Brian Fielding Presents Tips for Maintaining Commercial Real Estate Properties

As commercial real estate owners look at the rest of the year, they want to make sure that it is one that is prosperous. One of the best ways to ensure that they are able to do this is by ensuring that the property they have so carefully chosen and invested in is well-managed.

Whether an owner is a tenant as well or if they own a property that is exclusively rented out to other parties, there are many steps that they must take in order to make sure that they are properly caring for both the property and the tenants. To help these investors, especially those who are facing their first year as commercial real estate owners, Brian Fielding offers some suggestions for how these owners can maintain their properties. 

  1. Update all leases: Brian Fielding shares that it is essential an owner have current lease agreements with all of his or her tenants. Extensions should likewise be kept current. Owner operators should also have a current lease agreement with themselves when they are one of their many tenants as this will help them stay consistent. Though their own rent goes back to themselves, they should still have their own guidelines and agreement as a tenant in the building in writing to help them with their operations.
  2. Take note of key dates: There are many deadlines and key dates that the owner of a piece of commercial real estate must keep track of. They must know when leases with their tenants come to an end, when payments are due, and other important information. When owners are not aware of these dates and when exactly they are coming up, they may neglect important deadlines. That is why Brian Fielding recommends that each investor takes careful track of these dates.
  3. Track utilities: Some states, such as California, are now requiring that large commercial properties report their energy usage to the state. When an owner of a piece of commercial real estate is not the tenant, and thus cannot track their usage through their utility bills, they must find other ways of keeping track of this usage. Mr. Fielding shares that it is important that owners and tenants stay in touch to make sure that this information is easily accessed when it is needed.

When investors take advantage of advice from Brian Fielding and Fielding Investments, they are sure to maintain their property correctly to make sure that they find success. For more information on the best practices of buying and managing a piece of commercial real estate, visit www.brianfielding.com/

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Brian Fielding of Fielding Investments Reveals Essential Information for Purchasing Commercial Real Estate

Brian Fielding shares some basic knowledge of the commercial real estate market.

Brian Fielding shares some basic knowledge of the commercial real estate market.

When an individual or company is thinking about investing, they need to consider the options before them. Many investors who would like to invest in the real estate market usually gravitate toward residential real estate. Residential real estate tends to be more familiar territory, and more sentimental, which draws in many interested investors. However, Brian Fielding of Fielding Investments shares that investing in commercial real estate also has its advantages, and right now, with the market prospects showing strong signs for the rest of the Year, it is an optimal time to consider the advantages of commercial real estate. However, before making a purchase, utilize this knowledge about the market and this compelling comparison of the residential and commercial real estate from expert Brian Fielding.

  1. Commercial real estate is generally more financeable: When investing, it is important to remember that a commercial real estate transaction is viewed very differently than a residential real estate one.  Commercial assets are not only financeable with traditional lenders; there are a wide variety of other sources such as insurance companies that are eager to hold a security interest in quality commercial and retail properties. Further, one can expect to be able to obtain greater leverage from those lenders if the tenant base is well credited. In fact, it is not unusual to find lenders who will consider non-recourse [no personal guarantee other than for traditional carve-outs] and financing of up to 70 -80% for assets that have strongly credited tenants with long term leases.
  2. Commercial real estate historically tends to be more profitable: In most cases, when an individual invests in residential real estate, they are renting to individuals who are likely not sufficiently financially strong enough to purchase their own home. Commercial real estate, however, has potential for a much broader range of tenants including many that are very creditworthy. A building with multiple retail, industrial, and office spaces allows for a greater diversity of tenant mix. The loss of a single tenant does not impact the investor as seriously since that loss will be only a fraction of the property’s total income.
  3. There are several factors that determine value: While the basic maxim of real estate, “location, location, location,” applies to both commercial and residential property, commercial assets are more easily valued and financed than the somewhat equivalent residential property. Most lenders are willing to establish value and finance accordingly based on recognized indices such as cap rate and internal rate of return when considering commercial assets.

With knowledge of how commercial real estate is different from residential real estate, and what factors need to be considered when investing, Brian Fielding and Fielding Investments know that investors can make informed decisions about how, when, and why they should invest. For more information on real estate investment visit http://fieldinginvestments.com/.  

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Brian Fielding Shares Best Cities for Office Space Investments in 2015

 

Brian Fielding Space Investments in 2015

 

There are many different types of commercial real estate properties that an investor may consider when they are looking to make a purchase that will offer them a profitable return. Brian Fielding of Fielding Investments knows that commercial real estate is always a good investment, but when an individual is starting in or trying to grow in the market, they should focus on one kind of property and learn through experience to be successful managing such a property before they begin to invest in other properties. One of the most desirable property types in commercial real estate is office property, and when an investor is looking for a space to purchase, they should consider the strongest markets for the property type. Here, Mr. Fielding discusses some of the best areas to own office spaces in the coming year.

  1. San Francisco: Brian Fielding reveals that this city has always been a good choice for office spaces, but this year especially it is experiencing very fast employment growth in office related jobs. Additionally there is a high level of new construction projects being conducted in the area as well. Vacancy rates for office spaces are very low and the rent for office spaces is high. San Francisco properties may be more costly than properties in other areas, but these appealing factors still make it a profitable choice.
  2. Pittsburgh: This city has regained over 200% of the office jobs that were lost in the recession leading to a high demand for quality office spaces. Additionally, there is a shortage of these quality spaces in the city so when an investor is able to get such a property, they will face low vacancy rates.
  3. Boston: This city is benefiting from many of the same positive trends that other cities are seeing. However, it is also a good choice for investors because the initial investment for these properties is usually lower than it is in other top cities. There is low competition over quality properties as well so investors are better able to find the best properties to fit their own needs.

When investors are looking for the perfect property to purchase, they must look in the areas that are sure to give them success. The cities listed here by Brian Fielding of Fielding Investments are sure to offer investors a variety of quality properties to choose from and desirable market advantages. For more information go to http://www.brianfielding.com/.

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Brian Fielding Offers Advice on Switching from Residential to Commercial Real Estate Investments

Understanding the differences and value propositions between real estate types

For those who are interested in commercial real estate but are used to the residential real estate market, Brian Fielding offers some advice on the market differences.

Many individuals have been through the process of purchasing a piece of residential property. Even those who are not professional investors have gone through the search for their own homes. Because of this, Brian Fielding knows that those who are exploring commercial real estate investments can often be confused by their familiarity with the residential market, and that this familiarity can influence the way that they behave when looking at commercial properties. To help investors better navigate the commercial market, Brian Fielding offers some key advice.

Think about different property types: Residential properties are limited to houses, but commercial properties are varied. Office spaces, apartment buildings, warehouses, retail spaces, and undeveloped property can all be considered commercial real estate. Those who are getting involved in commercial real estate should consider each type of property and its differing factors before they begin searching for a purchase. Once they choose the type of property that they want to invest in, they should also be sure that they learn all they can about it.

Know an upfront time investment is required: Brian Fielding reveals that it will take quite a bit more time to purchase a commercial property than it does to purchase a residential one. Because properties are more diverse, and because there are so many factors to consider, it usually takes a lot longer for an investor to find the right property. Negotiating the purchase and getting financing can also take some extra time.

Be prepared for differences in financing: Because commercial properties almost always require a higher investment than the average residential property, there are some significant differences in obtaining a loan to buy the property. First of all, the down payment on the property will be higher. Additionally, there will be different qualifications for loans. Mr. Fielding knows it is important that investors research and understand these changes and that they seek funding before they begin looking at properties.

Once an individual investor understands the ins and outs of commercial real estate investments, it will help them better comprehend the way that they interact in the market. Knowing the differences between residential and commercial real estate will also help these investors make smarter decisions about the properties that they buy. For more outstanding commercial real estate advice from Brian Fielding and Fielding Investments visit http://brianfielding.com/.

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Advice for Managing a Commercial Real Estate Property from Brian Fielding

Commercial Real Estate lets entrepreneurs open up new business avenues

Brian Fielding often encourages investors to look at the benefits of commercial real estate when they make an investment.

Commercial real estate is a great investment that often leads to a worthwhile return. However, when investors want to make sure that they continue to see their property stay successful, and they must make sure that they have happy tenants, there are things that they must do each year. To help investors keep in mind these steps offered here, they should be sure that they properly manage their property.

  • Conduct annual maintenance: There are a variety of things that should be done to a property at least once a year. Brian Fielding suggests that companies start planning for these repairs and updates early in the year so that they can schedule them appropriately. Some of the annual fixes and repairs that they should keep in mind are roof repairs and air conditioner maintenance.
  • Pay attention to zoning: Zoning changes may impact the uses of a commercial real estate space. Brian Fielding shares that these changes are especially hard on those who have vacancies as zoning changes rarely hurt current tenants but may limit who can be allowed to take up an empty space. Zoning laws may additionally add uses to a property that could help the owner. Knowing these laws and what they may change is essential.
  • Meet with tenants: Knowing what a tenant’s needs are and being able to suit those needs is essential for every landlord or property owner. If, for example, a company is looking to expand or downsize, they may be looking for a new space. Meeting with them to know these needs will help a landlord and the tenants work together to meet those needs instead of the tenant wanting to go elsewhere. It is for this reason that Mr. Fielding wants to make sure that individuals make the time to meet with the tenants of their commercial spaces.
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Brian Fielding Discusses Where to Get Financing for Commercial Real Estate Investment

Picture of a man holding the keys to a house being given on rent

Brian Fielding explains that there is just more to the credit rating of your tenants that you should know.

Brian Fielding has been in the commercial, office, industrial and retail property management industry for over 40 years. One of the biggest questions that potential investors oftentimes have is where they can get financing for their investment ventures. In order to help investors, commercial real estate advisor Brian Fielding is revealing these tips.

Choose tenants carefully. Unless the investor has a credit score well into the 700s, commercial lenders will be looking to the quality of the tenant, the term of the lease and the demographics of the market. If an investor has found a really good location and signed on a national (or even a strong regional) tenant, lenders will be likely to lend anywhere from 50 – 75 percent of the purchase. Of course, it helps if the investor can show that they have been prudent in their personal finances, but over time the investor’s track record of successes can enable them to borrow on a non-secured or partially secured basis, shares Brian Fielding.

Bring in other investors so that the upfront contribution to the purchase merits consideration by more than one lender.

The more capital that the investor can raise, the more able they will be to establish the sort of credibility that lenders are “comfortable” with,explains commercial real estate advisor Brian Fielding. When starting out, investors are unlikely to be able to obtain sufficient financing to pursue more than one or two properties at a time. Lenders want to see a track record of success and repayment and by limiting the investor’s leverage (the amount of borrowing divided by the equity), the investor can quickly establish their credentials as a prudent, cautious and creditworthy investor.

Consider the alternatives.

It is important to use whatever assets the investor has prudently. Investing in real estate, as with any other venture, should be done with funds that an investor can afford to lose and not change the investor or their family’s lifestyle. As the investor demonstrates their proficiency, speaking with their family and friends about the investor’s ideas to try to show them they have, indeed, become an expert in their target market. Many investors seek loans from peer-to-peer lending sites, and from private investors, but the best resources are those people who know the investor best. Just make certain that they also limit their investment to capital that they can also afford to lose.

Think about seeking financing from smaller lenders.

It is advisable to not start the search for financing at a large bank since they are likely to have less flexibility and may be somewhat less understanding and accommodating than a neighborhood bank, or local credit union. Some investors plan for their future financing needs and open accounts at their hometown bank. It is important to always do some homework on the broker and financial institution that the investor goes to.

For more information about these and other topics, visit commercial real estate advisor Brian Fielding’s website at http://brianfielding.com.

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Brian Fielding Shares How to Get Started in Commercial Real Estate Investing

Business Commercial Real Estate

Commercial real estate advisor Brian Fielding knows that oftentimes people are more likely to invest in residential real estate because it is something with which they are more familiar. They own a home, and they know what it takes to keep up a home, approximate the taxes, and be more aware of local laws and regulations when buying, selling or adding onto a residential property. However, commercial real estate advisor Brian Fielding has been quoted numerous times saying that savvy investors often find that commercial real estate is the way to go for both short- and long-term financial gains.

There are several things that investors need to know about commercial real estate, but with some time and effort, everyone can learn the ins and outs very quickly and enjoy the many benefits of commercial real estate ownership.

1. The benefits of commercial real estate.

There is a wide range of benefits that come along with investing in commercial real estate. For one, it helps to diversify an investor’s risk in their real estate and overall investment portfolio. When commercial real estate owners lose one or two tenants out of the ten tenants in the building, the owner only loses 10-20% of their income, as opposed to losing a renter in a residential piece of real estate, where the owner would lose all of their income. Tenant rights are also almost always much stronger for residential tenants than commercial tenants. Courts tend to be more lenient with apartment and home residents, recognizing the basic needs for personal housing.

2. Cash flow.

Commercial real estate leases tend to have longer-term commitments than what one finds in residential property investments, and often, those tenants have an established financial history.  While it is true that a local pizza parlor might have limited historical financial data, many commercial tenants are extremely strong and their credit can be financeable. Indeed, if the tenant has a good Moody’s rating, investors will find that lenders will be more than willing to lend monies on the basis of their term. For example, if the investor has a very creditworthy tenant with a 20-year lease commitment, lenders will often tailor their terms to that period of time, allowing the investor to leverage their investment heavily.

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