The commercial real estate is among the most robust industries in the business world. Investors need to keep abreast of the trends in the market. Although this kind of information is available from many quarters, the challenge remains in its reliability. It is therefore essential to seek information from people with professional intellect and integrity.
One such person is Christopher Linkas, an experienced investment expert. His vast experience in the global investment scene provides him with the right knowledge and skills to provide reliable information in real estate investment. Christopher offers a breakdown of real estate types that are comprehensible to most people.
In essence, Christopher categorizes commercial real estate into Core Properties, Value Add Properties, and Opportunistic Properties. His classification is based on the risks and the rewards.
Core Properties involves purchasing properties that are already generating a steady cash-flow. Therefore, they require minimal improvements. The buyer can begin to reap benefits immediately after acquiring them. Core properties are associated with low risks. Christopher recommends this type of property to those planning to hold them for long periods or capital preservation.
The second type, Value Add Properties, involves properties with some cash-flow but require improvements for better returns. Simply, the property has not achieved its full potential. According to Christopher, this type is associated with moderately higher risk than core properties. Therefore, he recommends this type to those who are seeking a balance between risk and reward. The rationale is based on the fact that the instituted improvement plan may fail.
The third type is referred to as Opportunistic Properties. The property is characterized by a possibility of high returns and high risks. It comprises of property that does not have current means of cash-flow. Significant improvements are thus required for the property to achieve full potential and good returns. The high-risk nature comes with the likelihood of failure of enhancements, which may have consumed immense resources.
The explanation by Christopher makes the commercial real estate sector less complicated. It enables potential investors to analyze investment opportunities in the industry objectively. Interestingly, his first job after college involved valuing loan collateral. It provided him with a profound understanding of risks taken by investors.
Who is Christopher Linkas?
Christopher Linkas is a man known to many thanks to his top shelf investment advices. He is a man who is highly proficient in investment matters having been previously part of the finance sector. Today Linkas is in real estate and when he combines his previous experience with his vast knowledge in the sector he currently serves, he does nothing but bring bursts of good investment advice to anyone seeking success. Today he is in London and manages a multi-million investment group with markets in the UK and Europe.