Posts Tagged "Real State"

Brian Fielding Recommends Questions to Ask about a Property before Purchase

Posted by on May 7, 2015 in Brian Fielding, Commercial Property Investment, Property Investment Advisor | Comments Off on Brian Fielding Recommends Questions to Ask about a Property before Purchase

Fielding Investments

Fielding Investments

Mr. Brian Fielding is the brilliant mind behind Fielding Investments, and in his many years of experience in the commercial real estate market, he has developed an advanced knowledge that he shares with new investors. When individuals take advantage of the advice from Mr. Fielding, they can take steps toward choosing strong commercial properties that will offer outstanding returns and provide financial security in their senior years. Those who are just beginning to think about purchasing a piece of commercial real estate often do not know where to start, and that is why Brian Fielding is sharing his advice on what information a buyer should seek about their chosen property before and after purchase.

  1. Existing tenants: As the buyer, one will be assuming the full opportunities and obligations of the underlying leases. It is critical that the buyer makes a checklist of those obligations, including term, options, determining who pays utilities and taxes and all of the many cost factors that must be considered to determine if the purchase is likely to be profitable in the near term and beyond. The creditworthiness of those tenants is important to discern since a lender will be establishing its mortgage rate by a number of factors – one of which is the quality of the tenants. The investor will be wise to hire an experienced real estate attorney to look at the existing leases to determine if the leases are strong and to help determine if the buyer would be adequately protected from bad actions of the tenants.
  2. Current building expenses: When an interested buyer is looking at a property but is unsure of how much it will cost to maintain the building, they can ask for, or create their own, pro forma. This document will offer details on building expenses of the past. By going over this information with an accountant, the new investor can easily determine the value of the property and estimate their future expenses as well. This will help the interested party prepare for costs of maintenance and decide if the piece of real estate is one that they want to pursue.
  3. While there are rare cases where a purchase will be for the structure alone and not for the underlying land, the more common offering is the reverse where the investor is offered a ground lease. In that transaction, the buyer will own the likely valuable land upon which the structure stands, but will not be able to enjoy the benefits of depreciation from that purchase. This sort of offering is most common with certain bank branches, large franchise properties and other strong credited tenants.

When individual investors are considering the benefits of purchasing a piece of real estate property, or have questions about how they should proceed in the market, they can depend on Brian Fielding. He is one of the most knowledgeable minds in the industry with years of experience in the field and can easily answer any burning questions about commercial real estate and offer advice on making promising deals. To learn more visit www.brianfielding.com.

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