Value-Add Real Estate

Properties that tend to provide growth potential and are associated with moderate to high risk. Value-add buildings often have occupancy issues, management problems, deferred maintenance or a combination of these. Value-add properties may be acquired with up to 80% leverage at purchase. Value-add properties require substantial oversight as well as significant real estate investing expertise and operating acumen to produce returns commensurate with risk taken. 

Value-add properties typically have a medium to high risk-reward profile and return potential can be enhanced through optimizing asset management.