$50,000 is the minimum investment. Can be split between two funds.
No. By their nature, real estate investments have a longer term time horizon than that of liquid stocks or bonds. The typical hold time for our investments is up to ten years or more. We do, however, make provisions for investors to sell their shares under certain conditions.
There are many ways you can participate in this type of investment. You can invest with cash and through trusts, LLCs, and LPs. In addition, you can invest through self-directed IRA’s and self-directed 401(k)’s.
Please contact us if you need help selecting a self-directed IRA firm.
Similar to a 1099, a K-1 form is an accounting of the tax income for the year. Each investor receives one per investment each year. K-1 forms are most commonly used in partnerships and in real estate ownership.
A REIT (Real Estate Investment Trust) is basically real estate flavored stock and is often highly correlated to the performance of the stock market. As direct fractional investors, Wellings Capital clients are protected from that volatility.
Additionally, direct fractional ownership provides investors access to all of the tax advantages that are often unavailable to REIT Investors.
An investor in the Wellings Income Fund can expect to receive quarterly distributions. An investor in the Wellings Growth Fund may experience a significant delay in the commencement of distributions, then expect distributions on a quarterly basis from that time on. Wellings Capital also distributes capital to investors when properties are sold or refinanced.
Investors can access updated account information 24/7 by logging into our investor portal. Investors will also receive asset management updates via email on each investment and a detailed investor report every quarter.
Our investments are open to approved, accredited investors. Since these offerings fall under Regulation C, investors will be required to verify their accredited status through a third party such as a CPA, financial advisor, attorney, or a service like www.verifyinvestor.com.
Accredited Investors are individual investors who either have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have earned income over each of the last two years of at least $200,000 and have the expectation to make the same amount in the current calendar year. If you don’t qualify under that standard, you can choose to combine your income with your spouse and the new threshold for qualification would be $300,000.
In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
- any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
- any entity in which all of the equity owners are accredited investors.
It is also important we ensure we are a fit for one another. This type of investing is not appropriate for every investor. To determine if commercial real estate investing is right for you, please contact us.
Commercial real estate can provide several tax advantages to an investor:
- Quarterly cash flow distributions will often flow to you on a tax-deferred basis
- Proceeds from refinance events typically come to you with no immediate tax obligation
- 1031 or 721 Exchanges allow you to defer capital-gains taxes under certain circumstances
- The Step Up in Basis benefit reduces your heir’s tax obligation when they sell the inherited asset
This is not professional tax advice. Consult with your tax professional to better understand your individual tax situation.
First of all, we don’t know if we are a fit for one another until we have a conversation. We have a very conservative approach to what we do. We only invest with experienced operators in what we consider to be stable, steady markets throughout the United States.