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Acquisition Strategies we Support
1. “Core” is considered the safest strategy and the one that’s closest to fixed income (bonds) in terms of risk and potential returns.
2. It tends to use less leverage than other strategies, very little about the property changes, and cash flows are stable and predictable.
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3. Properties tend to be in major urban centers with plenty of demand.
1. Acquire stabilized Asset type A, and B+.
2. Keep them as they are,
3. Hold them for some time.
4. Sell them in the future,
4. Suitable for passive, conservative investors, interested in steady, predictable, higher than average returns .
5. Lower Capitalization Rates , long holding periods ( 5 to 10 years)
1. “Core Plus ” is considered the next safest strategy and the one that’s higher than fixed income (bonds) in terms of risk and potential returns.
2. It tends to use more leverage than core strategy, some visible changes about the property are made, and cash flows are higher than normal.
3. Suitable for less conservative investors in look of higher-thanaverage market returns and some capital appreciation.
4. Holding period tend to be up to 5 period or less.
Core Plus
1. Acquire Asset type B, B+.
2.Make cosmetic Impro vements.
3. Update rents.
4. Improve management, marketing ,
5. sell them, in the future .
1. “ Value-Added” is considered the most lucrative strategies. Double-digit returns , with significant portion the returns coming from capital appreciation .
Value-Added
2. It tends to use more leverage than core , and core-plus strategies, and loan refinancing is expected
3. Significant changes about the property are made, and cash flows fluctuate due to high vacancy during renovation.
4. Suitable for more aggressive investors looking for higher cash-on-cash yields, and participation in capital appreciation.
5. Holding period could be short for higher property appreciation ( 5 to 7 years )
1. Acquire Asset Type B-, C. 2. Complete a major renovation that takes months or years to complete,
3. Hold them for some time.
4. Refinance loan
5. Sell them in the future.
