REAL ESTATE

Three Secrets to Submitting Competitive

Commercial Bids As a commercial real estate investor, you must

put your best offer forward when purchasing

property in a competitive market. When dealing

with multiple offers, use the following tips to

ensure you put yourself in a position to profit.

1. Do your due diligence before

submitting your offer. As part of your

initial deliberations about a property, you

should review the zoning and taxes and,

when possible, do a pre-inspection of the

structure and building elements. This will

ensure you have the knowledge needed to

make an offer that allows you to stay

profitable after you finalize the purchase.

2. Pick a price you can live with.

Competitive bidding situations can cause

buyers to overextend themselves by

exceeding the value they have established

for the property. Closely review the

comparable properties in the region and

recent sales activity before making an

offer. Then offer the highest price you are

comfortable with. Keep in mind, it isn’t

always the offer with the highest price that

wins the competitive offer process.

3. Limit or waive conditional periods. It

will be important to discuss with your real

estate representative whether you can

limit or eliminate conditions from the

sales contract to make your offer more

appealing. For example, time periods for

financing can be reduced or eliminated by

providing a pre-approval letter from your

lender with your offer. Pre-inspections

can ensure that you are comfortable with

the structures and any of the building

elements. Carefully balance your

conditions with your opinion of the

property’s suitability for investment.

NETWORKING

Make the Most of Networking Opportunities with Some Practice We all know people who are charismatic, interesting, and fun to be around.

These individuals have a knack for making others feel comfortable and relaxed,

and always seem to know just what to say. They seem to have an innate gift that

enables them to make friends easily and connect effortlessly with others.

If this doesn’t come naturally to you, you aren’t alone. The good news is that

with preparation and practice, you too can be that interesting person. Here are

some tips and conversational topics that will help you make the most of your

next meeting, social encounter, or networking event.

Listen actively: Make eye contact and use positive body language to show that

you are listening attentively and actually hearing what is being said to you. It’s

amazing how being a good listener equates to being a good conversationalist in

people’s minds.

Do some research: Facebook, Twitter, LinkedIn, and other social media

platforms can provide a wealth of information about people’s interests and

activities. Use shared passions and interests to strike up a conversation and

connect. You may also discover that you have mutual friends or colleagues.

Ask, ask, ask: Most people love to talk about their jobs, their families, their

pets, their hobbies, their vacations, and their favorite hangouts or restaurants.

With a little prompting, people will often open up, and a rich conversation can

flow from there.

Every successful business encounter starts with a conversation that grows into a

connection—which may eventually become a solid relationship.

Page 1

June 2018

How to Win Big in Today's Economy

The altered economic landscape

presents innovative and nimble

businesses with opportunities to

thrive.

Find out how by requesting my

free report “How to Win Big in

Today’s Economy” by emailing

me at

marty@sierracommercialcap.com

technology, including artificial

intelligence (AI) tools such as image

recognition, robotics, and chatbots.

• Digital integration – In the retail

context, an omnichannel presence

spans brick-and-mortar, social

media, and the internet. Seamless

integration across channels gives

customers control and convenience.

Technology is also having an impact

behind the retail counter as retailers

leverage technological tools, including AI

and the Internet of Things (IoT), to bolster

their internal systems and refine their

operations. Even small retailers now use

logistics apps and the IoT to improve

inventory visibility and forecasting.

Owners of small retail shops often feel

overwhelmed by the profound changes in

the retail environment and the rapidly

changing technologies that underpin them.

But small retailers still have a unique

competitive advantage that the giant

retailers cannot fully emulate: personal

touch.

Page 2

Shopping is changing in ways we

couldn’t have imagined a few years ago.

Today’s customers are redefining the

shopping experience and challenging

retailers to develop new approaches to

give them what they want, when and

where they want it.

And just what do today’s consumers

want? Just about everything. Whether

they’re shopping online or offline,

today’s consumers have come to expect

a huge selection of products, instant

insight into functionality, ratings and

user reviews, and comparisons with

other products, as well as guaranteed

satisfaction and superior customer

service. Today’s top consumer trends

include:

• Experiential shopping – Rich,

relevant, satisfying purchasing

experiences that add meaning and

value to the brand and the

products.

• Deep personalization –

Customized products, localized

services, and special offers based

on personalized data and

Worth Reading Science Has Some Suggestions for

Making Meetings Productive

By John Rampton

Entrepreneur

We’ve all been to the company

meetings that drag on for too long

and feel like a waste of time. But

your meetings don’t have to feel like

a chore that your colleagues dread

attending. Scientific research has

pinpointed five actions you can do

right now to boost efficiency,

increase productivity, and make your

important meetings matter to your

team. Learn the five steps here:

https://tinyurl.com/biz-read-june1

Want to Be a Better Leader? Stop

Giving Orders and Do This Instead

By John Eades

Inc.

You might be surprised to learn that

“command and control” is not the

most effective leadership style for

today’s workplace environment.

Instead, the most successful leaders

are those who inspire, empower, and

serve their team. One way to do these

things is to connect with your team

on a human level and focus on

helping each person reach his or her

highest potential. Learn more:

https://tinyurl.com/biz-read-june2

How to Know Whether That

Business Book Is Worth Your Time

By Will Hoekenga

Medium

There’s a reason you shouldn’t judge

a book by its cover. Too often we

find a book with an attention-

grabbing title and glowing

testimonials, and we think, “This

holds the key to my success.” But just

as often, we learn that the book is full

of fluff. So how do you filter out the

books that are actually worth reading

from the books that should have just

been a blog post? These six

techniques will show you:

https://tinyurl.com/biz-read-june3

HOT BIZ TRENDS

Today’s Shoppers: Keeping Up with Consumer Trends

You can discover more about a person in

an hour of play than in a year of

conversation.

Plato

A man’s character may be learned from

the adjectives which he habitually uses in

conversation.

Mark Twain

Silence is one of the great arts of

conversation.

Marcus Tullius Cicero

A single conversation across the table

with a wise man is better than ten years’

mere study of books.

Henry Wadsworth Longfellow

There is no conversation more boring

than the one where everybody agrees.

Michel de Montaigne

Conversation about the weather is the

last refuge of the unimaginative.

Oscar Wilde

I often quote myself. It adds spice to my

conversation.

George Bernard Shaw

The primary use of conversation is to

satisfy the impulse to talk.

George Santayana

Wit is the salt of conversation, not the

food.

William Hazlitt

WISDOM

Quotes on … Conversation

Building condition assessments have

become an important part of the real

estate investment process. Inspection

reports can highlight upcoming repairs

or identify fatal building flaws in the

planning stage. The information

obtained equips buyers with the

necessary tools to ensure that they are

investing their real estate dollars wisely.

What is involved in this process?

Following are the answers to the most

frequently asked questions about

commercial inspection reports.

What is a building condition

assessment? The purpose of a building

condition assessment is to provide

investors with an itemized description

of the structural components and current

state of repair of the subject property at

the time of the inspection. The report is

often a condition of the purchase

agreement and can be a requirement for

some financial institutions. The

assessment covers all areas of the

property, such as:

• Building type

• Components of the building site

• All building structural systems

• Exterior finishes such as

masonry, stucco, or other siding

products

• Plumbing and electrical systems

Page 3

• Heating and ventilation systems

• Elevators and other mechanical

lifts associated with the building

• Fire code compliance

The final report will include

photographs of all building systems and

an assessment of the interior and

exterior condition of the property. The

report will also include

recommendations for correcting

deficiencies or updating the building to

meet modern compliance standards. A

recommendation may also be provided

concerning immediate repair and

maintenance items, with cost analysis

included.

Who conducts the inspection? There

are different types of building

inspectors, and not all are created equal

or charge the same fee. Some focus

strictly on one type of property, and the

expertise of more than one professional

may be required. The most important

criteria when selecting an inspector is

accreditation. Ensure the inspector is

accredited to inspect the type of

property you are considering. The scope

of the inspection, size of the property,

and the building history can all impact

the cost of the final report. It will be

important to fully comprehend the

scope of the inspection to prevent

unexpected fees.

When is it required? While an

assessment report is not always

mandatory, some lenders may require a

thorough inspection report in

combination with a property valuation

(assessment) report.

Why is it necessary? The final report

will furnish investors with an itemized

list of elements requiring attention that

may impact the property value. The

schedule provided will detail time

frames for the repairs or upgrades

(ranging from immediately to an

approximate future date), and will also

cover the expected life span of building

elements. A comprehensive building

condition assessment may also include

a list of repair and replacement

recommendations with their current

estimated costs.

Investors need to carefully reflect on

what areas may pose present or future

concerns. These can be any of a variety

of environmental, structural, or

regulatory issues. When included in the

agreement as an item of due diligence

for the buyer (at the expense of the

buyer), the report will provide the

prudent investor with the bargaining

power to finalize pricing negotiations.

REAL ESTATE

The FAQ on Commercial Real Estate Inspections

Quick Quiz Each month I’ll give you a new

question.

Just email me at

marty@sierracommercialcap.com or

call 916-273-6844 for the answer.

This month’s question:

What name is given to the popular

holiday area between Marseille and La

Spezia?

For many, the word feedback evokes

feelings of fear and dread. No one enjoys

receiving negative feedback, and few

enjoy dishing it out. Even positive

feedback can be challenging to give or

receive. To enjoy business success, it’s

important to overcome these hurdles.

Use the following guides to become a

feedback aficionado.

Studies have shown that being a great

leader means being great at feedback.

Learn the secrets here:

https://tinyurl.com/givefb1

LINKS YOU CAN USE NOW

Giving and Receiving Feedback

Negative feedback can be

discouraging—or motivating. Discover

how: https://tinyurl.com/givefb2

Want to give productive feedback? Use

these five tips:

https://tinyurl.com/givefb3

Want to receive feedback effectively?

Use these five tips:

https://tinyurl.com/givefb4

Feedback should make your workplace

more productive and pleasant. Here’s

how: https://tinyurl.com/givefb5

MARKETING

Branding Essentials: What Your Logo Says about You

Your logo speaks volumes about your

business—its identity and position in the

market, and the personality of your firm.

Before you get down to the nitty-gritty

of selecting the design, think about your

target market and the essential message

you want to convey to them.

Also, take time to research the logos of

other companies, particularly those of

your competitors.

Next, give careful thought to these

important elements:

Colors: Colors elicit emotional

responses, so you should try to align the

color(s) of your logo with the image you

want to convey. For example, blue

conveys trust, dependability, and

strength; red is a color of action, energy,

and passion; yellow suggests warmth

and optimism; green evokes nature and

serenity; purple speaks of creativity and

sophistication; pink suggests femininity

and youthfulness. It’s best to stick to

bold colors and use no more than three

colors in your logo.

Typography: Typography is another

important element. There are three main

types of fonts.

Serif fonts are those with little lines at

the end of each stroke; they convey a

traditional or professional sense. By

comparison, sans serif fonts look clean

and modern. The third type, script, can

look creative, elegant, or casual, but

script typefaces can also be difficult to

read.

Beyond these essentials, keep the

following basics in mind as you develop

a logo:

• Study all design components

carefully—both singularly and

together.

• Use clean lines and simple

shapes.

• Make sure your logo is

scalable, easy to reproduce, and

multifunctional.

• Compare samples of your

desired logo in color and in

black and white.

Avoid anything trendy. Remember, your

goal is to use this logo for many years to

come.

This newsletter and any information contained herein are intended for general informational purposes only and should not be construed as

legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter.

However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek

competent professional advice and/or legal counsel with respect to any matter discussed or published in this newsletter.

Sierra Commercial Capital 3257 Folsom Blvd., Sacramento CA 95816