WAC’s Successful 2024

A few weeks ago, I met with a few of my investors to celebrate some holiday cheer and to discuss WAC’s successes for 2024 including some of our noteworthy loan originations as well as loans that were recently paid off in full during the year. The conversation then shifted to various other topics during our meeting. One of the investors with whom I met is a medical doctor who, in addition to practicing medicine, is also a very successful real estate developer/ investor.

This self made individual who is still just in his early 50’s has begun to slowly transition out of his medical practice into becoming a full time investor. Besides investing as a principal in real estate developments nationwide and investing in private loan originations with WAC, this individual is also heavily invested in the stock market. As one might imagine, between operating a thriving medical practice, investing with WAC, managing a multi-million dollar stock portfolio, and raising a family that includes college age children, this individual clearly has a “lot on his plate”.

From an investment perspective, this individual told our group that afternoon that in terms of the types of assets in his investment “bucket”, he felt most comfortable with the money that he has invested in private loans with WAC. His comfort is based on the following:

1. WAC’s private loans are secured by well located real estate assets with conservatively underwritten LTV’s that provide ample protection to the investor in the event of a loan default.

2. WAC’s private loans all have a fixed rate of return with a steady stream of cash flow to the investor with consistent annual returns in the 15% to 20% range.

3. WAC’s private loans are short term in nature and are typically paid off in full within one year or less providing monetization and liquidity and achieving a “velocity of money” phenomenon.

4. As a passive investor with WAC, this individual does not have to allocate any additional time to his already busy schedule by not having to get involved in the ongoing day to day management of WAC’s loan portfolio.

This individual indicated that his real estate investments require an inordinate amount of time to manage and his returns in that portion of his “pie chart” have not exceeded the returns that he is earning in his WAC loan portfolio. In addition, although he is earning nice returns in the stock market, the daily volatility of the equities market creates undue stress and anxiety for him.

It’s always heartwarming to enjoy some holiday cheer with satisfied investors!