Unicorns are alive and well and disrupting one “old-school” industry after another creating extraordinary wealth creating opportunities and providing access to investments and asset creation that didn’t exists a heartbeat ago.
Now the unicorns are turning their attention to a US$13 trillion industry and it is so, so, so super exciting and more importantly it’s giving the likes of you and me access to wealth generating assets that we could only dream about in the past.
My question to you is…
Are you going to be riding this magical creature’s wake and in the process building an amazing pot of gleaming assets that enable your financially free life or will you be sitting on the sideline saying they don’t exist and then bewailing how you missed the chance to make loads of money?
Perhaps the whole talk of Unicorns has thrown you off.
Let me explain before you think my woo-woo side has taken over completely and I’m seeing sparkly beasts swirling around my head…
I’m not talking about THOSE UNICORNS (a sad tear drops down my cheek) …
I’m talking about THESE UNICORNS …
… the startup companies which rapidly grown to a worth of over Billion US$, mostly in technology and through completely revolutionising the way we do specific things, and often called disruptors.
Think of iTunes to music, Alibaba, Ebay & Amazon to retail (and now groceries), Etsy to craft markets, Facebook to media, Google to information, Uber to taxis, AirBnB to hospitality, Netflix to entertainment, Bitcoin and other cryptocurrencies to currency …
Imagine if you had gotten in early on all of those…
…imagine what your asset pot would look like now if you had all those businesses working for you!
There is no point gazing after a bolted Unicorn! What all great Wealth Chef’s do is look for the next one emerging and make sure they jump on as it comes past, so what is the next industry to be transformed by the Unicorns magic dust?
Many experts believe there are three contenders for this…
- Financial Services – think end of high cost insurances products making brokers rich and crappy prepackaged TV dinner investments for us retail investors and more low cost direct and transparent investing like Index Trackers
- Energy – Think the end of fossil fuels and all the destruction that goes with it (halleluiah) and sustainable clean energy being the way
- Real Estate / Investment Property – think juicy commercial deals and global access which was previously only available to the super wealthy.
Let’s look at Financial Services – As a Wealth Chef in the making you should already be in love with Index Trackers and if you have no idea what the bleep I’m talking about then go and get this free e-book all about index trackers and how to invest in them and then come back here and dive into this next big opportunity
And Clean Energy? Besides loving Elon Musk and having had incredible returns from my tesla shares (that is not a recommendation!) I believe things in the renewable /clean energy sector are still wide open and too early for us to know which Unicorn to back, so I’m waiting on the side for a bit here.
So, that leave us with Real Estate Investing!
According to Scott Picken – Founder of the up and coming Unicorn Wealth Migrate
“This archaic US$13 trillion-dollar industry has hardly evolved over the last 2 centuries and to prove the point he lists 7 reasons why that is so
- Everything is still done by paper, which is registered physically, at the deeds/ land registry office;
- There are 16 middle-men on average between an investor and the investment, with massive friction costs in any transaction, not to mention the opportunity costs of the time lost during transactions, which take months to transfer ownership;
- People can only access large deals through either physical broker networks in direct property, property ETF’s investing in commercial property companies or REITS (Real Estate Investment Trusts);
- The industry has historically been opaque, in-efficient and illiquid;
- Investors have little trust or transparency and it is why they have favored to invest locally in markets they understand, as there is no way to diversify and invest in global markets safely, simply, cost effectively and transparently;
- When investors invest in Funds and REITs they have very little understanding of fees, spread of investments, the murky Chinese wall between financial instruments and actual real estate investing.
- And finally, at best, the only space where technology has disrupted (evolved) this real estate industry is in the marketing space, where websites, portals or platforms such as Zoopla and Zillow (not sure what all the zed’s J are about) have disrupted the newspaper industry for marketing available opportunities.
This is going to change and it is going to change fast according to Scott and I am in complete agreement with him on this and here’s why…
… because it MUST and because now with new technologies it CAN!
Let’s look at the MUST first!
Of the world’s financially free people, 49% of their wealth is held in property. I’m not talking about their home, because as a Wealth Chef in the making you know (or should know) Your Home Is Not An Asset , I’m talking proper real estate investments with a significant proportion in commercial property.
Now in theory, 12,9% of the world’s population has access to real estate. 12,9%!!! How bloody dismal is that, but…
…just because people have access doesn’t mean they understand the opportunity that access gives them.
Most people never learn what a real wealth generating asset is and what real estate / property investing entails and so most use this access to own a home thinking it’s an asset! This is one of the reasons why less than 1% of people who have access to property use that privilege to invest and as a result retire wealthy.
This ignorance is contributing to the ever growing Wealth Gap – because wealth is created by assets and not by you exchanging your life force for it – and this wealth gap is a massive contributor to the growing disease and swelling separatism and fear based politics.
So in order to reverse this inequality and enable more people to access sustainable wealth, access to property / real estate investing MUST open to more people and those who have access MUST understand what investing actually is.
And now IT CAN because …
- Technology can speed it all up and create access where it wasn’t possible before! Look at the accessibility and speed of investing in the stock market – with a click of a button on a computer you can buy or sell shares or funds within second and get real time valuations. With property, the average buy / sell cycle is months and typically people hold a property on average 8 years. (Interestingly, before technology made stock market investing so accessible and significantly reduced the cost of trade, the average stock ownership period was 7 years). With the massive advancements in internet investing, social collaborative investing and block chain technology, this accessibility, speed and security is now available for real estate investing.
- We are finally becoming more demanding buyers and are seeking value by stripping out unnecessary costs most noticeably in the form of middle men. Look at Uber, AirbnB or any of the examples above where technology has completely disrupted and displaced the expensive and inefficient middle men.
- We are also becoming more discerning and no longer accept that we have to take the dross with the stuff we actually want. Think iTunes! We can by the tracks we love without having to get the whole album and we can get it with the click of a button in real time. This is what people want and should be able to have with their investing.
- We are becoming far more financially astute and are understanding WHY WE MUST be in control of our own financial wellbeing. As a result we are no longer blindly accepting the propaganda spewed out by the financial industry, brokers and financial planners telling us that we don’t know what we are doing and therefore need to be looked after by them. They realise that being great with money and creating wealth is a learned skill and not actually that difficult either. This is feeding the massive move to more transparent investing like index trackers and self-managed retirement investing. This is still in the very early days and is soon to expand rapidly as more and more people realise just how much of their hard-earned money is being skimmed off by the “professionals” and administrators together with exorbitant fees that are negatively impacting their returns and as a result the money in their retirement pots.
The combined power of the MUST and Can means the change in how people can and will invest in property is already happening and it’s happening by:
- Cutting out the middlemen;
- Dramatically reducing the transaction and trade costs; and
- Dramatically increasing the efficiency, trust, transparency and accessibility.
Imagine this future of real estate investing:
- No middle men, only a platform allowing global investors the ability to invest, with the best partners, offering the best global real estate opportunities, directly.
- No overheads, marketing, sales team, brokers, lawyers, fund managers, … just simple and safe investing, ensuring minimal dilution of returns and putting more money in investors pockets.
- The security and efficiency brought about by blockchain reducing exponentially reducing these friction costs and changing the transaction time of a sale from months to minutes.
- True liberation of access to wealth creation opportunity with technology enabling anyone, anywhere, to invest in any property, from any amount, all done safely through a platform which provides far greater efficiency, trust, transparency of fees and returns and most importantly the opportunity for 99% of the global population to invest in the same opportunities which to date was only available to the “insider” 1%.
- No paper, no written signatures, no postage, no physical meetings, no flights, no emails from different management agents, no fund manager reports, no hassle, just a simple platform to help you find the best opportunities online, invest online and most importantly manage your global portfolio in one place, online.
- Liquidity through secondary markets to allow investors the best parts of direct real estate investing, while removing the major downside of property investing to date, illiquidity.
- Individuals can now take control of their financial lives, invest in the direct real estate opportunities of their choice from as little as $100 per investment, diversify and create a global portfolio of assets and manage it all in one place.
It is no longer some crazy “harebrained” idea, no longer a mythical beast with a gleaming horn. This unicorn has already landed in the form of Wealth Migrate. I am super excited about these incredible advancements in the property investing space and managed to convince Wealth Migrate’s CEO Scott Picken to give The Wealth Chef community a powerful New Age Property Investing Masterclass which you can access for FREE here >>>
In the comments below I’d love to know your thoughts about this New Brave World of Property Investing and:
what would hold you back from investing in this way?
Keep getting that money working hard for you and keep learning and expanding the greatest asset of all – YOU.