Reader, We're writing to current and prospective investors to inform you of an upcoming change that may impact your next investment decision for the Wellings Real Estate Income Fund (the "Fund"). You may recall that the Fund is a registered (but non-traded) fund. This means that, unlike nearly all the private real estate offerings in our space, the Fund offers a significant degree of transparency. This includes annual audits (RSM is our auditor), quarterly financial reports, third-party...
about 1 year ago • 2 min read
Hi Reader, If you’ve been on our email list for at least a few months, you know that we are bullish on real estate preferred equity. Preferred equity sits between debt and common equity in a capital stack for a real estate deal. It features some of the best aspects of both debt and equity. See a graphic example below. Like common equity (and unlike debt), investors benefit from depreciation to receive tax-advantaged income and the potential to make outsized returns. Like debt (and unlike...
about 1 year ago • 3 min read
Reader, We’ve been overwhelmed with the response to our first preferred equity sidecar investment opportunity. As of this afternoon, it is oversubscribed and we have shut off the portal for new investments. If you were within the first $4 million of subscription agreements signed, you received a separate email with the next steps. I realize some of you may be disappointed, and we genuinely regret that many of you missed out. The closing and due diligence timing on this acquisition deal didn’t...
about 1 year ago • 2 min read
Reader, Last Friday, we hosted our first webinar on a single asset preferred equity sidecar investment. If you joined the webinar, you heard me say this at the 28-minute mark: “Nobody likes time pressure. You probably don’t like it. I don’t like it. But this deal has time pressure." Currently, the sidecar is approximately 79% subscribed, with about $750,000 remaining. We were surprised that 337 of you registered for the webinar, given the 23-hour notice we provided on Thursday. But in another...
about 1 year ago • 2 min read
Hi Reader, If you’ve been on our email list for at least a few months, you know that we are bullish on real estate preferred equity. Preferred equity sits between debt and common equity in a capital stack for a real estate deal. It features some of the best aspects of both debt and equity. See a graphic example below. Like common equity (and unlike debt), investors benefit from depreciation to receive tax-advantaged income and the potential to make outsized returns. Like debt (and unlike...
about 1 year ago • 3 min read
Hi Reader, I wrote an article attempting to respond to this question in the subject line, describing the four ways private real estate generates returns for investors. One of the ways is tax benefits, and here's a brief excerpt from that section of the article: Let's say a married couple earns $300,000/year. In 2023, their Federal effective tax rate is about 17.5%. If this couple had invested in T-bills or a money market account earning 5%, the Federal tax hit would have reduced their net...
about 1 year ago • 2 min read
Hi Reader, The response to our sixth fund, the Wellings Real Estate Income Fund (the "Fund"), continues to be strong in our view. The Fund has received about $58 million in commitments so far, and over 400 investors are in the Fund as of today. We're closing the doors on this round tomorrow, March 29th, and the deadline for funding is tomorrow by 5:00 PM ET. We expect to deploy capital into pending investment opportunities over the next 2-4 weeks, though there are no guarantees as we have not...
over 1 year ago • 2 min read
Hi Reader, It’s undeniable... The commercial real estate market has softened in some ways. I’m not saying we’re immune to this market softening. But I am saying that many of the deals the Wellings Real Estate Income Fund (the "Fund") invested in and continues to invest in are the type that often do well in any economy.* And some of our investments are poised to do best in an environment with higher interest rates and tightened lending. Like this multifamily preferred equity investment in the...
over 1 year ago • 4 min read
Hi Reader, Some people do more due diligence and spend more time considering their $38,000 car purchase than their next $150,000 passive real estate investment. I know that’s not you. However, it's certainly true of some investors! Today, I’m going to tell you about one of our investors whom this could never be said about. This individual asked a lot of questions before investing with us over five years ago. He did a lot of digging. But he didn’t stop there. He continued to question us after...
over 1 year ago • 4 min read