We work together to connect you to investment real estate that is customized to meet your needs.
Collectively, the members of JRW represent decades of experience and backgrounds in real estate, taxation, investment and securities analysis and structure. We work together to connect you to investment real estate that is customized to meet your needs. We have overseen the acquisition of over $500 Million in real estate and private equity assets. In addition to providing clients with comprehensive real estate resources, we specialize in helping clients successfully navigate and complete their 1031 and 1033 exchanges to maximize the deferral of their taxes.
We have the interactive tools, personalized advice, network of real estate providers, and experience you need to find the right real estate investments. We connect you with experienced tax, legal, and real estate professionals who will guide you through the investment process and, if applicable, your 1031, 1033, or 721 exchange. We also provide clients with access to an extensive selection of vetted off- and on-market properties and exclusive private equity offerings.
For Smaller 1031/1033 Investments ($25,000 to $3 Million):
Investors with less capital to place for their exchange or who have capital left over to place from a larger acquisition are also able to complete a 1031 or 1033 exchange. For investors in these circumstances, we utilize Fractional Net Leased, Bank-Owned, and Multifamily 1031 investments (Delaware Statutory Trusts and Tenant-In-Common) to provide access to institutional quality and opportunistic real estate acquisitions that have been structured to allow for smaller investment minimums and that qualify for 1031 and 1033 tax deferred exchanges.
For Larger 1031/1033 Investments ($1-25 Million):
We primarily target Sole-Ownership Net Leased (aka "NNN”) and Sole-Ownership Bank-Owned (heavily discounted commercial real estate) for clients looking to place a larger amount of capital to work for their tax deferred exchange. As mentioned below, we can, of course, also accommodate the same types of acquisitions for non-1031 cash.
For Smaller Cash Investments ($25,000 to $5 Million):
In the same way we customize a portfolio for an investor targeting sole-ownership assets, we build a portfolio or target specific investments with smaller required minimums in value-add and opportunistic real estate. For example, we source secondary REIT acquisitions that allow clients to make relative small investments at a steep discount to the original share price to participate in cash flowing real estate investment trusts that have portfolios of real estate ranging from $200 Million to $10 Billion in size. We also target individual bank-owned assets that have been structured to allow smaller investment minimums ranging from $25,000 to $50,000 to be pooled together for the acquisition of a larger asset.
For Larger Cash Investments ($5 Million to $50 Million):
We can customize and build a portfolio to meet the specific goals of the investor. We specialize particularly in Net Leased and Bank-Owned properties and can tailor a portfolio to target one or the other or a combination of both. Our financed sole-ownership net leased acquisitions tend to provide attractive, stabilized cash flow backed by investment-grade and other credit worthy corporate tenants with lease terms averaging 10-15 years. Our bank-owned acquisitions tend to produce attractive unleveraged income immediately, with initial occupancies ranging from 30-60%. We target lease up of the assets over a 6-18 month period with the goal of increasing unleveraged cash flow and adding value upon stabilization.
Keywords: 1031, 1031 exchange, Tenant-in-Common, TIC, Delaware Statutory Trust, DST, real estate, commercial real estate, tax-deferred exchange, real estate investment, 1031 investment, securities, real estate investment trust, REIT
Interview Q&A
How long have you been in business?
Since 2003
What is your primary product or service?
1031 exchange replacement property investments and wealth management
How did you first become interested in your line of business? (if owner) - What is your background? (If owner or store manager)
Joshua currently serves as CEO and Chief Investment Officer of JRW Investments, Inc. Since 2006 he has established the Firm's Due Diligence department as a leader in securitized real estate analysis. He has developed proprietary real estate analysis platforms that continue to provide the foundation for JRW's due diligence review. In addition, Joshua maintains extensive relationships with off market real estate sources, private equity providers and capital sources within the industry. Joshua has positioned JRW to provide individual clients with customized investment solutions in real estate and private equity. Joshua graduated from The Master's College Summa Cum Laude with a B.A. in Theology, Apologetics, and Missions and is currently on leave from Talbot Graduate School, where he was pursuing an M.A. in Philosophy of Religion and Ethics. He also maintains Series 7, 22, 24, 63, and 65 securities licenses.
How do you differentiate yourself from other businesses in your category and area?
Individually Customized Investment Solutions
We provide truly customized investment solutions for each of our clients. We reject the prevalent trend of placing clients into generalized categories or investment "buckets" to attempt to streamline investment recommendations. We tailor our recommendations to serve each client's specific investment goals, tax concerns, income requirements, time horizon, and risk tolerance. Whether we are customizing a real estate transaction to address a client's 1031 tax-deferred exchange or constructing a client's portfolio of strategic investments for diversification and general wealth management, we approach each investment consideration as a unique opportunity to provide excellent service that is tailored to meet the specific needs of each of our clients. This is not only the right thing to do, but this approach provides an ongoing challenge that keeps our jobs interesting and our skills sharp.
Due Diligence and Analysis
Though our end goal is to uncover those investments that we believe truly stand out, one of the primary benefits we provide to clients is our filtering out most of the junk that is available at any given time. After diligent review, we outright reject approximately 90% of the investments we review on behalf of our clients. We subject each investment offering to a rigorous due diligence process to analyze the industry, market, submarket, business model/pro forma, historical performance, financials, sponsor, competition, investment assumptions, cash flow, deal-specific risks and debt service coverage. Of the approximately 10% of investments we do not reject, we often are able to fully recommend half for immediate investment for our clients and place the other half on a watchlist. Even with those investments we recommend, we typically wait to place capital in the investment until it is closer to closing--this reduces our clients' risk and maximizes their time value of money.
Macroeconomic Focus
As important as due diligence and analysis are for specific investments, we believe that it is equally important to study and follow the macroeconomic trends that may affect general and individual investment decisions. We strive to analyze and understand the forest and the trees (the overall economy as well as specific investments) when making investment recommendations. We apply our economic research to each recommendation we make for our clients.
Exclusivity
An entirely different way in which we provide truly customized investment solutions is by providing or accessing investment opportunities created exclusively for our clients. From time to time, we encounter particular investment concepts that we believe are exceptional opportunities for our clients, but we may not like some aspect of the investment such as the structure, liquidity, or fees the sponsor currently charges. When possible, we reach out to the sponsor to make favorable adjustments to the investment, which then are extended to our clients on an exclusive basis. On other occasions, if the investment concept is particular attractive "as is" but is only available on a limited basis, we may reserve the entire raise to be provided to our clients exclusively.
If it does not exist, we create it.
Often, if we cannot find a particular investment to meet certain client needs--or if we come up with an attractive investment concept that does not yet exist or is not currently available in the market--we simply create the investment for our clients. Some of the best investments our clients have ever participated in are investments we developed exclusively for them. We not only create investments available to clients on a company-wide basis, but we also have very deep networks of off-market developers and investment sources to meet clients' individual sole-ownership, 1031, and 1033 tax-deferred exchange needs.
Patience
We do not need clients to invest. Much of our personal wealth is spread over many of the same investments we have recommended to our clients. A large portion of our revenue comes from the performance of investments we have placed in the past with clients. Therefore, we are not desperate for clients to place new capital with us to survive. We have the luxury of patiently waiting for those opportunities that we believe are exceptional and entry points that are well-timed. As alluded to in the due diligence section, we often wait until investments are just about to close to new capital before participating to maximize our clients' returns while minimizing their risk. Our goal is not to ultimately sell product; it is to provide true wealth management. We want to protect and grow our clients' wealth as our success is ultimately tied to our clients' success.
Integrity and a Greater Purpose
The core and abiding business focus of JRW Investments, Inc. is to protect and grow our clients' wealth. Ultimately, while this is the right focus for the business, it is not an end in and of itself. The greater purpose that drives and sustains our integrity is the desire to build substantial wealth for our clients, partners, and employees that far exceeds all of our immediate needs so that we can collectively meet the needs of charities and ministries that we believe will have a longer-lasting and farther-reaching impact. This greater purpose provides significant motivation to stay focused on what we do best and to maintain the integrity and commitment to excellence that places our clients first.
How many locations do you have and do you have plans to expand?
We are able to serve clients all over the nation from our office in Pasadena.
Provide detailed directions to your location
Address
251 S Lake Ave, Suite 520
Pasadena, CA 91101
Our parking structure entrance is located off of Del Mar, half a block after turning West from Lake Avenue. There should be ample visitor parking available and we provide parking validation.
Which areas do you service?
United States
Who owns your company or runs daily operations?
Warren Thomas - CPA Co-Founder, President, and Registered Securities Principal
Warren is the co-founder and President of JRW Investments. Prior to forming the firm in 2003 Warren had developed an extensive tax practice inclusive of estate planning, financial planning, and real estate advisory services. Warren has over 30 years of experience as a CPA and has been an active commercial real estate investor for the past 15 years. He graduated in 1978 from Biola University with a degree in the Bachelor of Science in Business Administration, specializing in Accounting. He also earned a Masters in Taxation from Golden Gate University in 1993. Additionally, he maintains Series 7, 6, 39, 63, 22, and 24 securities licenses.
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