors into a compliant special purpose vehicle (SPV) to create an investment network. This system screens and regulates against anti-money laundering (AML) and know your client (KYC) processes upon member registration. The financial transaction system handles all payments from investors and distributions back to investors. With America’s strict countenance on counter-terrorism and anti-fraud laws, Wealth Migrate isn’t prepared to accept the risks of investors from the United States of America.

Additionally, Wealth Migrate has a valid Category 1 licence (FSP 47394) as granted by the Financial Services Conduct Authority, and this licence allows Wealth Migrate to provide its crowdfunding offering on an intermediary services basis using shares as a financial product category.³ The company is therefore held liable by the Financial Services Conduct Authority for complying with laws regarding its financial transactions.

The KYC onboarding process is therefore a significant step to reduce the potential risks for both parties and ensure that the company and its investors are interacting in a trustworthy manner.⁴ The company is taking due care to ensure that the potential investor is who they claim to be and is using funds obtained legally for a legitimate purpose. This also works in the favour of an investor as the company must uphold its duties and responsibilities as well as provide transparency about its business as a licenced financial services provider.

What information is needed to KYC?

Some basic information is needed to ensure the investor’s identity is correct such as their full name, date of birth address and identification number. The documentation for submission needs to provide proof of the person’s identity, place of residence, and the funds for investment.⁵

Typical documents include:⁶

A driver’s licence
A passport
An identity document
Utility statements for a mobile phone, electricity, or water
Rental contract
Bank statements

How to KYC on the Wealth Migrate platform

We’ve made this process easier and simpler as all the documentation can be submitted online. Investors will firstly need to sign up and create an account on Wealth Migrate and then undergo the KYC process. Within three days from submission, the KYC Team will do a preliminary cross-reference check and provide feedback via e-mail.

Follow these steps to achieve a successful KYC process:

Step one:

Create your investor account – register with your chosen e-mail address and password.

Country of residence – select the country on the drop-down menu.

Select your investor category – click on the type of investor profile that suits your investment style.

Step two:

You will be required to upload the following documents:

Two forms of identification including the front and back of:
- a driver’s licence
- an ID card
- and/or a colour copy of your valid passport

A recent proof of address, no older than three months of either:
- a utility bill,
- a rates and taxes bill or Council Tax bill
- a mobile phone statement

Bank statements will not be accepted as proof of address
A full-page bank statement, no older than three months

Step three:

You will receive an automated e-mail once your profile has been verified.

Your KYC status will display as ‘approved’ on your profile.

We’ve also made some visual guides available as a downloadable PDF or video to help our members with this process so that they can start investing with ease. Download our thorough step-by-step guide here for an in-depth overview of the KYC process or view our quick “How to KYC” tutorial video here.

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Real Estate Investments Unlock Financial Freedom

Blog, Media, Online Investment, Press Release, Real Estate, Real Estate Investment, Uncategorized / Wealth Migrate

South Africans are struggling to achieve financial freedom with 34% not having enough savings to last more than a month if they lost their income/jobsⁱ. However, this freedom can be within reach through investing in quality assets such as real estate to build up a passive income.

“Financial freedom means having sufficient savings, investments, and cash on hand to afford the lifestyle you want,” says Scott Picken, Founder and CEO of Wealth Migrate, a leading fintech real estate investment platform. “Simply put, it’s the freedom to choose, and a steppingstone towards this is to build a passive income which is derived from investing your money in a product that generates profits, creates stability, security, and ultimately, freedom in your financial life.”

When it comes to ways that people have been supplementing their income, Picken explains that investing in cryptocurrency such as Bitcoin has been rising over the past couple of years. “It is important to note that although you can secure a triple return on investment, the only way to get your money out is to sell.”

He points out that real estate is one of the tried and tested investment vehicles through which people can earn a passive income. “In fact, 49% of the world’s wealth is held in property where people not only create their wealth but protect it too. However, only 12% of the global population has access to residential real estate and less than 1% has access to commercial property, which is where the real wealth is.”

“It is for this reason that Wealth Migrate has reduced its minimum investment fee from $100 (approximately R1,570) to $10 (approximately R157) to give more South Africans greater access to the global real estate market,” says Picken.

To assist new investors to get their foot in the door and work towards financial freedom, he shares six steps to real estate investing:

Belief: Henry Ford has been quoted as saying ‘whether you think you can, or you think you can’t – you’re right’. And the same applies to the belief that investing will help you find financial freedom.

Knowledge: The next step requires the investor to do research and to learn about the properties in which they would like to invest.

Accessibility: This refers to the action of investing – you can have all the knowledge about your desired investment, but unless you actually do something with it, it’s useless.

A system: Next, your system is what helps you manage your portfolios.

Accountability: As with anything new or difficult, the chances of doing it on your own are very small, but an accountability partner can help.

Results: This is the profits from your investment. If you want to get wealthy, you’ve got to get results.

“Potential investors often believe this is a linear progression, but in fact it’s spiral, because once the results of your investment have been realised, you can go back to step one and reinvest all over again with a strengthened belief. I call this an upward spiral,” explains Picken.

“The challenge is that it works the opposite way too,” he says. “A downward spiral exists because if the belief, knowledge, access, a system, and accountability are not there then you get no results. No one learnt to walk by reading a book, they did so through action, and I believe that the same applies to achieving financial freedom.”

Picken shares that wealthy people prosper due to the habit of consistent investing. “Our philosophy is that, by dropping the minimum investment from $100 to $10, we can give a lot more people the opportunity to participate in the property market and start their journey to financial freedom. Over and above accessibility, we are giving them the ability to diversify their investment, enabling them to invest in 10 deals and assets across various countries and currencies.”

He adds that by lowering the minimum investment fee, this also gives investors the opportunity to reinvest what they earn from their investments more easily.

“To achieve financial freedom, South Africans need to take action and invest. Now is the time to take the next step,” concludes Pickens.

The minimum investment fee will be $10 only until the end of May 2022. For more information, or to invest, go to https://wealthmigrate.com.

About Wealth Migrate

Established in 2010, Wealth Migrate is a leading fintech real estate investment platform that helps the 99% invest like the top 1% to create more financial freedom in their lives. In so doing, the company is closing the wealth gap, brick by brick. Wealth Migrate’s mission is to put the power of smart investing in everyone’s pockets by providing people with a safe and easy way of not only investing in residential and commercial real estate markets globally, but also by diversifying their investment. This is achieved through the use of technology and crowdfunding. For more information, or to invest, go to https://wealthmigrate.com.

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A simple understanding of macroeconomic factors for investors

Blog, Document Guidelines, Investing, Knowledge Base, Online Investment, Real Estate, Real Estate Investment, Resources, Uncategorized / Wealth Migrate

Determining the interest rate, inflation, and platform returns

Wealth Migrate’s FinTech platform means investing in offshore real estate is more accessible and convenient, your wealth isn’t tied up in red tape with our global compliance processes. We’ve enabled a method to create wealth that doesn’t involve hidden fees or extra intermediaries.

All investors learn a new language when it comes to creating wealth by understanding how markets work, and in this way, macroeconomics is a crucial part of learning to invest. Macroeconomics is broadly defined by The Economic Times as the “branch of economics that studies the behaviour and performance of an economy as a whole.” ^[1]

What is inflation?

The quantity theory of money holds that “money supply and price level in an economy are in direct proportion to one another.”^[2] These two factors exist in a seesaw effect, where if the money supply is too big, purchase power decreases and prices rise. Therefore, inflation deals with the supply of money in an economy, relying on purchasing power and the rise in prices.

Inflation measures how much more expensive goods and services have become over time.^[3] This is determined during a defined period and is typically set to 12 months. It’s a measurement of the average rate of increase in prices or the cost of living over a defined period, where inflation refers to prices on the rise.

For the households in a country, the cost of living is determined by the price of basic goods and services that each person needs to pay for, this includes housing, food, taxes, and healthcare.^[4] The cost of this basket is known as the consumer price index (CPI), which tracks the change in prices.

Consumer price inflation is the rate of change in the CPI over a set period and is the most common measure of inflation.^[5] For example, if the base year CPI is 100 and in 2021 the existing CPI is 110, CPI inflation for 2021 would be 10%.

How does the interest rate work?

Raising or lowering inflation has an inverse effect on the base interest rate and depending on the action taken, this can either boost savings or spending.^[6] This is a simplistic explanation of how inflation influences the interest rate as other factors may also play a role in macroeconomics. The increase or decrease of the interest rate affects the economy in a variety of ways but specifically in the cost of borrowing for commercial banks.

What happens when the interest rate increases?^[7]

This raises the cost of borrowing for commercial banks and results in the banks upping their own interest rates, which encourages the population to save and gain higher returns with the cost of borrowing becoming expensive. The knock-on effect of lowering spending in an economy causes economic growth to slow. With more cash held in bank accounts and less being spent, money supply tightens and demand for goods drops – a lower demand for goods should make them cheaper, lowering inflation.

What happens when the interest rate decreases?^[8]

This drops the cost of borrowing for commercial banks and results in the banks reducing their own interest rates. The knock-on effect is that interest rates on both savings accounts and loans are low, making borrowing and spending appealing, but not saving. It causes economic growth by widening money supply and increasing spending on goods and services – a higher demand for goods should make them more expensive, increasing inflation.

How does a platform return work?

Everything you need to know before investing is on the deal itself in the meta-marketplace. When browsing through the deal be sure to view the deal overview as this contains our recorded webinar with specific details from our team, as well as the investment summary, market summary and risk category.

When you invest in one of our deals there is also an initiation fee cost. All our deals transparently display the fee charges, and the investment will take this into account and inform you of what this charge is.

Here’s a breakdown of our fee structure:

Initiation fee: An upfront fee charged at the start of the investment covering the costs of sourcing and due diligence for the deal and setting up the deal-specific legal structure that enables global investors compliant access to the deal through the most tax-efficient structure.
Success fee: A percentage-based fee only charged on profitable dividends or interest to cover ongoing costs of the legal structures. If the deal is not profitable, these costs are covered at risk by our marketplace.
Capital gain success fee: A percentage-based fee only charged on profitable gains. This fee is how we make money, by only getting a reward on successful deals and ensuring our interests are aligned with our investors.

When you browse a deal on our marketplace the projected returns calculator takes your initial investment amount (generally $97 USD) and includes the initiation fee.

To give you an estimate of the projected return for the investment, the calculator will include the average for the following factors (if applicable):

Cash flow percentage
Annual dividends or interest
10% success fee
Return of capital
Capital gain
Capital gain success fee
Projected cash-on-cash return
Projected internal rate of return

For example, this is what one of our investment deals, BNP US Equity Memory Profit Autocall (Shariah Compliant) March 2022, will yield in platform returns when you invest $97 (USD). The image below is how all the projected returns are broken down for each individual investment on our meta-marketplace.

This quick overview of investing belongs to an educational series that we provide to our investors. For more information, view further articles on our blog that cover how to invest in Wealth Migrate’s platform, and how our processes protect your information and financial transactions.

^[1] The Economic Times (March 2022). ‘Definition of macroeconomics?’. Retrieved from The Economic Times.
^[2] The Economic Times. (March 2022). ‘Definition of quantity theory of money?’. Retrieved from The Economic Times.
^[3] Smialek, J. (January 2022). ‘Inflation has arrived. Here’s what you need to know.’ Retrieved from The New York Times.
^[4] Banton, C. (March 2021). ‘Cost of living definition’. Retrieved from Investopedia.
^[5] Oner, C. (2022). ‘Inflation: prices on the rise’. Retrieved from International Monetary Fund.
^[6] U. S. Wealth Management. (March 2022). ‘How do interest rates affect investments?’. Retrieved from U. S. Bank.
^[7]Wessel, D., and Powell, T. (November 2020). ‘What are inflation expectations? Why do they matter?’. Retrieved from Brookings.
^[8]Wessel, D., and Powell, T. (November 2020). ‘What are inflation expectations? Why do they matter?’. Retrieved from Brookings.

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Global Wealth Group and Wealth Migrate: Business Growth and Scaling

Blog, Investing, Online Investment / Wealth Migrate

Written by: Mariken Jansen van Vuuren, Head of Marketing at the Global Wealth Group and Wealth Migrate.

Amazon needs no introduction, their CEO and founder, Jeff Bezos, created a popular growth strategy called the “flywheel.” Based on the core concept of a virtuous cycle, a flywheel takes a lot of effort to move initially, but once it starts, it gains momentum and quickly spins faster.

To grow and scale both the Global Wealth Group and Wealth Migrate business, we decided to map out our own virtuous cycle with guidance from the Amazon archetype. We looked at how our virtuous cycles turn, what the various sequences look like, and how we move our different drivers to create unstoppable momentum.

The Global Wealth Group (GWG)
We make primary market investments in alternative assets accessible to anyone, anywhere, from any amount, enabling investors to safely invest and diversify globally, using technology such as collaborative SMART investing. Our meta-marketplace offers B2B and B2C opportunities for investors to crowdfund property. This unique solution provides access to digital wallets and enables people to invest in global property opportunities across the globe and alternative assets. We focus on bringing international opportunities to clients in emerging markets.

Global Wealth Group’s virtuous cycle

WealthPoint – platform as a service technology
Our starting point is our WealthPoint technology, which powers our meta-marketplaces. Wealth Migrate is our flagship platform and our proof of concept, while WealthPoint provides a white label solution to property partners, financial planners, institutions and strategic partners in both genre and geography sectors. We build on the significant demand and distribution for supplying the same products across various active marketplaces.

Active marketplaces
We have partnered with entrepreneurs who built their marketplaces on our technology. These partnerships along with an increase in transactions on their platforms lead to increased revenue for our business. So far, our meta-marketplaces extend to Wealth India, Wealth China, Wealth RSA, Wealth UK, Wealth Australia, Wealth America, Wealth Europe, Women and Wealth, Shariah Wealth, Wealth Create, and our flagship company Wealth Migrate. We are looking to grow this further in region and genre for a more robust diversification. Our active partners made us realise the importance of cultivating an entrepreneurial community.

Entrepreneurial community
Seeing our Wealth Point technology as a starting point and Wealth Migrate as our proof of concept, we have extended our entrepreneurial community, adding value to entrepreneurs and our business.

We are developing various personalised content touchpoints for our active partners. We are also in a unique position to have our partners contribute to content in webinars, articles, and success stories. This type of organic and paid content becomes a powerful touchpoint in a potential investor’s conversion journey, leading to more transactions for all marketplaces powered by WealthPoint.

More transactions
More transactions mean more revenue for our business. An increase in transactions on various active marketplaces using WealthPoint allows us to negotiate better partnership deals for investors on multiple platforms. Thanks to a growing demand for active deals, we’ll see increased traffic to the various marketplaces. This will gain momentum and lead to a more attractive option for future active partners, allowing us to sign up for new active partners and to diversify our marketplace offering even more. An increase in deal demand and a variety of deals hosted on our Wealth Point technology will help us to continue growing the marketplaces that have already signed with us.

Entrepreneurial ecosystem
To expedite growth, we have started to go beyond having only an entrepreneurial community by focusing on creating an entire entrepreneurial ecosystem. We did this by developing additional support for our active partners and our marketplaces.

We created the Affiliate Boost, a semi-personalised marketing package, for entrepreneurs with an incredibly competitive fee to assist them with setting up and running their platforms, combined with the support of an experienced marketing team. Entrepreneurs have the option of various packages based on different services and pricing models tailored to suit multiple active marketplaces and different marketing needs.

Our meta-marketplaces, such as Wealth Migrate, are fundamental revenue drivers that now operate within the competitive landscape of our partner’s active marketplaces. We created a smaller marketing cycle to increase high-intent investor traffic and conversions within our entrepreneurial ecosystem. This is a prototype that can later be leveraged for additional marketplaces.

We developed Wealth Movement, a networking event allowing like-minded people to build relationships and networks while introducing them to our various offerings. From here, a potential new client can directly become an investor with Wealth Migrate.

Sometimes novice investors won’t trust their judgment or feel confident enough to make investment decisions. To fulfil that need, we started Wealth University. This allows investors to upskill, guide them to make better investment choices and teach them how to build out their portfolios using our marketplace. While attending Wealth University, we fund an investor’s digital wallet for their first investment with Wealth Migrate. Showing confidence in our product gives the investor a risk-averse first investment to kickstart their journey with us. The goal of the entrepreneurial ecosystem is to drive more traffic and transactions for our own platforms.

More traffic and transactions
High-volume traffic and many verified members on the various active marketplaces will lead to more investments in our deal. This results in higher revenue, and a greater demand for deals. In turn, it allows us to negotiate better deal partners at a higher limit deal investment with a broader deal variety that is more likely to result in consistently solid returns.

Deal demand
This will help us negotiate firm deals with strong partners to ensure deals are fully funded, and we will be able to negotiate a higher limit of investments per deal. Going back to our WealthPoint technology, strengthening our deal offering for our active marketplaces and investors will help us improve the deals offered and keep our technology competitive. As our demand for deals increases, we will provide specialised and unique deals per marketplace. We will then further add value to the various active marketplaces by helping to differentiate the deals even more. Not only will this help us grow and scale, but it will ensure we stay ahead of new competitors.

Wealth Migrate’s introduction
Our digital platform is GWG’s flagship brand and proof of concept, with a mature global meta-marketplace that offers multi-financial asset classes, global compliance, a payment system, and personalised digital wallets. Our meta-marketplace helps solve the wealth gap through accessible wealth using a safe and secure FinTech solution.

Wealth Migrate’s virtuous cycle

Meta-marketplaces and content touchpoints
Our starting point is our customers’ experience which comes down to our virtual meta-marketplaces and content touchpoints:

These meta-marketplaces should be easy to navigate and trustworthy.
We should always have live deals customers can invest in with a good variety of deals, for example, an existing medical office building in the USA vs a co-living development in Australia
This content aims to educate, engage new markers, and guide funnel conversion both paid and organic.

Verified members
Increased traffic leads to verified members and, therefore, more transactions. We are implementing marketing automation to assist with down-funnel conversions and have an entire team to help new members through the verification process.

Transactions
Increased transactions are our primary goal to grow Wealth Migrate’s business. Through transactions, our business generates revenue once a new member is verified, targeted marketing has been put in place to urge them to invest. Once new members have invested, further marketing persuades them to re-invest in other deals or use the previously paid dividends for additional investments.

Supply
We are working with our holding company, Global Wealth Group, to increase supply and deals on our site by creating demand with a wider variety of investment deals.

Lower entry points
To expedite our growth, we are making our deals even more accessible with an even lower entry point. Now, we can accept deals for just under $100 (USD), but we are working to get that investment amount down to as little as $10 (USD). With a lower entry point, we will exponentially grow our number of transactions, leading to even more demand for various on-site deals.

More deals on site
As transactions increase and our success stories help to establish trust. Product trust will create demand for many more deals on our platform. As we gain our customers’ confidence and they’re able to see their wealth grow successfully, they will be compelled to invest significant amounts and start investing in a variety of deals.

Being disciplined
We realise that growth doesn’t happen by itself. To ensure we reach our growth goals and scale up our business, we’ve incorporated three disciplines within our leadership structure to keep us honest:

Purpose-driven meeting rhythms
Clear business priorities through objectives and key results
KPIs (Key performance indicators) – using data and metrics to guide decision making

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Understanding the role of a sponsor in commercial real estate

Investing, Investing, Investor Basics, Uncategorized, Using Wealth Migrate / Wealth Migrate

For anyone interested in investing in commercial real estate, it is important to understand the roles of the parties involved. The sponsor plays an active part in the success of the investment, while the investor has a more passive role.

A sponsor is responsible for “finding, acquiring, managing, and eventually disposing of real estate property on behalf of the partnership ^[1] Sponsors own the property, run day-to-day operations, oversee the transactions, raise money from investors, and are accountable for the mortgage of the property.^[2] Due to the wide scope of responsibility, selecting the sponsor with credible experience and a successful track record is critical for the well-being.^[3]

Wealth Migrate vets our sponsors in our marketplace in accordance with all security and legal compliance checks. This responsibility on our part makes it easier for our investors to focus on the process of investing.

We evaluate our sponsors according to the check list below:^[4]

How much experience does the sponsor have in the local marketing and that asset class?
Have any of the sponsor’s development projects failed to meet expectations?
How capable is the sponsor in evaluating risks?
How does the sponsor identify other equity investors and secure debt?
What systems does the sponsor have in place to ensure proper management of the project?

The sponsor is mainly responsible for the performance of the property as well as financial reporting, making payments to investors, and preparing tax statements during the tax season.^[5] As the time and cost involved that goes into preparing to acquire a deal is quite substantial, an acquisition fee is usually charged to cover costs and compensate sponsors for their work.

Sponsors make money with an acquisition fee, through ownership in a deal that ranges from 5%-10% in total equity, and annual asset management fees.^[6] Sponsors are also incentivised by performance with a promote structure and preferred return.^[7] This means that an investor is guaranteed a full return of their initial investment amount for a preferred return.

Due to the importance of the sponsor, individual investors will ordinarily have to thoroughly research a potential sponsor. A sponsor must be trusted, have credibility, a proven track record, connections to right financing and equity relationships, and other expertise in operations and management. In terms of Wealth Migrate’s service offering, our investors can trust that we have performed the required due diligence before we partner with any of our sponsors.

^[1] Kennedy, K. (March 2019). ‘The Importance of a reputable property investment sponsor’. Retrieved from LinkedIn.
^[2] McKenna, R. (May 2019). ‘ Insider’s guide to vetting a commercial real estate sponsor ‘. Retrieved from BiggerPockets.
^[3] McKenna, R. (May 2019). ‘ Insider’s guide to vetting a commercial real estate sponsor ‘. Retrieved from BiggerPockets.
^[4] Robinson, D. (July 2019). ‘ Real estate sponsorship and sponsor equity: The key to selecting a great sponsor’. Retrieved from Black Collie Capital.
^[5] Kennedy, K. (March 2019). ‘The Importance of a reputable property investment sponsor’. Retrieved from LinkedIn.
^[6] Frankel, M. (February 2021). ‘ What is sponsor promote in real estate? ‘. Retrieved from Millionacres.
^[7] Frankel, M. (February 2021). ‘ What is sponsor promote in real estate? ‘. Retrieved from Millionacres.

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Supporting B1G1 through educational initiatives

Media, Press Release / Wealth Migrate

South Africa, Cape Town. Global Wealth Group and Wealth Migrate promotes education as the way to help close the global wealth gap. Through fundraising on SEEDRS, the business joined B1G1 this year as part of its corporate social investment (CSI) goals. Founded on this simple idea in 2007, “What if every business could make a difference in their own way, just by doing what they normally do?”, B1G1 has now become a global movement. It has created a network of businesses that contributes to good societal causes with over 500 high-impact projects.

With eight categories of projects from the environment to health or shelter and food, Global Wealth Group chose its main cause as education. SEEDRS investors are giving back to the global communities by associating with B1G1, which has multiple projects that uplift children’s lives and provide educational services to communities that are in need.

Scott Picken values this CSI initiative and as the founder and Chief Executive Officer of Global Wealth Group he believes, “Quality education is one of the most powerful and proven vehicles to achieve sustainable development. It improves health and livelihoods, as well as contributes to social stability. That is why quality education is one of our global goals.”

As per their benefits sheet, The Global Wealth Group and Wealth Migrate will donate a certain number of days to the education of children across the world based on the amount of investment they receive. Together they have pledged to pay at the end of the Seedrs raise. They are also able to send each investor that contributes a certificate detailing how many days of education they have gifted through this campaign. At the end of the raise B1G1 will issue the Global Wealth Group with a certificate with the number of days contributed to education, the total amount donated along with their gifting story.

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Wealth Migrate and Clem Sunter’s exclusive investment planning webinar

Media, Online Investment, Press Release, Uncategorized, Webinars / Wealth Migrate

Cape Town, South Africa. In an exclusive webinar on global and local investment planning, Wealth Migrate CEO Scott Picken, played host to acclaimed scenario planner Clem Sunter on 18 August 2021.

During this pre-recorded interview, Sunter identifies global and South African scenarios that could affect future investments. In particular, the flags to be aware of in assessing potential risks and opportunities, and he answers a few key questions from online viewers.

His most recent book co-authored by Mitch Ilbury, Thinking the Future: New Perspectives from the Shoulders of Giants, continues this futurologist theme on adaptable decision-making in a complex digital world. Published only in July 2021, this book has proven to be popular and is available in print and as a Kindle eBook.

Since the 1980s, Sunter has put together many possible scenarios for presentations as a keynote speaker in Europe, Asia, and Africa. He continues this legacy of exploring future possibilities as a prolific author of at least 17 books. In 2001, The Mind of a Fox, co-authored by ChantellIlbury, accurately captured the possible terrorist scenario of the 9/11 attacks on United States soil.

Sunter’s authority on scenario planning began when he was appointed to the positions of chairman and CEO at Anglo American’s Gold and Uranium division in South Africa. His primary responsibility was to head its scenario planning unit and guide its business strategy to mitigate risks.

For more information, view the webinar here.

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Industry snapshot – a look into medical buildings

Asset Class, Medical Buildings, Real Estate, Real Estate Investment, Uncategorized / Wealth Migrate

We’ve collated an overview of different viewpoints on medical office buildings (MOB) investments to provide a balanced perspective to potential investors. Look out for our upcoming industry report on medical real estate. Click below to register for the alert, and we’ll send it out when our industry report is available for download.

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Medical office buildings: asset class

Think of upward growth in recent years followed by increased demand for outpatient services, including a consistent and robust performance. That’s one of the many reasons why the medical office buildings (MOBS) asset class remains a popular choice for investors. A subset asset class,¹ MOBS are featuring strongly in investment portfolios of experienced real estate investors as global healthcare demands increase. This asset class has evolved to cater for tenants in the medical field to consult with patients and perform various surgical procedures.

In this article, we examine the opportunities for investing in medical office real estate and how this asset type is maintaining its strong performance during the COVID-19 pandemic.

Medical buildings perform well

According to EquityMultiple, “compared to other asset classes, and the overarching office class specifically, MOBS generally exhibit uniquely steady long-term occupancy rates.” ² CBRE’s 2019 Healthcare real estate investor and developer survey revealed that 99% of commercial real estate (CRE) firms in 2018 and 2019, found the occupancy of their medical office portfolios either remained stable or increased.³ The growth of MOBS has been significant as can be seen in the graphs below.

EquityMultiple also found the average rental price for 2018 jumped to $23/SF, amounting to a staggering 1.4% yearly increase.⁴

Outpatient healthcare

Outpatient healthcare is simply services outside of a hospital, from a clinic to a private practice that includes the diagnosis, observation, consultation, treatment, intervention, and rehabilitation of medical conditions.⁵ The advancement of medical tech has enabled clinical innovation and more specialised treatments.

These EquityMultiple statistics reveal the upwards growth curve for outpatient healthcare services:⁶

The number of outpatient centres across America increased 51% from 2005 to 2016, with no signs of this slowing down
To keep up with the demands of local healthcare, MOBS are being rapidly developed
2019 was a pivotal year for MOBS in Chicago, Cleveland, the Inland Empire region, and Atlanta, as these regions reflected the most growth

Healthcare services and the effect of COVID-19⁷

Access to healthcare is a significant need for all. Telehealth has been viable alternative to traditional medical services during COVID-19, but doctors can’t practise all branches of medicine effectively with only virtual patient check-ups. While COVID-related closures have affected the healthcare industry, there will no doubt be a surge in services, due to patients that need basic and specialised treatments during and after the pandemic. Patients diagnosed with hypertension, diabetes and diabetes-related complications, cancer, and cardiovascular conditions have suffered from a lapse or lack of healthcare services since the COVID-19 pandemic.⁸

The challenges of investing in medical office building assets⁹

Before we look at the challenges of investing in medical office building assets, it is important to understand what type of medical office buildings we’re referring to as assets.

HBRE, a healthcare real estate firm has a clear understanding of the MOB sector:

Hospital campuses – by necessity are large spaces that are costly, as various equipment and machinery need to be on for the hospital to function. These facilities also need a secondary power source for emergencies and specific requirements for plumbing, electricity and so on, to accommodate the many people that use the healthcare services daily.

Medical offices – like hospitals these spaces also have the same requirements but are set to a smaller footprint. If a medical office building is more than 250 yards from the hospital, the hospital outpatient department (HOPD) can’t claim reimbursement rates. There is provision for an off-campus HOPD, but the site still needs to be within 35 miles of the main campus.

Retail medical offices – only treat patients with acute illnesses, this service is specialised and may not offer the full range of healthcare options that a hospital does.

Global healthcare: 2022¹⁰

Deloitte’s 2022 Global Health Care Outlook focuses on six main factors that will influence health outcomes. While we acknowledge that everyone will have their own needs and services, this lends itself to the realisation that organisations in this industry must start to personalise healthcare experiences.

We’ve included a summary of this list:

Consumer and the human experience

Care model innovation

Digital transformation and interoperable data

Social-economic shifts

Collaboration

Future of work and talent

The model of care has changed from a focus on the physical body only to a patient’s mental state and general well-being. From using health data to track and monitor the patient’s health with their consent, to a sense of empathy in how healthcare is provided, healthcare has pivoted due to COVID-19 to include more at-home prescription deliveries, remote consultations, and digital diagnostics. IT systems that offer this convenience of real-time data offer clues to behavioural research, patient habits, and even link people to a like-minded community where healthcare organisations and companies have more access to their patients’ lives than ever before.

Medical office building trends: America¹¹

America’s aging population is growing by an estimated 36% according to the CCIM Institute, and those people will need at least three times the amount of healthcare services than younger people. A new law, the Patient Protection and Affordable Care Act, also gives 32 million citizens the right to health insurance. It can be safely assumed that this will have a positive effect on job creation among health care practitioners, which would lead to growth in demand for medical office buildings.

America is a good location for medical office buildings¹²

Not only have health services have been partially or completely disrupted in many countries, but worldwide COVID-19 has also taken a physical, mental and financial toll. One thing that is clear, is the need to prioritise adequate holistic healthcare services for inpatients and outpatients alike.

Americans’ health status has regressed over the last year as many COVID-19 survivors suffer from long-term health issues due to the pandemic. During this crisis, opportunities arose as the industry evolves towards a seamless and integrated patient-provider relationship.

Colliers 2021 Healthcare Marketplace Report provides much-needed insight into how the MOB field is performing and where it’s doing well:

The US MOB vacancy rate was 8.6% at the end of 2020, versus 7.8% in 2019
In 2020, demand outpaced supply across the top 50 metro markets
Average MOB triple net lease rents were $20.95 per square foot, up from $20.22 per square foot in 2019
MOB deliveries in 2020 totalled 20.2 million square feet, down from 22.5 million square feet
MOB sales volumes held up well in 2020, totalling $11.1 billion

The US market clearly shows high demand, and we believe that it has strong fundamental factors supporting investment into the MOB asset class. It’s for this reason that we believe the Hamilton-Young Medical Center makes for an appealing investment. Momentum Weatherly LLC’s acquisition of it provides an opportunity to invest in an American MOB with a strong rent roll, that’s generating immediate cash flows.

VIEW OUR MEDICAL OFFICE INVESTMENT

¹ (March 2021). ‘Investing in office real estate’. Retrieved from EquityMultiple.
² Angelini, C. (August 2020). ‘Medical office building real estate in focus’. Retrieved from EquityMultiple.
³ (2019). ‘2019 Healthcare real estate: investor and developer survey results’. Retrieved from CBRE.
⁴ Angelini, C. (August 2020). ‘Medical office building real estate in focus’. Retrieved from EquityMultiple.
⁵ Abrahams, K., Balan-Cohen, A., and Durbha, P. (August 2018). ‘Growth in outpatient care’. Retrieved from Deloitte.
⁶ Angelini, C. (August 2020). ‘Medical office building real estate in focus’. Retrieved from EquityMultiple.
⁷ Angelini, C. (August 2020). ‘Medical office building real estate in focus’. Retrieved from EquityMultiple.
⁸ World Health Organization. (June 2020). ‘COVID-19 significantly impacts health services for noncommunicable diseases’. Retrieved from World Health Organization.
⁹ (December 2020). ‘The pros and cons of each type of medical facility’. Retrieved from HBRE.
¹⁰ (2021). ‘2022 Global health care outlook: are we finally seeing the long-promised transformation?’. Retrieved from Deloitte.
¹¹ Wassik, P., and Carlson, D. (2022). ‘Medical office trends: hospital affiliation is a strong indicator of MOB asset value.’ Retrieved from CCIM Institute.
¹² Janus, S., Seaward S., and Larson, N. (April 2021). ’2021 Healthcare marketplace report’. Retrieved from Colliers.

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Diversification: The Strategy of Numbers

Investing, Investor Basics, Knowledge Base, Portfolio, Uncategorized / Wealth Migrate

Diversification is important to investors as it is a way of balancing risks and rewards. Allocating capital into a variety of assets lowers risk exposure. Rather than concentrating money into a single company, industry or asset class, investors can diversify their investments across a range of different companies, industries, and asset classes.¹

Risk minimisation and increasing opportunities for success

The risk of not following a diversification strategy is high; instead of placing all your hopes on a sole investment, dividing your funds across all assets is the smarter strategy. To put it more simply, don’t put all your eggs into one basket as an investor.

Respected global financial expert Ray Dalio has this advice for investors to reduce risks without reducing expected returns. “Diversify between currencies, asset classes, and countries as the best way to reduce risk without reducing opportunity.”² According to my own research, this advice should ideally include partners as well, I describe this in example three with reference to a single company.

He goes on further to explain this strategy in detail and calls this the holy grail of investing. He advises that investors, “Need 15 uncorrelated bets, an array of attractive assets that don’t move in tandem, reduce risk by 80% and risk/return ratio increases by a factor of 5!”³

No idea what that means? You’re not alone.

Arguably diversification is such a simple term and yet it is such a complex thing to implement in your financial planning,⁴ let’s unpack what Dalio means by analysing a few real-life investment examples I’ve come across.

Implementing diversification in financial planning

A homeowner is advised by his financial advisor to pay off his house first before he starts investing. He lives in an emerging market like South Africa, so he continues to pay down his mortgage on his home. He is entirely exposed to South Africa’s weakening economy and its volatile currency, which depreciates statistically by 6% a year against the US Dollar.

The result:
All his wealth is tied up in one: asset, country, currency, and partner. He isn’t making any money while he sleeps, and this is a classic situation where an investor has ‘all their eggs in one basket.’ ⁵

An investor flies to London and buys an apartment to try diversifying their investment portfolio, it is an affordable apartment for London, and it costs £500,000. They apply for and receive a 60% mortgage (loan-to-value) from the bank, and with the deposit and costs, they still need £225,000 in cash (about $300,000 USD). It is a one-bedroom apartment, and the investor needs to arrange for a rental management partner to find a long-term tenant to earn an income on the property.

The result:
This investor also has most of their eggs in one basket, the investment is in a single country, currency, asset, and one partner. If the tenant stops paying, they lose all this income. Factor in challenges such as Brexit or any other economic setbacks, and the asset is fully exposed. If the rental management agent isn’t good, this is a problem as the investor relies solely on this partner to obtain a tenant, get an income and achieve success.

In 2014, I focused on a specific genre and asset class in America. Initially, we had a number of different partners, but then in 2018, all these properties and partnerships were consolidated into a single company. From 2014, these assets and individual partners were well-performing assets, producing a high income. Some investors liked the performance of these investments and invested all their capital. Due to COVID-19 and other factors, this consolidated partner (now one company) has vacancies on many of their assets and isn’t paying out the expected income.

The result:
The investors placed all their eggs in one basket. Granted, investors have multiple assets; however, this is an investment in a single country, currency, and with one partner. If the partner experiences problems, investors are fully exposed to the risks. It’s akin to one partner carrying all the investors’ eggs in one basket.

Hard-won investment lessons in diversification

I learnt this the hard way, and I’ve been investing internationally since 1999 and helping members in 170 countries invest over $1,18 billion (USD). I have learnt from the wealthiest investors and watched what they do. Here’s my perspective on Dalio’s advice about diversification.

Imagine if the investors in either scenario were to do something like this. Take $100,000 (USD) and invest $10,000 (USD) in 10 alternative asset investment opportunities. These are diversified across countries, currencies, assets, and partners.

If two of the assets don’t perform well, the other 80% is still working. Therefore, the risk is reduced by 80%, there is no correlation between these assets, and they don’t move in tandem. The income and capital growth are diversified across 10 opportunities, and the risk or return ratio is increased by a factor of five. (This means you are five times better off).

The power of FinTech and Wealth Migrate

Through advances in tech and with digital platforms such as Wealth Migrate, you can create wealth simply and securely, starting from $100 (USD). Wealth Migrate’s mission is to make quality alternative assets accessible to anyone, anywhere, from any amount.

Over the last 12 months, my wealth creation journey has led me to:

Invest in 10 different assets
Across 4 continents
In 5 currencies
In 9 different asset classes
With 10 different partners

Wealth Migrate has changed how I can invest. Not only is it digitally integrated with Lemon Way, the largest digital wallet provider in Europe, but this FinTech platform also grants me control over my asset portfolio by efficiently managing these investments.

All distributions and dividends are paid straight into my digital wallet, and I can then decide to re-invest in more assets ranging in variety and diversity. One of my highlights is that despite the challenges of COVID-19, I still received a weighted internal rate of return of 14% in the last 12 months.

Learn from the wealthiest investors about wealth creation and protection

Ray Dalio manages $160 billion (USD), and Bridgewater Associates is the largest hedge fund globally.⁶ By following his investment advice on diversification, investors can achieve success with their portfolios. Even if the investment amount ranges from $1,000 (USD) and $100 (USD) is invested into 10 deals, or if it’s $10 million (USD), Wealth Migrate will allow investors to emulate this method of wealth creation.

The world has changed and with that, we must change our conditional way of thinking. It’s no longer about buying one apartment or trusting one partner, it is about diversifying and investing in the best partners and the best global opportunities. During the last year, an estimated “25% of all real estate private equity capital is now raised using online crowdfunding in America” ⁷. This trend is rapidly advancing around the world and now you can take advantage of it.

This is my ten cents on diversification, based on what I see happening in the market. I invite you to copy and invest like the most successful investors in the world.

¹Robbins, T. (February 2017). ‘Unshakeable: your financial freedom playbook creating peace of mind in a world of volatility. Retrieved from Unshakeable.
² Graffeo, E. (November 2020). ‘Investing legend Ray Dalio tells investors to not own bonds or cash’. Retrieved from Markets Insider.
³ Robbins, T. (February 2017). ‘Unshakeable: your financial freedom playbook creating peace of mind in a world of volatility. Retrieved from Unshakeable.
⁴ Comstock, C. (September 2011). ‘Here’s the most brilliant thing Ray Dalio said at his interview last week’. Retrieved from Business Insider.
⁵ Gravier, E. (November 2021). ‘Every financial planner will tell you to diversify your portfolio — here’s what that means’. Retrieved from CNBC.
⁶ Copeland, R., and Levy, R. (January 2020). ‘Ray Dalio is still driving his $160 billion hedge-fund machine’. Retrieved from The Wall Street Journal.
⁷ Gower, A. (2021). ‘Real estate crowdfunding unleashed’. Retrieved from GowerCrowd.

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