Brian Fielding knows that there are many different reasons that individuals are thinking about making a purchase of a commercial real estate property. Some individuals are looking at these properties because they know that they will be good investments while others are trying to add to their real estate investment portfolios. Finally, there are business owners who, during the expansion or their own business, are wondering if it is better for them to lease the space that will house their company or to instead purchase it themselves. If you are trying to make this decision, it is important that you consider these factors shared here by Mr. Fielding.
- The price over time: Brian Fielding shares that companies who want to get the most bang for their buck should think about how long they intend to be at a property. If they are rapidly growing and see themselves only needing a property for a short time, leasing can be more cost effective. However, if they stay at a property for several years, their rent will eventually add up to the cost of a purchased piece of real estate, but instead of paying off the property mortgage, they will still be paying rent. In this case, the purchase of a space would have actually cost less.
- The upfront price: When a company is looking to buy a property rather than lease a space, they should know that it is going to cost them more money upfront. Many companies decide against purchasing a property for this reason because they may have other expenses, like the purchase of equipment that they need to consider first. Mr. Fielding says that it is smart for a company think about what they can realistically afford and if they can get the funding to purchase a property upfront before they commit to buying a space.
- Return on an investment: When a company chooses to lease a space for their business rather than purchase it, the money that they are spending is not really an investment, whereas the money that goes towards a property purchase is. An owned piece of commercial real estate can be leased out if the company no longer needs it, or they can rent unneeded offices even while they are still in the property themselves. Additionally, the owner has the potential to make money on the property when their use of it is over and they resell it.
Brian Fielding of Fielding Investments has long held the belief that every savvy investor should consider adding a commercial real estate property to their investment portfolio. Because of the hands-off nature of many commercial real estate investments (something that cannot be done with a residential real estate investment) as well as the steady source of income and lower risks associated with commercial real estate investment, it is a great option for many investors in today’s market. With 40 years of experience in the field, Brian Fielding is sharing two of his best tips for those looking to take the plunge into commercial real estate.
Focus your efforts.
With so many different types of commercial real estate, it can be easy for investors to want to purchase a little bit of everything. However, Brian Fielding strongly cautions against this practice. Instead of trying to be successful at several types of commercial real estate investment, Brian Fielding advises that investors focus on one particular type of commercial real estate investment. Once they have enjoyed a large amount of success as well as a great track record in this one particular area, whether it be retail, trailer parks, land development, multi-family housing, etc., they can then move on to another type of commercial real estate investment.
Know your community.
Having strong contacts and connections in the community where you investment is can be crucial to your property’s overall success shares Brian Fielding. Well-placed connections with city influencers can lead you to acquire more partners that may be willing to go in on yet another investment with you, depending on how well you initial investment does.
For more industry-leading information about commercial real estate as well as to read about commonly asked questions that have been answered by commercial real estate adviser Brian Fielding, head to http://brianfielding.com today.Read More
Dear Mr. Fielding and Fielding Investments,