By Lauren Rosin, Founder of The Rosin Team at eXp Realty Real Estate Strategy for Executives
Read Time: 1 Minute
Not every real estate investment should aim for the highest return.
According to Lauren Rosin, the right target return depends on the role a property plays within your overall investment portfolio.
Four Investment Profiles
Core Stable, income-producing properties with lower risk and consistent cash flow. Ideal for preserving capital while generating reliable returns.
Core-Plus Well-performing assets with opportunities for modest improvements and appreciation. Designed to balance stability with growth.
Value-Add Properties that require renovations, operational improvements, or repositioning. Higher risk, but greater potential for long-term returns.
Opportunistic Development projects, distressed assets, or complex investments with the highest risk and the greatest upside potential.
Building a Balanced Portfolio
Rather than concentrating on one strategy, experienced investors often combine multiple return profiles to create a portfolio that balances stability, growth, and long-term wealth creation.
The ideal mix depends on your financial goals, liquidity needs, tax strategy, and investment timeline.
Bottom Line
The best investment isn't always the one with the highest projected return.
It's the one that serves the right purpose within your overall wealth strategy.
Sources
PREA, Real Estate Strategy Definitions NCREIF Property Index, Returns by Strategy Classification