Why Invest in Commercial Real Estate?
we believe SOME OF THE GREATEST LONG-TERM WEALTH BUILDING OPPORTUNITIES are found IN commercial real estate
Wellings Capital started out as a commercial multifamily syndication firm. Our low risk strategy and commitment to not overpay for multifamily properties flew in the face of the overheated apartment environment in the US.
The Wellings Team was introduced to other commercial real estate asset classes. After much research, the Team identified two asset classes with significantly better acquisition prospects and higher profit opportunities: self-storage and mobile home parks. Please contact us if you would like to learn more about our current investment opportunities.
Self-Storage
Click here to access our eBook on self-storage. Self-storage facilities can provide investors significant value-add and forced appreciation opportunities. Purchased and operated with excellence, this asset class is an outstanding addition to investment portfolios. Here are just a few reasons we like self-storage:
Fragmented mom & pop ownership provides significant acquisition opportunities
Value-add opportunities through professional management, ancillary income, and specialized marketing
Recession-resistant. The asset class performed very well through 2008 recession
High switching costs & misperceived length of stay lead to price elasticity
The best inflation-catcher in commercial real estate since every lease is month-to-month
Mobile Home Parks
Click here to access our eBook on mobile home parks. Mobile home parks have been an emergent investment class and have provided investors with a predictable income stream in any economy. Sam Zell, Warren Buffett, and other intelligent investors have made significant investments in this space, and we would do well to take notice. Here are just a few reasons we like mobile home parks:
Ever-diminishing national supply of mobile home parks amidst a growing demand for affordable housing
Fragmented mom & pop ownership and lack of institutional interest in smaller parks lead to significant acquisition opportunities
Very high switching costs lead to stable, long-term tenants
Simple infrastructure (rented land) means simple operations and minimal, predictable maintenance and capital budgets
Unique agency financing: Freddie Mac and Fannie Mae provide low interest rate debt with two supplemental financing opportunities. This allows significant return of principal potential
“According to the economists, we are experiencing the biggest jump in housing prices in four years – prices are rising while the supply of housing is getting smaller. It’s basic supply and demand. That’s why everyone in the manufactured housing industry is so important. You are a big part of the solution to providing unsubsidized, quality, affordable housing.”
– Ben Carson, United States Secretary of Housing and Urban Development (HUD) at the 2018 Manufactured Housing Industry Expo
