Brian Fielding

3 Common Commercial Real Estate Terms Defined by Brian Fielding of Fielding Investments

Posted by on Apr 8, 2015 in Brian Fielding | Comments Off on 3 Common Commercial Real Estate Terms Defined by Brian Fielding of Fielding Investments

Keywords you need to know to master Commercial Real Estate Investments

In order to help commercial real estate investors be better informed this fall, Brian Fielding is sharing the definitions of three of the most commonly used terms in the field.

Brian Fielding of Fielding Investments knows that many of the terms used in commercial real estate can be confusing to first-time investors. With so many specific words and abbreviations used, it can be easy to get lost in a conversation about a property. In order to help real estate investors avoid any confusion, Brian Fielding is discussing and defining three of the most common commercial real estate investment terms.

Cash on Cash

This term refers to the formula that is used to determine and compare an investor’s property with the first-year performance of other competing properties in the area. This formula takes into consideration the detail that the investor did not require a full-cash investment to purchase the property. In addition, this formula accounts for the fact that the investor cannot and will not be able to keep all of the net operating income (NOI) for the property, as mortgage payments and other expenses need to be paid.

Net Operating Income (NOI)

The net operating income of a property is determined by finding out what the commercial real estate property’s first year gross operating income was, and then subtracting the operating expenses needed to upkeep the property for the first year. This is the amount of money that an investor will essentially take home with them from their investment. Property investment advisor Brian Fielding shares that this number should be positive, which equates to the individual getting money back on their investment.

Cap Rate a.k.a. Capitalization Rate

Known as either cap rate or capitalization rate, this figure is used to determine the overall value of an income-producing property. Commercial real estate investments such as strip malls, apartment complexes, commercial office buildings and more are properties where a cap rate is used to find out what the value of the investment is. Cap rates are also utilized to estimate the net present value for future cash flow and profits, a calculation that is also known as the capitalization of earnings.

For more information about other terms used in the commercial real estate industry as well as questions and answers to some of the hot-topic issues in the industry today, visit http://fieldinginvestments.com.

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Top Trends for Commercial Real Estate in 2015 Reviewed by Brian Fielding

Posted by on Mar 13, 2015 in Brian Fielding | Comments Off on Top Trends for Commercial Real Estate in 2015 Reviewed by Brian Fielding

Image displaying a turnaround increase in business

Brian Fielding reveals that in the past years, industrial spaces, especially warehouses, have seen a decrease in demand, but recently they have started to make a comeback

While Brian Fielding knows that commercial real estate is usually a very safe investment choice, especially compared to other typical investment options. He also knows, however, that investors must always take extra steps to ensure that they are on top of the newest trends and information in the market. When investors are well educated, they will be better able to choose the correct properties. Here, Mr. Fielding shares some of the biggest trends that individuals should consider as they invest in properties the coming months so that they may use them to their advantage as they purchase properties.

  • New areas of popularity: Many investors are wanting to branch out and try new areas. These risk-taking investors have, as a result, brought attention to cities that did not have strong commercial real estate markets before. These areas now, however, are now seeing hotter real estate markets, and now is the best time for individuals to purchase properties in these areas so that they have quality properties ready as the demand for such properties increases.
  • Industrial demand: Mr. Fielding reveals that in the past years, industrial spaces, especially warehouses, have seen a decrease in demand, but recently they have started to make a comeback. Many stores need warehouses close by to store their product, so industrial spaces nearby retail spaces are seeing a high demand than some others.
  • Retail space changes: For many who seek retail spaces, Brian Fielding would like to suggest that they examine some of the changing factors for typical retail and mall spaces. Because so many companies are going online, brick and mortar stores in malls are far less common and not in high demand. High-end boutiques and specialty stores, however, still need store fronts to display their pieces. These factors will determine where investors will want to look for retail spaces.
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Brian Fielding Shares How to Get Started in Commercial Real Estate Investing

Posted by on Feb 21, 2015 in Brian Fielding | Comments Off on Brian Fielding Shares How to Get Started in Commercial Real Estate Investing

Picture of gold eggs in the real estate business

Brian Fielding shares all you need to know about commercial real estate investments

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.

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.

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.

For more information on how to get started in commercial real estate investing, contact commercial real estate advisor Brian Fielding at http://brianfielding.com.

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Commercial Real Estate in 2015 Discussed By Brian Fielding

Posted by on Dec 30, 2014 in Brian Fielding, Commercial Property Investment | Comments Off on Commercial Real Estate in 2015 Discussed By Brian Fielding

Brian Fielding approved

If you are thinking about the best investments to make in the New Year, Brian Fielding believes that one of the best choices is always commercial real estate. There are many obvious advantages to owning a piece of commercial real estate, including the ease of finding its value, the quality of tenants, and the ability to rent to multiple tenants at once. With 2015 just around the corner, potential investors should be aware that now is the best time to consider investing in commercial real estate due to the promising new trends in the new year, two of which Brian Fielding will reveal here.

One of the biggest advantages that the commercial real estate market has in the New Year is the demand for new commercial spaces. Brian Fielding shares that retail, industrial, and office spaces are all seeing a higher demand, especially in highly sought after areas. This is because a number of businesses are finally recovering after the recent recession and are able to grow their businesses. As they grow from small businesses to large ones, or acquire additional offices to expand their business into new territories, a number of businesses will require new spaces. This demand will result in commercial property owners seeing their vacancies decrease and their rent prices increase.

Brian Fielding also wants investors to be aware of the new banking trends concerning commercial real estate. With the demand for these spaces on the rise and banks seeing more of their commercial real estate loans being utilized, banks are casting a favorable eye on commercial real estate purchases. Competition between lenders also results in some favorable conditions for the investors who are seeking the loans. Brian Fielding shares that now is the time to invest to take advantage of all these favorable market trends.

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Brian Fielding Reveals Your Hidden Commercial Real Estate Knowledge

Posted by on Oct 16, 2014 in Brian Fielding, Commercial Property Investment, Property Investment Advisor | Comments Off on Brian Fielding Reveals Your Hidden Commercial Real Estate Knowledge

Brian Fielding shares some information about how you can invest in real estate.

Brian Fielding unleashes your hidden real estate knowledge.

Did you know that you already have, in your possession, some of the most coveted knowledge about real estate? Just by simply living and working in a community, you understand the ins and outs of that community, what’s going on there and one key factor: What works and what does not work. Is there a street corner that has had several businesses that never seem to last for very long? Is there an office building that used to stand alone but not has several shops and restaurants located nearby? This is some of the most coveted information in the commercial real estate industry today, and Brian Fielding shares that this is what gives YOU an edge over other out-of-town investors.

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Q and A: What is a 1031 Candidate? Questions Answered by Brain Fielding

Posted by on Aug 26, 2014 in Brian Fielding, Commercial Property Investment, Question and Answer | Comments Off on Q and A: What is a 1031 Candidate? Questions Answered by Brain Fielding

Dear Mr. F.

As part of our effort to learn more about investing in real estate, we have come across a number of offerings where the broker suggests that they are great 1031 candidates. What is a “1031”?

Foster Family in Phoenix Arizona

Dear Foster Family,

The term 1031 comes from the IRS regulations and is a vehicle that allows individuals [and entities] to sell off a property that has been largely depreciated and has appreciated in value without having to, then, pay “recapture” or capital gains taxes. One of the things we love about investing in commercial property is our ability to write off [depreciate] the property and various improvements over their natural life [excluding the value of the land since land does not “depreciate” – or lose value over time due to wear and tear]. Depending upon how aggressive the investor wishes to be in segregating various components of an acquired property, the investor can deduct a portion of the assets values each year that he owns it. With that wonderful benefit comes a day of reckoning when the investor looks to sell that asset and faces “recapture” as well as appreciation of value. With a 1031 exchange, the investor can transfer his basis in that asset to a like investment and defer the tax consequences.

It sounds like you are not yet ready to concern yourselves with such issues, but hopefully one day you will and the 1031 provision might be an important strategy for you to consider. When that day does come, please insure that you get competent advice from an attorney familiar with 1031 exchanges and from a “qualified intermediary” who must be employed to insure full compliance with the regulations.

Good luck with your investing … thanks for writing us.

Brian Fielding

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