An Ignoble Experiment: How to “Un-Retire” by Investing in Commercial Real Estate

Dear Investor,

If you've ever dreamed of destroying your life savings, triggering agonizing personal stress, and extending your work life a decade or two, read on.

These dreams are called nightmares.

The story that follows proves that even really smart people…even seasoned Ivy League-trained attorneys…are not immune to these debilitating failures.

By way of disclosure, we have an advertising relationship with Wellings Capital, meaning we get paid for making this introduction and sharing this content. As always with these types of deals, consider this an introduction and not a recommendation. Every deal is unique and the responsibility to vet any and every deal you invest in still lies with you. This opportunity is available to accredited investors only.

Warning: This is a true story, and it happened just this year…

Bob (not his real name) practiced law for decades. He was starting to think about retirement.

Developing a passive income stream was the obvious route to meet that goal. Investing in private commercial real estate seemed like the perfect vehicle.

Bob began by studying a celebrated syndication training program. The program taught some students to quit their jobs by syndicating commercial real estate deals. It taught others (the busy professionals) to invest in these deals to develop passive income.

Bob was in the latter camp.

Bob studied hard on evenings and weekends and during lunch breaks so he could learn how to evaluate these wonderful deals. He heard weekly testimonials from those who were doubling their investments, enjoying easy money, and sailing toward early retirement. So he jumped in.

With both feet.

Bob confidently liquidated decades of accumulated Wall Street gains…he converted his 401(k) to a self-directed IRA…and he passively invested in 20 different commercial real estate syndications.

At which point Bob traded a strenuous law practice for early retirement.

Bob felt like he was on easy street. But he had never seen this meme…

Wellings

Fast forward 2.5 years and 11 rate hikes…

Every single one of Bob's 20 investments paused Bob's distributions.

Bob's passive income has shrunk to zero. He's concerned that he will never see a lot of his hard-earned capital again.

Bob has "un-retired" and is back at his legal practice.

Bob is living with tormenting stress and regret. It's not clear if and when it will end.

Does this sound like your dream of early retirement?

This is an extreme scenario. But the lessons are poignant for white coat professionals trying to build a passive income stream from commercial real estate.

4 Key Takeaways For White Coat Investors

This Ivy League attorney didn't have the knowledge, experience, time, or team to evaluate sponsors and/or deals. This is much harder than it looks. It is always cyclical. The problem is that no one can predict the top or bottom of the cycle. Most investors take the biggest gambles right before the top…putting them at great risk for losses like Bob's.
Bob's smarts, profession, and experience could have been a handicap. Being a great attorney and making a lot of money may have tempted him to think it was easy. After all, lots of other "less qualified" people made a lot of money last decade. Until the music stopped. Beware!
Great marketing ≠ great investments. These 20 syndications flaunted shiny brochures and glitzy websites. Pretty enough to deceive this Ivy Leaguer. But it's critical to cut through BS to get to the facts. This is not an easy task for most busy professionals.
Losses are more painful than gains are helpful. Bob spent decades accruing this capital. He had one chance. He blew it. The cost of losing capital far exceeds the potential gain. (Even the cost of losing 50%...if he is that lucky…means he'll spend years and will have to double his money to return to his starting point.) This could also cost him more than money: health, marriage, and much more.

Wellings Capital exists because they believe it doesn't have to be this hard. Wellings Capital performs the due diligence you would do if you had the team, time, talent, and resources.

The Wellings Real Estate Income Fund provides White Coat investors with a fund of carefully vetted investments diversified across asset types, hand-picked operators, geographies, and strategies.

Over 900 Wellings Capital investors have enjoyed steady or increasing distributions with no pauses or capital calls since the inception of their five income funds.

Check out the Wellings Real Estate Income Fund today!

Thanks for your time. As always, your feedback is welcome and appreciated.

Jim and Brett

James M. Dahle, MD, FACEP
Founder, The White Coat Investor

Brett Stevens, MBA
COO, The White Coat Investor

*All investments are subject to risks, including the loss of all principal invested. Past performance is no guarantee of future returns and the investment objectives of the Wellings Real Estate Income Fund may not be achieved. Investors should consider the investment objectives, risks, charges, and expenses before investing. For a Private Placement Memorandum ("PPM") with this and other information about the Wellings Real Estate Income Fund, please call 800-844-2188 or email invest@wellingscapital.com. Please read the offering memorandum before investing so that you fully understand the risks and consult your tax or advisor before investing. Wellings Capital and The White Coat Investor are not affiliated.