When it comes to investors, lenders, and brokers, property classifications are a common topic. These professionals rank properties based on various reasons and communicate to each other the worth of the property without going into much detail. These classifications are normally ranked as Class A, Class B, Class C. Real estate investors such as Mindful Capital use these classifications to select the best real estate properties for clients. Each of the different classes offer different types of risks and returns.
Most investments that fall within this category are your newer properties. Most are built within the last 10 years. Another way a property falls into this category is if it was completely renovated and has improved in value. Most of these properties are low maintenance, possess higher-grade materials for the buildings, and modern amenities. Due to this, they are a much higher price point compared to the other lower classes.
Class B investments are just Class A properties that are a step down in every aspect. These are some of the most sought-after properties due to them only being 11 – 30 years old. Not only that, but they offer the ability to become a Class A property with well-managed decisions on renewal and renovation. There is a ton of potential in Class B properties.
Finally, there are Class C properties. These are even older than Class B properties. These have noticeable visual deteriorations and are going to have a much lower value. Many of these buildings are located in areas that aren’t well taken care of and are very high-risk investments. They usually end up requiring a ton of maintenance which would eventually flip the investment upside-down.
The Mindful Capital Group has a reputation that puts us a step above the rest. What makes us so special, is that our team firmly believes in the fact that whatever is best for our clients, is best for us. With well over a combined amount of 50 years of experience, our team has a vast amount of experience in the real estate market. Having experience and being able to notice trends that may end up being profitable is key in having a successful portfolio. The Mindful Capital Group is proud to offer our investors the knowledge and experience of years of success in the real estate market.