Value-added funds take on less risk than core funds by purchasing only properties with very low vacancies and stable tenants.

Question

Quizplus · Accepted Answer

Value-added funds typically take on more risk than core funds by purchasing properties that require some level of improvement or repositioning in order to increase their value. These properties may have higher vacancy rates or less stable tenants, which can increase risk.

Value-Added Funds Take on Less Risk Than Core Funds by Purchasing