Real Estate Workshop | Robin Banks | Wealth Mastery | Wealth Migrate

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CONFIDENTIAL REAL ESTATE INVESTOR WORKSHOP 25 th NOVEMBER 2017

Transcript of Real Estate Workshop | Robin Banks | Wealth Mastery | Wealth Migrate

C O N F I D E N T I A L

REAL ESTATE INVESTOR WORKSHOP

25 t h NOVEMBER 2017

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INTRO

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THIS IS HOW WE’VE DONE ITWHY

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WHYHOW WE DO ITWHY

The majority of the world’s wealth is held in global real estate that has been inaccessible to the man on the street

12,9%

WHY

< 1%

WHY

Less than 1% of people in the Western World retire wealthy at the age of 65.

WHY

Now with our technology,we’re making it accessible to the other 99% who want to invest like the top 1%

WE’VE CHANGED ALL OF THAT!

99%

OUR VISIONOUR VISION

It’s our vision to make global real estate investing as simple as a swipe of a finger

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BUT, it does change habits, and good habits change lives

$1 doesn’t change lives…

OUR VISION

From as little as $1

C O N F I D E N T I A L

4 SECRETS TO WEALTH

C O N F I D E N T I A L

LET’S START WITH A STORY…

C O N F I D E N T I A L

4 MOST IMPORTANT COMPONENTS TO FINANCIAL SUCCESS

1. Don’t loose money

2. Asymmetric risk / reward

3. Tax Efficiency

4. Diversification

• Diversify across asset classes

• Diversify within asset classes

• Diversify across markets and currencies

• Diversify across time

Ray Dalio, “Need 15 uncorrelated bets, an array of attractive assets

that don’t move in tandem, reduce risk by 80% and risk / return ratio

increases by a factor of 5!”

C O N F I D E N T I A L

TOP REASONS PEOPLE

ATTEND OUR WORKSHOPS

C O N F I D E N T I A L

WHY PEOPLE ATTEND OUR WORKSHOPS

• To get information on different investments options.

• To learn how to make your money work harder & smarter resulting in better returns.

• To learn how to hedge against the Rand.

• To learn how to preserve assets and wealth.

• To learn how to have peace of mind, knowing that you have a Plan B for your family.

• To learn why diversification is important in your overall investment strategy.

• To learn about the different options if the Rand devalues and the economy becomes

unstable.

• To learn about immigration options i.e. how to get citizenship in another country.

• To learn about the best investment sectors.

• To learn how to do institutional grade due diligence.

• To learn how political instability affects your investment decisions and what to do about it.

• To learn how the economical climate affect your investments, where to invest, in what and

why.

• To learn how Wealth Migrate charges no fees.

• To learn how you can afford international education for your kids.

• To meet like-minded people and join a global community.

• To learn how to become a global citizen and have the freedom to do what you want.

C O N F I D E N T I A L

INVESTMENT

TYPES

C O N F I D E N T I A L

DIFFERENT INVESTMENT TYPES

• Bank Products

• Financial Products

• Bonds

• Stocks

• REITS / FUNDS / Syndication

• Real Estate – Residential

• Real Estate - Commercial

C O N F I D E N T I A L

THE REAL ESTATE

VALUE CHAIN

C O N F I D E N T I A L

THE OLD SYSTEM IS BROKEN

I N V E S T O R I N V E S T O RB R O K E R

P E N S I O NF U N D

P R I V A T EF U N D

R E A L E S T A T EB R O K E R S

DON’T TRUST THE SYSTEM

People are tired of being poor,

with 76% of people in USA being

concerned about their future and

only ¼ believing in the financial system.

LITTLE TO NO

TRANSPARENCY

Your money is put in structures

which are very complex and you

have no idea what property you

have invested in, have no control

and most importantly don’t have

access to the actual numbers.

HIGHER FEES, LOWER

RETURNS, NO ALIGNMENT

The returns are low, due to the

excessive fees of middlemen, who

dilute the return and result in less

than 1% of people in the western

world being able to retire wealthy.

There are too many people

between you and the property,

with interests not aligned.

1 – 2% FEE 1% FEE 2 – 20% FEE 1 – 3% FEE

C O N F I D E N T I A L

THE REAL ESTATE VALUE CHAIN

L A N D Z O N I N G D E V E L O P E R I N V E S T O R F U N D / R E I T Y O U

C O N F I D E N T I A L

THE REAL ESTATE VALUE CHAIN

The first step is land rezoning, and generally land

developers aim to make 30%+ return on their

money.

The developer then buys the zoned land and

creates something of value, aiming for 25% return

on their money.

The investor (often the same person as the

developer) then buys the asset and increases the

value by tenanting the property - this is called

‘seasoning the rents.’ They aim for at least 20%

return on their money.

C O N F I D E N T I A L

THE REAL ESTATE VALUE CHAIN

Once they have seasoned the rent, their payday

comes by selling the asset to a fund or REIT that is

incentivized by the amount of money they have

under management.

They are basically trying to spend their money and

buy cashflow so that they can pay the monthly

contributions. They aim to buy buildings with a

cashflow of 5 - 8%.

The last person in the value chain is you, the

person who invests in the fund or REIT. You want

to get wealthy, invest in a financial product (which

you think is real estate) and most people are happy

to just beat inflation.

C O N F I D E N T I A L

https://www.linkedin.com/pulse/how-wealth-created-real-estate-what-do-

billionaires-you-picken-%E9%BE%99%E8%88%B8

C O N F I D E N T I A L

THE REAL ESTATE VALUE CHAIN

L A N D Z O N I N G D E V E L O P E R I N V E S T O R F U N D / R E I T Y O U

C O N F I D E N T I A L

BARRIERS PEOPLE FACE

“It’s too expensive”

“Too complicated”

“Too much compliance”

“I don’t know how”

“Access to dealsand partners”

“Difficult to invest inoffshore real estate”

“Time and effort”“Ongoing

management issues”

“Need the right structures”

“It sounds too goodto be true”

“Local real estate isso much hassle”

“I don’t have the time”

“How do I protect myself?”

“There are toomany scams”

C O N F I D E N T I A L

THE PRINCIPLES

OF INVESTING

C O N F I D E N T I A L

THE PRINCIPLES OF INVESTING

• Understanding the macro and micro economic factors of a country.

• Location of the property – where it is situated.

• What due diligence has been done.

• Risks – are there any risks and secondly, how do I manage risks?

• Choosing your partners.

• Tax, compliance, bank accounts and structures

• Managing your asset (know as “Sweat the Asset”).

• Understanding the exit.

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OUR VISIONHOW WE DO IT

“Money won’t create success;The freedom to make it will.”

Nelson Mandela

C O N F I D E N T I A L

THE REAL ESTATE VALUE CHAIN

L A N D Z O N I N G D E V E L O P E R I N V E S T O R F U N D / R E I T Y O U

Income

Growth

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Our clients started off investing at $100 000, as we’ve expanded so has our technology so that people can invest at $10 000, $1000 and NOW $100

OUR VISIONHOW WE DO IT

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GLOBAL FOCUS

250+ Real Estate Crowdfunding / Fintech Platforms* Disrupting a $13,6 Trillion Global Dollar Market

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THIS IS HOW WE’VE DONE IT

FOCUSING ON EMERGING MARKETS

MEMBERS

We just hit 107 countries that Members come from Investors = 46 countries

Awards

THIS IS HOW WE’VE DONE ITHOW WE DO IT

ENGAGING FEATURES

TO DEEPEN VALUE TO USERS

Listings

Investments

Supply

We currently generate revenue by monetising the demand side, and will expand to

monetise the supply side.

ENGAGING FEATURES TO

DEEPEN VALUE TO SUPPLY

CURRENT FOCUS: SCALING THE CORE

Demand

Our Business Model is a Traditional Marketplace

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HOW WE DO ITWHAT

• Done in minutes.• Easy to create true, global wealth.• Quality Partners• Get the best opportunities• Invest from $1k.

No hassles, no management issues, no complex globaltax structures needed

Just focus on the best returns available in the global markettoday.

www.wealthmigrate.com

Global Real Estate Investing made easy.

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Sign Up to View Deals Select an Investment Transact Online Manage Your Portfolio

WHAT

United States of America

www.ipsinvest.com

United Kingdom

www.ipsinvest.com

Australia

www.ipsinvest.com

South Africa

www.ipsinvest.com

Global Investment Due Diligence System(Big data & Algorithms) GIDDSTM

SMART INVESTING

International currency movements & impact analysis

Macro country based scenario planning

Financial structure optimization system

Country development partner trust assurance system

Micro city based scenario planning (scores the best suburbs)

REAP: Property investment yield forecasting tool (cash flow, tax, IRR)

Pre-Purchase Due Diligence (Fraud prevention, Property condition, Appraisal)

REMS: Maximize your investment through ongoing managementWealth Assist Solution: Live & online customer assistance call center, 1to1 supportCustomer Experience: Secure apps, secure investment platform

Global Investment Due Diligence System(Big data & Algorithms) GIDDSTM

SMART INVESTING

Where to invest?

When to invest?

Who to invest with?

What to invest in?

How to invest?

C O N F I D E N T I A L

CLEM SUNTER

C O N F I D E N T I A L

GLOBAL SCENARIOS

C O N F I D E N T I A L

GLOBAL WEALTH INDEX

C O N F I D E N T I A L

FACTS

GIDDS

10 MULTI LAYERED MODELLING

REAP – REAL ESATE ASSET MANAGEMENT

MASTER DUE DILIGENCE CHECKLIST

C O N F I D E N T I A L

GIDDS 2.0

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2

3

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GLOBAL INVESTMENT DUE DILIGENCE SYSTEM

What is new?

• We have incorporated more research on Macro & Micro Analysis

• Reis, CBRE, Colliers, Corelogic, Marcus & Millichap, IRR, Knight

Frank, Cushman Wakefield, Co-Star

• We upgraded our Evaluation Tool with more matrix focusing on better

understanding the asset performance and streamlining the output

process to increase turn around time.

• Improved the Financial structure optimization system

• Improved the country development partner trust assurance system

What is planned?

• With these new upgrades we are working towards adding additional

weights to our Risk Matrix to enable quicker evaluation of different

opportunities through AI.

• Enabling partners to plug in there potential deals into the system and

know if it could succeed our Standards and Criteria.

GIDDS™

C O N F I D E N T I A L

LOCAL VS OFFSHORE

STRATEGY

C O N F I D E N T I A L

LOCAL OFFSHORE

RETURNS Higher Lower

PROPERTY IS TOUGH Easier Tougher

PEACE OF MIND No Yes

FINANCIAL FAMILY PLANNING Maybe Yes

RAND HEDGE No Yes

DIVERSIFICATION No Yes

C O N F I D E N T I A L

FINANCIAL ADVANTAGES OF INVESTING IN

INTERNATIONAL PROPERTY

• Wealth preservation

• Rand hedge

• First world income and assets

• Tax

• Credit rating

• Diversification

• Peace of mind

• Plan B / Insurance policy

• Possible immigration option

• Comparable returns in first world economy

AUSTRALIAN YIELDS VS SOUTH AFRICAN YIELDS –

PASSIVE INCOME - 1978 TO 2010

C O N F I D E N T I A L

WHY INVESTING OVERSEAS MAKES SENSE NOW

• Low asset values

• Strong Rand

• Strategic investment approach, rather than crisis

management

• Control variables

• Great opportunities – capital need to unlock potential

• FDI and personal allowance to externalise wealth

Ra

nd

P

urch

asin

g P

ow

er

Cost of investment

C O N F I D E N T I A L

PITFALLS IN INVESTING OFFSHORE

• Wrong information / Wrong areas

• Purchase process – people loose deposits

• Wrong valuations / pricing misinterpretations

• Wrong tenants / No tenants

• Cash flow problems

• Maintenance problems

• Wrong property for market

• Can’t sell

• No customer service

C O N F I D E N T I A L

THE DIFFERENCE

BETWEEN INCOME &

GROWTH OPPORTUNITIES

C O N F I D E N T I A L

INCOME VS GROWTH OPPORTUNITIES

INCOME OPPORTUNITIES:

• This type of investment is focused on delivering an income

to the investor during the investment period. Typically,

these opportunities pay quarterly distributions to investors

and the gain at the end of the investment period.

• Returns are projected and calculated on the assumption

that the asset will be retained for a period of 3 - 5 years.

• The real value of the income opportunities lies therein that

an existing stabilized real estate asset is acquired at below

market value, which has a profitable monthly revenue

stream.

C O N F I D E N T I A L

INCOME VS GROWTH OPPORTUNITIES

GROWTH OPPORTUNITIES:

• This type of investment delivers a higher return at the

end of the investment period.

• Typically, this is an investment opportunity in real

estate development assets.

• At the end of the predetermined holding period, the

asset will be sold to realise a development profit.

C O N F I D E N T I A L

TYPICAL RISKS

ASSOCIATED WITH

REAL ESTATE INVESTING

C O N F I D E N T I A L

RISKS ASSOCIATED WITH REAL ESTATE INVESTING

Development Projects

• There is no income, only potential capital growth, usually.

• Project could take longer than expected.

• Construction costs could increase and interest rates.

• Unforeseen costs, due to unexpected events.

• Sales expectations might not be able to be met or lease up can take longer.

• Due to development periods of up to a number of years, the economy and

political environment can change.

C O N F I D E N T I A L

RISKS ASSOCIATED WITH REAL ESTATE INVESTING CONT.

Acquisitions

• Capital Call Risk

• Tenant Risk

• Interest Rate Risk

• Valuation Risk

• Political Risk

• Economic conditions that can change

C O N F I D E N T I A L

HOW DO YOU MANAGE

RISK & PROTECT

YOURSELF?

C O N F I D E N T I A L

THERE ARE ONLY 2 IMPORTANT THINGS:

• RIGHT Information

• RIGHT Partners

C O N F I D E N T I A L

INCOME VS GROWTH OPPORTUNITIES

C O N F I D E N T I A L

WEALTH PROTECTION VS OPEN MARKETPLACE

C O N F I D E N T I A L

WEALTH PROTECTION VS OPEN MARKETPLACE

C O N F I D E N T I A L

MISTAKES PEOPLE MAKE

C O N F I D E N T I A L

MORE THAN 80% OF PEOPLE INVESTING

OVERSEAS LOSE MONEY

• They make crisis investments – both with currency and assets, shares or

products.

• Don’t get the right information.

• Wrong partners.

• Don’t understand cash flows / management.

• Work with companies without local and international offices.

• Underestimate after sales and costs.

• Buy off-plan with long lead times and can’t get financing.

C O N F I D E N T I A L

UNDERESTIMATE TECHNOLOGY….

C O N F I D E N T I A L

PERFORMANCE

C O N F I D E N T I A L

SG PROPERTIES – MEDICAL 1

Total Deal Size: $16,345,918

Total Equity Raised: $5,732,906

Projected Returns: 8.3% p.a.(Quarterly Distributions)

Project Investor Return:15.65% + (Internal Rate of Return)

Investment Period: 5 years

• 7 x Medical Office Buildings

• On or near medical campus

• 1 Building expanded within 1st

year

• Expanded further during the 2nd

year of investment

Property Type: Medical Office

Class: B

Total Rental Space: 65846 SF / 6117 m2

Location: Atlanta, Georgia, USA

Q1 2017: 10,00% p.a.

C O N F I D E N T I A L

SG PROPERTIES – MEDICAL 2

Total Deal Size: $12,797,000

Total Equity Raised: $3,880,000

Projected return: 11,0% p.a.(Quarterly Distributions)

Project Investor Return:15.35% + (Internal Rate of Return)

Investment Period: 5 years

• 4 x Medical Office Buildings

• On or near medical campus

• 96% Occupancy from day one

Property Type: Medical Office

Class: B

Total Rental Space: 52 464SF / 4874M2

Location: Atlanta, Georgia, USA

Q1 2017: 11.22% p.a.

C O N F I D E N T I A L

SG PROPERTIES – MEDICAL 3

Total Deal Size: $13,138,750

Total Equity Raised: $3,990,000

Projected Return: 8.3% p.a. (Quarterly Distributions)

Project Investor Return: 16% + (Internal Rate of Return)

Investment Period: 5 years

• 1 x Plastic Surgeon Centre

• 1 x Child Care Practice

(Oldest Practice in Atlanta)

• Located in Affluent Northern Atlanta

Property Type: Medical Office

Class: B

Total Rental Space: 55 664SF / 5171 m2

Location: Atlanta, Georgia, USA

Q1 2017: 8.49% p.a.

C O N F I D E N T I A L

SG PROPERTIES – MEDICAL 5

Total Purchase Price : $8,385,987

Total Equity Raised: $2,677,358

Projected Return: 8% p.a. (Quarterly Distributions)

Project Investor Return: 12% + (Internal Rate of Return)

Investment Period: 5 years

• 1 x Plastic Surgeon Centre

• 1 x Child Care Practice

(Oldest Practice in Atlanta)

• Located in Affluent Northern Atlanta

Property Type: Medical Office

Class: B

Total Rental Space: $44 537SF / 4140 m2

Location: Douglasville, Georgia,

USA

Q1 2017: 8.29%

TRACK RECORD – LAST 15 YEARS

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SouthAfricanHousePrice

USAHousePrice

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AustralianHousePrice

499%

3 Major forces

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Value

USA,AusandtheUKvsSouthAfrica

SouthAfricanHousePrice

USA

Australian

UK

C O N F I D E N T I A L

PORTFOLIO

STRATEGY

C O N F I D E N T I A L

WHAT IS A PORTFOLIO STRATEGY?

A portfolio strategy is a strategy used to diversify investment risk, by investing into

different types of opportunities over a predetermined time period.

EXAMPLE:

Ben wants to save monthly $1 000 for the next 16 years to have enough money for

his son who is 2 now. He is risk adverse and want to ensure that he gets a regular

return that can compound over the 16 years.

With Wealth Migrate’s current offerings, he can invest in a new opportunities on a

monthly basis, that provides quarterly dividends that he will be able to reinvest in

time with his monthly $1,000 investment, therefore ensuring with the current

offerings in 4 years (Multifamily) or 5 years (Medical) from now, he will receive

capital gains of around 20% after receiving on average 8% that he compounded

already in 48 (Multifamily) or 60 (Medical) other opportunities during this time.

C O N F I D E N T I A L

RETURNS FROM INVESTING $1,000 PM

WHAT WILL IT TAKE FOR JONTY TO GO TO UNIVERSITY?

C O N F I D E N T I A L

HOW FEES IMPACTYOUR INVESTMENT

C O N F I D E N T I A L

GET THE FACTS

• 1% Fees = 10 years of retirement income

• 96% of Fund Managers don’t beat the 15 year

market average

C O N F I D E N T I A L

HOW CAN I GET

GLOBAL CITIZENSHIP?

C O N F I D E N T I A L

GLOBAL CITIZENSHIP

We have partner with Gold Coast Regional Center in Florida,

which offers a Employment Based-5 program (EB-5).

Currently investing $500,000 + $60,000 structuring cost, this

investment is use to create 10 new full time jobs for US

citizens, by building a Mixed Use Development currently in

Hollywood, Florida.

There current projects consist of Residential units, Hotel and

Retail areas.

C O N F I D E N T I A L

DIFFERENCE BETWEEN A REIT / FUND, SYNDICATION, DIRECT, FINTECH, CROWDFUNDING & COLLABORATIVE SMART INVESTINGTM

C O N F I D E N T I A L

COLLABORATIVE SMART INVESTINGTM

Number InvestorConsiderations WealthMigrate RealEstateFunds PublicREITS PrivateREITS Syndication DirectDeals Crowdfunding

1 InvestmentExpertise Yes Yes Yes ? ? ? No

2 QualifiedPartners Yes No No No No ? ?

3 CollaborativeInvestment Yes No No No No No No

4 LowerFees Yes No ? No No Yes ?

5 Trust Yes No Yes No ? Yes ?

6 Transparency Yes No No No No ? ?

7 Alignmentofpartnersinvolved Yes No No No No No No

8

SpecificPropertyInvestmentor

Financialinstrumentcorrelated

withthestockmarket

Yes No No No Yes Yes ?

9 Diversification Yes Yes Yes ? ? No ?

10 Efficient,FlexiableCommitment Yes No Yes ? ? No ?

11 Communication Yes No Yes ? ? ? ?

12 LowBarrierstoEntry Yes Yes Yes ? Yes No Yes

13 MeaningfulInvolvement Yes No No No No Yes No

14

Digitalexperiencefromhome

withnomiddlemenYes No No No No No Yes

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C O N F I D E N T I A L

ABOUT

C O N F I D E N T I A L

C O N F I D E N T I A L

C O N F I D E N T I A L

C O N F I D E N T I A L

IMAGE PLACEHOLDER SLIDE

C O N F I D E N T I A L

WHO WE ARE

99

BLOCKCHAIN

COUNTRIES FOR MEMBERS

70%REPEAT

INVESTORS

$65,7m + 3% $3,9m +

$43kAVG TRANSACTION

SIZE

107

COUNTRIES FOR INVESTORS

INVESTED BY CLIENTS EARNED BY CLIENTSPROJECT FEE

1525+TRANSACTIONS

: :

99

46

60+TEAM

Group Performance July 2017

OUR BOARD

FOUNDER: ASOB, WORLDS

FIRST EQUITY PLATFORM

PAUL NIEDERER

FOUNDER: PRIVATE PROPERTY,

ONE AFRICA MEDIA

JUSTIN CLARKE

FOUNDER: VARIOUS Financial

Services & FinTech CO’S

MARTIN FREEMAN

Compliance:

Platform:

BEST SELLING AUTHOR

& SPEAKER

DR DOLF DE ROOS

Education:

CHAIRMAN &

CO-FOUNDER, ALSO BENCHMARK

PROPERTY GROUP

HENNIE

BEZUIDENHOUDT

Real Estate:

FOUNDER: FEENSTRA

PROPERTY GROUP

PIETER

FEENSTRA

Specialist Advisors:

TRANSFORMPR

MICHAEL TERPIN

GLOBAL FinTech EXPERT

Compliance authority

Global PR & Communications

JOY SCHOFFLER

NETWORK SOCIETY

VENTURES

DAVID ORBAN

ARC PARTNERS

RICHARD TITUS

C O N F I D E N T I A L

HOW DO WE EARN?

• 3% to 5% transaction fee

upfront

• Existing relationships with key

partners in UK, Australia,

USA and South Africa

• USD $4m (20%) in deferred

earnings to be received by

Wealth Migrate over next 3

years.

3% to 5%

NOW

FUTURE

EARNINGS

C O N F I D E N T I A L

DO IT ON YOUR OWN OR WORK TOGETHER?

• Birds that fly in flocks, saves 20% energy

• Flocks fly 5km/hr faster than alone

• Flocks of 25 birds can fly 70% further than on their own

C O N F I D E N T I A L

COMING UP?

C O N F I D E N T I A L

COMING UP?

C O N F I D E N T I A L

COMING UP?

C O N F I D E N T I A L

COMING UP?

C O N F I D E N T I A L

COMING UP?

C O N F I D E N T I A L

JOIN OUR PARTNER

PROGRAM!

C O N F I D E N T I A L

C O N F I D E N T I A L

JOIN OUR WEALTH

PARTNER GLOBAL

COMMUNITY!

112

DATA COMPANIES

C O N F I D E N T I A L

Fundrise IPO

C O N F I D E N T I A L

C O N F I D E N T I A L

117

CONCLUSION

118

WHYHOW WE DO ITCONCLUSION

119

#FREEDOM

120

WHYHOW WE DO ITCONCLUSION

PUTSMARTTM

INVESTING IN EVERYONES

POCKET!

C O N F I D E N T I A L

4 MOST IMPORTANT COMPONENTS TO FINANCIAL SUCCESS

1. Don’t loose money

2. Asymmetric risk / reward

3. Tax Efficiency

4. Diversification

• Diversify across asset classes

• Diversify within asset classes

• Diversify across markets and currencies

• Diversify across time

Ray Dalio, “Need 15 uncorrelated bets, an array of attractive assets

that don’t move in tandem, reduce risk by 80% and risk / return ratio

increases by a factor of 5!”

C O N F I D E N T I A L

VALUE

C O N F I D E N T I A L

COMPETITION

C O N F I D E N T I A L

LET’S FINISH WITH A STORY…

THANK YOU // Q&A

www.wealthmigrate.com [email protected] +27 (72) 575 8719

C O N F I D E N T I A L

• Join the Wealth Partners

• Speak to Kevin

• Start your journey into crypto & global!

• Let’s co-create….

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