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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Home News Latest Stories Safety of Jacksonville's historic U.S. Hotel subject of debate Veteran K-9 retires after catching 91 suspects Emergency services Ashland alum Ann Curry to leave NBC, go independent Medford man sentenced for sexually abusing incapacitated friend Crime, Courts and Emergency Services Veteran K-9 retires after catching 91 suspects Emergency services Medford man sentenced for sexually abusing incapacitated friend Police still looking for Christopher Sellars Deputies investigate report of home-invasion rape in White City Politics and Elections Oregon Legislature convenes, session starts Feb. 12 Councilman stirs online dust-up with anti-marijuana post State certifies recount showing failure of GMO-labeling measure Education Ashland schools expand chickenpox exclusion rules Former Medford school board member Paulie Brading dies Ashland robotics team aims to build a winner Design and innovation program proposed at Talent Middle School College on the K-12 dime Environment New wandering wolf arrives in Southern Oregon OR-7 now officially the leader of his pack Ashland trails up for changes Monument expansion expected to increase tourism, protect resources Biologist resigns over LNG reporting failure State News New wandering wolf arrives in Southern Oregon Purchase will transfer large Central Oregon ranch to BLM Kitzhaber focuses on inequality in inauguration speech Oregon Legislature convenes, session starts Feb. 12 Oregon State University plans $60 million forestry complex Nation - World Obama makes Maduro’s ‘insolent Yankees’ line harder to sell Obituaries Robert (Bob) Merlyn Fasel Audrey Nyoda Kerr - Delora Lay Van Horn Donnalee Bell Norman D. 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Achieve both in your home decor this year Dear Monty: Best start for 1st-time homebuyers Health Ashland schools expand chickenpox exclusion rules Community blog: Dont Let Fear Run Your Life Dr. Murray Feingold: Separation anxiety common in adults Health Watch: Staying fit as a frequent flyer Community blog: Tale of the Tape Hiking Biking Faith Old stained-glass windows face threats Churches start new year with messages of hope (No heading) Churches, synagogs host seasonal events Bethel Church helps families at McLoughlin Middle School Milestones and Achievements 50 years and counting: Bulebar Wedding: Lindsey-Maria Rios New arrivals Since You Asked: Sheriff's Office sells off foreclosed homes Mt. Ashland Ski Area shut down again by lack of snow Columnist for a Day Rogue Healthy Aging Tempo Latest stories Thanks for the Memories Theatre presents 'Rent' Live Music in Local Clubs Patty Groth's Morning Glory is still a delight 100 Watt Mind unveils 'Creatures' American Guitar Masters play the Imperial Theater Thanks for the Memories Theatre presents 'Rent' Tangled up in Dylan OSF's 'Great Society' up for Kennedy Prize Next Stage presents a tribute to an iconic folk artist Camelot's 'Fiddler' is a charmer Music Live Music in Local Clubs 100 Watt Mind unveils 'Creatures' American Guitar Masters play the Imperial Chamber Music Concerts presents Tesla Quartet Blues jam tonight at Little Brown Jug Community Events Art Presence showcases 'Naked Art' New Schneider Museum exhibits highlight First Friday Celebrate winter solstice with the Bad Film Society Tomaseen Foley's "A Celtic Christmas" returns to the Craterian Theater Stefan Baumann and Eugene Bennett highlight Third Fridays Dining Patty Groth's Morning Glory is still a delight Entertaining with a gift of treasure Jackson Creek Pizza Co. is a good downtown haunt Dobra Tea menu offers hundreds of brews Food for Thought: Wintertime wining and dining Tempo Videos Classifieds Jobs Autos Real Estate FEATURED » Obituaries Blogs TV Listings Movie Listings Oregon Outdoors Oregon Healthy Living Magazines & Special Sections NEWS NOW Safety of Jacksonville's historic U.S. Hotel subject of debate ... Veteran K-9 retires after catching 91 suspects ... Ashland alum Ann Curry to leave NBC, go independent ... Safety of Jacksonville's historic U.S. Hotel subject of debate ... Veteran K-9 retires after catching 91 suspects ... Ashland alum Ann Curry to leave NBC, go independent ... Dear Monty: Eight great tips to ponder before investing in real estate Comment MailTribune.com Writer Posted Jan. 7, 2015 @ 12:01 am Posted Jan. 7, 2015 @ 12:01 am » Social News By Richard Montgomery More Content Now Our country’s foundation is real estate. It is all around us, like the air we breathe. Real estate is one of the largest sectors of our economy. It is an investment vehicle with a foundation in America’s dream from the time of the early pilgrims. Our first president was a land surveyor and a real estate speculator. Real estate utilization occurs in many ways and understanding these roots help if you are considering investing in real estate. Access to real estate investment come through a variety of mechanisms that insure the benefits and responsibilities real estate ownership can both suffer and enjoy. Often, we have experienced real estate through relatively safe single-family ownership. But for passive opportunities, sophisticated and high risk-reward stock ownership in real estate investment trusts can be considered. In between those two choices lie a multitude of options. So what should you know? First, look inwardly. What have your life experiences been to date? Will those experiences lead you to certain real estate sectors? What skills do you possess? Are you mechanically inclined? Are you a math whiz? Are you introverted or extroverted? Do you like to read and do research or are you more inclined to learn by doing? What vocations have attracted you? Do you have disposable income? What is your principal motivation for investing? How much time can you devote to real estate? Consider your answers to these questions when deciding the best approach to leveraging your time and knowledge to succeed in your real estate endeavors. How to jump in The most common methods to participate in real estate are: Work within the industry to earn and learn; real estate sales, property management or appraisals. Observing customer behavior and internal practices in these areas provides on-the-job experience that applies for your benefit. Take ownership or partial ownership; individually, or with a partner or partners, in a limited liability company or some similar structure. It is crucial to align your mutual goals in a partnership. Engaging a team with successful real estate experience to fill your time or knowledge gaps can reduce the learning curve and the risk. Match your attributes with the property type Choose the type of investment to suit your skills, financial constraints, available time and risk tolerances: - Single-family to 2 or 3 family apartments or flats - Property information is readily available. Considered as the low end of the risk spectrum. - Mini-storage and small warehousing - Market conditions more difficult to assess. Less intensive management considerations. Find an owner looking for an exit plan and work for him for some period. - Larger apartment buildings from 4 to 32 unit buildings or clusters - Larger capital investment and more management. Riskier for a new investor. - Single purpose or one user office or retail buildings - Riskier because one vacancy means 100 percent empty. Often more sensitive to location and image. - New home construction, remodeling and flipping - Experience, construction background and the ability to make quick decisions. Higher risk. - Strip shopping centers and larger office buildings - Higher risk in a cyclical marketplace. Stiff competition and seasoned national tenants. - Short-term lodging from bed and breakfast to motels or small hotels - Intense management. Often seasonal and extremely competitive. Strong correlation between the number of rooms and risk. - Warehousing and large shopping centers - Barriers to competition high. Seasoned high net worth investors or stock companies. - Buy and hold vacant land - Intermittent low-intensity management. Long holding period common. Growth is principal investment driver. Often require cash feed. - Land development - Considered by lenders as one of the riskiest loans. Capital intensive and often longer than expected development timelines. Sensitive to adverse changing market conditions. Not for the faint hearted. Important points for smart decisions Understanding how the property functions, the economic drivers and the protocols for evaluation are vital. You also have to understand customer needs and the competition facing the property you are investigating, as each property type operates differently. Know how to value property. Valuation is a combination of following a standard step-by-step process gathering and sorting information and applying logic and reasoning skills to that information. Learning the process is the easy part. It is not enough to rely on others for value decisions. Applying your logic and reasoning can be the difference between success and failure. Real estate investing is truly an avocation where you as an investor must take full responsibility for the outcomes. Richard Montgomery gives no-nonsense real estate advice to readers’ most pressing questions. He is a real estate industry veteran who has championed industry reform for more than a quarter century. You can ask him questions at DearMonty.com. 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