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3 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 Emergency Services Medford, Talent language groups hope to attract Spanish speakers Serial killer Susan Monica found guilty on all charges, gets 50 years Five teens sent to hospital after crash near Medford Susan Monica testifies she feared for her life Crime, Courts and Emergency Services Emergency Services Serial killer Susan Monica found guilty on all charges, gets 50 years Five teens sent to hospital after crash near Medford Susan Monica testifies she feared for her life Woman who chased family with knife jailed Politics and Elections Arthur I. Cyr: Cuba’s enduring challenge to American foreign policy – and American politics Gov. Brown touts need for transportation funding in talk to Medford chamber Kent Bush: Clinton 2.0 is neither new nor improved Arthur I. 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(Mike) Michael Eileen Rose White Nora June Shepherd Teresa Wears Weather Photo Galleries Since You Asked Videos Web Cams Mail Tribune 100 Shareable Sports Latest Stories Howard, Harden propel Rockets past Mavericks Fisher takes medalist honor in SWC meet Tornado cruises to win over Willamette Panthers rally for SWC victory Sheldon joins North atop SWC Varsity 541 College Sports Marshall stays with Ducks to get better Eckert, Beavers take series from Arizona Randall drives SOU into postseason Beaver fans get first look at Andersen, Collins Raiders drop two pitching duels at EOU Pro Sports Howard, Harden propel Rockets past Mavericks Injuries again have a major role in playoffs We should appreciate Jabbar while he’s still with us Bucs have front-runner for draft, stay mum Vogt homer powers A's past Angels Community Sports Bailey picks up modified win Wilson delivers in return of local boxing Palmer breezes to second straight men’s title Business Latest Stories Jackson County's March unemployment rate returns to pre-recession level Ride & Drive: 2015.5 Volvo V60 Cross Country Burger joint coming to Ashland Rogue Credit Union nearing $1 billion in assets Ride & Drive: 2015 Ford F-150 Real Estate News Naumes plans custom-crush winery in former packing house GREEN ACRES: Southern Oregon provides escape from the maddening crowd Since You Asked: Metro Medford rebranding proved economical Jackson County median home price hits $215,000 in first quarter People In Business People in Business, March 26, 2015 Transportation Business briefs Medford airport's record run continues Gov. Brown touts need for transportation funding in talk to Medford chamber Erickson shores up business with three contracts Lithia Motors shares break the $100 mark Agriculture Naumes plans custom-crush winery in former packing house New bosses take charge at Harry & David Dancin Vineyards covers up Broth maker leaves San Diego for Medford Opinion Latest Our View: Raises for Jackson County officials — again Letters to the Editor, April 22 Kathleen Parker: Mr. Hughes goes to Washington Landgren cartoon: Tick season Granlund cartoon: Minnesota ISIS Editorials Our View: Raises for Jackson County officials — again Other Views: Delay edible marijuana products for safety Our View: The rule of law vs. armed confrontation Other Views: State Board of Education dragging its feet over Native American mascots Our View: Impeachment should be an option Letters to the Editor Letters to the Editor, April 22 Letters to the Editor, April 21 Letters to the Editor, April 20 Letters to the Editor, April 19 Letters to the Editor, April 17 Columns Kathleen Parker: Mr. Hughes goes to Washington Esther Cepeda: What happens in Latin America should be reported Kathleen Parker: Presidential election 2016: The woman trap Dana Milbank: America's new cycle of partisan hatred George Will: Don't seize the raisins Guest Opinions Guest Opinion: This Earth Day, we celebrate the Northwest Forest Plan The Medford School Board was right: 'American Pageant' is a fine book, and the board did its homework The Medford School Board was wrong: 'American Pageant' is a political agenda, not history Guest Opinion: Removing barriers to walking, biking benefits everyone Guest Opinion: Conversion therapy on LGBT youth is child abuse Lifestyle Latest stories Dave Ramsey: Difference in debts 5 Things to Do This Weekend (April 24-26) Have you wandered down the Bear Creek Wine Trail yet? Group calls for release of handsome Utah wild horse that became online sensation Season Stepp: Learn how to cook asparagus with a few easy tips Food Have you wandered down the Bear Creek Wine Trail yet? Season Stepp: Learn how to cook asparagus with a few easy tips Wholesome baby foods: Chef, nutritionist team up for book of homemade recipes Food for Thought: The new place of dairy on a paleo plate Kitchen Call: Asparagus with a ‘spring’ chicken Home and Garden Garden Cameos: Spring is time for azaleas in the garden Dear Monty: Seven costly mistakes of new real estate investors Paul Rogers: Enjoy convenience of container gardening Home Help: 3 quick, easy kitchen and bath upgrades Carol Link: Tea olive shrubs can be propagated from new growth Health Brent St. Germain: One year and counting Community blog: The Healing Power of Nature Official hopeful whooping cough case at John Muir contained Health Watch: How to avoid the dreaded weight-loss plateau Book Notes: A big body is not a bad body Hiking Biking Faith Religion Briefs: Friday, April 17 Religion briefs: Friday, April 10 Religion briefs: Friday, April 3 Religion briefs: Friday, March 27 Milestones and Achievements Witham's birthday bash draws hundreds for 1950s prices Charlesworth-Murphy Drizzle doesn't dampen Pear Blossom Parade spirit New Arrivals: Sunday, April 12 Columnist for a Day Rogue Healthy Aging Tempo Latest stories Five picks for entertainment this week L.A. rockers The Relationship play Howiee's Joanne Rand at the Unitarian Fellowship Rogue Valley Symphony and 3 Leg Torso mingle classical with modern chamber music Third Fridays celebrates poetry, student art Theater 'Secret Love' playwright Stan Lai appears in Ashland REVIEW: 'Secret Love' strikes comical, poignant balance Ashland New Plays Festival chooses new artistic director A tale of two plays at OSF Oregon Cabaret Theatre's "The Musical!" delivers five clever Broadway parodies in Ashland Music Alex de Grassi and Andrew York play SOU Live Music in Local Clubs L.A. rockers The Relationship play Howiee's Joanne Rand at the Unitarian Fellowship Rogue Valley Symphony and 3 Leg Torso mingle classical with modern chamber music Community Events Third Fridays celebrates poetry, student art 'BRAND,' 'Western' among Ashland Independent Film Festival award winners Ashland Co-Dependent Film Festival 2015 Pear Blossom Festival kicks off in Medford Ashland Independent Film Festival announces 2015 lineup Dining Have you wandered down the Bear Creek Wine Trail yet? Restaurant inspections: April 19, 2015 Siam Cafe offers 'mild' to 'very spicy' Thai cuisine Restaurant inspections, April 12, 2015 La Tapatia offers authentically delicious cuisine Tempo Videos Classifieds Jobs Autos Real Estate FEATURED » Obits Blogs TV Listings Movie Listings Oregon Outdoors Oregon Healthy Living Special Sections Business Services NEWS NOW Our View: Raises for Jackson County officials — again ... Medford, Talent language groups hope to attract Spanish speakers ... Serial killer Susan Monica found guilty on all charges, gets 50 years ... Our View: Raises for Jackson County officials — again ... Medford, Talent language groups hope to attract Spanish speakers ... Serial killer Susan Monica found guilty on all charges, gets 50 years ... Dear Monty: Seven costly mistakes of new real estate investors MailTribune.com Writer Posted Apr. 21, 2015 @ 7:33 am Posted Apr. 21, 2015 @ 7:33 am » Social News p bs:newslist StartDate="20121121" EndDate="p bs:datecalc Months="3"" DateSort="1" UseObjects="1" ObjectClass="81" Taxonomywords="2325,665" ExactTaxonomyMatch="1" Image="1" Count="4" --> By Richard Montgomery More Content Now Reader question: We just backed out of our first real estate investment deal. We took some bad advice, but luckily, discovered an undisclosed issue through a whistleblower. It made us ask ourselves, what else could we have missed? What are the biggest mistakes of new investors? — Justin and Ann P. Monty’s answer: Every year new investors plunge into investment real estate. Some of the property they buy is being sold to trade-up or because the depreciation has been spent. Others sellers are cashing out to retire or have experienced a lifestyle change. Ironically, some of the property the newbies are buying is being sold by disillusioned investors getting out. While there is no known way to track the number of failures, it could be in the double digits. Some investors do well from the very beginning and build incomes and assets that allow them to go full-time or retire from their day job early. Others, who seemingly got started the same way are not successful. Here are some mistakes inexperienced investors sometimes make that increase the odds of becoming a future casualty. 1. Matching their strengths with investment types. Many people do not match up their attributes and their strengths with the different types of real estate that is available, and there are many kinds of real estate investments one can make. It is surprising how some people start investing. As an example; Joe’s uncle died and owned a two-family flat. Joe’s older brother was the executor of the estate and told Joe “This is a good deal, but you have to move fast.” Joe had never seriously considered real estate, and didn’t know much about it, but jumped at the chance because his brother told him it was a good deal. Some successful investors may have started this way, but more often than not, it will be an uphill climb when undertaken on a whim. 2. Lack of understanding valuation. Not understanding the mechanics of real estate appraisal or valuation techniques and leaving it to others is a serious flaw for some real estate investors. Understanding the three different approaches to determining value, picking appropriate comparable sales and correctly analyzing the neighborhood trends takes study, but it is not rocket science. To leave the valuation opinion to someone who has no money in the deal is problematic. 3. Underestimating time commitment. Underestimating the time involved in looking after the investment. There is a sharp learning curve, time and effort involved in owning property. Others feel they can learn best by doing, but real estate can be an expensive place to practice, especially if one’s preconceived notions are off-base. 4. Inadequate contractor knowledge. Knowing how to identify, interview, hire and manage subcontractors is critical. Hiring a contractor because their hourly rate is thirty percent less can be a good thing, but not if it takes them three times as long to finish the job, and the chosen solution was wrong. 5. Inadequate tenant experience. Similar skills to those utilized to engage contractors apply to locating, interviewing and selecting tenants. Investing in utilizing credit reports is a good investment, but utilizing your powers of observation and applying common sense will be helpful in identifying good tenants to take care of the property and make timely rent payments. 6. Disregards Landlord Tenant Law. The rental laws in your state are an important part of the real estate investment industry. What you can do with a non-compliant tenant affects you financially. Knowing the steps to take to remove a problem tenant can make a difference in how soon you can re-establish cash flow. A good rental agreement and a system to manage the tenants are important to protect your investment. 7. No established maintenance plan. Which improvements add value to the property or a particular unit, and which ones not-so-much? “Replacement reserves” every month for future repairs and replacements are essential. Considering which components of the property will require repair or replacement soon before you buy is another opportunity. Leaky hot water heaters tend to fail about 2 a.m. on a Sunday morning. Real estate investing is not for everyone. One of the wonderful attributes of industry participants is that many are willing to share their secrets and stories about how they achieved the “American Dream.” Real estate is a great example in America of how one can turn the expression “Knowledge is power” into a rewarding endeavor. A sage once said, “Luck is the point in time when opportunity and preparedness meet.” 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. MailTribune.com Writer Posted Apr. 21, 2015 @ 7:33 am » Comment or view comments /* $( document ).ready(function() { // Jquery mobile is trying to style the button and leaving a blank gry button on top of a white button $("#viafouracoms .vf-comment-controls li.vf-right").html(' Submit '); });*/ » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. 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