Dear Fellow Investors,
First, I hope all of you are being healthy, wealthy, and wise after what’s unfolded these past few weeks with COVID-19 (Corona virus). Our team at Wolfe Investments is doing well, and we are continuing to do our part to keep our country’s great economy going.
We are in constant communication with our current residents on our multifamily assets, and have been proactive with those that have been affected with their employment. The tenants of our commercial fund properties are dollar store businesses (Dollar General, Dollar Tree, and Family Dollar) that are remaining open to serve their local communities at this critical time. Our development project is moving forward with some potential cheaper labor costs.
In times like these, it’s better to lean in, and look for the opportunities to be had amid the market’s reaction to the current situation. I expect a flurry of investment activity at Wolfe Investments: from hard money loans to existing multifamily projects. We are continuing to move forward – we’re hiring a new team member for business development. We’re going to use this as a way to ramp up, and bring more investment offerings to our investors. Wolfe Investments has already been contacted to acquire a few neighbors to our existing assets, and have first crack at some poorly managed assets as well. To the long term investor, this time is a great opportunity to pick up some great investments from those overreacting to the short term.
Though the effects of the COVID-19 crisis will be felt widely, it is very unlike the recession of 2008 when there was a slew of foreclosures caused by poor lending practices. There wasn’t a systemic problem with our economy prior to this, which is why I expect a fairly speedy recovery. I anticipate (and am hopeful) that things will rebound within a short time (6-9 months). Remember that 2008 was the 2nd worst recession of all time, and it only lasted about 24 months. Americans will get back to work, and kick back up the greatest economic machine on the planet; it happens every time.
We’re all in this together – lenders and borrowers; buyers and sellers; landlords and renters. We have all been equally impacted. Thus, we’re all incentivized to work together to figure out a solution. We’re already seeing all of those players work together to avoid long term disruptions on operations. I encourage you to stay calm, keep a long term perspective, and look for the opportunities. Those that invested in hard assets 2008 through 2013 saw their investments grow substantially (some of you reading this letter did just that with us at Wolfe Investments).
Now is the time to lean in and invest in solid investments. As an established owner-operator, and a trusted buyer in the market place, we are poised in this unique position on upcoming opportunities. It is exciting to get first dibs in times like these on struggling assets. Stay safe. Stay healthy. Keep calm and invest on!
Sincerely,
Kenneth Wolfe
Wolfe Investments