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November 29, 2017

5 min read

An Overview of Core, Core Plus, Value-Add and Opportunistic Investments

If you spend any time around commercial real estate...

Core Real Estate is one of the safest investments in the market. These are ideal for investors that fall in the conservative category and want a stable income. Given the low risk of these properties, the income generated through them is also low.

One great thing about these properties is that they require little attention. You don’t have to be actively involved in the ownership and the tenants that occupy the property are usually long-term leases.

The return on core real estate investment falls between 7% to 10% and to finance this transaction, 40% to 45% debt can be used. The return on these properties is a result of cash flow from occupancy rather than appreciation.

If a core investment is leveraged to 80%, it loses its safety net and can affect its value. If there’s a decrease in the property’s value by even 10%, it could lead to default and foreclosure.

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July 6, 2021

4 min read

Property, Asset, and Portfolio Management in Real Estate

In real estate, particularly within private equity, there are three...

In real estate, particularly within private equity, there are three crucial management layers that investors need to understand: property management, asset management, and portfolio management. Each layer has its unique roles, objectives, and functions, which this post aims to clarify.

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