your Trusted Real Estate Private Equity Firm

Wellings Capital is a real estate private equity firm established in 2015 that seeks to help high earners and high net worth individuals protect and grow their wealth through private commercial real estate investing.

800+ investors across our funds have joined us to invest in self-storage facilities, manufactured housing communities, multifamily, and other private real estate asset types across the US. Our current portfolio is valued at approximately $300 million with approximately $155 million of investor equity under management as of June 2024.

Click here to get started. Once you complete the form, you’ll receive an email with next steps which include scheduling a call with us and getting access to the investor portal.

Before Wellings Capital invests, all potential operating partners and properties are subjected to a rigorous 27-step due diligence process that includes office and property visits, financial analysis, significant background checks, reference checks, legal reviews, and more. For more information on our due diligence process, you can schedule a call with us.

The minimum investment is $50,000.

On a quarterly basis Wellings Capital intends to furnish investors with a report, which discusses various activities and operations of the fund. It is not uncommon for Wellings Capital to send shorter updates via email between quarters when there is relevant information and/or data to share.

As with all investing, there are many risks associated with private real estate investments. Some of these risks include management risk, market risk, property-specific risks, liquidity risk, financing risk, regulatory and legal risks, environmental risks, demographic risks, and tenant risks.

Careful due diligence can reduce risk in a private real estate investment.

Investing in private equity real estate involves pooling capital from multiple investors to acquire, manage, and sell properties. There are advantages and disadvantages:

Pros

1. Potential for High Risk-Adjusted Returns. Private equity real estate can offer substantial returns, often higher and more consistent than those available through traditional real estate investments or the stock market, due to the active management and value-adding strategies employed by fund managers.

2. Diversification. Investing in private equity real estate funds allows you to diversify your portfolio outside of the stock market by gaining exposure to different property types and geographical locations.

3. Access to High-Quality Investments. Private equity real estate firms often have the resources and expertise to access and vet high-quality, large-scale real estate projects that individual investors might not be able to invest in directly.

4. Professional Management. Funds are managed by experienced professionals who handle property acquisition, asset management, and eventual sale, which can lead to more efficient and profitable operations compared to individual management.

5. Alignment of Interests. Fund managers typically have a portion of their own capital invested in the fund, aligning their interests with those of the investors and incentivizing them to maximize returns.

Cons

1. Illiquidity. Private equity real estate investments are generally illiquid, meaning your capital is tied up for a long period, often 5-10 years, with limited opportunities for early exit. This could also be viewed as a pro.

2. Market and Economic Risks. As with any real estate investment, private equity real estate is subject to market fluctuations and economic downturns, which can negatively impact property values and rental income.

3. Lack of Control. Investors may have limited insight into the day-to-day operations and decision-making processes of the fund, making it harder to assess performance and risk.

4. Complexity. Evaluating private equity real estate opportunities requires expertise and due diligence to understand the risks, potential returns, and the track record of the fund managers. In addition, tax filings can become more complicated with private equity real estate investment

It's advisable to consult with financial and tax advisors and conduct thorough due diligence before committing to private real estate investments.

Private commercial real estate (what Wellings Capital invests in) can provide several tax advantages to an investor:

• Cash flow distributions will often flow to investors on a tax-deferred basis because of depreciation

• Proceeds from refinance events typically come to investors with no immediate tax obligation

• The step up in basis benefit reduces investor heir’s tax obligation when they sell the inherited asset

This is not professional tax advice and should not be relied upon for making investment decisions. Investors should consult with their financial advisor, accountant and/or tax attorney for tax advice specific to their particular needs and objectives.