Articles | Principles of Wealth Management
This section provides insight on the very core of our investment philosophy and the principles that undergird the strategies we implement and the investments we recommend on behalf of our clients.


Our Investment Distinctives


The following paragraphs highlight some of the most important characteristics of JRW that set us apart from the market and that drive us to be a valuable resource for our clients.
 
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.
 
Written By: Joshua Ungerecht