There are four strategy types in real estate which are Core, Core Plus, Value-Add and Opportunistic.
Core: A Core investment usually requires very little management from owners and are usually occupied with tenants on long-term leases. They are typically acquired and held.
Core Plus: A Core Plus investment can typically increase cash flows through light property improvements, management efficiencies or by increasing the quality of the tenants.
Value-Add: A Value-Add investment often has little to no cash flow at acquisition but has the potential to produce a tremendous amount of cash flow once the value has been added.
Opportunistic: An Opportunistic investment can include developments, acquiring an empty building and performing major renovations, land development, and repositioning a building from one use to another.