Fielding Investments Sheds Light on 3 Common Commercial Real Estate Mistakes

Fielding Investments is shedding light on some of the most common mistakes in the industry.

Fielding Investments is shedding light on some of the most common mistakes in the industry.

Fielding Investments knows that the commercial real estate industry can oftentimes be confusing and hard to understand. With so many terms, equations and so much money, it can be easy to make a mistake every once in a while. It is for this reason that the experts at this leading commercial real estate investment company have taken the time to share three mistakes that are commonly made and how they can be avoided.

  1. Failing to do one’s homework on a property.

When considering commercial real estate investment, it is of the utmost importance to do intensive due diligence. There are many different things that need to be considered including, but not limited to: the physical condition of the property itself, zoning, land-use, insurance, financing, tax laws, environmental conditions and so much more. Without the guidance of a seasoned veteran in the industry, beginners can be at great risk.

  1. Borrowing too much.

Few investors will have enough money to pay for the full investment of the property on their own and even if they do, it is usually not prudent to invest in one asset alone. Oftentimes, commercial real estate investing firm Fielding Investments suggests that first time investors seek partners with whom they can share risk and avoid seeking too much leverage for their purchase. While seasoned professionals do tend to borrow a significant portion of many acquisitions, they do so only after having established credibility with the credit markets, thereby allowing them to borrow a non-recourse basis (the investor does not personally guarantee the full borrowings, generally only being responsible for traditional “carve-outs”).

  1. Not knowing one’s market.

Perhaps the biggest mistake that investors make is not doing enough research and, therefore, not fully understanding the intricacies of that specific market. Fielding Investments has always maintained that individuals should invest in properties in their immediate area, because they have inside information that simply cannot be gained by virtually any other method. By living and working in these communities, investors can become knowledgeable about developments and plans for parts of the community including any efforts that are being made to improve specific areas with better roads, sewer and water infrastructure, and any new developments that are being considered. This gives investors a real advantage over out-of-state commercial real estate buyers.

For more information about commercial real estate investment and how to succeed in the industry, contact Brian Fielding today http://brianfielding.com.

 

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Brian Fielding Discusses the Differences when Investing in Commercial Real Estate vs. Residential Real Estate this summer

With investors looking for property this summer, commercial real estate advisor Brian Fielding of Fielding Investments looks at the pros and cons of commercial real estate vs. residential real estate.

With investors looking for property this summer, commercial real estate advisor Brian Fielding of Fielding Investments looks at the pros and cons of commercial real estate vs. residential real estate.

Brian Fielding of Fielding Investments has always maintained that one of the best moves that anyone can make to secure a steady stream of income is to invest in commercial real estate. While many people feel that investing in residential real estate is the answer, Brian Fielding is sharing this information about the different challenges and advantages each investment presents.

  1. Initial investment
    When it comes to investing in commercial real estate, it is important to note that not every bank will work with commercial real estate investments. Most major lenders will, but they will most likely want a larger down payment than would normally be required for an investment in a residential property. Brian Fielding shares that for a commercial property, a down payment of 30 percent or more is usually required; much higher than what it would be for an investment in residential real estate.
  1. Duration of the lease
    When investing in residential real estate, the time that the lessor is on the property can range from several months to several years. While this can be a steady cash flow for the duration of the lease, finding another tenant can be a long and arduous process. However, commercial real estate leases generally have a longer duration of a tenancy. In fact, in triple-net leases, the term of the lease is usually for 15 years or more, providing a much more stable and reliable cash flow reveals commercial real estate advisor Brian Fielding.
  1. Increased cash flow
    Besides having longer leases, which will automatically help the stability of the investor’s cash flow, commercial real estate investment also offers another perk. Because there are more tenants in a multi-unit commercial property than there are in a single-family household, the amount of money that an investor will collect is increased as well.
  1. Diversified risk to an investor’s portfolio
    When investing in residential real estate, losing a tenant can be devastating because there is only one tenant to collect monthly rent from. Brian Fielding of Fielding Investments shares that because of the multi-unit nature of most commercial real estate investments, losing one or two tenants will not be as much as a problem as it would be to a residential real estate investor. Therefore, investing in commercial real estate helps to diversify the risk in an investor’s portfolio.

For more information and tips on investing in commercial real estate today, visit property investment advisor Brian Fielding’s website at http://brianfielding.com.

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Brian Fielding of Fielding Investments reveals that there are few wiser investments than commercial real estate.

Whether diversifying a portfolio or looking for a profitable venture, investors should be confident that acquiring commercial real estate property can be a safe and advantageous decision for many reasons that Brian Fielding, of Fielding Investments   

  1. Return on investment: When looking at how profitable the investment can be, commercial real estate has advantages both because it will increase in value over time, and because it can produce income for the investor on a regular basis. Historically, commercial properties have appreciated more than inflation all the while delivering a fairly reliable return. With tenants, investors should expect a monthly income that they might not see with other investments. Brian Fielding also reminds investors that they may well see their property increase in value quite substantially in the relatively near term with the promising prospects for the economy that have been widely reported.
  2. There is diversification within the market: For those looking to diversify their portfolio, commercial real estate is an ideal choice because even within the field there is diversification. Each type of commercial real estate has its own factors. Office spaces, for example, may depend on the job market, hotels depend on travel frequency, and retail spaces on other spending trends. Investing in a number of different properties in commercial real estate that serve different purposes can help diversify a portfolio according to Brian Fielding.
  3. They are safer investments: In comparison to other investments types, there is consistent intrinsic value to a piece of commercial property. This is because the potential for the investment can be improved simply by the signing of quality tenants. Additionally, the structure itself as well as the land on which it rests can appreciate if one has bought wisely. Brian Fielding points out that the result of these factors is that there will always be an opportunity for significant return on the investment.

Investing wisely can help individuals prepare themselves for their future financial security, and commercial real estate is one of the smartest and safest investments. Brian Fielding stresses the importance and advantages of understanding and considering commercial real estate investment. For more information, please visit http://fieldinginvestments.com/. 

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Brian Fielding Offers Strategies for Commercial Real Estate Investing in 2015

For those who are considering a commercial real estate investment, Brian Fielding shares a number of techniques for making an advantageous purchase.

For those who are considering a commercial real estate investment, Brian Fielding shares a number of techniques for making an advantageous purchase.

For those looking for wise investments at the srest of the year, Brian Fielding, an expert in the field of commercial real estate, highly recommends investing in a quality real estate property. The ongoing potential for a return on a commercial real estate property is favorable, as is the continual growth of the economy. For these reasons, among others, many should begin seeking their ideal commercial real estate purchase. First, however, Mr. Fielding provides some crucial points for one to consider in order to find a great deal and facilitate a strong purchase.

  1. Devise a plan: It is important that when considering a property the investor takes into account all of the factors that will determine if the purchase should be made. Brian Fielding reveals that these factors will include how much the investor has to spend on the purchase as well as how much they may expect to make. The number of spaces the property has to lease and how many of these are currently vacant are also factors to consider as these may impact the return on the property.
  2. Know what to look for: When observing a property, it is essential that an interested buyer is able to notice the small things that will make or break the deal. If, for example, they fail to notice the repairs that the building requires, they may end up paying more upfront than they expect, or may have to wait longer before they can begin acquiring tenants. Brian Fielding reveals that keeping an eye out for an eager seller is also an important strategy as they will be more willing to let the property go at a lower price.
  3. Know the essentials: Commercial real estate is a unique way to invest, and requires a different knowledge base than even residential real estate. Knowing how to evaluate the property, what different terms mean, and what the newest trends in the market are will help an investor make the right decisions about spending their money. Seeking the advice and knowledge of an expert in the field such as Brian Fielding will also help novices find the information that they need to be successful in the market.

Investing wisely in commercial real estate is a great way to ensure a strong return in the future and, by using the expert advice of Mr. Fielding as a guide, individuals are certain to make informed purchases. For more of the latest information on the commercial real estate market visit http://brianfielding.com/.

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Brian Fielding Offers Advice for Investors Considering Commercial Real Estate Properties

Fielding Investments

Fielding Investments

There are many factors that must be considered by an investor when they enter a new market. Brian Fielding, an experienced and gifted mind in the industry of commercial real estate and the founder of Fielding Investments, offers the following tips to make sure that investors can make well-informed decisions that will in turn lead to worthwhile investments.

  1. Consider properties that need work: While new investors may be hesitant to purchase a property that needs to be renovated, Mr. Fielding believes that these pieces of commercial real estate actually have the most potential. Additionally, these assets can usually be purchased for a lower price and thus have more room for profit once they have been improved upon. However, the buyer must take time to find out exactly what the property is lacking. Doing this will allow him to negotiate a price that lets him afford the needed property improvements.
  2. Commit to long term ownership:Brian Fielding says that in most cases, properties give an owner the biggest return over a long period of time. Unfortunately, some investors may try to dump out of a property the moment the market sees any kind of downturn, and the result is that they lose a large percentage of their investment. If, however, the owner is prepared to see it through these tough times, they can make it past the downturn and wait until the market is sound before they sell their real estate for a profit. Additionally, the longer an owner holds on to the property, the longer they can be making money off of tenants. Remember, even when the value of the property falls, the investor can still be making rental money.
  3. Decide how to manage the property: Many of those who lease residential real estate are accustomed to dealing directly with their tenants. However, when an investor has purchased a property with a number of available spaces to lease, or has acquired several different properties, Mr. Fielding believes that they should consider hiring a full time manager. While the owner can certainly manage the property himself, he must understand the personal commitment that it requires, and should consider all his options before the purchase and decide if he will hire a manager or not.

Brian Fielding is an expert in the field of commercial real estate and he believes that many individuals can benefit from investing in a commercial real estate property. However, he knows that for these investors to be successful, they need to be knowledgeable about the industry, and that is why Mr. Fielding has made it his mission to share his adept knowledge with investors. To learn more about the commercial real estate market visit www.brianfielding.com. 

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Commercial Property Maintenance Tips from Brian Fielding

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Fielding Investments provides information to help these investors maintain their properties in the coming year

There are many things that investors must keep in mind when they are purchasing a piece of commercial real estate, but their learning should not end when they find the property that they want. These investors must know how to properly manage their purchased properties to make sure that they can maintain a profitable investment. Here, Fielding Investments provides information to help these investors maintain their properties in the coming year. These tips are especially useful to first time investors.

  • Keep tabs on utility usage: Some states are starting to require buildings of certain size to report their energy usage. Properties in California, for example, may be held to a new state law that requires such reporting. To comply with these laws, it is important that owners get this information from their clients when the tenants pay their own utility bills directly to the power company. Having established open relationships between tenant and landlord will help this be accomplished.
  • Keep track of dates: There are many things that a commercial real estate owner must do each year, as well as deadlines that they must keep careful track of says Brian Fielding. He advises that these investors take the time early in the year to lay out these dates, from the expiration of lease agreements to payment due dates, and do it in such a way that they can easily keep track of them all. Doing this will help the owner keep tabs on these dates and avoid missing deadlines.

Keep agreements up to date: When a property owner has tenants, they need to have up to date agreements in writing with all of these tenants. Brian Fielding shares that it is smart for owner operators to even have an agreement for themselves as a tenant so that they may keep policies consistent with all of their tenants.These should all be updated regularly reminds the expert.

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Brian Fielding Reveals Tips on Understanding the Types of Leases Found in the Pursuit of Investment Properties

Stamp of an investment property lease getting approved

Property investment advisor shares information about understanding the types of leases that investors will find when they search for properties to invest in.

As investors look to compare the various investment opportunities that can be found on sites such as Loopnet, they should be aware that oftentimes, these offerings are not entirely forthright in terms of the statement about investor obligations pursuant to the offered lease.. Some brokers opine that a lease is NET to the landlord without emphasizing that the term Net can be NNN, NN or N.

NNN suggests “pure net” leases that place the burden for any sort of problem onto the tenant while NN, also sometimes referred to as “double-net,” leaves the burden of some site and structural responsibilities upon the investor. A savvy investor not only fully understands the limitations of each offering shares property investment advisor Brian Fielding, but factors in the cost to have those landlord obligations addressed by professionals at the tenant location, which often is not at all proximate to the investor’s home/office.

The greatest problem with N and NN leases is that it is often difficult to project operating costs for a great number of different tenant operations. Not only does the nature of the tenant business create varying demands of the site, but an investor who does not work or live near to the property will have to retain persons to provide the oversight that insures that assets are not being wasted through abuse.

There are a variety of so called net leases: double-net or triple-net being the most common offerings made to non-operating investors. The double-net lease suggests that the tenant is responsible for paying all of the utilities, taxes, insurance, and maintenance costs associated with the property, but the owner assumes responsibility for any and all expenses that have to do with structural elements of the land and building shares property investment advisor Brian Fielding. The much preferred triple-net lease generally ascribes full responsibility for all elements onto the Tenant. It is for that reason that most NNN tenant offerings tend to be long term leases [often 15 years or longer] to regionally and nationally recognized tenants who have the wherewithal to handle a broad spectrum of issues that arise in the ownership and management of commercial properties.

Brokers advise that there are certain investors who are seeking the equivalent of a creditworthy bond. Those parties are often coming out of a previous investment through IRS 1031 tax deferment and tend to care less about long term revenue growth. Best known among those offerings are Walgreen’s and CVS who have excellent credit but often do not have any escalation clauses in their lease and provide for unilateral options to renew at the discretion of the Tenant. Other, sometimes less creditworthy tenants offer more traditional lease forms where there are escalation provisions within the term and on all renewal options.

Most serious investors in commercial real estate consider the Net Present Value of the stream of income they will receive, ascribe a risk factor to the creditworthiness of the Tenant and then “guestimate” the likely value of the property and building at the end of the lease term. It is the investor who contemplates the numerous factors involved more carefully that tends to be most successful in his reaching his return on investment goals.

“If the Investor is willing to consider anything short of a NNN lease, he should be very careful to properly estimate all costs he is likely to incur dealing with those items not fully covered by the lease, and then re-compute the real cap rate he is likely to enjoy,” shares Brian Fielding. “Underestimating the challenges and costs to find a reliable and knowledgeable person to address some of the complex and costly issues involved in handling structural, roof and site issues can be devastating.”

For more information about the benefits of net leases and hot-topics of discussion in the commercial real estate industry, visit http://brianfielding.com.

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Brian Fielding Provides Advice on How to Form a Partnership for Buying Commercial Properties

Real Estate Agent Handing Over the Keys in Front of Vacant Busin

Property Investment Veteran Brian Fielding knows that many people who decide to go into real estate investment do so in some form of partnership. The legal definition of a partnership is “a legal relationship existing between two or more persons who are contractually associated with each other as joint principals in a business or investment venture.” Of course, partnerships exist in many forms, most commonly today in the form of a limited liability company, also known as an LLC.

Investors often enter into partnerships to share in exposure and opportunity, but also to complete the credentials necessary to affect a purchase. Few people have all of the knowledge, the capital and the various resources to complete the purchase of a commercial asset. The sharing of responsibility and risk in any one property will often allow the savvy investor to diversify and acquire a balanced portfolio of quality commercial properties.

“You should always seriously consider whom you plan to go into business with,” shares property investment veteran Brian Fielding. “There is something to the old line that the fastest way to make an enemy is to loan them money or enter into a partnership.”

This is why it is important to choose one’s partner wisely. Investors will want to find someone who is detail and goal-oriented, is honest, and does not micro-manage or steamroll the other person’s opinions. The most effective partnerships tend to have persons with different skills and assets – it is the effective sharing process that is the mark of the most successful ventures.

Whenever investors get into a partnership, it is always important to have formal documentation and ensure that the partnership complies with local laws. Retaining a knowledgeable attorney is a “must,” but check references because some otherwise excellent lawyers are not dealmakers.

There are few things that will tear a partnership apart or kill a deal more than hardheaded attorneys who are so enamored with their knowledge that they forget a deal can be made only through cooperative negotiation.  A good attorney will happily explain the rationale for every provision and will build an agreement that protects the parties in every “worst-case scenario” shares property investment veteran Brian Fielding.

Remember that a legal agreement is there to protect the parties when things go wrong. Partners in a successful venture rarely note the various provisions in the partnership agreement unless there is a dispute. Make certain that the attorney has included a dispute resolution provision that allows for timely and inexpensive decision-making. Property investment veteran Brian Fielding suggests including a provision for mediation by a qualified professional over time-consuming and expensive litigation.

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Brian Fielding Shares Bank Trends for 2015 Commercial Real Estate Investors

Brian Fielding is a professional real estate advisor.

Brian Fielding reveals that trend predictions for the 2015 commercial real estate market are already showing some promising results. Businesses continue to recover from the recession, and are actually starting to grow and expand as the economy recovers and spending increases. Many small businesses are reaching a point where they need to move on from being a home or online business and want a concrete space to fit their growing staff. Additionally, businesses that have one of two locations see the possibility of a number of new spaces. Brian Fielding knows that this is resulting in a demand for commercial spaces and in turn investors will see a drop in vacancies and a higher return on their investment.

These trends for the New Year are certainly making now an appealing time to invest, but Brian Fielding knows that some are held back by the large amount of upfront capital needed to make a commercial real estate purchase. However, banks trends too are becoming more favorable for those who want to purchase commercial properties. Banks are experiencing a decrease in loss rates, as well as a number of realized commercial real estate loans, making these types of loans a wiser choice for banks and allowing individuals a better chance of obtaining these types of loans. Additionally, as banks compete for these clients, Brian Fielding shares that the conditions of these loans will be more favorable.

After years of the recession, the real estate market is truly bouncing back, and now is the opportune time to make a commercial real estate purchase. Commercial real estate is in high demand, and as the economy continues to recover, and more businesses continue to grow and seek new spaces for their companies, real estate investors will see a number of new opportunities to acquire quality clients and see an excellent return in their investment. With the promising trends and expert information on the market from Brian Fielding, feel confident in your commercial real estate investment in 2015.

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Brian Fielding Shares Tips for Investing in Commercial Real Estate

Learn To Property Invest in Real Estate

Costs & Benefit Analysis makes successful investors says Brian Fielding

Brian Fielding of Fielding Investments is a 40-year veteran in the industry who knows that there are many factors that are involved in a great commercial real estate deal. From doing one’s homework for the property and the area that it is in to several other factors. Here are some of the best pieces of advice that Brian Fielding can offer to those who are considering investing in commercial real estate.

Make sure your investments will make a profit.

While there are many variables to commercial real estate investment, the end goal is always to make a profit shares Brian Fielding. It may be tempting to acquire a lot of properties at one time. Without making the proper calculations, however, more and more properties can put a large drain on investor’s finances. Buying too much too quickly can cause you to have some oversight on the more meticulous and detail-oriented items that can really cost you money in the long run shares Brian Fielding. Slow and steady definitely wins the race in the commercial real estate industry.

Understand how much you need to spend.

On top of your initial investment, you also need to be prepared for other expenses shares Brian Fielding. Commercial real estate investments are usually for a longer period of time than other property investments, meaning that you will need to think about setting money aside for repairs. Brian Fielding of Fielding Investmentsshares that roofs need to be replaced every 15-25 years and HVAC systems more than likely need to be replaced every 10-15 years as well. Other structural improvements such as pavement repairs, preventative maintenance and so much more will need to be addressed as well, so being prepared for these expenses will definitely be the investor’s advantage.

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