Frequently Asked Questions
See the answers to these frequently asked questions (FAQs). Click the question or the plus sign to see the answers.
1. What are the types of commercial real estate investment? Core, Core-Plus, Value Add, and Opportunistic.
- Lower risk—lower return. The term “core property” tends to define those investments seeing regular cash flows. The properties are in established communities and have long-term, dependable tenants.
- Lower risk –higher return based on reducing risk in lease renegotiation, extension or building fixes. “Core” and “Core-Plus” properties generally are in established neighborhoods and have a tenant base that is known and stable.
- Buying to Improve—Lower Risk. Value Add – Buying a property and improving that property in some way defines this approach, which can involve placing new tenants or even replacing management onsite.
- High risk-high reward. An “opportunistic/development these properties require remodels and often redesigning spaces.
2. What are simple ways to invest in real estate?
1. Rental Properties
2. Real Estate Investment Groups (REIGs)
3. House Flipping
4. Real Estate Investment Trusts (REITs).
3. What is the 5-rule in real estate investing?
Multiply the value of the home by 5%, then divide that number by 12 to get your breakeven. If the monthly rent on a comparable home is below that number, then look to rent. If the monthly rent is higher than the breakeven point, it may be time to buy.
4. What is the BRRRR method for those looking at real estate investment?
Buy, remodel, rent, refinance, repeat (BRRRR) works for a fixer-upper project with short-term finance options.
5. How do I begin the process of real estate investment with Blue 52 Properties?
Please fill out the finance form from Coco Capital linked on our site and we will contact you directly.
