Brian Fielding Reveals New Information on How Retirement Planning Can Include Diversification through the Ownership of Commercial Real Estate
Now, more than ever before, people are looking for the best ways to save for retirement. With Social Security payments uncertain for the future, individuals are taking a much more proactive approach to how they want to handle their money and investments. Commercial real estate advisor, Brian Fielding, offered his insights into how investors can diversify the risk of their portfolios.
“While few persons are willing to do the diligence necessary to directly own commercial real estate, there are some retirement plans and REITs that make such investment available to passive investors,” Brian Fielding shares. “However, we don’t believe that all investors should invest in that manner, since a variety of fees charged can often reduce returns so substantially as to discourage such investors.”
Commercial real estate advisor Brian Fielding maintains that investment in commercial real estate should not be viewed as accessible through such funds and entities, feeling that there is significant opportunity for individuals or partnerships to invest in local assets. Noting that workers had invested over $20,000,000 dollars in commercial properties in just the past six months [credit to Real Estate Research in Des Moines, Iowa] in funds alone, and that commercial real estate had returned an average of 8.6% in income and appreciation over the past decade [credit to the National Council of Real Estate Fiduciaries]. This nationally recognized advisor suggests that like and better returns can await those who take the time and make the effort to become experts on their local economy.
“We find it remarkable that many sophisticated persons take great pains to study hundreds of companies to find the best stock and fund investment, but few take the steps necessary to fully understand their local business and real estate economy in a manner that would allow them to be sophisticated investors in the region’s commercial real estate,” commercial real estate advisor Brian Fielding shared. “Many wonderful opportunities exist in every hometown, but it does take an investor’s commitment to track pricing, monitor new developments in planning, zoning and infrastructure, and networking with brokers, businesspersons and politicians.”
Brian Fielding believes that anyone with some time and effort can be a direct owner of quality commercial real estate, either individually or in partnership with other similarly motivated persons.
“While individuals may not have the resources to employ professionals to perform the studies and analysis used regularly by nationally based developers and investors, with a bit of effort, they will know more about their community than most consultants can hope to derive from demographic studies and broker referrals,” he added. “Just think about how much data went into that national chain’s selection of a site in your town, yet perhaps only you and your friends know that a site across town (or even across the street) would have been a smarter choice.”
Brian Fielding of Fielding Investments suggests that many have enjoyed success in commercial real estate investing by combining their skills and knowledge about the local communities while taking advantage of the demographic analyses of the national concerns who chose the sites for their stores and offices. He believes that is a matter of will and effort for any reasonably intelligent person to become an expert in their community and suggests that everyone should have, as part of their retirement portfolio, a direct interest in one or more commercial real estate holdings.
“While we all have plans as to how we wish to live our retiring years, we all lack that one critical bit of data on making a good plan for the golden years … our life expectancy is nothing but an actuarial guess and that nest egg which we hoped would provide us with certainty, rarely fully considers the ravages that inflation and low returns can do to that plan,” he adds. “I think we all know persons who thought that their pension plan or IRA would insure a retirement in comfort, only to find that banks are paying less than 1% on deposits and returns sufficient to insure that lifestyle come only with the assumption of unacceptable risk.”
“We are not suggesting that it is prudent for anyone to put all of their proverbial eggs into one commercial real estate basket, but we do believe that it is an important part of any investment portfolio. The real question is whether that investor feels comfortable with having others make all of the decisions on what to buy and what to charge for their expertise.”
For more information and advice about how to start investing in commercial real estate today, visit http://brianfielding.com.