When it comes to how most real estate investors think about risk and return, their strategies tend to fall into one of four categories.
大多数房地产投资者看待风险和收益的策略往往分为四类。
Objectives
- Learn the characteristics of each category in the risk/return spectrum.
- Note the typical returns expected by investors for each category.
- Decide which strategies best suit your objectives.
概括全文
- 了解风险/收益谱中每个类别的特点。
- 注意投资者对每个类别的典型预期回报。
- 决定哪些策略最适合您的目标。
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As real estate investors, we’ve got a myriad of options to consider, everything from our preferred property types and markets to how we structure ownership and source capital. When it comes to how most investors think about risk and return, however, our strategies tend to fall into one of four categories: core, core plus, value-add, and opportunistic. These categories form a widely accepted and understood framework for classifying real estate investments by their risk/return profile. Let’s consider each category in the risk/return spectrum.
Core: Keeping It Simple
Core is the least risky investment strategy, although it tends to have the lowest returns. These are class A properties in excellent condition and located in the best markets. They consistently operate at stabilized occupancy and always achieve market rents. Core can be applied to any property type, both those leased to individuals and businesses. For the latter group of tenants, they’re typically nationally known companies with strong credit ratings and long-term leases. All of this results in a very stable and predictable return for investors, typically somewhere between a 6% and 10% IRR.
Internal rate of return, or IRR, is an investment metric that factors in all income during the holding period and any profit realized when the property is sold. If you’d like to take a deeper dive into IRR, watch our video on the topic.
Core Plus: A Little More Adventurous
If you’re looking for greater returns and you’re willing to take on a little more risk, core plus might be the right strategy for you. Core plus is slightly inferior to core, at least concerning characteristics such as occupancy, tenancy, and condition of the improvements. The basic strategy here is that you buy a core plus property with the intention of turning it into a core property. Accomplishing this might entail some combination of minor repairs and upgrades, better quality tenants, stabilized occupancy at market rents, and management efficiencies. The property will not only benefit from greater income during the holding period, but it will also likely trade at a lower cap rate at reversion. This tends to give core plus a boost, typically putting IRR at somewhere between 8% and 12%.
Value-Add: Taking It up a Notch
If you want still higher returns and are willing to take on more risk, value-add properties may be an option for you. In some ways, value-add copies the techniques used for core plus. What’s different is the amount of work required. Value-add properties tend to be in worse condition and less professionally managed. When compared with newer properties in the market, they feel outdated, lacking in the finishes and amenities that tenants have come to expect. As a result, occupancy rates may be well below stabilized levels, and the units that are leased fail to achieve market rents.
Value-add investors acquire these properties, ideally at below replacement cost, and implement a detailed plan for repairs, renovations, and upgrades. This tends to reposition the property in the market, giving it back its competitive edge. It’s then leased back up to stabilized occupancy at market rents that are comparable to core plus or maybe even core properties. This implies a much greater sale price at reversion. The annualized IRR for a value-add deal typically ranges between 10% and 20%.
Opportunistic: Only for the Brave
The last category, opportunistic, is not for the faint of heart. However, if you’re willing to take on more risk, it offers up the potential for an outsized return. Opportunistic investments are typically either ground-up development projects or down-to-the-studs, complete renovation of existing buildings, ones that may include structural repairs and even adaptive reuse. Existing buildings in these scenarios are sometimes acquired through distressed sales. There are typically few, if any, tenants in place at acquisition. This means you’re not likely to see any returns early on, maybe not even the first couple of years. Most of the income will be generated late in the holding period, leading up to and culminating in disposition of the property. When annualized, IRR for an opportunistic investment can exceed 20%, and sometimes by a significant measure.
Hopefully this article has given you the insight needed to select a strategy, or a combination of strategies, that’s best suited for growing your wealth.
作为房地产投资者，我们有很多选择要考虑，从我们应该优先选择的物业类型和市场，到我们如何安排产权结构和获取资金。然而，当大多数投资者考虑风险和回报的关系时，我们的策略往往会将其分为以下四类：核心（Core）、核心增值（Core Plus）、价值增值（Value-Add）和机会型（Opportunistic）。这些类别构成了一种被广泛接受和理解的架构，用于根据风险/回报概况对房地产投资进行分类。
让我们考虑风险/回报分类中的每个类别。
核心： 保持简单
核心（Core）是最低风险的投资策略，尽管它往往具有最低的回报。这些是位于最佳市场中状况优异的A类物业。它们始终以稳定的入住率运营，并始终实现市场预期租金。核心策略可以应用于任何物业类型，包括租给个人和企业的物业。对于企业租户来说，它们通常是具有强大信用评级和长期租约的全国知名公司。所有这些都使得投资者获得非常稳定和可预测的回报，通常在6%到10%的内部收益率（IRR）之间。
内部收益率（IRR）是一种投资度量指标，考虑了持有期间的所有收入和在出售物业时获得的任何利润。如果您想更深入地了解IRR，可以观看我们的视频或文章。
核心加强版：更冒险一点
回到风险/回报分类，如果您正在寻求更高的回报，并愿意承担更多一点的风险，核心增值（core plus）可能是适合您的策略。核心增值在某些方面略逊于核心，至少在入住率、租户和物业状况等特征方面是如此。这里的基本策略是购买一个核心增值物业，以将其转变为核心物业。实现这一目标可能需要进行一些小维修和升级、吸引更高素质的租户、以市场租金稳定入住率以及改进管理效率。物业不仅在持有期间获得更高的收入，而且在出售时很可能以较低的资本化率交易。这往往提高了核心增值的回报，通常将IRR定在8%到12%之间。
增值： 更上一层楼
如果您希望获得更高回报并愿意承担更多风险，增值物业可能是一个选择。在某些方面，增值物业采用了核心增值的策略。不同的是所需的工作量。增值物业往往状况较差，管理不够专业。与市场上的新物业相比，它们显得过时，缺乏租户期望的装修和设施。因此，入住率可能远低于常规水平，并且已出租的单位无法达到市场正常水平的租金。
增值投资者以低于重建成本的价格收购这些物业，并制定详细的修复、翻新和升级计划。物业在市场上会重新定位，恢复其竞争优势。然后，它以可与核心增值物业甚至核心物业相媲美的市场租金将入住率稳定提升。这意味着出售时有更高的销售价格。增值交易的年化IRR通常在10%到20%之间。
机会主义： 只适合勇敢者
最后一个类别是机会主义（opportunistic），这并不适合抗风险能力差的投资者。然而，如果您愿意承担更多风险，它提供了巨大的回报潜力。机会主义投资通常是从零开始的开发项目，或者对现有建筑进行完全的拆除翻新，可能包括结构修复甚至内部全方位改造。这类物业通常是财务困难的情况下被收购的。物业在被收购时通常几乎没有租户存在。这意味着您可能在初期甚至前几年都不会看到任何回报。大部分收入将在持有物业的末期产生，并在物业出售时达到高峰。机会主义投资的年化IRR可以超过20%，有时甚至更高。
As Creative Content Manager, Evan leverages over 20 years of experience in the commercial real estate and banking industries to bring insightful information to our community of lenders. He's also an active member of FIABCI, the International Real Estate Federation, currently serving as Vice President of its World Council of Developers and Investors, as well as President of its USA chapter, FIABCI-USA. 作为彼岸的创意内容经理，埃文利用自己在商业房地产和银行业从业的20多年经验，为我们的网站提供有见地的信息。他还是国际房地产联合会 FIABCI 的活跃成员，曾任FIABCI全球专家委员会秘书长，现任FIABCI美国分会FIABCI-USA主席。