REAL ESTATE

Condo Investing: A New Appreciation for

Individual Units Condo apartments can be a great starting point

for new investors looking to build a real estate

portfolio. As you acquire skills and

understanding about what it takes to manage

residential property, you can add more units.

Here are three tips to help you decide if condo

investment is for you:

Life as a landlord: The rewards of being a

landlord start with property ownership. You

are adding an asset to your portfolio. Not only

does your investment appreciate, as time and

demand allow, but you’re also accruing income

during your ownership that can offset any

borrowing or maintenance costs you may

incur.

But property management is not always easy.

Dealing with tenant issues, screening tenants,

collecting rent, and doing regular maintenance

and repairs can chew into your free time. Keep

in mind, a bad tenant can test the best property

manager’s metal. A good landlord must

maintain their objectivity in the face of

adversity.

Securing financing: Purchasing an income

property can be challenging. Lenders have

unique criteria for financing income properties.

Checking with a mortgage professional before

you start your search is essential and can assist

with establishing a budget and building your

knowledge of the terms and conditions

required to finalize the transaction.

Finding the perfect property: When you

decide that condo investment is right for you, it

is time to meet with a real estate agent and find

the perfect unit to start your portfolio. Consider

location, price, and average rental rates for

similar properties, and determine whether a

newly built unit or a resale unit is best suited to

your needs.

ENTREPRENEURS

Secrets to a Successful Start-up

Before launching a small business, it is important to develop a sound business

plan laying out how you will structure, operate, and grow your business. You’ll need

it to convince people to invest in and work for your company, as well as to keep the

firm on track as you grow. Here are some winning tips to develop this plan:

A simple, one-page business plan should include a vision statement, a mission

statement, objectives and goals, basic operational strategies, a proposed budget,

a preliminary marketing plan, and a simple action plan.

Be realistic about how much capital you’ll need to fund your business and

determine where/how you will acquire it. Draft a preliminary budget and open a

business bank account.

Decide on a business structure. The legal structure you choose for your business will

impact your business registration requirements, your tax liability, and your personal

liability. Register your business, obtain federal and state tax IDs, and apply for

necessary licenses and permits to make your business legally compliant.

Do some market research on trends and competitors in your sector. Both brick-

and-mortar and online businesses need a website, an SEO strategy, and a

marketing plan.

If yours is a service-based business, get involved with the local chamber of

commerce or small-business chapter and take advantage of opportunities to

present your business to the community. Make presentations, speak at local

events, or provide distributable marketing materials. Network with potential

customers and capitalize on every opportunity to turn your idea into a successful

business.

Page 1

December 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

loans@sierracommercialcap.com

themselves working together in the face

of a natural disaster, a health

emergency, a complicated rescue, a

refugee crisis, or some other situation.

Despite language barriers, cultural

differences, professional egos, and

myriad physical challenges, these

pseudo teams often produce remarkable

results.

So, what does successful teaming

require? What’s the secret sauce?

Researchers point to “true grit”

characteristics such as dedication,

perseverance, and goal orientation.

Of course, leadership is important, too,

but here there is a caveat. Experts note

that teaming leaders must exhibit

extraordinary situational humility and a

willingness to defer to others.

They must develop a mind-set of

inclusivity rather than competition.

Solutions and ideas can come from

anywhere, so leaders must be curious,

humble, willing to listen, willing to take

risks, and open to trying different

approaches.

Page 2

In today’s 24/7 world, companies

depend on remote workers, diverse

markets, and global interactions.

Many of us find ourselves frequently

teaming with different people,

coordinating and collaborating across

geographic, disciplinary, linguistic,

sectoral, and societal boundaries.

Consider that a typical hospitalized

patient is seen by some 60 different

providers over the course of a stay.

These professionals may come from

different specialties, different

backgrounds, and different areas of

expertise. They may not even know one

another, but they work as a team to

provide appropriate, timely patient care.

Members of such fluid teams may not

have fixed roles or even fixed

deliverables. They often come together

to deal with urgent, complex,

unpredictable issues.

They may be individuals from different

professions, different organizations,

even different nations, who find

Worth Reading Five Warning Signs That Mean

You Shouldn’t Take the Job

By Kema Christian-Taylor

Forbes

It’s an all-too-common mistake that

people on the job hunt make: being

too focused on getting an offer and

neglecting to find the right fit.

Thankfully, choosing the wrong job

can be prevented if you know what

warning signs to look out for. These

red flags include high turnover rates

and a job that doesn’t align with your

career goals. Learn more about these

warning signs:

https://tinyurl.com/bizread1-dec2018

Nine Reasons CEOs Should Hire

Introverts

By Geoffrey James

Inc.

Did you know that introverts are

more likely than extroverts to have

the characteristics commonly

associated with ideal employees?

According to decades of research,

introverted people are generally and

consistently more creative, they’re

more reliable, and they tend to work

better in teams. Learn more about

what sets introverts apart in the

workplace and the science that backs

it all up: https://tinyurl.com/bizread2-

dec2018

Unexpected Smart Tech Tools to

Help Your Small Business

By Brian Hughes

Entrepreneur

You might be surprised to learn that

there are plenty of inexpensive smart

technologies available right now that

can help you and your business save

time and money. It’s true! Whether

you’re trying to cut back on your

utility expenses or looking to improve

your customer service, there’s a smart

tech solution for you. Learn more:

https://tinyurl.com/bizread3-dec2018.

HOT BIZ TRENDS

Teamwork on the Fly: Learning to Collaborate with Just about Anyone

Talent wins games, but teamwork and

intelligence win championships.

Michael Jordan

Unity is strength…when there is

teamwork and collaboration, wonderful

things can be achieved.

Mattie Stepanek

When employees join executives in truly

owning the responsibility for business

success, an exciting new sense of

teamwork takes hold.

Punit Renjen

Winning teams have the least amount of

distractions. They have a really tight

group of people working towards the

same common goal.

Larry Dixon

Members of great teams confront each

other when they see something that isn't

serving the team.

Patrick Lencioni

I don’t like that man. I must get to know

him better.

Abraham Lincoln

WISDOM

Quotes on … Teamwork

One of the hardest aspects of being a

landlord is appropriately dealing with

tenant issues. Tenants have different

needs and temperaments, which should

be addressed on a case-by-case basis,

but landlords should have contingencies

in place to deal with common tenant

concerns. Following are four of the

most common tenant challenges and

suggestions for dealing with them:

The noisy neighbor

Noise complaints can frustrate landlords

and tenants alike. Chronic noise can

drive away good tenants and can

stigmatize a building if the landlord

fails to act. The first step is to try

addressing the issue with the problem

tenant. Written notice can be provided

to allow the tenant time to correct the

behavior. All correspondence and

conversations should be documented in

the event you are not able to resolve the

problems with the tenant. This

documentation will be useful if legal

proceedings are required to remove the

tenant.

The hoarder

Hoarding can be a major hazard for

property owners. The risk of a disaster

trapping the tenant in the building is

increased as items accumulate. Pests

Page 3

such as mice and other vermin are

attracted to the clutter. Additionally,

hoarding can be difficult for some to

curb. As a result, this challenge can

sometimes crop up repeatedly with the

same tenant.

Landlords should analyze hoarding

situations carefully and focus on the

most positive outcomes for themselves

and the tenants. Extensive

documentation is required in these

instances. Consider scheduling a time to

pick up rent at the unit and perform a

cursory inspection of the premises each

month. Ensure that you document the

state of the unit at each visit.

The destructive tenant

Unfortunately, property damage is a

common problem for landlords. Even

the simple act of hanging a picture

involves putting a nail into the wall.

However, this type of damage is an

expected and somewhat tolerated

annoyance.

It is the truly destructive behavior that is

an aberration for most landlords. Often

the destruction is lifestyle related and

the pattern follows these tenants from

place to place. A thorough background

check prior to agreeing to rent to the

individual can unearth these difficult

tenants. However, sometimes they

slip through the interview process,

and then you are forced to deal with

them.

Start by documenting any complaints

made by other tenants. There may be

excessive noise and greater amounts

of dirt and debris in and around their

unit. Their lifestyle can also impact

their ability to pay their rent on time.

In addition to giving verbal warnings,

be prepared to serve the tenant with

the appropriate paperwork that

documents how they are

noncompliant.

Failure to pay

There are several reasons tenants may

be unable to pay their rent on time.

Regardless, each landlord will need

to assess the validity of the reason for

paying late or not at all. Dialogues

with the tenant will have to be honest,

and, depending on the situation, the

reasons may be difficult to assess.

The best solution for all parties may

not be evident. Clear, written

documentation is essential, along

with consequences for failure to

comply. The landlord will need to be

prepared to terminate the tenancy if

necessary.

REAL ESTATE

Landlord Nightmares: How to Deal with Problem Tenants

Quick Quiz Each month I’ll give you a new

question.

Just email me at

loans@sierracommercialcap.com or

call 916-273-6844 for the answer.

This month’s question:

What was the most popular dog name

for 2018?

Have you made any New Year’s

resolutions? These year-end declarations

are often more whimsical than winning.

To set goals that will truly impact your

business in 2019, tap into these

resources:

Not sure how to get started with goal

setting? Here are four simple steps:

https://tinyurl.com/goalset1.

For many, goal setting isn’t an issue. It’s

the motivation and action to complete

them that pose a challenge. Find out how

LINKS YOU CAN USE NOW

This Month—Goal Setting

to overcome these obstacles:

https://tinyurl.com/goalset2.

Do your goals look far enough into the

future? Learn the secrets to long-term

goals: https://tinyurl.com/goalset2-1.

Your current goal-setting methods might

be holding you back. Find out how:

https://tinyurl.com/goalset2-2.

Are you following bad goal-setting

advice? This article debunks some

common myths:

https://tinyurl.com/goalset2-3.

MARKETING

Not Just for Fortune 500s: AI for the Little Guy

Building artificial intelligence (AI)

applications is a complicated and costly

endeavor, but you don’t have to master

AI technology to utilize it in your small

business.

Small-business owners can leverage AI

and machine learning (ML) through

affordable applications that are widely

available and relatively simple to

implement.

There are ready-made solutions that

harness the power of AI/ML technology

for purposes of marketing, logistics,

operations, customer service, data

security, and fraud detection. Many of

these applications are out of the box

and easily customizable for any

business owner.

Why should you bother? AI solutions

can help you identify prospects that are

most likely to buy your goods or

services.

They can enable you to personalize your

marketing efforts by providing rich

information about individual customers’

purchasing behaviors and preferences.

In fact, you may already be using

AI/ML if you advertise on Facebook or

Google.

Both of these advertising platforms use

sophisticated AI and ML algorithms to

put ads in front of the people who are

most likely to respond to them.

In addition to marketing, a good place

for a small business to reap value and

return on investment from AI is through

chatbots that interact with customers,

respond to basic questions, and route

inquiries appropriately. Chatbots even

enable small to midsize enterprises to

provide 24/7 call center support that

they could not otherwise afford.

There are also turnkey AI/ML

interactive training and tech support

solutions that help employees work

smarter, faster, and more efficiently, as

well as money transfer and payment

processing applications that use adaptive

ML to detect fraud.

With off-the-shelf tools that enable

everything from data analytics to

logistics management to

communications, AI/ML allows small

businesses to dedicate resources

efficiently while increasing customer

engagement and satisfaction.

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., null Sacramento CA 95816