From the course: Real Estate Analysis Foundations

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Core investment strategy

Core investment strategy

- For the first investment strategy we're going to look at, it's called the core investment strategy. For a core type of investment, the primary goal of a core investment is to lower risks and get the most predictable cash flow as possible. In order to lower your risk, usually, for these types of investments, there is very little or no leverage at all, and typically, it's less than 50%. The investors who invest with a core mindset will be looking to invest over a long time horizon. You're looking at at least five to seven years for these types of investments. There is usually very little tenant risks, as in, the tenants are already there, they are of good credit, and they have long-term leases, if you're thinking about commercial assets, but it is an apartment, or if it's a single rental income property, what you have a core type investment is usually something that is very new, that's recently built, or recently completely renovated so there is nothing for a new buyer to have to…

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