Noah George - Real Estate Strategies Investors Should Know About An ideal real estate investment is one that generates enough rental income to pay for the operating expenses and mortgage payment, and still leaves you with money in the bank at the end of each month. There are several ways for real estate investors to reach the goal of positive cash flow. The path to financial freedom begins with choosing the right real estate investing strategy. Main Types of Real Estate Investing Strategies There are three main strategies for investing in real estate: Core Value Add Opportunistic Each strategy works a different way to help you achieve success as a real estate investor. The balance between risk and reward is different, and they are also a key tool you can use to narrow down your options when choosing what, where, when, and how to invest in real estate. Core Core investments generate predictable returns from newer property leased to qualified tenants. Core real estate has the lowest level of risk but also the lowest returns, in exchange for the reduced amount of uncertainty. Property is rated as Class A and is found in neighborhoods and school districts with the highest ratings. Value Add Value Add property allows investors to increase cash flow or market value by doing strategic updating, adding square footage, or creating incremental revenue streams in small multifamily property. Risk and reward are evenly balanced in value add investments due to the potential for increasing returns. Class B real estate is found in neighborhoods and school districts with average to aboveaverage ratings. When located on the fringes of Class A areas, investing in Class B property may become Class B+ or greater as the surrounding areas continue to grow and gentrify.