For the first time, we’re offering a glimpse into our Q3 2024 Commentary. Traditionally, this has been shared exclusively with our investors, but we wanted to keep our wider community informed about the insights that drive our decisions. We hope you enjoy it!

Have you heard people saying this lately? We have. It's really no surprise to us, as we’re writing this article in August 2024. It happens every cycle, to one asset class or another.

Discover the advantages and drawbacks, as well as tips to help you make informed decisions!

Find out how to analyze multifamily investment opportunities like a pro.

Find out how to find a tax strategist and make smart investments with the strategies and tips outlined in

In the vast landscape of real estate investment, commercial real estate stands out as a lucrative avenue for investors seeking robust returns and diversification. Understanding the nuances of various commercial real estate asset classes is essential for making informed 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.

“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.

In 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. 

He 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...

As 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.

As 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?

Wellings 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.

Wellings 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.

As 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.

I 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.

What’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.

It'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.

In 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.

“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?”