Frequently Asked Questions

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The minimum investment is $50,000.

We typically do not accept capital until we have suitable properties/operators identified. To get on our email list and be notified about funding announcements, you can register here.

Here is the step-by-step process:

1. Register as an investor and review investment documents and details.

2. Schedule a call with us to get your questions answered and ensure investing with us is the right fit for you and your goals.

3. Submit your commitment to invest online in our portal.

4. Verify your accreditation. Steps for this are laid out in the portal.

5. Sign the subscription agreement online.

6. Receive funding instructions and fund your investment through wire or ACH.

7. Wellings Capital receives your funds and deploys the funds to carefully vetted investments.

8. Assuming distributions are available and you have not opted into the Distribution Reinvestment Plan (DRIP), you will receive monthly distributions the month following your investment.

9. You will receive a detailed investment update for your Fund each quarter and intermittent updates between quarters when there is relevant data to report.

Our funds invest with carefully vetted operating partners. The operators are responsible for day-to-day management of the property. We do intense due diligence on each operator before approving them and serve as a large capital provider assuming responsibility for oversight, reporting, and major decisions on behalf of our investors.

As an investor, you will own a membership interest in a Wellings Capital Fund. Through this structure, investors have direct ownership in the individual properties in the Fund, giving investors access to tax benefits. For full details on this structure, please register and read through the Private Placement Memorandum.

This is one of the most important questions every prospective investor should be asking. Much of the success of our investments depends on our operators. For this reason, we take the operator vetting process extremely seriously and we only approve those with stellar track records and distribution history.

These are not companies we just heard about online and decided to partner with. We have met the key principals multiple times in person, met their team, visited their offices, visited their properties in person, and much more. We are transparent with our investors about who these operators are and what we did to vet them. After doing an introduction call with us, we'll be happy to share detailed track records and bios of our approved operators, as well as our stringent operator due diligence process.

Generally, no. Because there is not an open market for this investment, it is considered illiquid. Historically, we have successfully facilitated exits for investors who needed to get out of a fund. We do not guarantee this, however.

Interests can be transferred by gift or inheritance, usually to family members, by will or other official document. Please see the Private Placement Memorandum for more details. It is important to get to know us and what you're investing in before investing.

An investment in the funds should be considered long-term in nature. Investors should be in a financial position that will enable an investor to hold their investment for the duration of the fund, which is projected as up to ten (10) years, or longer for the Income Fund.

The Wellings Real Estate Income Fund expects to invest in self-storage facilities, manufactured housing communities (mobile home parks), RV parks, and potentially other commercial real estate asset classes. See the PPM for more information. Click here to access free eBooks about self-storage and mobile home parks.

We answer this question in a blog post here.

You can invest with cash and through trusts, LLCs, and LPs. In addition, you can invest through eQRPs, self-directed IRAs, and self-directed 401(k)s.

You can go here to view our self-directed IRA firm recommendations. We have worked with quite a few in the past.

Similar to a 1099, a K-1 form is an accounting of the tax income for the year. Each Wellings Capital investor receives one per investment each year, regardless of how many properties are in each fund. 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. REITs typically make the majority of their fees through transactions, while the bulk of our fees come after our investors make money.

For the Wellings Real Estate Income Fund, distributions may occur on a monthly basis one month after investing.

Yes you can, while the fund is open. Please check with our team about this if you have additional questions.

On a quarterly basis Wellings Capital intends to furnish investors with a fund update, which reports 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.

Our investments are open to approved, accredited investors. Since our offerings fall under Rule 506(c) of Regulation D, 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.parallelmarkets.com. We cover the cost of the accreditation verification for investors through our portal.

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 LLCs, 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 schedule a call with us.

Source: Investor.gov

Commercial real estate can provide several tax advantages to an investor:

• 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

• The step up in basis benefit reduces your 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.

There will be no leverage at the fund level. However our operators typically use debt when acquiring new properties. It is anticipated that bank or seller financing will generally account for between approximately fifty percent (50%) and seventy percent (70%) of the gross fair market value of each property.

Your liability cannot exceed the amount of your investment plus amounts distributed to you. One value of real estate as an investment as compared to stocks, etc., is that it is highly unlikely for a property to lose all value, as is possible when investing in stocks or other alternative investments. Companies can go completely out of business or have their value reduced to virtually nothing. The passive investors carry no lending risk.

No. While Wellings Capital does not make any guarantees regarding investments in these funds, we have used documented historical data on the properties involved and commonly used industry methods to conservatively calculate the potential of these investments. Because it is not possible to predict future events, which can influence any investment, it is not possible to guarantee this as an investment. Guaranteed investments generally carry very low returns as compared to the potential returns projected for these funds.

The Wellings Capital team leverages years of real estate experience to maximize each project’s success. Wellings Capital realizes routine asset management fees and a share of upside profits after investors receive priority distributions.