What are the four real estate strategy types?

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.