What I like to do is I like to buy properties that you can immediately bump up the value, and then it goes up gradually from there, right? So imagine you buy, let's go simple math, right? You buy $100,000 property that you can just make look a little bit nicer, and now it's worth 150.

Maybe you got to put a little money into it or whatever. Let's say now it's worth from 100. Now it's worth 150. Well, now it appreciates from 150 upward. It's not starting at the 100. So you immediately started to this new high level, and then it goes from there.

So that's one of my favorite strategies. We call that value-add investing. It's where you immediately add value. That is not what REITs do, and that's why REITs get a lower return. It's because REITs typically will just buy a property that's already there, and they're just banking on 3% per year rent raises to make all of their wealth.