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Global Wealth Group and Wealth Migrate: Business Growth and Scaling

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

Understanding the role of a sponsor in commercial real estate

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.

The commercial real estate outlook for 2021 in the United States

Changes to the global investment market from 2020 leading into 2021 have been affecting commercial real estate, and Wealth Migrate analised what this means for you. While the markets settle down and start returning to normal, this gives investors opportunities to make smart decisions on how to grow wealth as the economy starts to resume. [1] Globally, countries are also implementing large-scale COVID-19 vaccinations within their borders, which will assist in restoring normal activity to economic markets.[2]

We agree with Forbes that the following four main factors will be the driving force for investment strategies in this market:[3]

  • Understanding investor behaviours and reasons
  • Establishing secure building spaces — working from home became a priority due to COVID-19, resulting in more vacancies for commercial offices in high-traffic areas[4]
  • Increasing efficiency through tech — e-commerce grew exponentially during the pandemic with businesses tailoring its ”just-in-time inventory model to a just-in-case approach”[5]
  • Identifying challenges and vulnerabilities in your investment portfolio assets

Commercial real estate asset classes also differ according to location, and you should plan your investment strategy accordingly.[6] Investors looking to America can expect “a high diversity of potential outcomes in play and an outlook of a nearly 40% increase in total U.S. transaction volume according to CBRE”.[7] Knowing the latest trends and predictions for 2021, will help you decide where to focus your investment plans in the American commercial market.

Here are six emerging trends and insights you should be aware of this year:
  1. Industrial
    The increase of online shopping has driven up demand for the final distribution center to the shopper at home. Malls are being looked at to turn into potential distribution centers.[8]

  2. Hospitality
    Occupancy and revenue were hit particularly hard but are now seeing a slow recovery due to the return of travel (locally and internationally) and business conferences. Further research shows it might take up a few years for hospitality to return to pre-2019 levels.[9]

  3. Office
    The move to remote working has hit offices very hard, particularly in downtown business centers. Offices have been the hardest hit of the commercial assets during 2020, but this has given opportunistic groups looking to expand, a chance to invest in prime commercial real estate.[10]

  4. Multifamily
    Multifamily apartments have been the best performing asset during 2020 with strong occupancy and collections rates that have been helped by stimulus checks and savings. The demand for affordable financing has greatly increased for assets in this class.[11]

  5. Student housing
    Top tier campuses are absorbing students from nearby schools, causing a demand for housing. Schools have also converted on-campus housing to single occupancy, driving up demand for off-campus housing that are within walking distance of campus.[12]

  6. Medical office
    Medical buildings that have tenants offering critical care and procedures, and not optional care and procedures, should be considered. A strong location and tenants are a must, as there is a trend shifting to in-home care.[13]

These are promising signs for investments in the American commercial real estate market, and we recommend that investors choose their asset portfolio with care. In the long-term, Wealth Migrate believes that investors that have done their research will benefit from the unique opportunities in this market.

[1] Gora, B. March 2021). ”Commercial Real Estate Investing 101 in 2021′. Retrieved from Commercial Property Guide.
[2] Ventura-Rozen, G. (March 2021). ‘What 2021 Looks like for the commercial real estate market’. Retrieved from Forbes.
[3] Ventura-Rozen, G. (March 2021). ‘What 2021 Looks like for the commercial real estate market’. Retrieved from Forbes.
[4] Ventura-Rozen, G. (March 2021). ‘What 2021 Looks like for the commercial real estate market’. Retrieved from Forbes.
[5] Ventura-Rozen, G. (March 2021). ‘What 2021 Looks like for the commercial real estate market’. Retrieved from Forbes.
[6] Cambridge Associates. April 2021. ‘US real estate outlook: patience required’. Retrieved from Cambridge Associates.
[7] Cambridge Associates. April 2021. ‘US real estate outlook: patience required’. Retrieved from Cambridge Associates.
[8] Berry, J. and Feucht, K. (December 2020). ‘2021 commercial real estate outlook’. Retrieved from Deloitte.
[9] Berry, J. and Feucht, K. (December 2020). ‘2021 commercial real estate outlook’. Retrieved from Deloitte.
[10] Berry, J. and Feucht, K. (December 2020). ‘2021 commercial real estate outlook’. Retrieved from Deloitte.
[11] Berry, J. and Feucht, K. (December 2020). ‘2021 commercial real estate outlook’. Retrieved from Deloitte.
[12]  THRESHOLD Agency. (February 2021). ‘The future of student housing in a post-COVID world’. Retrieved from THRESHOLD.
[13] Eisenberg, R. (September 2020). ‘Seven urgent changes needed to fix senior living’. Retrieved from MarketWatch

Update on property investments: South African Investors in 2021

Following the global challenges from COVID-19 and how it has affected economies and investment planning, Scott Picken Chief Executive Officer and founder of Wealth Migrate and scenario planner Clem Sunter have joined forces again, to provide a much-needed update for South African investors on the state of property investments.

Sunter’s latest book co-authored by Mitch Ilbury on Thinking the Future – New Perspectives from the Shoulders of Giants, seeks to futureproof strategies to restructure SA’s economy and create local opportunities for growth.[1] While Picken’s perspective on this is still the same, and he wrote this in his 2014 book Property Going Global, “The challenge is: do you have the right information, are you choosing the right partners, making the right investments and, most importantly, asking the right questions?”[2]

In line with this ideology, they’ll team up in an exclusive upcoming interview on 17 August 2021 to expand on the following factors:[3]

  • The scenarios for the global economy
  • The scenarios for the South African economy
  • What do we plan for and is there a future in property investments?
  • How does this impact your investment strategy?
  • What types of investments and asset classes are good decisions, and what should you be aware of when investing?
  • Which countries offer profitable real estate investments?
Scenario planning for the South African property investor

Picken authored the book Property Going Global, and it detailed his expert advice on investing with confidence to create global wealth.[4] As a prolific author, Sunter has written a series of books based on his best-seller The Mind of a Fox co-authored by Chantal Ilbury, which focused on a technique for speculating on the impact of future scenarios by assigning “flags” for the probabilities.[5]

Based on Sunter’s methodology, Picken provided his outlook on investing in real estate with his four-dimensional model, which covered fundamental theories on the Global Investment Due Diligence System.[6] His framework considers the implications of worldwide economics as well as local factors from the South African viewpoint, that play into making investment decisions. His vision with his business Wealth Migrate, is to offer investors a convenient online method through crowdfunding to acquire residential and commercial property in South Africa and globally.[7]

When deciding to invest, knowledge and a solid understanding of the real estate industry is key, not only is thorough research required, but you also need to decide how much you can afford to invest. This can be daunting especially for new investors and even for current investors that are trying to hedge their bets on a wise investment, and we’ve made this research easier with an upcoming interview from Wealth Migrate

Investor insights

Sunter’s experience at Anglo American from the 1970s and onwards, set the tone for his career as a futurologist in scenario planning.[8] Clem Sunter, an acclaimed scenario planner and strategist, was responsible for the foreword of Picken’s book Property Going Global, and endorsed it according to his professional experience in the field.

In his foreword he highlighted that, “…we ask individuals or companies to gauge the impact of the scenario on them and, depending on the probability, decide what should be done to chase the opportunities and counter the threats.”[9]

To help you make informed decisions for the future, join Picken and Sunter on for a talk about global scenarios for the South African investor and the way forward. Click here to register for the webinar.

[1] Sunter, C. (July 2021). ‘Thinking about the future – Scenarios for South Africa with Clem Sunter’. Retrieved from Youtube.
[2] Picken, S. (2014). ‘Property Going Global: How to create global wealth and invest with confidence.’ Retrieved from Property Wheel.
[3] Picken, S. (July 2021). ‘What can you learn from one of the world’s best scenario planners – Clem Sunter?’. Retrieved from YouTube.
[4] Picken, S. (2014). ‘Property Going Global: How to create global wealth and invest with confidence.’ Retrieved from Property Wheel.
[5] Sunter, C., and Ilbury, C. (2001). The Mind of a Fox’. Retrieved from Entertainment-online.co.za.
[6] Ryan, C. (March 2021). ‘Talking alternative investments and offshore property’. Retrieved from Moneyweb.
[7] Ryan, C. (March 2021). ‘Talking alternative investments and offshore property’. Retrieved from Moneyweb.
[8] (2021). ‘Clem Sunter – Scenario planner – futurologist and keynote speaker – Cape town and Johannesburg’. Retrieved from Entertainment-online.co.za.
[9] Picken, S. (2014). ‘Property Going Global: How to create global wealth and invest with confidence.’ Retrieved from Property Wheel.

How you should invest in commercial real estate: Crowdfunding vs REITS

At Wealth Migrate we believe in our offering and helping our investors navigate the world of real estate assets. To this end, we’ve examined the fundamental differences between crowdfunded and real estate investment trusts (REITS) assets, as this is a commonly asked question of which investment vehicle is better.

With real estate being one of the biggest asset classes globally and a trusted method for profitable investment, most investors are keen to invest.[1] This becomes tricky when considering which route is best and how you should invest in real estate.

What crowdfunding and REITs entails

Whenever real estate investing is discussed, there are different investment options for investors, two of the most popular methods are crowdfunding and real estate investment trusts (REITS).[2] Although both are invested in real estate, there are some fundamental differences between the two that range from liquidity, to risks, tax consequences, and barriers to entry.[3]

The key differences for both investment methods:[4]

  • A REIT is a company that owns and operates income-producing real estate. 
  • Typically, REITS are spread out over a portfolio of properties in a single asset class. 
  • Crowdfunding real estate is when a group of investors are purchasing one property and pool together their money to purchase it.
  • For crowdfunding there are only one or a few properties that the investor is invested in, and usually only accredited investors are allowed to invest.

Liquid

REITS are highly liquid, meaning that they can be bought and sold easily, so if an investor needs money, this is a convenient method of investment.[5] The same cannot be said for an investor that has a share in crowdfunded real estate that wants to sell it off quickly. Shares in a crowdfunded real estate are not transferable and the money is only received at the sale of the project or during refinancing.[6]

Risks

REITS offer a steady income that comes with the costs of having lower returns.[7] In this regard, there are REITS costs for covering the operation of the REITS and other expenses that are incurred before the investor is paid. On the other hand, crowdfunded real estate has more inherited risks because it is a single project and the equity partners in a deal.[8] As a result, the income is not as predictable, and the returns can vary from the predicted figures.

Tax consequences

REITS are considered paper assets, with the taxation different to investing directly in real estate as a partner. REITS can be purchased with tax-deferred retirement accounts, but the dividends from REITS are taxed as ordinary income.[9] Investing in real estate directly allows investors to be considered as partners and take advantage of tax-benefits such as depreciation, this allows investors to receive tax credits to reduce their taxes.[10]

Barriers to entry between REITS and crowdfunded real estate

Purchasing REITS is like buying a share in a stock where an investor can buy as much as desired with no minimum investment amount.[11] On the other hand, crowdfunding real estate has specific requirements for a minimum investment,[12] and this needs to be considered by investors that accept and understand the nature of these investments, before investing.

With all these factors to consider, it’s important that when you invest you understand the strategy and risks between REITS vs crowdfunded real estate. Both are attractive options, but your decision will depend upon your personal preference and your level of investment.

[1] Picken, S. (2019). ”Direct Real Estate Investing vs REITs vs Syndication vs Crowdfunding vs Collaborative SMART InvestingTM”. Retrieved by Scott Picken.
[2] Bryant, S. (April 2021). ”REITs vs. Real Estate Crowdfunding”. Retrieved by Investopedia.
[3] Frankel, M. (April 2021). ” Where to Invest: Real Estate Crowdfunding vs REITs”. Retrieved by Millionacres.
[4] Bryant, S. (April 2021). ”REITs vs. Real Estate Crowdfunding”. Retrieved by Investopedia.
[5] Benson, A. (May 2021). ” Real Estate Crowdfunding: what to consider”. Retrieved by NerdWallet.
[6] Picken, S. (2019). ”Direct Real Estate Investing vs REITs vs Syndication vs Crowdfunding vs Collaborative SMART InvestingTM”. Retrieved by Scott Picken.
[7] Picken, S. (2019). ”Direct Real Estate Investing vs REITs vs Syndication vs Crowdfunding vs Collaborative SMART InvestingTM”. Retrieved by Scott Picken.
[8] Frankel, M. (April 2021). ” Where to Invest: Real Estate Crowdfunding vs REITs”. Retrieved by Millionacres.
[9] Benson, A. (May 2021). ” Real Estate Crowdfunding: what to consider”. Retrieved by NerdWallet.
[10] Frankel, M. (April 2021). ” Where to Invest: Real Estate Crowdfunding vs REITs”. Retrieved by Millionacres.
[11] Benson, A. (May 2021). ” Real Estate Crowdfunding: what to consider”. Retrieved by NerdWallet.
[12] Bryant, S. (April 2021). ”REITs vs. Real Estate Crowdfunding”. Retrieved by Investopedia.

The crowdfunding effect on property investment in South Africa

With the popularity of crowdfunding property investments growing in following, South Africans now have the option to crowdfund their real estate investments through Wealth Migrate. It’s Chief Investment Officer Riaan van der Vyver, voices his opinion on why this is an ideal scenario for local investors.

Wealth Migrate’s category one licence is a game-changer

Just as crowdfunding relies on the spirit of collaboration, this is also necessary for it to become a successful solution in South Africa. Local investors will now benefit from Private Global Wealth holding a category one crowdsourcing licence from the Financial Services Conduct Authority, as this allows the company ‘’to provide its crowdfunding offering on an intermediary services basis using shares as a financial product category.” [1]

“For many early adopters of crowdfunding in Africa, particularly those using crowdfunding to raise equity, self-regulation is a challenge and an opportunity.” [2]

The real benefit to South African investors

Investors have access to a legitimate and credible ‘’funding channel for asset classes’’ through Wealth Migrate.[3] Once a sponsor passes the due diligence, a deal is put onto the platform’s marketplace, and the company takes on the responsibility of co-raising capital on the deal, with all details disclosed in full on the marketplace. 

Van der Vyver highlighted that this crowdfunding method is for unlisted real estate in any alternative asset class, which makes Wealth Migrate’s role as an institutional investor easier for lowering costs and providing better transparency of deals.[4] This is enabled through a special purpose vehicle (SPV) such as a structured note.

Crowdfunding: a future-forward opportunity

The main challenge with crowdfunding real estate is the model and structure of administrative fees, as this typically ranges from 2.5%-10% and may not include the actual transaction fee.[5] Globally since 2010, the crowdfunding equity market has become increasingly appealing to individuals who want to grow their wealth but lack sufficient capital to invest without the power of a group fund.[6] More and more, investors are also looking to diversify their asset portfolios while making use of convenient online websites or apps.[7]

[1] CNBC Africa. (May 2021). ‘FSCA grants Wealth Migrate licence to offer crowdfunding services’. Retrieved from CNBC Africa.
[2] Parker, D. (October 2019). ‘Crowdfunding on the rise in Africa’. Retrieved from Creamer Media
[3] CNBC Africa. (May 2021). ‘FSCA grants Wealth Migrate licence to offer crowdfunding services’. Retrieved from CNBC Africa.
[4] CNBC Africa. (May 2021). ‘FSCA grants Wealth Migrate licence to offer crowdfunding services’. Retrieved from CNBC Africa.
[5] Shneor, R., Zhao, L., and Flåten, B. (2020). ‘Advances in crowdfunding: research and practice’. Retrieved from Palgrave MacMillan.
[6] Raymond, R. (2015). ‘Six things you need to know about crowdfunding in developing countries’. Retrieved from World Bank Blogs.
[7] Shneor, R., Zhao, L., and Flåten, B. (2020). ‘Advances in crowdfunding: research and practice’. Retrieved from Palgrave MacMillan.

The future of senior living in the US

The advent of Kathleen Casey Kirschling’s 75th birthday denotes not only a long-lived life, she’s also the oldest baby boomer on record out of an estimated 76 million baby boomers born between 1946 and 1964.[1] As the population of baby boomers around the world ages in the upcoming years, there will be more demand for senior living needs and accommodation,[2] especially as it has been predicted that baby boomers will live “well into the second half of this century”.[3]

The advent of Kathleen Casey Kirschling’s 75th birthday denotes not only a long-lived life, she’s also the oldest baby boomer on record out of an estimated 76 million baby boomers born between 1946 and 1964.[1] As the population of baby boomers around the world ages in the upcoming years, there will be more demand for senior living needs and accommodation,[2] especially as it has been predicted that baby boomers will live “well into the second half of this century”.[3]

A recent webinar from a panel at Cornell University highlighted some major changes with COVID-19 and the impact the pandemic has had on senior living. Senior living is a specialised field as it overlaps in the hospitality, healthcare, and real estate sectors. Due to the economic downturn in 2020, there was less capital for both the operators and the residents. Another big concern is how facilities are dealing with visitors and staff during COVID-19, with the biggest issue facing seniors being loneliness and depression from the social distancing, and the lack of community that the seniors are used to having before.[4] As the focus on senior living has become increasingly important, there’s been a noticeable shift on improving acute care needs.[5]

Going forward, in-home care is also going to be an alternate solution, particularly for areas without large senior living centres.[6] As people are living longer and healthier lives even though retirement age hasn’t changed, the current generation is more open to the idea of living independently from their children and grandchildren. With the massive upcoming wave of baby boomers, the demand for senior living will be a major focus for investors that partner with the right operators and strategies.

With the COVID-19 pandemic, there is a risk that senior living accommodation may be underfunded or neglected due to funds being prioritised for other human needs.[7] The McFarlin Group is a specialised Dallas-based firm that focuses on senior living accommodation and has launched a $100 million fund to purchase these types of assets due to the high need for facilities like this in the future.[8]

As the demand for this type of accommodation continues to rise, and investor interest increases, the MacFarlin Group is hoping to position their company to take advantage of the high demand, while investing in senior living accommodation and upgrading the facilities they acquire.[9] This creates a win-win situation for baby boomers looking for appropriate senior living accommodation and investors looking to invest in the real estate market.

[1] Jones, L. (December 2020). ‘The first baby boomer is turning 75. Okay Boomers?’. Retrieved from U.S. 1.
[2] (November 2020). ‘The future of senior living’. Retrieved from eCornell.
[3] Jones, L. (December 2020). ‘The first baby boomer is turning 75. Okay Boomers?’. Retrieved from U.S. 1.
[4] (November 2020). ‘The future of senior living’. Retrieved from eCornell.
[5] Committee on Guidance for Establishing Crisis Standards of Care for Use in Disaster Situations, Institute of Medicine (March 2012). ‘Crisis standards of care: A systems framework for catastrophic disaster response’. Retrieved from NCBI.
[6]  Pearson, F. et al. (April, 2019). ‘The forgotten middle: Many middle-income seniors will have insufficient resources for housing and health care’. Retrieved from Health Affairs.
[7] Sudo, C. (April 2020). ‘McFarlin Group raising $100m fund to target Covid-19 distressed senior housing’. Retrieved from Senior Housing News.
[8] Sudo, C. (April 2020). ‘McFarlin Group raising $100m fund to target Covid-19 distressed senior housing’. Retrieved from Senior Housing News.
[9] Sudo, C. (April 2020). ‘McFarlin Group raising $100m fund to target Covid-19 distressed senior housing’. Retrieved from Senior Housing News.

What happens if Wealth Migrate ceases to exist or falls into financial distress

What are the risks involved in real estate investing?

Your Real Estate investment is not linked to Wealth Migrate as a company. Each investment is held in its own legal entity, separate from the assets and liabilities of Wealth Migrate, or any other investment on the platform. Your investment is managed and controlled by the Sponsor. If Wealth Migrate were to fall into financial distress, an alternative manager could be appointed to work with the Sponsor to manage the distribution of your returns, and the investment’s legal entity.

What are the risks involved in real estate investing?

What are the risks involved in real estate investing?

Like all investments, Real Estate investing carries a degree of risk. These include illiquidity (unable to sell your investment quickly), loss of capital (value goes down), failure of dividends (failure of investment to earn cash flow and pay regular returns). It should only form part a balanced investment portfolio and is targeted at investors who understand the risks involved and are capable of making their own investment decisions.

Wealth Migrate does not remove any of the risks that you may experience through direct real estate investing. Some additional risks are introduced as a result of you not having control over day-to-day decisions and the timing of your exit. Investments offered on the Platform are not insured by any Governmental programme, are NOT guaranteed by Wealth Migrate or our Listers and MAY lose value

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