You're an Active + Value Add Investor

Although this type of investor may also enjoy reading financial news, they also spend several hours each month watching over investments, and they are often first movers.

This person might want to be involved in every aspect of the investing experience.

Overall, this kind of investor usually takes a more hands-on approach with their investments than the average person. The active investor might be emotionally invested in the process but perhaps restrained enough to not be checking too regularly.

Other traits of the active investor might include:

  • Likes to own only select assets
  • Wants full control over his or her investments
  • Needs to know what investment terms mean
  • Seeks to beat the market

The active investor might have a desire to learn how a property operates and an interest in learning about macroeconomic events—and, perhaps most challenging, they have the fortitude to not simply sell when the market is trending down.

Value Add Asset: Value-add investors seek to generate heightened yields by harvesting untapped revenue potential or creating value through property upgrades. Although the premise has been around for ages, value-add investment is sweeping the multifamily markets. With value-add investments, you get your distributions sooner, the project is more de-risked due to you already having an existing cash flow, but the project level returns tend to be slightly lower.