Leo Wells: A Pioneer in Securitized Real Estate Investing

 

Leo Wells is the founder and president of Wells Real Estate Funds, one of the nation’s leading sponsors of public, nontraded real estate investments.  Since 1984, Wells Real Estate Funds has served more than 200,000 investors; in one survey of more than 450 Wells REIT investors, 94 percent said they were satisfied with Wells, and 77 percent said they were likely to recommend Wells to their families or friends. 

 

Mr. Wells was named Ernst & Young’s 2003 Entrepreneur of the Year in financial services, a Distinguished Alumnus by the University of Georgia’s Terry College of Business, and a 2006 nominee for the Turknett Leadership Character Awards.

 

Wells Real Estate Funds believes investors should be informed about the investments they make. If you’re researching Wells, you may see a handful of critical comments about this dynamic real estate pioneer. Wells appreciates your interest, and wants you to know the facts.

                                                                                                                

Q.     On the Internet, I read Mr. Wells described as some sort of “huckster” who steals money from widows.  What’s that about?

 

A.       It’s absurd.  An anonymous blogger has focused on one investor out of more than 200,000.  While we will not comment on any specific investor, the fund in question was a mid-1980s Wells limited partnership – and a particular class of partnership units. (For the record, that Wells fund exists today; unlike many of its contemporaries, it survived changes in tax law and the real estate downturn of the mid-‘80s. It is nearing the end of its life cycle, and will be returning proceeds to investors.)  

 

Q.     That same blog says Leo Wells “has never fully repaid investors in any of his funds over the last 20 years.” True?

 

  1. This is simply not true. Most Wells funds, including Wells’ flagship REITs, are designed as long-term income investments to be held for a number of years, and are not traded on the stock market. But our REITs have clearly stated redemption procedures, and more than 10,000 investors have asked for – and received – redemption of their shares.  Additionally, last year Wells REIT sold more than $700 million in properties from its portfolio and returned the proceeds to REIT investors. 

 

  1. I see several references to Mr. Wells’ religion.  Is that an issue?

 

  1. Leo Wells is a devout Christian who founded his firm, as his company creed says, “to glorify God and care for people.” But Wells Real Estate Funds has numerous employees of various religious affiliations, and no religion. Religious discrimination is not permitted at Wells Real Estate Funds, which has twice been named one of Atlanta’s best employers by the Atlanta Business Chronicle.

 

Q.     Why was Mr. Wells sanctioned by the NASD?

 

A.  Wells investment products are marketed through financial representatives.  In 2003, Wells Investment Securities Inc., distributor of securities of Wells Real Estate Funds, and Mr. Wells were sanctioned in connection with certain expenses for financial representatives and guests at Wells-sponsored conferences.  The sanction did not involve investor complaints.  Wells Investment Securities Inc. is a registered broker/dealer and a member of NASD/SIPC. 

 

To learn more about Leo Wells and Wells Real Estate Funds, please click here: www.wellsref.com.

 

To see educational information for investors from the Securities and Exchange Commission, click here: http://www.sec.gov/investor.shtml.