{"id":171437,"date":"2024-05-03T15:58:52","date_gmt":"2024-05-03T21:58:52","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=171437"},"modified":"2024-05-27T01:59:36","modified_gmt":"2024-05-27T07:59:36","slug":"i-nearly-lost-our-investors-5-million","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/i-nearly-lost-our-investors-5-million","title":{"rendered":"I Would Have Lost Our Investors $5.5 Million\u2014What Would You Have Done In This Situation?"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC8838779538\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">What were you doing on the morning of Jan. 17, 2020? While the world was learning about a strange new virus approaching our shores, my business partner, Ben, and I were visiting Louisville, Kentucky. We were meeting our largest operating partner, Mike (not his real name), to walk through a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/mobile-homes-for-rental-property\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">mobile home<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;park his firm was acquiring. Our fund would be the largest investor.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This park looked like many we had invested in, but larger. There were 315 lots, but about 50 were vacant. We saw a typical range of cars\u2014from junkers to Jaguars. People walked their dogs, kids boarded buses, and a maintenance man shuffled around with his coffee.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But this park was different from most parks this size.&nbsp;<\/span><span data-preserver-spaces=\"true\">You see,<\/span><span data-preserver-spaces=\"true\">&nbsp;the owner lived three states away\u2014and she hadn\u2019t visited (or raised rents) for at least five years.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This institutional-sized park was owned and operated by a classic mom-and-pop operator.&nbsp;<\/span><span data-preserver-spaces=\"true\">She&nbsp;<\/span><span data-preserver-spaces=\"true\">had no knowledge of<\/span><span data-preserver-spaces=\"true\">&nbsp;how to maximize income and value.<\/span><span data-preserver-spaces=\"true\">&nbsp;She was distracted by other pursuits.&nbsp;<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">And she was ready to exit.&nbsp;<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Our operating partner pointed out&nbsp;<\/span><span data-preserver-spaces=\"true\">a variety of<\/span><span data-preserver-spaces=\"true\">&nbsp;deficiencies as we toured the park. He told us how the owner funded all tenant utility bills. He explained how she overpaid staff to avoid getting involved. And he described the profitability of setting new manufactured homes on vacant lots\u2014something the seller wouldn\u2019t dream of.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We<\/span><span data-preserver-spaces=\"true\">&nbsp;flew home to Virginia&nbsp;<\/span><span data-preserver-spaces=\"true\">after lunch<\/span><span data-preserver-spaces=\"true\">&nbsp;and started raising capital for this new fund&nbsp;<\/span><span data-preserver-spaces=\"true\">that<\/span><span data-preserver-spaces=\"true\">&nbsp;would invest in this park and over 200 other&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/commercial-real-estate-fundamentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">commercial real estate<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;assets.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Mike closed on the acquisition on Feb. 25 while headlines screamed about the coronavirus that threatened every human&nbsp;<\/span><span data-preserver-spaces=\"true\">on the planet<\/span><span data-preserver-spaces=\"true\">. He paid $7.1 million\u2014about half debt and half equity (including ours).<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We raised several million dollars in February and March while U.S. investors watched trillions of dollars of value evaporate in Wall Street\u2019s casinos.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Surprising Call Amid Pandemic Chaos<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">In the midst of<\/span><span data-preserver-spaces=\"true\">&nbsp;escalating national turmoil, Mike got a surprising call: Within a week of the acquisition, a competitor called with an offer to buy the facility for $9 million.&nbsp;<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">That\u2019s where I might have messed up if I was at the helm\u2014especially in light of the uncertainty of COVID and Wall Street\u2019s&nbsp;<\/span><span data-preserver-spaces=\"true\">precipitous<\/span><span data-preserver-spaces=\"true\">&nbsp;drop.<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Mike told me about the offer.&nbsp;<\/span><span data-preserver-spaces=\"true\">I&nbsp;<\/span><span data-preserver-spaces=\"true\">did a quick calculation on<\/span><span data-preserver-spaces=\"true\">&nbsp;turning $3.5 million equity into $5.5 million in about a month and scoring a decisive win for investors in our third fund.<\/span><span data-preserver-spaces=\"true\">&nbsp;With&nbsp;<\/span><span data-preserver-spaces=\"true\">the knowledge I had<\/span><span data-preserver-spaces=\"true\">, I may have accepted the offer and redeployed that capital into other assets.&nbsp;<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">Thankfully, I wasn\u2019t in charge.<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">You see,<\/span><span data-preserver-spaces=\"true\">&nbsp;our funds don\u2019t acquire and operate commercial real estate assets.<\/span><span data-preserver-spaces=\"true\">&nbsp;We do stringent due diligence to find the most proficient operators we can. We invest alongside over 800 accredited investors in these operators\u2019 assets within our diversified fund.**<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We are not in the asset management driver\u2019s seat.&nbsp;<\/span><em><span data-preserver-spaces=\"true\">And we don\u2019t want to be.<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;(I\u2019m not that capable!) Our firm hand-picks operators with deep expertise and experience in their CRE asset classes and strategies:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Operators you\u2019d probably never hear of or have access to&nbsp;<\/span><span data-preserver-spaces=\"true\">on your own<\/span><span data-preserver-spaces=\"true\">.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Operators who acquire underperforming assets like this one.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Operators with a track record of driving increased&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/net-operating-income\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">net operating income<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and optimizing investor returns.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Mike&nbsp;<\/span><span data-preserver-spaces=\"true\">flatly<\/span><span data-preserver-spaces=\"true\">&nbsp;refused the offer, even when they raised it to $9.5 million. He had a strategy to transform the park and&nbsp;<\/span><span data-preserver-spaces=\"true\">raise<\/span><span data-preserver-spaces=\"true\">&nbsp;the value efficiently. He hoped to sell it for $13 million or more in&nbsp;<\/span><span data-preserver-spaces=\"true\">just three or so<\/span><span data-preserver-spaces=\"true\">&nbsp;years.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While his strategy was similar to others he\u2019d successfully executed dozens of times, he reminded me that this was&nbsp;<\/span><span data-preserver-spaces=\"true\">an unusually large<\/span><span data-preserver-spaces=\"true\">&nbsp;asset to have this many operational and income shortcomings. He was excited for his team to get to work.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And get to work they did. They executed several&nbsp;<\/span><span data-preserver-spaces=\"true\">of their<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\">&nbsp;objectives in the first six months, even with COVID-19 dogging the team.&nbsp;<\/span><span data-preserver-spaces=\"true\">They created a significantly&nbsp;<\/span><span data-preserver-spaces=\"true\">nicer<\/span><span data-preserver-spaces=\"true\">&nbsp;place to live,&nbsp;<\/span><span data-preserver-spaces=\"true\">they<\/span><span data-preserver-spaces=\"true\">&nbsp;cut costs, and&nbsp;<\/span><span data-preserver-spaces=\"true\">they<\/span><span data-preserver-spaces=\"true\">&nbsp;raised income.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Second Surprising Call\u2014from a Different Competitor<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">As they made final plans to start the most challenging phase of their strategy (setting up new homes on 50 vacant lots), Mike received a call from another large manufactured housing operator. He queried Mike about the park and the improvements they had made. He asked about their plans and their current income.&nbsp; And he offered to buy the park for<\/span><em><span data-preserver-spaces=\"true\">&nbsp;$15 million.&nbsp;<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Keep in mind<\/span><span data-preserver-spaces=\"true\">&nbsp;that this was late in the same year that Mike acquired the park for $7.1 million. Mike accepted the offer this time and closed a few months later.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here are the final stats:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Acquired for $7.1 million in February 2020<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Sold for $15 million in December 2020<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Property-level IRR: 347%*<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Property-level MOIC (multiple on invested capital): 3.4x*<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some of the equity was reinvested<\/span><span data-preserver-spaces=\"true\">&nbsp;into other assets to&nbsp;<\/span><span data-preserver-spaces=\"true\">leverage potential profits even further<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;Some&nbsp;<\/span><span data-preserver-spaces=\"true\">were distributed<\/span><span data-preserver-spaces=\"true\">&nbsp;to investors, who didn\u2019t expect bonus distributions this early in a long-term fund.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What Would You Have Done?&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Like I said, I\u2019m glad I wasn\u2019t in charge. I\u2019m&nbsp;<\/span><span data-preserver-spaces=\"true\">glad<\/span><span data-preserver-spaces=\"true\">&nbsp;Mike had more experience than I did. And I\u2019m&nbsp;<\/span><span data-preserver-spaces=\"true\">glad<\/span><span data-preserver-spaces=\"true\">&nbsp;hundreds of our investors (this fund is no longer available) benefitted from this deal and many other similar ones.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Hindsight is 20\/20, but I\u2019m still&nbsp;<\/span><span data-preserver-spaces=\"true\">not sure<\/span><span data-preserver-spaces=\"true\">&nbsp;what I would have done in Mike\u2019s shoes with the uncertainty of COVID-19 and without the benefit of a crystal ball. While no one goes broke making a profit, Mike\u2019s wisdom and experience resulted in a much better outcome than selling right after acquiring the asset.&nbsp;<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">What would you have done?<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Thankfully, our investors don\u2019t have to answer this question. (I can confidently say none of them would get access to deals like this in the first place. Neither would I!)&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Our investors&nbsp;<\/span><em><span data-preserver-spaces=\"true\">trust us to trust our operating partners<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;to acquire, improve, and eventually divest underperforming and undervalued assets like this one. While this is a dramatic example, many others follow a similar pattern.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Furthermore, diversifying across recession-resistant asset types, operators, geographies, strategies, and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/multifamily-capital-stack\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">capital stack<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;positions could provide a safer investment experience for accredited investors\u2014those who want the benefits of real estate but are busy with their careers, families, and interests.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">I just read this&nbsp;<\/span><span data-preserver-spaces=\"true\">over<\/span><span data-preserver-spaces=\"true\">&nbsp;and felt a little funny\u2014like I\u2019m&nbsp;<\/span><span data-preserver-spaces=\"true\">just bragging&nbsp;<\/span><span data-preserver-spaces=\"true\">on<\/span><span data-preserver-spaces=\"true\">&nbsp;our operators and fund.<\/span><span data-preserver-spaces=\"true\">&nbsp;Though I\u2019m proud of the team, that\u2019s not my intent.&nbsp;<\/span><span data-preserver-spaces=\"true\">My intent is<\/span><span data-preserver-spaces=\"true\">&nbsp;to remind busy professionals that it\u2019s OK to outsource your active real estate investments. It\u2019s alright, and I even believe it\u2019s preferable to trust others to do the heavy lifting.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s reasonable and often profitable to locate expert operators, perform deep-dive due diligence&nbsp;<\/span><span data-preserver-spaces=\"true\">on them<\/span><span data-preserver-spaces=\"true\">, and entrust them with your hard-earned capital. I\u2019m my&nbsp;<\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\">&nbsp;case study here.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I\u2019ve been investing in real estate since 1999. I\u2019ve written three books on real estate investing, spoken at every BiggerPockets conference, and been a guest on hundreds of podcasts.&nbsp;<\/span><span data-preserver-spaces=\"true\">And<\/span><span data-preserver-spaces=\"true\">&nbsp;I\u2019ve raised and placed over $140 million in real estate investments&nbsp;<\/span><span data-preserver-spaces=\"true\">over a few decades<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;Even so, I feel entirely underqualified to do deals like this one.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There is no way I would consider taking on the deal I described. And I couldn\u2019t have located this opportunity anyway.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I believe<\/span><span data-preserver-spaces=\"true\">&nbsp;I can&nbsp;<\/span><span data-preserver-spaces=\"true\">make more profit and build more<\/span><span data-preserver-spaces=\"true\">&nbsp;wealth by locating the best operators possible, with deals I could never find, and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/passive-real-estate-investing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">passively investing<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;with them.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But&nbsp;<\/span><span data-preserver-spaces=\"true\">this is not necessarily the best path<\/span><span data-preserver-spaces=\"true\">&nbsp;for you.<\/span><span data-preserver-spaces=\"true\">&nbsp;You may have joined the BiggerPockets community to learn to do deals&nbsp;<\/span><span data-preserver-spaces=\"true\">on your own<\/span><span data-preserver-spaces=\"true\">. You may be happier and become wealthier by buying and operating your own residential or commercial real estate assets. Or you may become like Mike, and hundreds of investors may eventually give you their cash to invest on their behalf.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If that\u2019s your situation, I encourage you to go for it&nbsp;<\/span><span data-preserver-spaces=\"true\">with all your heart<\/span><span data-preserver-spaces=\"true\">! But if you\u2019re a busy professional hoping to do deals on the side, I want to warn you: You may have a role in the story I just told.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Your career and family, lack of focus, lack of a team, and lack of experience could land you in the role of the original seller of this&nbsp;<\/span><span data-preserver-spaces=\"true\">wonderful<\/span><span data-preserver-spaces=\"true\">&nbsp;asset. You could become a mom-and-pop operator. While the lady who sold this park made millions of dollars, she also left millions of potential upside on the table.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I wrote this article to inform some of you that there may be a better, healthier, less time-consuming, and less frustrating path to growing wealth in real estate. I invite your feedback, comments, and complaints! <\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_34e68671909f4e4a5c0a683a64b8fcd9\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_6ed0798228e16ca68e5b666e9056f504\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_b21509b68c13a7db68f9ad43f0e31c68 class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\"\n        x-on:click=\"window.analytics.track('Blog Block | B2C Marketplace Lender Finder', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/i-nearly-lost-our-investors-5-million',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/signup\"\n        x-on:click=\"window.analytics.track('Blog Block | Acquisition | Free Membership Signup', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/i-nearly-lost-our-investors-5-million',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">*All investments are subject to risks, including&nbsp;<\/span><span data-preserver-spaces=\"true\">the loss of<\/span><span data-preserver-spaces=\"true\">&nbsp;all principal invested. Past performance is no guarantee of future returns, and&nbsp;<\/span><span data-preserver-spaces=\"true\">the investment objectives of the currently open Wellings Real Estate Income Fund may not be achieved<\/span><span data-preserver-spaces=\"true\">. 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 BiggerPockets are not affiliated.&nbsp;<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What were you doing on the morning of Jan. 17, 2020? While the world was learning about a strange new virus approaching our shores, my business partner, Ben, and I [&hellip;]<\/p>\n","protected":false},"author":214608,"featured_media":162356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5527,7119],"tags":[],"class_list":["post-171437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-real-estate-investing","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/171437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/214608"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=171437"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/171437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/162356"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=171437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=171437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=171437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}