Core Strategy
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Buying Properties That Have Predictable Cash Flow
Core real estate can play an important role in a long-term investment program. Core investments represent stable, fully-leased, residential properties with consistent cash-flows and some value appreciation. Generally, these properties just need ongoing maintenance and do not require significant capital improvements. Investments in core real estate should be viewed as long-term investments (i.e., long-term hold periods).
Features of core investments are:
- Lowest risk, predictable cash flow
- Long time horizon, 5+ years
- Low tenant risk
- Operations are stabilized, no asset enhancement
- Cap rates varies, based on geographic location, differs mainly based on age of the property and local regulations on rent increase
Geographic Preference
Market Timing
We prefer to take a contrarian view when it comes to investing in real estate, often when the valuations are considered “cheap”. In a down-turned economy, contrarian real estate investment offers significant profit to investors who take action based on strategies that are “opposite” to the masses of people given that there are significant discount to real estate prices irrespective of the building’s quality and earning potential.
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