Passive Real Estate Investing 101

Invest

Invest in 100% real-estate based assets. 

choose

Select from either our Income fund or our Preferred Equity fund. 

relax

Let us do all the work. Earn the high returns of real estate without all the hassles and headaches of direct ownership. 

receive payment

We distribute monthly income to you from your investments. 

low minimum investment of $1,000

ira qualified

 

why real estate as an investment?

greater return over The long-term

The two graphs below show greater return over a longer term (15 years) with real estate compared to the stock market and/or cd's

Based on a $10,000 investment in 2000

Real estate return data is from FTSE NAREIT Equity REITs US Real Estate Index Series, while S&P return data is from Yahoo Finance. Real estate return data should not be used to estimate returns of W Group Investment offerings. While the FTSE NAREIT Equity REITs index covers publicly traded equity based REITs, all W Group Investment offerings are private. Moreover, individual W Group Investment offering's performance can vary significantly from the performance of REITs.

14% Commercial Real Estate
*Average Annual Return

5% S&P 500
*Average Annual Return
 

Based on a $10,000 investment in 2000

Real estate return data is from Bankrate.com, which shows historical CD Interest Rates. Real estate return data should not be used to estimate returns of W Group Investment offerings. All W Group Investment offerings are private. Moreover, individual W Group Investment offering's performance can vary significantly from the performance of CDs.

6% WG US Real Estate Income Fund LLLP

2.75% CD Return (Bankrate.com)
*Average Annual Return
 

Real Estate historically has outperformed the broader stock market and hedge funds

for a 3, 10 and 20 year period, real estate investments perform better than hedge funds and the s&P 500. 

*As of year end 2016

*Past performance is not a predictor of future results. 

*Past performance is not a predictor of future results. 

 

liquidity - positive or negative?

The illiquid nature of real estate is often cited as a negative. However, this illiquidity protects investors from themselves and their emotions. If CNBC told you that the value of your rental property plummeted by 30% today due to a flash crash, you couldn’t panic sell even if you wanted to. Provided you don’t over-leverage, it is much easier to stay the course (buy & hold) with investment real estate than volatile stocks, where paper losses are just as painful as actual losses.
— AOL.com article, "Real Estate Investment Advice from Warren Buffet"

The fact that you cannot move your money around at a moment's notice is often cited as a negative aspect of real estate investing. However, this is probably one of the biggest benefits when you put your money to work in real estate. The fact that you cannot make emotional decisions with your money allows it to work for you and maximize return in the long run. 

Source: Edward Jones

Source: Edward Jones


Why Pittsburgh?

Driven by the influx of technology companies and shielded by economically resistant industries such as healthcare and education, Pittsburgh has show its resilience and dominance. The city also consistently ranks high on affordability and cost of living. 

Major employers:

upmc - duquesne light - ccac - rivers casino - ppg industries - dick's sporting goods

U.S. steel - bny mellon - pnc bank - giant eagle - highmark, Inc. 

 

tech and innovation companies with a pittsburgh presence:

google - 4Moms - uber - duolingo - Jazz Hr - oculus vr

 

world-renowned universities

Carnegie Mellon university - university of pittsburgh - duquesne university

 

Milken Institute Real Estate Investment Outlook 2017

Yardi Summer 2017 Multifamily Report: Pittsburgh Shows Its Mettle

ULI & PWC: Emerging Trends in Real Estate 2017 Report

MetLife Investment Management Report: Tech Markets 2.0

WalletHub: 2017's Best Cities to Live In

Pittsburgh #1 for Jobs 2017


Why W Group Holdings?

track record

With a growing residential portfolio with over $20,000,000 in assets W Group Holdings, LLC, and its subsidiaries, have a proven track record of results driven by the operational excellence of a professional real estate investment firm and the confidence created by almost 20 years experience investing and operating in the Greater Pittsburgh MSA. 

Experience

W Group Holdings, LLC, through several affiliates was founded almost 20 years ago through the purchase of several small apartment buildings in the Pittsburgh market and has expanded into all aspects of real estate investment and management. Our experienced team has a combined 130 years of specific industry knowledge and expertise in analysis, deal structure, operations, and divestitures necessary to maximize the performance, long term value and investment returns from real estate assets. 

existing example portfolio transactions:

Multi-Family Residential Redevelopment Opportunity:

48 Unit Multi-Family Apartment Site with a mix of 1, 2, and 3 bedroom units.

Purchased in 2011 Combination of Equity and Debt

Total Purchase Price: $1,835,000

Approximate Current Annual Revenue: $333,944

Projected Redevelopment Budget: $19,160,000

Cap Rate: 12%

 

Opportunistic Purchase & Sale in Rapidly Appreciating Area

11 Unit Apartment Building in High-Demand Neighborhood East of Pittsburgh

Purchased 06/01/2011 Combination of Equity and Debt

Total Purchase Price: $310,000

Approximate total capital improvements during ownership were $15,000 directed towards upgrading several units as well as improving common areas of the building. 

Sold 01/05/2012 Sales Price: $440,000

Net Cash at Closing: $124,743

Cash on Cash Total Return: 225%

New Phototastic Collage.jpg

Vacation Rentals:

 

Portfolio of 4 luxury mountaintop condos located at Seven Springs Mountain Resort. 

Purchased in 2015 & 2016 for $999,000 

Approximate Annual Revenue $168,000

Cap Rate: 16.8%

local knowledge

Serving the local Greater Pittsburgh MSA for almost 20 years, W Group Holdings retains valuable market and community knowledge. Over the past 20 years, Pittsburgh has seen an impressive increase in new development and housing and has undergone a dramatic transformation.  

As with most real estate markets, Pittsburgh rent rates and home values are not constant and are ever-shifting. W Group Holdings has built up a significant and varied portfolio of assets to protect itself from market downturn and change. 


we are pleased to offer two real estate - backed investment funds.

WG US REAL ESTATE INCOME FUND, LLLP


  • Pays stable 6% annual return

  • Pays 6% regardless of fund results


 

wg us real estate preferred equity fund, lllp


  • 8% preferred return* and share of return above 8%

  • Potential for higher return; exact return will fluctuate every year

  • Your return is based on the fund results


 

please click on one of the fund options below to learn more. 

*While not the same as a guaranteed return, a preferred return is paid first to the investor before anything is earned by the fund. In this case, the first 8% annually earned by the fund will be paid 100% to the investor. Anything excess of 8% is shared with the fund. If the fund would experience a low return in a given year, the total return earned by the investor could be below 8%.