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In today’s world, within any given industry, there are many investment vehicles available to us and when it comes to real estate investment, it’s no different.

The most conventional way of investing is by directly purchasing a residential investment property, which comes with the added responsibilities of property management and upkeep. This method is becoming increasingly more difficult with some global markets setting unattainable high entry prices like Australia as well as many of the major cities around the world.

For some, this method is still a viable investment option but has proved to only really be affordable for the Ultra High Net Worth Investors (UHNWI), because these options are not always available to all people. It is generally considered that 99% of the world population, just don’t have access to the same options as the top 1%.

With the median house price set at $865,000 in Sydney Australia, a 70% increase on five years ago, many people do not financially qualify for direct residential real estate investing. Commercial real estate is unachievable in that the deposit alone generally equates to millions of dollars.  This does not consider having the knowledge or access to the right opportunities in the right markets or right countries.

It is interesting that according to the latest Wealth Report by Credit Suisse, UHNWI with a net worth more than $10m are increasing their exposure to direct real estate investing, specifically commercial, as it is a safe asset class, based on income producing assets and no correlation with corrections of the stock market.

However, now there are more options available to investors who wish to enter the real estate market and benefit the positive returns that these investments can yield.

One investment method that has earned great interest over recent years is Real Estate Investment Trusts (REITs). These are specialised Mutual Funds, focused on investing in real estate. They are a tradeable security usually traded on stock exchanges such as the ASX, NYSE, etc and therefore are quite liquid. However, with liquidity comes greater risk in that REITs are financially correlated by more than 70% with the stock markets so volatility is often dependent on general market sentiment.

REITs invest in many commercial properties and therefore it can be difficult to know exactly which direct stock you are investing in without knowing the constituents of your REIT. Investors own a share of the total fund and not directly in a share of the underlying property. If you don’t know exactly which properties you are investing in, it’s hard to complete a thorough risk assessment to an already established fund for example if a REIT has invested heavily in one market or area, this can create higher risk should that market or area’s property value decline. Due to these factors, diversification isn’t easily obtainable when investing in a REIT.

The fee structure of a REIT is generally based on the AUM (assets under management) and is not generally aligned with the investors long term interests. They carry large overheads and many middlemen who often facilitate the sale and marketing of REITs from financial planners, consultants, bankers and listing services often diluting the net return to the investor.

Research done by Tony Robbins in his 2017 book, Unshakable, confirms that 96% of Mutual Funds do not beat the market average over a 15-year period. However, because people are generally ‘educated’ on investments by the financial industry and the middlemen who service the industry they don’t often understand the impact of fees on their investments and the actual returns of their investments against benchmark market averages.

Our belief is that through education real estate investing can become common knowledge and that everyone can make better-informed decisions, especially if they have the systems to help support them in this decision making.

Finally, this method of investment isn’t suited to those people who enjoy the hands-on approach to managing investments or who like to make a meaningful contribution to the macro trend which is growing globally, which is a cultural disruption (the increasing desire of people to be meaningfully involved with what they buy, the things they do and where they invest).

Besides Public REITs there are also Private REITs which are very similar although they don’t have the transparency, regulation or liquidity of the Public REITs. Their success is based on the ability of the person or company running the Private REIT and is very focused on local knowledge and expertise of a small team or sometimes even one person.

Now, there are other options besides the conventional direct way and REITs.

Enter Syndication.

Since the 1980’s there have been different forms of syndication where ‘experts’ find a property and then invite investors to participate. They generally charge a fee upfront for putting the investment together and then they pay middlemen commissions to fund the deal. In some cases, the fees on the front are as high as 26% of your initial investment, which technically means ‘you out of money’ before the investment even starts. You are also not aligned with the syndicator who only does deals upfront and is not involved in the performance of the investment.

Their track record is generally poor and they have only been able to buy the deals that no one else wants – Direct, REITs or Funds.

Enter Crowdfunding.

Real estate crowdfunding is a type of direct real estate investment that allows multiple people to invest smaller amounts of capital to fund a purchase collectively. Crowdfunding is an up and comer. This investment vehicle can negate a lot of the negatives of the conventional and REITs styles investments.

One note: People get caught up in acronyms. Whether you call it crowdfunding, FinTech or PropTech, in simple terms it is technology coming to the real estate space. Whenever technology has come to any other industry and disrupted that industry it has done 3 things:

1. Cut out the middlemen
2. Cut the costs
3. Increased the trust, transparency, and accessibility

More specifically in real estate, the benefits of technology are numerous:

You can select the exact property or project to invest in

By having this option, you can do your research on the micro and macro economic factors pertinent to that property and the surrounding area. This gives an excellent advantage to the investor. You know exactly what property you have invested in and therefore can determine the risk it brings to your overall investment portfolio.

Is not publicly traded.

Because your share in a crowdfunded property is not publicly traded on stock exchanges, it means more stability in values. With stocks and other tradeable securities, they are valued on a constant basis and are usually highly volatile. As the research above showed REITs have a correlation of more than 70% to the stock market. Although the underlying asset is real estate, it is far more a financial instrument which is linked to the sentiment of the stock market. This risk is mitigated through crowdfunding.

Low costs, regular returns.

Unlike the conventional method, crowdfunding has very low initial and ongoing costs. You don’t have to pay extra for a broker to broker the deal and you don’t pay for management costs. You do however receive a share of the regular rental income and when the property is disposed of, you receive your share of capital gains profit.

Smaller initial investments.

With most capital cities in Australia sitting at a median house price over $500,000, it’s becoming more difficult for many people to invest in real estate. This is no longer an issue with crowdfunding options. From as little as $1000, you can secure your very own portion of real estate. This is not only great for broadening the scope of investors, but also provides for the ability to diversify and reduce risk. This is not to mention commercial property which is even less accessible for more people. Through crowdfunding, people can now access this as well now from as little as $1000.

Diversification and minimised risk.

If you have $10,000 and want to invest in property, your options have been minimal until the last few years. Now, you can invest 10 lots of $1000 in ten different properties to reap the benefits of diversification. If one market, suburb or state’s property values tank, then you don’t lose all your money because you have invested in many other properties in differing markets.

The are a few problems with crowdfunding to-date:

1. All the platforms are local in-country operators and therefore people cannot diversify out of one country or currency. If they do they have to manage their properties on many different platforms, while also having to worry about bank accounts, tax, structuring, money transfers, etc.
2. The crowdfunding platform operators are often technical people who have built a great platform but don’t have substantial credibility in verifying good markets, partners or projects. They aim to have a lot of selection, but the quality of the investments and the long-term returns are yet to be verified.
3. As the platform merely facilitates the transaction and takes a fee up front (can vary and be quite high), it is hard to determine what will happen when and if one of the projects is not performing, (this ties back to experience above) and what the long term performance will be.

Enter Collaborative SMART InvestingTM

Essentially Collaborative SMART InvestmentTM is uniting the knowledge base of industry experts – practitioners or partners in specific industries, countries, and markets with specific product knowledge, platforms or marketplaces and their systems and their purpose driven mission. It is based on the principles of Collaborative Investment (click here to see this article), however it is adding social purpose.

To solidify this concept, the practitioner or partner needs to be a co-investor to align the interests to the investor and the platform. This allows for a more in-depth level of due diligence and research which leads to better-informed investment decisions, more thorough product understanding and a significant reduction in risk. There are many aspects with respect to research which needs to be understood and evaluated to make better investment decisions by the Investor.

Two of the most important components are product knowledge and macro and micro market analysis based on the fundamentals of investing. Once this is understood, it is critically important to understand the value proposition and correlated risks. An example from Wealth Migrate is that a property partner would need to understand the medical commercial field and have more than a 10-year track record in delivering and executing on this type of product. Then it would have to be in a country and city where the macro and micro fundamentals are right. Things like currency, rule of law, protection of assets, population growth, affordability, value, taxes, supply, and demand etc. As a further example, one can look at America now because it is safe and has the right fundamentals, but not Russia. Then in America, we would only look at cities like Atlanta or Texas and not Detroit. Wealth Migrate’s GIDDSTM System (Global Investment Due Diligence System) is a globally recognized system to provide investors with a tool, not only to get access to partners in the right markets, but also for them to be able to understand and ascertain the risk/reward correlation and allow investors to make the best investment decisions for themselves.

Collaborative SMART InvestingTM also allows the Partners to extend their understanding of the products from an investors point of view. Another major benefit for the partner is providing them with a digital track record of their past performance, something which companies in other industries like hotel groups with Trip Advisor or Retailers with Alibaba have found essential to success in the digital economy.

Collaborative SMART InvestingTM differentiates from “collective investments” and/or “collective investment schemes” (“CIS”) in that it is not investors pooling their investment in a fund and which is administered by a fund manager. Usually CIS attracts high fees and the investment is in a fund that owns different properties. With Collaborative investing, the investor invests in a particular property with a return and/or income relating directly to that particular property.

A critical question all investors ask is how reliable is the information from the partner. Is it accurate and objective? Wealth Migrate’s belief is that if the partner’s assets/money are invested alongside the investors, chances are they will work hard to be accurate, timely as possible with the information they provide and execute effectively on the opportunity. This is not to mention that their digital reputation will also be on the line.

In the traditional Funds, REITs & Syndication they hire many consultants into their companies, who are experts in their respected fields, to analysis the risk and make investment decisions. However, because the consultant does not have any risk involved it is easier to postulate information under pressure, which can lead to misguided investment decisions. This is important when also taking into account the alignment issues we have spoken about above with the fee structure.

For Collaborative SMART InvestingTM to truly fulfill its potential all experts/partners feedback, including the marketplace, must be collated in a balanced manner, without regional bias and be presented clearly for investors to make the right decisions for themselves. At Wealth Migrate we are always looking for ways to improve the customer experience (CX) and tools to make investment decisions as simple, safe and personalized as possible for our investors.

The components which make this type of philosophy work are: first you must find the right local partners on the ground in the markets where you want to invest, second you must get them to invest, third you need them to believe in the model, fourth you must conduct regular meetings, fifth and most important of all, you must create two-way communication between the partners and the investors, using the platform as the medium.

Building a network of local partners and global investors takes time; however, if applied properly the benefits can be very rewarding. Most people understand this, however, to execute is far more challenging.

In the past, this was virtually impossible for people to do on their own, REITs are generally in one country and even one sector and even for the over 250 local real estate crowdfunding platforms which are based in-country around the world, this has proven to be a bridge too far. Now with Wealth Migrate, global investors can tap into our Trusted Global Real Estate Marketplace which we have been building for more than two decades and it is all based on partnerships, relationships, the platforms and the principles of Collaborative SMART InvestingTM.

Therefore, we believe that crowdfunding is merely a stepping stone to a far bigger purpose and it is only one of the pieces which have been adopted to provide a service which is 10x’s the original concepts of crowdfunding.

Using Collaborative SMARTl InvestingTM, Wealth Migrate has been able to surpass normal investment results, generating higher returns, with fewer costs and lower risks in a compliant and safe way. This is to the benefit of the investors, the partners, and the platform, with all interests aligned.

Investors have the option to invest in multiple countries, and different real estate asset classes i.e. residential, commercial and multifamily and currencies and therefore diversify like the most sophisticated investors, in a simple and safe way.

The investor benefits throughout the process and ‘learns while doing’ and because they understand that Collaborative SMART InvestingTM does cost them it allows the freedom to contribute to the process replicating the social laws of nature and why it is so sustainable, effective and efficient.

Finally, it has to be about purpose. Here is how we will use Collaborative SMART InvestingTM to not only enhance the lives of every customer we touch but also be purposeful and solve one of the greatest challenges on the planet – The Wealth Gap.

https://en.wikipedia.org/wiki/Socially_responsible_investing

Wealth Migrate has pioneered the Wealth Movement, whose mission is to empower a billion people by 2020 and create a better and more sustainable planet for all. Go to www.wealthmovement.com for more information.

Join us, let us help empower you to create the economic freedom you want in your life for you and your family, while also having a purposeful impact on the planet.

Conclusion

While the conventional Direct method, REITs, Syndication, and Crowdfunding are both common and viable investment options, Collaborative SMART InvestmentTM offers a hybrid investment option taking the best bits of all worlds opening the door to a larger scope of investors globally.

Investing in real estate is generally accepted as a good decision. 49% of the world’s wealth is held in real estate and there is a reason that there are sayings like, “He who owns the land is King,” or why most middle-class people endeavor to buy a house.

Because of technology, there’s never been a better time to begin investing in real estate with so many options available to you. It all comes down to your risk tolerance and much capital you want to invest. When conducting your risk analysis, consider Collaborative Investment Platforms and all they must offer. As stated above technology is disrupting the real estate and investing space and it is only a matter of time that more people will realise it is simpler, safer, easier, quicker, personalised and can provide above average returns for investors.

Scott Picken, Founder & CEO of Wealth Migrate, the Trusted Global Real Estate Marketplace said, “I get asked all the time what is the difference between these options. My simple answer is that when I used to catch a yellow taxi there were four wheels, a driver and an engine and it took me from A to B. When I catch my Uber it has four wheels, a driver, and an engine and it took me from A to B, both are cars. So, what is the difference? In my opinion, Uber is much more trustworthy, transparent, cost effective, simple and safe and technology has made the process much more efficient. REIT’s, direct investing, syndication, crowdfunding and Collaborative SMART InvestingTM are all about the real estate investment but technology is making the investment process much more efficient and Collaborative SMART InvestingTM is making it sustainable, trustworthy, transparent, robust, safe and global, where all parties interests are aligned.’’

Amongst the challenges of learning to adapt to a new culture, and learning to balance my academic and social life, the biggest challenge was financial. My parents did the best they could to support my academic endeavours, but I still faced financial challenges. As a child, I did not have any entrepreneurial influences around me, and I grew up knowing the cliched approach of excelling at school so that I could get a good job, and work hard to climb the corporate ladder as an employee.

As a self-sponsored student in a foreign country, I had to find a way to pave my way through school and it was this desperate need to survive, that planted the entrepreneurial seed. As a University student, I got involved in many “business” ventures, from buying and selling laptops and cell phones on campus for a profit to selling second-hand shoes in Johannesburg CBD, to the exporting of goods to Zambia and Malawi.

After I graduated, I jumped into what I was conditioned to do my whole life. I found a job and was hoping to climb the corporate ladder, in pursuit of “success”, however, I found that I was not fulfilled because I felt under-utilised. This re-triggered my entrepreneurial spirit, and I started to look for business opportunities I could pursue, whilst still employed. I attempted many business ventures, most of which failed, but was able to create a sustainable, profitable business with one of the ventures. In hindsight, the reason for the success was that I had teamed up with the right business partner, and we built a competent team. I met my wife, during this period and fortunately, she shared a similar drive for entrepreneurship. She too had had many attempts, at business, that did not take off. We naturally extended our relationship, to become business partners, and this has worked well because we have different personalities and strengths, that complement each other well.

After our first child’s birth, I became insecure about my family’s future financial well-being and realised that generating an income from my salary and the business did not provide much security for our future. This led my wife and me to start learning about investing in property. Before long, we had invested in a few properties around Johannesburg (where we live) and were satisfied with our investments. The main challenge we faced was that we did everything ourselves, including, searching for the properties, calculating the Internal Rate of Returns (IRR) on the property, due diligence, process of securing the property, and after we secure, we still had to do the advertising, tenant screening, property maintenance, monitor rental payments, etc. It was initially painstaking, but we realised we had to start putting systems in place, to avoid burnout.

Our passion for property investing ensured we had an eye out for great deals, and we started finding better yielding properties outside of our comfort zone of Gauteng. We realised we had to change our approach, because we would not be able to do everything ourselves anymore, due to the logistical impracticability. Luckily, my early business experiences taught me the power of leveraging off of the RIGHT partners. When we came across a property that ticked all the boxes, albeit, in Cape Town, we were fortunate enough to find the right partners on the ground. They helped us to purchase, tenant and maintain our first property, and to top it all, an acquisition outside Gauteng. We have received our rentals, in full and on time, without ever even seeing the property live.

The global financial crisis of 2007-2008 created opportunities to find great property bargains, especially in the United States of America, amongst other countries. I was well aware of this but had absolutely no idea how to take advantage of this. After my experience with investing outside Gauteng, I was keen to find the right calibre of partners that would enable me to access properties outside of South Africa. Due to the increased complexity of investing in a foreign country, from everything including the correct investment structures, money movement between the countries, bank account opening, company registration as a foreigner, tax and legal challenges, etc, I was well aware that I had to carefully select the partners I need to work with. [note: by implication, as being portrayed as a partner of WM, the message is that WM is helping with all of this, which technically we don’t and/or not registered for. I would reword the sentence: “the challenges of offshore investment became very quickly and clear to me, from having an investment structure, money movement between countries, bank account opening, company registration as a foreigner, tax, and legal implications. I just dawned on me again, I need to select the Right partners to work with on this”]

After a lot of research, and extensive due diligence, it was a no brainier for me to partner with Wealth Migrate (WM). Using the WM’s platform enables me to leverage off of competent partners on the ground, and this gives me access to first world assets, without the headaches. The advantages for me personally are:

• I am able to own a stake in real estate investments in Australia, America, England and South Africa

• The investments are income generating (with quarterly dividend payouts)

• The deals are structured such that there is a defined exit strategy

• I do not have to screen the properties

• I do not have to manage tenants

• I am not directly involved in the property maintenance

• I do not have to worry about the processes of purchasing and offloading the property

• I do not have to fly to the different countries in order to participate in their economies

Nkandu Chitah’s business interests include:

Co-founder and Managing Director of Buna Projects and Consulting, an Engineering Design and Installations Company;

Co-founder and Business Development Manager of Ikhaya Luxury Kitchens, a design and Installations company for Kitchens, and BICs

Co-founder and Chairman of Chimi Resources – a mineral processing and beneficiation Company

Nkandu is also an avid Property Investor and a partner of Wealth Migrate

Crowdfunding, which has already made huge economic waves in the United States, Europe and Asia, is a method of financing or raising capital that harnesses the power of the masses, or the “crowd” to fund a project, business or endeavours, typically via the Internet. Mas solution, a research, advisory and implementation firm that specialises in crowd sourcing solutions for private, public and social enterprises, says that the global crowdfunding market will reach $34.4B in 2015, and is set for continued explosive growth. In nations where Crowdfunding is legal, it has levelled the economic playing field, giving access to capital needed for wealth creation to women and minorities that typically are under served by traditional capital markets.

“There is a huge wealth gap in the emerging world, and crowdfunding is a solution to close this gap,” said Scott Picken, founding member of the African Crowdfunding Association and CEO of Wealth Migrate, a global online real estate investment marketplace. “Crowdfunding can provide equal opportunity and equal access to capital that is essential for wealth creation within under served populations. The ACfA will educate not only the public, but also the policymakers about the benefits of crowdfunding for Africa.”

Wealth Migrate and Thundafund have partnered to lay the groundwork for the ACfA and are urging policy makers and others passionate about increasing access to capital to join them.

“We see crowdfunding as the democratisation of financing for entrepreneurs,” said Patrick Schofield, CEO and co-founder of Thundafund. “Thus far we have been thrilled to see the outpouring of African and global support for African entrepreneurs that have had the courage to launch new ideas into the world.

There are so many inspiring entrepreneurs in Africa who could do so much to change the world with access to capital. Crowdfunding is the next-gen solution to Africa’s development agenda.”

Organisations and individuals that have given their support include:

• M-Changa
• Jumpstarter
• Realty Africa
• Realty Wealth
• Babandu
• Back-a-Buddy
• 234give.com
• Uganda Crowdfunding Network
• The Crowdfunding Institute of Australia
• The Crowdfunding Professional Association
• The China Crowdfunding Society
• The UK Crowdfunding Association
• Carl Esposti, Founder of Crowdsourcing and Massolution – http://www.crowdsourcing.org
• Dan Marom, renowned expert in the field of crowdfunding and author of the pioneering books, “The Crowdfunding Revolution” (2010, 2012) & “Crowdfunding: The corporate era” (2015).
• Matthew Pinter, Chairman of the Crowd Funding Institute of Australia – https://www.cfinstitute.org/
• Frank Mukahanana, director of the UK Crowdfunding Association – http://www.ukcfa.org.uk/
• Paul Niederer, leading authority on Investor Aggregation Solutions, Collaborative Investment and Crowd sourcing
• Ronald Kleverlaan, Co-Founder of the European Crowdfunding Network; Founder of Crowdfunding Hub
• Scott McIntyre, vice president of the Crowdfunding Professional Association – http://www.cfpa.org/
• Xiaochen Zhang, Co-Founder of the Crowdfund China Society; Director at the Crowdfunding Professional Association
• Joy Schoffler, Principal of Leverage PR and CFIRA board member

The ACfA has already received support and recognition from similar industry bodies around the world which have been instrumental in the process of bringing crowdfunding awareness and implementation to their region. Xiaochen Zhang, who set up Crowdfund China Society and works on crowdfunding for the World Bank, has agreed to sit on the board. Dan Marom, who advised on and influenced the passage of crowdfunding regulations by the European Union, has also agreed to sit on the board. Along with the parties above, they are providing the ACfA with a blueprint and framework which has already been previously successful around the world.

About Wealth Migrate

Wealth Migrate is a leading international real estate crowdfunding platform that offers global investors direct access to exclusive real estate investment opportunities in premier markets around the world, including the U.S., U.K. and Australia. Investors benefit from the extensive experience of the Wealth Migrate executive team, which has collectively facilitated more than $1.34 billion on five continents for clients in international real estate transactions. For more information, visit www.wealthmigrate.com.

About Thundafund

Thundafund is South Africa’s leading online Crowdfunding Café and marketplace for creatives and innovators. Through Thundafund, entrepreneurs with their respective projects and ideas can raise capital and build a supportive crowd of backers through the process of crowdfunding. For more information, visit https://www.thundafund.com.

Written by Kevin Allen, Chairperson of ACfA

“Wealth Migrate was not the author or producer of this article, press release, or publication and is the view of the writer and or publisher.  All references to WM is by inference and as such WM hereby disclaim any reference to WM being a crowdfunding platform, a registered crowd funder and or regulated crowd funding company.  WM is a global real estate market place and offer real estate investment opportunities to its members. Wealth Migrate does not accepts any responsibility for any loss or damage of whatsoever nature that maybe caused or brought about, directly or indirectly, by the reliance on this article and our publication and does not accept any liability for reliance placed thereon.  Past performance is no guarantee of future performance.  Any investor must obtain independent financial, legal and tax advice before making any invest and or relying on any of these articles or publications.”

Real Estate Investment has long been known to be one of the best ways to make your money work while you sleep.  So much so, that 49% of the world’s wealth is held in real estate. Yet, very few people have access to real estate investment opportunities, the reason being that it requires expert knowledge. It requires significant amounts of money to get started, if you want to invest via the traditional buy-to-let route. This created barriers to entry hard to overcome for many.  Investors are often at risk of suffering huge losses due to vacancies, damages by uncaring tenants and buying the wrong properties.

Sophisticated investors tend to invest in commercial real estate opportunities. For a long time these investments were available to only a select few, very wealthy investors.  Until now.

The internet has changed our lives irrevocably. We live in a different and new world with many new possibilities. We no longer have to be content to plough in the old furrows.  Wealth Migrate is at the forefront of staking out new fields of opportunity and possibilities.   Wealth Migrate enables people to overcome the challenges of commercial real estate investing and in so doing, is affecting transformation in an old, staid, exclusive industry.

Wealth Migrate has managed to combine the extensive real estate expertise of its team members with cutting edge technology, and in so doing has enabled all to invest in opportunities previously available only to wealthy investors, those inside the inner circle.  Now all have access to inner circle real estate investment opportunities.  How?

Commercial real estate comprises of several sectors.  There are retail buildings such as shopping centres. Office blocks and buildings. Leisure opportunities such as hotels and also industrial buildings such are warehouses, distribution centres and buildings suitable for manufacturing purposes. Of particular interest are medical real estate buildings and multifamily housing buildings. It is quite clear that being able to select the best and safest investment opportunities from amongst all the sectors, requires specialised knowledge and expertise. Wealth Migrate’s team members have exactly the expertise required and they have identified medical real estate opportunities as some of the best available to investors today. Over the past 3 years Wealth Migrate has built up a sterling track record in selecting lucrative and safe medical real estate investment opportunities, to offer to their clients.

Why medical real estate?  Medical real estate assets are regarded as prime assets and for that reason REITS buy into them.  The prime classification stems from the following realities:

Increased demand for healthcare – due to population growth in areas Wealth Migrate selects, the ageing population which is a world wide trend. People over 65 years of age rely increasingly on health care services which in turn results in longevity. There is a shift towards outpatient care causing uninterrupted growth in demand.

Doctors are good tenants – they sign long term leases because the need for their services are driven by demographic trends rather than economic growth. It is difficult for doctors to move as they often have expensive sensitive equipment which can not be moved. There are often licensing or certificate of need restrictions which compel doctors to stay in one place.

Medical office blocks are capital preservation assets.  Assets which give good cash flow and good value for money.

The increasing demand for medical services and the service providers who prefer to have long term lease agreements in place, make medical real estate recession resistant. People need medical services irrespective of the economic climate.

How does the Wealth Migrate team ensure that only the top pick opportunities are presented to their clients?  Due diligence, research, due diligence and more research. Research on every possible level. This is because the right opportunities result in capital preservation and income for investors. The Wealth Migrate due diligence system is called the GIDDS rating system.  GIDDS is an acronym for Global Investment Due Diligence System which incorporates a 140 point checklist.

The 140 point checklist, which every opportunity is subjected to, acts as a filtering system which only allows the best opportunities to pass through. Very thorough research is done on:

The income generating aspects of each opportunity.  Investors can rest assured that the income is safe because the long term leases have been inspected in detail. Detail such as whether the rental per square metre or foot is in line with the current market, whether the tenant is a reputable tenant of good financial standing able to pay the rent.

By studying many and various credible reports, the Wealth Migrate team ensures that the medical office blocks are surrounded by a diverse population, which requires medical care facilities, but  a population that can also afford the care they require.

The medical office blocks are in areas with diverse economies and industries, high growth areas where the diverse economies ensure that there are many job opportunities.  Research has shown that 86% of Americans have medical insurance. Almost all people with jobs have medical insurance.

Medical real estate is a highly regarded and coveted asset class in the USA today.

Go to www.wealthmigrate.com and put the shoe on the other foot by investing like those inside the inner circle, invest safely and securely in this popular and sought after real estate sector, which was not easily accessible before. Put the shoe on the other foot by investing alongside wealthy sophisticated investors, in quality medical real estate investment deals.

We all work hard to pay the doctor’s bills…now the shoe can be on the other foot, let the doctors pay your bills.  

DISCLAIMER: The above article is my personal opinion and nothing contained herein should be construed as investment, tax, legal, or other advice, nor is it to be relied upon in making an investment decision.

What is Medical Real Estate?

Medical or healthcare real estate is a niche market within the larger real estate market and can be described as buildings and/or offices leased to members of the healthcare and medical community. Doctors are generally highly-held community figures, developing long-standing relationships with their patients, which means they aren’t likely to move premises very often.

Why is Medical Real Estate an Attractive Investment Option.

As a medium to long-term investment, medical real estate has proven time and again to be an attractive investment sector within the larger real estate market in the U.S. In fact, the 2016 DLP Piper State of the Market Survey rated the healthcare specialised investment sector as the most attractive for investors in the U.S. This sector is made up of hospitals, ambulatory surgery centres, long-term care, and other facilities such as psychiatric centres.

So what makes medical real estate such a worthwhile investment?

Medical equipment, especially specialised equipment, is heavy and expensive to install. Yet another reason why doctors don’t simply “hop premises.”

The quality of these kind of tenants is generally very high, with long-term leases in place, and the majority of tenants opting to renew their lease when it expires. This means rental forecasts can be more accurately predicted.

The U.S. has an ageing population, which means the amount of money being spent on healthcare, as well as the need for medical services is increasing. Naturally, this also means there is a continued strong demand for medical office space.

These factors combined creates an economically resilient investment, tailored to withstand upheaval in most market conditions, while still being able to perform. In turn, your investment in medical real estate will continue to deliver a quarterly income and valuable capital growth.

What Other People Say

And as if to cement the benefits of investing in medical real estate, Hennie Bezuidenhout, Co-Founder and Chairman of Wealth Migrate, noted “In all the time I’ve been doing medical office suites and day-hospital development in Africa, I’ve never had a day’s vacancy.” A sentiment which stands true for the U.S. market too. So if you’re looking for a solid offshore investment opportunity, with favourable returns, then consider investing in medical real estate.