- Real Estate
Wealth Migrate
Wealth Migrate - founded and headquartered in South Africa – offers investors the opportunity to access global commercial real estate investments. The site lists headquarters or offices in London, Singapore, Dubai, Brisbane, and Hong Kong, in addition to Cape Town, South Africa.
Wealth Migrate
- Investment Types: Real Estate
- Sectors: Commercial Real Estate
- Minimum Investment: $1,000
- Advertised Returns: 15-25%
- Must be accredited
Pros
- Minimums as low as $1,000, but may vary by specific deal
- Global commercial real estate may offer diversification from traditional equity markets
Cons
- The website seems less focused on offering access to a crowdsourced investment opportunities, and more focused in enrolling participants in related "Wealth University," "Wealth Movement," and "Wealth Inner Circle" programs. This feels like an upsell.
- Investments in real estate deals may be subject to dilution, via future capital calls, as disclosed on the site
- The global nature of this company, operating in between regulatory regimes, may pose extra due diligence or compliance risk for US-based investors
- Overseas-generated income may require additional tax-reporting steps.
- The nature of the deals, with Seychelles-based off-share sponsors and listings on non-US stock exchanges, pose additional risks outside of US regulatory control
- Non-transparent fee structure for Wealth Migrate site
Overview
This Wealth Migrate Review will help you learn more about Wealth Migrate's investment offerings, including how the alternative investments on Wealth Migrate are structured, and what your potential returns might be. You can read more about the criteria we use to review investment platforms here.
The social media sites for Wealth Migrate offer an optimistic, motivational-speaker inspired broad-based approach to investment and building wealth. The website links directly to something called “Wealth University,” which purports to teach investors how to get wealthy. Robert Kiyosaki of ‘Rich Dad, Poor Dad’ fame, for example, is highly touted. This “mission” contrasts with most crowdfunding sites, which focus more directly on a specific asset offered for sale.
The founder, Scott Picken, touts his investment success and other businesses with names such as ”Business Breakthroughs Africa,” “Double Your Sales,” “Wealth Movement,” “Wealth University,” and “WealthE,” a coin-based venture.
Individual investors must sign up to view specific live offerings.
Types of investments Wealth Migrate offers
For enrolled investors, the site offers a range of investment products and opportunities.
These include real estate equity, as well as debt convertible to public exchange-listed equity.
Unlike most other sites, Wealth Migrate includes listings that are not actually available now, but which prompt a participant to “Express Interest.” Clicking through to these, the site explains that the opportunity is not available but might be at some point in the future. Sponsors for these potential opportunities appear to include companies related to the Wealth Migrate owners/founders, such as the company International Property Solutions, founded by Scott Picken, or by Wealth Migrate itself.
The “Express Interest” clickable opportunities appear to be boiler-plate generic investments, not specific properties that will be available for sale.
What do you get when investing with Wealth Migrate?
The security types vary and may differ from standard US structures such as a loan, note, or special purpose vehicle within an LLC.
One of the listed offering shows an LLC flow-chart involving nine separate legal entities for a single property, to accommodate voting and non-voting share interests, and a combination of onshore and offshore investors.
How does Wealth Migrate make money?
It is not transparent nor disclosed how Wealth Migrate is compensated, whether by buyers or real estate sponsors
Potential returns and cashflow
Currently listed deals offer 30% and 15% ROI, respectively. The ROI calculations use non-standard real estate investment language on the website.
Breadth of offerings on Wealth Migrate
Wealth Migrate says that it carefully selects and reviews real estate sponsors.
The deals are not limited by geography, and real estate will include commercial, industrial, or large residential projects.
The site says that 3-4 real estate opportunities are listed per month. As of this writing, two opportunities were open for investment, with another half-dozen listed for ‘”expressions of interest.”
One involved a $5k minimum equity investment in an Atlanta-based health-care building.
The other offering was for a $1,000 minimum up to $500,000 in debt, convertible into shares in a development company currently listed on the Seychelles stock exchange, but purported to be planning a listing on the Australian stock exchange (ASX). Debt investors would have an opportunity to purchase future shares at a 30% discount prior to ASX listing. Proceeds would go to acquire a new resort property in Thailand. From a due diligence perspective, a deal with this highly-contingent structure seems to fall on the very extreme end of the spectrum of speculative investing.
Regulatory framework
As a non-US platform operating or with offices in multiple locations including the UK, Singapore, Dubai, and South Africa, investors should be extra cautious about the regulatory and due diligence framework offered, or pointedly not offered, by the site.
Wealth Migrate describes the use of PKF Capital Markets, a Seychelles-based financial services company and “member of the Seychelles Stock Exchange Trop-X and Registered Sponsor Advisor to companies wishing to list on the exchange.” It appears investors funding their investment will have their bank account interact with this financial services entity.
Wealth Migrate says that it requires ID, proof of address, and banking information from each investor. It then says that further investor requirements will be country-specific.
In some cases, offerings on the site include quotations from the sponsor, which happens to be from a company related to Wealth Migrate, such as “I specifically like this property and we know the seller and we know why they are selling. They have immigrated to America and are moving all their assets to the USA due to tax reasons. Thus we know the property, we know the rent roll and we know the quality of the management agent.”
This is non-standard due diligence language for an investment offering.
This review was first published on 12 May 2020.
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