Over the past few years, there’s been a lot of hype about commercial real estate investing. A rising tide lifts all boats and that’s certainly been the case lately. Fund manager and author Paul Moore cuts through the hype to provide clarity about this coveted asset class and guide investors to make sound investment decisions.
"Why should I invest in real estate when I can earn 5% in risk-free treasuries…and stay liquid to catch the bottom of the real estate market!"
I've heard this comment more than a few times this past year. I understand and respect that position. However, this is often short-sighted and can result in significant opportunity costs for investors hoping to beat inflation and build wealth.
Read More“Where are all the great deals right now?”
As I write this in February 2024, I continue hearing this question in various forms from investors and online.
Many of us were investing in real estate through 2008. "Half-off” real estate deals were plentiful then. However, we’re not yet seeing any significant discounts.
Read MoreIn this article, I’m not going to give you a detailed list of every way you can save on taxes.
I am going to encourage you to find someone who has that list and can tell you precisely what you need to do to save on taxes.
This discussion could lead to your most strategic move to preserve and create wealth by saving on what is likely your largest annual expense: taxes.
Read MoreHe said it as an afterthought as I was leaving his office. But his observation left a deep impression on me.
Earlier in 2023, I met with one of our most experienced investors in California. In 2019, he and a few partners started a hedge fund that now manages around $7 billion. Before that, he and his partners were partners at one of the world’s most successful hedge funds. He made an interesting comment, and I’m paraphrasing and condensing our conversation...
Read MoreAs I write this article in July 2023, we’re seeing a lot of negative headlines about commercial real estate. For example, here's a July 7th, 2023 article from Business Insider:
“Commercial Real Estate Values Set to Crater as Much as 40% by 2025 in These 6 Cities”
Right now, the headlines do not reflect the facts, nor do they tell the whole story of what's happening.
Read MoreAs a fund manager focused on historically recession-resistant asset types, we have invested in mobile home parks, RV parks, self-storage, and more. When a trusted industry contact recommended we look into retail for our funds, we were a bit repulsed. What about the Amazon Effect? And the so-called Retail Apocalypse we have been hearing about on the news?
Read MoreWellings Capital and its affiliates have invested in commercial real estate, including mobile home parks and self-storage, for years.
We added preferred equity investments to our Wellings Real Estate Income Fund in 2023, and the preferred equity investments are providing meaningful risk-adjusted returns for our investors. Since there is a lot of jargon surrounding preferred equity, we had some investors ask us to more clearly define the terms.
Read MoreWellings Capital and its affiliates have been investing in commercial real estate, including mobile home parks and self-storage, for years. We added industrial real estate over the last several years, and this asset type is providing meaningful risk-adjusted returns for investors in three of our funds. This article explores our thoughts on this broad topic.
Read MoreAs I write this in mid-January 2023, the economy is shaky, and some real estate investments are headed for trouble. There’s already public reporting about a few large portfolios facing problems, and we’re sure there are many smaller properties and portfolios across the country with similar situations.
Read MoreI am in my third decade as a professional real estate investor. Even before I started down this path, I noticed that most of the wealthiest and most successful investors gravitated away from residential and toward commercial real estate.
Read MoreWhat’s all the fuss about RV park and campground investing? I’m in my third decade as a professional real estate investor. And I’ve rarely been more excited about a commercial real estate asset class. Our firm, Wellings Capital, has been intrigued with RV parks for years, but we didn’t locate a suitable operating partner until earlier this year.
Read MoreIt's the elephant in the room in many conversations now. The question about interest rate increases comes from new investor prospects, seasoned Wellings Capital investors, and colleagues at masterminds and cocktail parties.
Read MoreIn two previous blog articles, I made a lot of noise about inflation. In the first post, I talked about how to grow wealth through real estate investing in this historically unique time of low interest rates and increasing inflation. In the second post, I discussed some specific ways to implement this wealth-building strategy. But that’s not all.
Read More“Isn’t self-storage overbuilt?”
YES!
I get this question from investors and prospective investors all the time. And I often say “Yes” in reply. So, their next question should be obvious:
“Ummm…so why do you invest tens of millions in it?”
Read MoreWellings Capital just wrapped up our worst self-storage deal. We thought you might want to hear about the process and lessons learned along the way these past 3.5 years.
Spoiler alert…
Though it’s tempting to surprise readers at the end, I don’t want you to get to the conclusion of this article and feel tricked when you realize the deal finished successfully.
Read MoreThis is a big deal for me. It’s my third book on real estate investing. (Many of us got acquainted through my second book.) But it’s my first book released by a significant publisher. Or any publisher. (I self-published the first two.)
I’ve honestly been a bit disappointed in the timing of this book. I wrote the majority of it quite a while ago. But publishing delays from COVID and more pushed it back.
Read MoreCan you invest in real estate with your IRA or 401(k)?
YES! Well…maybe.
This question turns on the word “you.” Because I can confidently tell you the answer completely depends on “you.”
Here’s what I mean. The tax code definitely allows you to make these investments. But many investors, through ignorance of the tax code, don’t take advantage of this opportunity.
Read More“Come on. It sounds too good to be true!
You can’t tell me it’s this good. There must be some downsides.”
There are.
And don’t let anyone tell you there aren’t! Like every other investment, real estate syndications have potential pitfalls that you need to look out for before investing.
Read MoreHave you ever read the Constitution? I remembered the We The People part. Being an American citizen without reading a detailed publication of our fundamental rights and privileges seems quite foolish.
Similarly, investing in a private real estate deal without reading the Private Placement Memorandum – the PPM – seems quite foolish as well.
Read MoreAre you ready to graduate?
I’m not talking about school. I’m talking about moving up from residential to commercial real estate investing.
Now some of you didn’t invest in residential real estate in the first place. But many of us have. And most others inherently understand it. We’ve watched the HGTV shows. We know that lady from work or that college friend who flipped that house.
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