Wellings Capital

I invested in Wellings Income Funds 3 and 4 in qtr. 4 2021 and qtr. 1 2022. The funds were marketed as INCOME funds with diversified holdings, geographically dispersed in select asset classes of commercial real estate. Primary focused on Self storage and Mobile Home Park assets. The underwriting promised the following for both funds: Prj Net Avg. Annual Return13-16%; Prj Avg Annual Cash Yield 6-9%, Prj. Net Equity Multiple 2.3-2.6x ; Structure 9% pref, then 80/20, Expected duration 10 years. The pitch decks talked about diversification of assets – the fund is diversified with the physical locations of the assets yet today both funds are leveraged greatly around a few general partners. Fund 3 has 2 GPs that equate to 56% of capital allocated and Fund 4 has one GPs that equate to 42 % of capital. Not exactly what I was expecting with the idea of diversification. The promised monthly cash flow (which was one key reason I invested) to investors was 6-9% for both funds. Fund 3 is delivering close to the low end at ~6% . Fund 4 delivered at the low end of promise for years 1-3 and year 4 was ~4.6%. In recent days Wellings has communicated that the way returns are calculated is changing and appears to affect the monthly distribution and projected to be lower. In the same communication the Wellings team is still projecting the Funds will deliver upon their initial underwriting projections at the conclusion of the Funds hold period. Some other thoughts – the Welling’s team is committed to quarterly communications although each quarter decks are lengthy (Fund 3 Qtrly update was 17 pages and Fund 4 Qtrly update was 30 pages). It is difficult, at times, to weed out the key metrics that matter – financials with NOI (vs Plan) and operating measures of occupancy actual, vs plan, vs last year. Also, seeing status of the debt for assets held has proven to be challenging. I am happy to continue to receive distributions in an era where many syndicators have paused distributions. If you are considering investing in any of the Wellings deals I suggest you ask to see results of full cycle deals-funds and ask deeper questions of fund makeup, and the results with those GP’s. I hope to revise my rating of Wellings Fund 3 & 4 when they deliver fully upon their initial commitments.

I started investing with Wellings a few years back. Like many who are on this site I was looking for some asset diversification while trying to avoid doing something stupid. If your goal is to get rich quick, or even to simply get rich, this is probably not the group for you. I genuinely feel projections are what they think the market can offer, rather than advertising unobtainable returns to raise capital. As an organization, Wellings puts a lot of effort into transparency. There is lots of regular communication and when a specific deal doesn't pan out as expected they aren't afraid to let you know. Everyone involved is very approachable. There are always risks in any investment, but I sleep at night and overall am rather happy with the 3 unique funds I am invested in and suspect that a 4th investment will follow in the new year.

Some investors chase the next “unicorn,” approaching each opportunity like a lottery ticket with the hope of outsized, rapid returns. My approach is deliberately different: I prioritize safe, boring, long-term investments designed to support steady progress toward retirement rather than speculation. With Wellings Capital, I found a trusted partner whose disciplined, robust due-diligence process aligns with the level of scrutiny I believe every investment deserves. That professional evaluation gives me greater confidence that opportunities are being assessed with a focus on fundamentals, risk management, and long-term durability—not simply on optimistic projections. The reinvestment option is an especially valuable feature of the strategy. By electing to reinvest eligible distributions rather than taking them as current income, I can increase the capital working on my behalf and support the compounding process over time. For me, the objective is not to find a single transformative bet; it is to build retirement security patiently through thoughtful decisions, controlled risk, and the cumulative effect of long-term compounding.

They are a great communicative team. Take the time to meet you one on one in person and go over any questions you have directly. Paul is always available. Also one of the few companies that are still continuing to give the monthly dividend without ever stopping.