Wander.com, with more than 150,000 active members, has transformed travel by combining the quality and consistency of a luxury hotel with the comfort and space of a vacation home. Their network of smart vacation homes in stunning locations from coast to coast boasts a 93%+ guest satisfaction rating and every Wander comes with smart home control, modern workstations, super-fast wifi, fitness areas/saunas/hot tubs, hotel-grade cleaning, 24/7 concierge service –– and even a Tesla in the garage!
Wander’s mission has always been to help people find their happy place. And to date, we’ve done just that. In February 2022, we opened bookings to the public and since then, we’ve had over 3,600 nights booked across our properties with a 93% customer satisfaction rating. That’s almost 10 years of happiness experienced at Wanders. Ten years’ worth of memories that will last a lifetime.
Guided by our mission, our vision is broad, ambitious, and – we believe – important. To build the infrastructure to experience the world, so that as many people as possible can find their happy place.
Over the past two years, we’ve built our platform infrastructure – how customers experience Wander digitally through discovery and booking. Our guest experience infrastructure – how customers enjoy Wander in the real world through our property and concierge service. And now we’re announcing Wander REIT, the next critical piece to our core underlying financial infrastructure – which is how we’ll scale Wander to reach and serve thousands more customers for years to come.
Wander REIT is the first and only vacation rental REIT (as far as we know), increasing investor access to a new type of single-family home investment.
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What is Wander REIT?
So now you can own a piece of Wander’s magical portfolio of homes with the Wander REIT. Wander REIT offers accredited investors the opportunity to earn a targeted 8% annual dividend and 14% annual return, and diversify their portfolios without having to buy properties, manage bookings, change the lightbulbs or clean up after guests.
With quarterly distributions delivered straight to your bank account and beautiful homes from Vail to Joshua Tree and Hudson Valley that you can book directly on the Wander app, the Wander REIT is a unique investment product you can actually enjoy.
Wander is institutionalizing the short-term rental asset class and opening up access to Alts.co readers first.
Want to learn more about this first-of-its-kind STR REIT? Investor slots are limited so visit www.wander.com/REIT to review the investment materials and learn how Wander REIT can fit into your investment strategy.
What is a Private REIT, like Wander REIT?
Private REITs provide the opportunity to invest in real estate without the hassle of management. But if you’ve never heard of them, you’re not alone.
Direct property ownership doesn’t necessarily deliver the passive income that many aspiring property investors desire, and the sheer amount of capital required for direct ownership places it out of reach for most aspiring investors.
Fortunately, for investors who desire the cash flow and long-term appreciation associated with direct property ownership, truly passive investment forms do exist – the most common being a real estate investment trust (REIT).
Most public REITs endeavor to pay quarterly dividends to investors, and like all stocks, their share prices are exposed to the ebbs and flows of the global economy on a daily basis. One of the most attractive features of investing in REITs is that, unlike most corporations, they aren’t taxed at the corporate level. This means investors only pay tax on REIT investments once, not twice. But there are other forms of REITs that can offer many of the same benefits as public REITs, with a few key differences.
A private REIT is similar to its public counterparts in that it pools investor capital to purchase and manage real estate assets. However, a private REIT is not registered with the SEC, nor is it traded on a major stock exchange.
Generally speaking, private REITs tend to offer higher dividends than their public counterparts, and their share prices aren’t directly correlated with the whims of the stock market. Typically, private REITs update their share prices on a monthly basis based on a direct valuation of the REIT’s real estate portfolio (as opposed to the share price being set by stock market investors & traders).
Private REITs are not subject to the same [costly] reporting guidelines as registered REITs and their share values aren’t exposed to the volatility of the public markets. As a result, investors can benefit from the same diversification and income-producing opportunities of public REITs without the stress of daily share price fluctuations.
Buying shares in private REIT
So, if it’s not available on the stock market, how do you buy shares in a private REIT?
Shares in a private REIT are primarily purchased directly through private offerings or through a broker or financial advisor. Wander REIT, the private REIT behind Wander’s exclusive vacation rental brand, is opening its private offering directly to investors, allowing them to own a piece of the Wander portfolio. This private offering is a unique opportunity to earn passive income and participate in the booming vacation rental industry.
Oftentimes, private REITs offer higher dividends and total returns than their public counterparts.
Inflation hedge
While inflation causes the cost of goods and services to increase, it also generally causes the cost of renting real estate, and the value of that real estate, to increase as well. This makes private REITs an attractive option for investors who are looking to protect their capital in an inflationary environment.
Liquidity
Since private REITs aren’t listed on an exchange, shares can’t be bought and sold on a whim. Therefore, private REITs are generally better suited for investors who do not expect to require immediate access to their invested capital.
Wander REIT’s shares are available through a private offering and are directed at long-term investors who want to benefit from strong cash returns generated by Wander’s unique rental platform. Limited liquidity will be offered to Wander REIT investors, as described in its Repurchase Plan.
While private REITs offer real estate-backed stability, historically strong returns, and the ability to invest in property without the hassle of property management, investors need to be comfortable with the lack of liquidity and higher-risk strategies that the REIT’s management might undertake.
Due Diligence
As with any investment, completing your due diligence is essential before investing. Evaluating a private REIT will largely involve reviewing the PPM alongside your financial and legal advisors.
To the extent possible, you should also contact the sponsor’s investor relations team to ask any additional questions you may have.
Here are a few key things to pay attention to when reviewing the PPM:
Management team
The identities and backgrounds of the management team should be clearly outlined in the PPM. Make sure the team includes individuals who are experienced real estate investors, operators, and finance professionals.
Wander REIT has a highly experienced management team that has been investing in, operating, and financing real estate for some of the world’s largest financial institutions for decades.
Investor communication
A reputable REIT will regularly communicate with its investors to share activities in the REIT portfolio and to explain historical/expected dividends and share price information.
Wander REIT investors can expect to receive monthly email updates, quarterly reports, and an annual report. On top of that, Wander’s IR team is always available to answer any questions you might have! All pertinent information related to each investor’s investment (including tax docs) can also be accessed online 24/7 on the Atlas investor dashboard.
Expected financial performance
Ensure that the private REIT you’re considering satisfies your financial goals. Consider the following: what is the targeted dividend yield? How often will dividends be paid?
These answers, among others, can be found In the PPM.
Also, be sure to review any financial information related to the properties currently owned by the REIT, and the expected performance of future acquisitions.
Lastly, be sure to review the section of the PPM outlining any management fees charged to investors by the REIT. Wander REIT targets an 8% annual dividend to investors, paid quarterly.
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