For many people, investment properties come with a price tag that is cost-prohibitive to everyday investors. However, as Reg A+ sees wider use in the real estate market, it opens up new opportunities for investors.
Wealthcasa also aims to make real estate accessible to everyday investors through a Reg A+ offering. Cesare Bauco, CEO of Wealthcasa, says that “the whole [idea] behind Wealthcasa is to be a vehicle for the average person to get into the [real estate] investment market.” This allows people who may not fit the criteria of a traditional investor to invest in real estate. “Reg A+ was very intriguing when it was brought to light to us,” added Bauco. This gives people who may not have had the opportunity to invest in real estate before the chance to invest in Wealthcasa. “We thought this would be a good opportunity to raise funds that way and bring along Americans that normally can’t get into that.”
“Our parent company, located in Canada, is a new home builder by trade, with over 20 years of development and construction experience and 800 units currently under development in the greater Toronto area. We like to position ourselves where we can actually enter the US markets in many areas; we have been scouting opportunities, like Florida, Tennessee, and California,” said Bauco. This experience will lend itself well to developing the planned communities.
Once the first Wealthcasa property has been developed, the company also seeks to offer a rent-to-owner program, giving people other ways to get into the real estate market. This program allows people to rent a home and build equity in the home. Eventually, usually after 5-7 years, they will either have the ability to purchase the unit themselves. Or, if they are not in a position to buy, the accumulated value of the asset will be shared with that buyer-renter.
Ultimately, Wealthcasa wants to create a platform for people to become investors in the real estate market by offering an accessible way and a rent-to-owner program that will allow renters to build equity over time.