What are the fees involved in investing through the Wealth Migrate platform?
Joining Wealth Migrate is completely free of charge. We are obsessed with minimising fees, and making sure our fees are transparent to you the investor. So here is a clear look at the fee’s we charge investors, what they are for and how we are focusing on saving you money.
Our fee categories
We have broken the fees you pay on any investments into three different categories. This is to ensure that you are able to understand why the fees are being charged.
- Base Fee. The base fee is what we earn as Wealth Migrate. This covers our in house operations, your transactions on the platform, and the ongoing development of our tech. This component of our fee is set at 1% of each transaction.
- Structure Fee. These fees are specifically charged to cover the costs of setting up and maintaining dedicated Special Purpose Vehicles (SPV’s) for each deal that enable us to do transborder global investing. Without these structures, we are not able to provide you with the most simple, hassle free, cost and tax efficient investing. The fee associated with Structure’s is to cover the costs of the lawyers and accountants required to create and administer these compliant structures. If the deal Sponsor is providing a structure through which you invest, we do not charge this fee. This fee is usually 1% of any transaction.
- Marketing and Sales Fee. As a global marketplace, we operate in many different countries, each with different rules for marketing to investors. In many instances we will work through partners on the ground that are licensed by their government regulators, or work with marketing partners, or perhaps your own financial advisers. Following on from the principles above, we do not have one set standard fee for this category, as different countries, regions or partners will have different requirements that will have different cost implications. Our fees in this category will be directly linked to you as an investor and the region from which you are investing, and how you have been connected to our platform. We push hard with all our global partners to drop these costs as low as possible, helping to keep our fees low and save you money. This component of our fee will vary.
Fees that match our mission
Wealth Migrate’s purpose is to make phenomenal Global Real Estate opportunities accessible to all investors around the world.
Our clients are people from around the world who want to be able to invest in primary markets such as the USA or UK and who, up until now, and because they did not live in the country the deal was based, were not able to access institutional quality deals at affordable costs and reasonable investment amounts.
Core to our solution is creating a globally compliant investment process and structure for our clients, so that you can invest from anywhere in the world.
Put another way, investing in USA real estate is now as easy for a non American citizen as it is for an American.
For our global client base we have developed simple, compliant, safe and cost effective structures and processes to enable you to invest in these markets. Keeping the costs of these structures as low as possible, removing any unnecessary middle men, and automating the processes using smart technology is core to driving fees as low as possible.
Fees that follow our principles
Our fees are driven by four key principles.
- Our fees are transactional. If we have not done something, then there should not be a fee. You will not find any automatic ‘annual fees’ or ‘assets under management’ fees with Wealth Migrate. All the deals you invest in are likely to have project management fees already built in at the deal level by the project sponsor, where the ongoing operational costs of managing the real estate asset will be covered. Therefore there is no good reason for us to charge an additional annual fee – so we don’t. Our fees are charged when we add value or facilitate a transaction, and only where we need to cover the costs of that transaction and process.
- Our fees are specific. Not all deals are the same. Some of the deals on the Wealth Migrate platform require us to create a dedicated investment company through which you invest, so that we can give you access to a deal in countries such as the USA or UK. In these cases we will have a structure fee. When a deal does not require a dedicated investment company to be set up (most often when the sponsor bringing the deal to the Platform has created their own globally compliant investment structure), then we will not charge a structure fee. Simple. This will be clearly displayed
- Our fees are transparent. Every time you invest, our fees will be clearly displayed. The fees will be broken down clearly for you to be able to understand what the fees are for. See more below on the three types of fees.
- Our fees are aligned with your interests. We are committed to our mission, which is to make Global Real Estate investing accessible to people from all parts of the world, and at all levels of wealth. As a Platform, we know our business model is based on a small fee from a large group of people – our global client base. By keeping our fees as low as possible, we can enable a large, diverse group of investors, and have a bigger impact in the world.
When do we charge fees?
Based on our first principle (see our principles above), we charge fees at the time of a transaction. Transactions happen at three different times in the project life cycle.
- Start of a project. When you first invest in a project, all three fee categories may apply. The base fee (1%), the structure fee (usually around 1% if required), and the marketing and sales fee (variable based on your region, though we are committed to driving this to a close to 1% as possible). This means your average initial investment fee is around 3%, assuming all fees apply.
- Dividends. Throughout the life cycle of a project you may receive regular dividends or cash payments. For these a base fee is applied on the dividend amount (important this is not calculated on the investment amount) to manage the transaction (2% base fee on the dividend amount), and if the fees are passing through an SPV then a structure fee (1%) is applied to cover the legal and accounting costs of that structure. No marketing and sales fees are applicable here.
- End of a project. When a project reaches the end of its life cycle, the real estate is sold and your capital, and the gain in your capital, is returned to you. At this point a base fee is applied (2%), and if there is an SPV then a 1% fee is applied to cover the legal and accounting costs of closing down that structure.
What is the impact of our fees on your returns?
Here is an example showing our fees from a typical deal on our platform, where an investor invests $1000.
No fee investing?
Most real estate investment companies have expenses at the deal level, including fees they pay to agents or brokers. ”Deal level” meaning that they include these fees in the actual costing of the deal. This is how many companies, REITs, and funds can claim to have no investing fees – as the costs are hidden in the deal, and yet still impact on your returns.
We are committed to transparency for fees, allowing you to see our fees up front. Given that you have paid these fees on our platform, sponsors are now able to reduce their inherent fees built into their deals. This will show up in greater proposed returns on the deal from the sponsor.
How can you be sure that sponsors will reduce their costing? Well, you can’t. Though, as our platform is a competitive marketplace for sponsors bringing deals to investors, those that do reduce their own cost structure will be able to offer better returns, and therefore attract more investors.
That is the value of a global marketplace.