{"id":68371,"date":"2019-04-12T08:55:34","date_gmt":"2019-04-12T13:55:34","guid":{"rendered":"https:\/\/www.zilculator.com\/blog\/?p=68371"},"modified":"2021-01-24T07:14:34","modified_gmt":"2021-01-24T12:14:34","slug":"commercial-investing-4-strategies-to-succeed","status":"publish","type":"post","link":"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/","title":{"rendered":"Commercial Investing: 4 Strategies To Succeed"},"content":{"rendered":"\n<p>When it comes to real estate strategies, there are a wide range of risks that need to be considered. There are four common strategies that investors rely upon. The following guide is here to give <a href=\"https:\/\/www.zilculator.com\/blog\/7-surefire-ways-to-fail-as-a-real-estate-investor\/\">real estate investors<\/a> all of <a href=\"https:\/\/www.zilculator.com\/\">the tools<\/a> that they need to make the most informed decisions possible.<\/p>\n\n\n\n<div id=\"toc_container\" class=\"toc_white no_bullets\"><p class=\"toc_title\">Contents<\/p><ul class=\"toc_list\"><li><a href=\"#1_Core_Assets\"><span class=\"toc_number toc_depth_1\">1<\/span> 1. Core Assets <\/a><\/li><li><a href=\"#2_Core_Plus\"><span class=\"toc_number toc_depth_1\">2<\/span> 2. Core Plus<\/a><\/li><li><a href=\"#3_Value_Add\"><span class=\"toc_number toc_depth_1\">3<\/span> 3. Value Add<\/a><\/li><li><a href=\"#4_Opportunistic\"><span class=\"toc_number toc_depth_1\">4<\/span> 4. Opportunistic <\/a><\/li><\/ul><\/div>\n<h2><span id=\"1_Core_Assets\">1. Core Assets <\/span><\/h2>\n\n\n\n<p>If the investor is considering the downtown area of a larger market, core assets are a major part of the equation. While the cash flows are not going to be massive in these areas, investors will have access to new tenants on a consistent basis. These assets are at their most valuable during market downturns.<\/p>\n\n\n\n<p><strong>Related: <a href=\"https:\/\/www.zilculator.com\/blog\/what-is-the-cap-rate-and-why-is-it-important\/\">What Is The Cap Rate And Why Is It Important?<\/a><\/strong><\/p>\n\n\n\n<p>These purchases provide a great deal of value over the long haul as well. They are the assets that offer the most consistent return. These assets are geared towards the investor that is looking to buy and hold. Core assets are a key part of any consistent <a href=\"https:\/\/www.zilculator.com\/blog\/how-to-work-less-and-earn-more-with-commercial-investments\/\">real estate investment<\/a> strategy.<\/p>\n\n\n\n<p>When it comes to leverage, there is no way for an investor to receive more than 50 percent of the asset&#8217;s value. There is no way to overcome this fact. It is merely a function of the investor topping out the amount of money that they can receive when it comes to their monthly <a href=\"https:\/\/www.zilculator.com\/blog\/price-to-rent-ratio-in-the-70-largest-u-s-cities-2021-update\/\">rent<\/a> prices.<\/p>\n\n\n\n<h2><span id=\"2_Core_Plus\">2. Core Plus<\/span><\/h2>\n\n\n\n<p>These types of properties tend to be located outside of the downtown region in most instances. Maybe these properties are not located directly in the heart of the downtown district but perhaps they are in an area that has historical importance. The yield on these properties is often higher than the yield for core assets as well.<\/p>\n\n\n\n<p><strong>Related: <a href=\"https:\/\/www.zilculator.com\/blog\/how-to-prepare-properly-before-buying-your-first-property\/\">How To Prepare Properly Before Buying Your First Property<\/a><\/strong><\/p>\n\n\n\n<p>The tenants that\nare attracted to these assets will have good credit. However, they are not\ngoing to have the same level of credit worthiness as those who are attracted to\ncore assets. There is often a great deal of uncertainty. Landlords cannot rely\non the same tenants to continuously renew their leases. <\/p>\n<!-- WP QUADS Content Ad Plugin v. 2.0.17 -->\n<div class=\"quads-location quads-ad2\" id=\"quads-ad2\" style=\"float:none;margin:0px;\">\n\n <!-- WP QUADS - Quick AdSense Reloaded v.2.0.17 Content AdSense async --> \n\n\n<script type=\"text\/javascript\" >\nvar quads_screen_width = document.body.clientWidth;\nif ( quads_screen_width >= 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 1024  && quads_screen_width < 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 768  && quads_screen_width < 1024 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width < 768 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }\n<\/script>\n\n <!-- end WP QUADS --> \n\n\n<\/div>\n\n\n\n\n<p>Real estate\ninvestors can add extra debt onto these properties. However, it is important to\nremember that these properties also tend to be fairly conservative. The asset\nvalue is going to top out somewhere around 65 percent and this is something\nthat would be investors are definitely going to want to bear in mind.<\/p>\n\n\n\n<h2><span id=\"3_Value_Add\">3. Value Add<\/span><\/h2>\n\n\n\n<p>Simply put, these\nare properties that allow real estate investors to try and find the best\nvalues. Let&#8217;s say that there is a local retail plaza that has recently lost one\nof their most crucial clients. A value add investor will look to swoop in and\ntake the place of this anchor tenant before anyone else has a chance to snag\nthe space.<\/p>\n\n\n\n<p>These real estate investors <a href=\"https:\/\/www.zilculator.com\/blog\/do-the-wealthy-invest-differently\/\">do not invest blindly<\/a>, though. It is about more than simply locating a good deal. The investor will also have a long term plan for the location. They are usually looking for an opportunity to take a building from point A to point B. <\/p>\n\n\n\n<p>When it comes to\nthe leverage aspect of the equation, this is where a real estate investor will\nhave the chance to get a little more thoughtful. These are the sorts of\ninvestments that truly encourage investor creativity. The top real estate\ninvestors are able to receive at least 80 percent of the asset&#8217;s total value.<\/p>\n\n\n\n<h2><span id=\"4_Opportunistic\">4. Opportunistic <\/span><\/h2>\n\n\n\n<p>These investments are also known as &#8220;distressed&#8221;. In some cases, these properties are purchased by opportunistic investors and in other instances, developers are in the process of building new retail locations or apartment buildings. Investments of this nature are more risky in nature but they also offer investors the chance to maximize their return.<\/p>\n\n\n\n<p>Related: <a href=\"https:\/\/www.zilculator.com\/blog\/do-not-do-it-flipping-houses-is-not-for-beginners\/\">Do Not Do It! Flipping Houses Is Not For Beginners<\/a><\/p>\n\n\n\n<p>Many of the\nstrategies that are used by investors in the value add realm still apply here.\nFinancing is also much tougher to come by for investors who are looking to take\non opportunistic properties, so bear this in mind.<\/p>\n\n\n\n<p>These properties\ncannot be leveraged in most instances. Real estate investors often find that no\ndebt can be added to the properties while they are in their current state.\nInvestors who are looking to make the most out of these properties must have a\nstrong level of knowledge when it comes to the market in question. \n","protected":false},"excerpt":{"rendered":"<p>When it comes to real estate strategies, there are a wide range of risks that need to be considered. There are four common strategies that investors rely upon. The following&#8230;<\/p>\n","protected":false},"author":3,"featured_media":68773,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[179,63,65],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Commercial Investing: 4 Strategies To Succeed | Zilculator: Real Estate Investment Analysis blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commercial Investing: 4 Strategies To Succeed | Zilculator: Real Estate Investment Analysis blog\" \/>\n<meta property=\"og:description\" content=\"When it comes to real estate strategies, there are a wide range of risks that need to be considered. There are four common strategies that investors rely upon. The following...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/\" \/>\n<meta property=\"og:site_name\" content=\"Zilculator: Real Estate Investment Analysis blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/RealEstateAnalysis\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-12T13:55:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-24T12:14:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zilculator.com\/blog\/wp-content\/uploads\/2021\/01\/commercial-investing-4-strategies-to-succeed.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Zilculator\" \/>\n<meta name=\"twitter:site\" content=\"@Zilculator\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\">\n\t<meta name=\"twitter:data1\" content=\"Christine Winters\">\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data2\" content=\"3 minutes\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/#organization\",\"name\":\"Zilculator: Real Estate Analysis & Marketing Software\",\"url\":\"https:\/\/www.zilculator.com\/blog\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/RealEstateAnalysis\/\",\"https:\/\/twitter.com\/Zilculator\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.zilculator.com\/blog\/wp-content\/uploads\/2020\/07\/zilculator-logo-blue.png\",\"width\":522,\"height\":119,\"caption\":\"Zilculator: Real Estate Analysis & Marketing Software\"},\"image\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/#website\",\"url\":\"https:\/\/www.zilculator.com\/blog\/\",\"name\":\"Zilculator: Real Estate Investment Analysis blog\",\"description\":\"Articles about Real Estate Analysis and Real Estate Investment Software features.\",\"publisher\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/www.zilculator.com\/blog\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.zilculator.com\/blog\/wp-content\/uploads\/2021\/01\/commercial-investing-4-strategies-to-succeed.png\",\"width\":1500,\"height\":1000},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#webpage\",\"url\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/\",\"name\":\"Commercial Investing: 4 Strategies To Succeed | Zilculator: Real Estate Investment Analysis blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#primaryimage\"},\"datePublished\":\"2019-04-12T13:55:34+00:00\",\"dateModified\":\"2021-01-24T12:14:34+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/\",\"url\":\"https:\/\/www.zilculator.com\/blog\/\",\"name\":\"Blog\"}},{\"@type\":\"ListItem\",\"position\":2,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/category\/real-estate-analysis\/\",\"url\":\"https:\/\/www.zilculator.com\/blog\/category\/real-estate-analysis\/\",\"name\":\"Real Estate Analysis\"}},{\"@type\":\"ListItem\",\"position\":3,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/\",\"url\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/\",\"name\":\"Commercial Investing: 4 Strategies To Succeed\"}}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#webpage\"},\"author\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/#\/schema\/person\/0f7fd77dc8058d094e624f1026787e8a\"},\"headline\":\"Commercial Investing: 4 Strategies To Succeed\",\"datePublished\":\"2019-04-12T13:55:34+00:00\",\"dateModified\":\"2021-01-24T12:14:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#webpage\"},\"commentCount\":6,\"publisher\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#primaryimage\"},\"keywords\":\"commercial,property analysis,Real Estate Analysis\",\"articleSection\":\"Real Estate Analysis\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/#respond\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/#\/schema\/person\/0f7fd77dc8058d094e624f1026787e8a\",\"name\":\"Christine Winters\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.zilculator.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.zilculator.com\/blog\/wp-content\/uploads\/2020\/11\/christine_portrait-96x96.jpg\",\"caption\":\"Christine Winters\"},\"description\":\"Christine is an experienced Content Writer at Zilculator. She graduated at Kansas State University and writes articles mainly for real estate investors. Her experience derives from owning 5 rental properties in 2 different states. She is currently planning to start wholesaling real estate as well.\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/posts\/68371"}],"collection":[{"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/comments?post=68371"}],"version-history":[{"count":2,"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/posts\/68371\/revisions"}],"predecessor-version":[{"id":68839,"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/posts\/68371\/revisions\/68839"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/media\/68773"}],"wp:attachment":[{"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/media?parent=68371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/categories?post=68371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zilculator.com\/blog\/wp-json\/wp\/v2\/tags?post=68371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}