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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.

Trending

January 23, 2023

6 min read

Unlocking Portfolio Potential: The Case for Including Private Real Estate

Investing is a balancing act between risk and reward. To construct ...

Investing is a balancing act between risk and reward. To construct a high-performing, well-balanced portfolio, diversification across asset classes is key. By looking at the historical data, recent studies underscore the value of private real estate in enhancing portfolio performance.

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