An article detailing possible investment strategies and the differences between them
Before choosing an investment you should decide what you are looking to achieve and what is important for you:
- If you are looking for less risk and steady dividends you should focus on low risk investments with long term leases or good diversification that are located in strong markets.
- If what matters to you is high returns at the end of the investment term and you aren’t concerned with ongoing dividends you should look for higher risk options such as development and value add projects.
- If you are interested in a combination of value add and ongoing cash flows you should focus on value add projects that completed most of their value add process and are already distributing operating cash flows.
- No matter which investment you go for, it is crucial to decide on any other details that are important such as whether to invest in your hometown or in a distant market about which you’ve heard good things. You can also focus your investments in a sector that appeals to you like student housing or nursing homes.