Wealth Migrate is using WealthMigrate.com – their online crowdfunding portal – to create considerable wealth in real estate through crowdfunding. They’re making property accessible through collective global buying, and the numbers in the US and elsewhere are climbing, as investors take note of this new way of real estate investing. Wealth Migrate has become the Global Real Estate MarketplaceTM.
Scott Picken, Wealth Migrate Founder and CEO, says, “Most people find our model complicated, but it’s effectively a technology-driven stokvel. Unlike a fund/syndication, it’s a blend of nature’s laws and technology. Also, our three core values – trust, transparency and aligned interests can be likened to those of a stokvel. It’s about partnership and safety, just like when birds fly in a flock, they can travel 70% further than if they try and fly on their own.”
The fledgling, localised real estate investment through crowdfunding has already attracted substantial injections, like the $171.8 million investment in the BD Bacatá building in Colombia, exclusive to Colombian citizens.
On the global front, Wealth Migrate investment experts and lead investors recently bagged an attractive investment opportunity, comprising of seven medical buildings in Newnan, Peachtree City and Blairsville, in Atlanta (the fourth biggest city in the US).
After publicising the offering on WealthMigrate.com, 27 international investors were secured for the full $5.725 million equity raise needed. This enabled the purchase of the $16.2 million property. The accredited investors hailed from the US, Australia, South Africa, Pakistan, Thailand, the UK, and Canada; with more than a ⅓ being females.
This deal is one of the most trailblazing to have been conducted thus far, both in terms of the amount raised and the make-up and diversity of investors. The crowdfunding process was only partly automated. Picken explained given the large sums, investors first paid the money into a lawyer’s trust account, prior to closing. The portal served primarily as the communication hub, due diligence tracking system, and document management system for the transaction. Its most important function is the ongoing portfolio management for Wealth Migrate’s clients.
He substantiates his aspirations for real estate investors’ adoption of technology by relating an incident: a previously unknown investor who found an offering on WealthMigrate.com by simply clicking on a Google advert and ended up investing $300,000 across multiple projects!
The SEC-compliant Wealth Migrate platform is authorised to operate in the US – and currently, only accredited investors are eligible, but the laws are changing fast. They have ambitious plans to launch designated portals on six continents by the middle of 2015. Their South African portal is now also live and compliant, with Australia, the UK, Singapore, Hong Kong and Malaysia (coming soon). Wealth Migrate is thrilled to announce that Malaysia will be the first country to offer unaccredited investors the same opportunity for access to investment, as their accredited counterparts.
Crowdfunding real estate, which may seem best suited for local deals, holds greater potential for global investment; and unlocks opportunities that were previously off-radar for smaller investors.
“Why not follow nature’s principles?” questions Picken. “The birds migrate from one environment to the next to make sure they are best placed. Likewise, as markets change, cycles change – which requires acclimatisation. With the added convenience of technology, we now have expert information and global opportunities at our fingertips.”
The Wealth Migrate team touts 220+ years of collective international real estate experience, with nearly 10 780 investments facilitated on five continents to the value of $1.34 billion. Representative of the team’s extensive experience; is Chairman of the group, Hennie Bezuidenhoudt; a medical expert in commercial property who’s currently building 14 hospitals. Hennie’s been investing in medical buildings since 1992.
“We’ve just signed a contract to crowdfund another 10 hospitals in South Africa, and we are also finalising contracts for hospitals elsewhere in Africa. Investors who had previously been ‘left out in the cold’ can now partner with sophisticated investors, and be treated exactly the same. It is the complete democratisation of investment opportunities and wealth,” shares Picken excitedly.
The live Wealth Migrate portal in South Africa can help investors invest as little as R100 000, although Picken says they aim to reduce this to as low as R10. They want to remove the barrier to entry completely, to help create global wealth for all.
The team’s dedication and passion for partnering global real estate investment is palpable, and they have a progressive global network of trusted allies to show for it. In a recently published book,Property Going Global (endorsed by Clem Sunter), Picken discusses the importance of ‘glocalization’ and its impact on his thinking.
Wealth Migrate have been invited to the real estate crowdfunding panel of MIPIM (Le marché international des professionnels de l’immobilier).
They will share their vision there for the future of real estate crowdfunding, and how individuals and companies can optimise its opportunities by making informed investment choices.
“MIPIM is the biggest and most prominent global real estate event held annually in Cannes, France,” says Picken.