What cost implications are there when I invest through the Private Wealth Group?
Resources > Investing
Wealth Migrate investors are only charged fees at the point of an investment transaction.
As a sophisticated investor, we understand how much you value transparency in fee structure and cost. We are committed to limiting our fees to our Wealth Migrate members, by providing a clear and in-depth look at the fees we charge, what they cover, and how they impact you as the investor.
Our fee categories
In summary we charge a 2% Initiation fee for every deal you invest in, plus a 10% profit-share on returns (gains earned on your investment over time). What are you getting in return for the fees you pay, and how does this differ from other marketplaces?
Initiation Fees (2%)
We charge a 2% initiation fee at the start of the deal. If a deal you have invested in does not successfully close, you will not be charged this fee and will receive your originally pledged investment amount back in full. This fee is broken down into three separate service categories:
- Platform Services. 0.5%
This includes the costs of sourcing and completing due diligence on the deal, member services and investor onboarding, in-house operations, maintaining your transactional account (digital wallet and platform transactions), and the ongoing development of our marketplace technology. This component of our fee is set at 1% of each transaction.
- Structure Services. 0.5%
Investing in a deal offshore can be challenging as an individual investor. We do the heavy lifting for you, through the use of global structures. Our structure service fee covers the costs of setting up and maintaining dedicated international Special Purpose Vehicles (SPVs) for each deal. This includes the costs of the lawyers, accountants, advisors and compliance officers required to create and administer these structures. If the deal Sponsor is providing a structure through which you invest directly, we do not charge this fee. With these structures, we are able to provide you a simpler, hassle-free, cost effective and tax efficient investing experience. This fee is usually 0.5% for structured notes that autocall after 6 months. 1.0% for autocalls after 12 months.
- Investor Acquisition and Marketing. 1%
As a global marketplace, we operate in many different countries, each with different rules and regulations on marketing our deals to investors. To be able to accept investors from these countries, we are often required to work through regionally-based partners that are licensed by their government regulators. This component of our fee is usually around 0.5% of the investment amount.
Profit Share Fees
Returns Fee. We have a 10% profit-share fee on returns generated by the investments on our platform. This includes dividends, interest, and any capital gains. Unlike most REITS or funds, we do not charge an Assets Under Management (AUM) fee, and do not charge any Returns Fee if you are not receiving any returns. Simply put: we make money only when you make money. Through this principle we ensure that our interests are aligned with yours.
Fees that match our mission
Historically, investing in a primary market like the USA or UK required significant upfront capital and was limited only to citizens or institutions within those countries. Wealth Migrate was founded on the belief that investing in real estate should be made accessible, no matter your location or capital.
Core to our solution is creating globally-compliant investment processes and structures so our members can invest from anywhere in the world. Our fees cover the costs of developing and maintaining the secure, compliant structures and processes that enable our members to invest in these primary markets. Now, investing in USA real estate is as easy for a non-American citizen as it is for an American.
Fees that follow our principles
To keep the costs of these structures as low as possible for our investors, we remove any unnecessary middlemen, automate processes using smart technology, and adhere to our four key principles.
- Our fees are transactional.
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 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. 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 plainly for you to be able to understand what the fees are for.
- 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. As a Marketplace, we know our business model is based on a small fee from a large group of people – our global member base. By keeping our fees as low as possible, we can enable you to invest in a larger, more diverse range of investments and create a truly global portfolio.
How do our fees compare to other marketplaces or investment options?
- We do not charge assets under management fees. In many REITS and funds these can be up to 2% per annum.
- We do have investor fees, where some other marketplaces don’t. This is due to us not being a simple ‘marketing’ marketplace. Our services include creating a globally-compliant structuring solution for investors, removing the need for investors to solve their own investment path for global investments.
- Traditional fee structures for commercial real estate often include complex calculations based on ‘waterfall’ amounts and ‘carry’. We are committed to simple and transparent fees that are easy to understand.
- At the point of each investment, our investment calculator shows you all the fees that will be involved through the life of a deal, and calculate the projected returns after fees, taking into account any taxes that may need to be paid in-country. There are no hidden fees or surprises.
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 $100,000 on a deal that pays a 10% annual cash-on-cash return and an IRR of 13.8%.