From the course: Real Estate Analysis Foundations

Unlock this course with a free trial

Join today to access over 22,600 courses taught by industry experts.

Opportunistic investment strategy

Opportunistic investment strategy - Microsoft Excel Tutorial

From the course: Real Estate Analysis Foundations

Opportunistic investment strategy

- Alright, the second investment strategy we're going to look at is called the Opportunistic Investment Strategy. And you can think of the Opportunistic as the most aggressive form of strategy. This is the strategy of maximizing return potential by taking on some risk that maybe other investment strategies would not want to take. So for an opportunistic investment, there tends to be some leverage or debt, usually moderate or high leverage so that you're going for the most potential for really high returns. And it tends to involve projects that are more complicated. Projects like developing something new so if you're building a completely new home on a new lot, that takes more work. You got to go through permitting, you got to go through construction, you're taking more risk. Buying raw land and banking it and betting that some other buyer's going to try to do something with it years later, that's risky and that's opportunistic as well because you're making a huge bet about the…

Contents