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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