Brian Fielding of Fielding Investments Comments on the Forbes List of the Richest Real Estate Tycoons

Forbes recently came out with its list of the richest real estate tycoons, and Brian Fielding is providing some insight and commentary about the list.

Forbes recently came out with its list of the richest real estate tycoons, and Brian Fielding is providing some insight and commentary about the list.

How surprising is it that the United States is home to 29 billionaires who have built their fortune on real estate? Brian Fielding suggests that this fact is not surprising at all. Consider the recent report in Forbes that noted that throughout the world, residential property was up four percent (according to Knight Frank’s Global House Price Index) and commercial office rents were up three percent (credit to Cushman Wakefield research). The 4th wealthiest property tycoon, Donald Bren, has had his fortune grow primarily in California, but has investments in a broad range of properties including office buildings, golf clubs, marinas and apartments. Two Americans who recently were acknowledged for fortunes exceeding $1 billion are David Walentas, who focuses on development in Brooklyn, New York, and Jeff Sutton, who owns retail in Manhattan.

So what does this mean for the average person trying to save for their future? Brian Fielding of Fielding Investments opines that every individual has the capability of owning investment real estate, stating that it is only a matter of scale and location that should drive that activity. He explains that every citizen has special knowledge of their community, perhaps where they now live or vacation, or perhaps of the town in which they lived as a youth. The challenge, he states, is for the investor to capitalize on that knowledge and to expand their familiarity with local politics, development, zoning changes and by tracking the growth and decline of the office, retail, industrial, and special needs of those communities.

“Who knows better what side of town is growing, what areas are gentrifying, what new roads are planned and which new businesses are enjoying growth than the local investor?” Brian Fielding of Fielding Investments states.

He went on to explain that one should not simply assume they understand all of the elements involved in owning commercial real estate assets, but with a bit of diligence to understand the intricacies within that industry, any individual can solely, or in a partnership, find unique, local opportunities in which to invest.

“Our tax code invites private investment in real estate, and few other investments can be readily financed with both traditional and non-traditional financing,” Mr Fielding adds.

One needs to learn the “language” of the real estate investment world, a fairly straightforward methodology for demonstrating the value of an asset. Lenders abound for the well-informed and knowledgeable investor, the secured interest a lender obtains, and the knowledge that there is a cash flow off of that asset. These factors often encourage lenders to finance large portions of the purchase price.

“It is not only the quality of the land and building, but the creditworthiness of the tenant and the term of the lease that will encourage financing ventures up to 90 percent of the cost,” Brian Fielding shares.

There are few barriers for those who take the time to become an expert in understanding the community, budgeting, and financing issues. Mr. Fielding strongly recommends that those who wish to first tackle such a project retain competent counsel, establish relationships with the local lenders and consider having partners who have experience in construction and maintenance of commercial buildings.

He suggests that one can easily demystify the processes as being only for the select few. Rather, it is a state of mind and a willingness to invest the time to become competent and/or find experienced professionals in the areas of finance, building construction and maintenance and to be willing to devote oneself to becoming familiar with all matters in one’s selected community. For more information about commercial real estate, visit http://brianfielding.com.

 

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