I run a real estate firm but own zero investment properties

Hi {{first name | there}},

I help oversee a commercial real estate portfolio worth over $500 million.

But my wife and I don’t own a single investment property directly.

No rental houses, apartment buildings, or mobile home parks.

Every dollar we've personally invested in real estate (outside of our house) is through passive limited partner (LP) positions in Wellings investment vehicles, alongside our 1,100+ investors.

People occasionally ask why, so I thought I'd share the reasoning and what our personal portfolio looks like.

The biggest reason is time.

I joined Wellings as an intern in January 2015 and became a partner in 2019, when we started investing alongside operators. Since I’ve been in this space for almost 12 years, I know how intensive direct real estate ownership is. Even with third-party property managers. Unless you are a true LP, real estate investing is not passive…

For years, I worked seven days a week. At the beginning, it was just me, Paul, and an administrative assistant. Between evaluating investments, meeting operators, taking care of investors, visiting properties, and helping run Wellings, I didn’t have the brain space to think about sourcing and running my own deals.

We now have a team, so time isn’t the constraint it once was. But I’d still choose this. I believe deeply in the investments we’re making and the people running them, and I have more visibility into how they’re performing than I’d have anywhere else. I can also influence the outcome.

Next month, I'm visiting three of our investments and operators to see firsthand how the business plans are progressing.

When running a business, I’m a firm believer in "eating your own cooking." It keeps you sharp and aligned with your investors/clients/customers. This should be your reaction when you taste your cooking…

When we invest as LPs in Wellings funds and sidecars, we pay the same fees as everyone else. No discounts or special terms.

Here's our personal investment portfolio as of October 2026:

This excludes our primary residence, my 50% ownership in Wellings Capital, cash held by Wellings Capital, and my GP interests/carry. LP investments are shown at original contributed capital, not current values.

We're highly concentrated in real estate, and specifically in Wellings.

A substantial portion of our investments and household income, along with the value of my ownership in Wellings, are tied to the same business and industry.

I recognize that risk. I'm comfortable with it.

At this stage of my life (I’m 33), I'm focused on going all in on building Wellings into an exceptional investment firm.

Sure, I could diversify more into index funds while still focusing on Wellings. But I want a meaningful portion of our money invested alongside our investors. And I believe in the deals we’re doing.

That approach isn't right for everyone, and I will probably think differently later in life.

Savanna and I generally keep around 12 months of living expenses in cash.

Is that too conservative? Maybe.

But having a year's worth of expenses covered gives me peace of mind and confidence, especially when I've committed so much of our financial future to building Wellings.

We're also planning to make a fairly significant real estate investment before year-end, partly for depreciation benefits.

My first choice would be a Wellings deal, but I'd consider investing with another operator we know if nothing fits for Wellings this year. Reminder: Tax benefits don’t turn a mediocre investment into a good one.

Probably.

We may eventually own investment property directly. At some point, we also want to invest in a café/bakery that offers great food and coffee here in Lynchburg (with the right operator, of course). Something like this.

But for now, I'm keeping things simple and focusing on Wellings.

I'm sharing all this because I’m a bit of a personal finance nerd and I’ve always found it interesting to see how people actually invest their money. Not just what they recommend to everyone else.

I'd encourage every passive investor to ask their investment manager: How much of your own money is invested alongside mine, and on what terms?

Skin in the game doesn't guarantee good investment outcomes, but understanding your manager's incentives is important.

And a question for you: Is keeping 12 months of living expenses in cash too conservative? Reply and let me know what you think.

All the best,

Ben Kahle

Managing Partner | Wellings Capital

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