Community

Daylight Savings Time 2012

orop — Tue, 06 Mar 2012 23:09:00 GMT

Friendly Reminder. It is time to "Spring Forward!" Daylight savings time is March 11, the second Sunday in March, and we set our clocks forward one hour at 2:00 AM. We will "Fall Back" on November 4, and the clocks will need to go back an hour.

Joy and Peace

orop — Mon, 19 Dec 2011 22:05:00 GMT

All of us at Oregon Opportunities wish you and your loved ones a joyous Holiday Season and prosperous New Year! To allow us to spend time with our families for the holidays, our office will close at noon on Friday December 23rd through Monday December 26th. We will also close at noon on December 30th through January 2nd.

Happy Holidays

Happy Thanksgiving

orop — Wed, 23 Nov 2011 20:33:00 GMT

All of us at Oregon Opportunities would like to wish you and your families a Happy Thanksgiving. Our office will be closed Wednesday afternoon, Thursday and Friday so that we are able to spend time with our families.

FHA Lending Myths and Facts

orop — Mon, 21 Nov 2011 21:07:00 GMT

Myths and Facts about the FHA Loan Limits

(November 15, 2011) www.realtor.org

MYTH: FHA WILL SOON NEED A FEDERAL BAILOUT

FACT: The FY12 actuarial review shows a slight decline in capital reserves. However, it is important to note that this is NOT FHA's only reserve fund. The capital reserves reflect the reserves available after paying expected claims and expenses.

FHA's current cash reserves total $33.7 billion - a $400 million increase from a year ago. These reserves are fully capitalized to pay 30 years' worth of expected claims and losses. By comparison, the Financial Accounting Standards Board only requires private financial institutions to hold reserves for losses over the next 12 months. FHA has 30 times that amount in their cash reserves, plus another $2.55 billion in the excess capital reserves.

The 2012 Audit states that "On net, the economic value of the Fund in future years has increased significantly due to the new, higher forecast of house price growth." It is anticipated that FHA will again reach the 2% excess reserve requirement by 2014.

MYTH: FHA IS EXPERIENCING HIGH DEFAULTS AND FORECLOSURES

FACT: FHA's seriously delinquent rate for loans originated in the last two years declined to 1.90%. FHA has said this is the lowest seriously delinquent rate in the history of the Neighborhood Watch system (originated in 1999). FHA's total delinquency rate is now at the lowest level in more than five years. Furthermore, FHA's credit quality has improved steadily since 2007. Over fifty percent (50%) of FHA loans made in every quarter since 2009 (2nd quarter) had credit scores above 680. Thirty-five percent (35%) of FHA borrowers in 2010 and 2011 (first half) had credit scores over 720.

MYTH: THE ACTUARIAL REVIEW SHOWS FHA IS IN SERIOUS TROUBLE

FACT: The actuarial review is a "snapshot" of the portfolio at a particular point in time. It estimates how the portfolio will perform in a run-off scenario over the next 30 years. Accordingly, an actuarial review is highly dependent on projections about the future economic environment, particularly house price projections.

According to the review, "Both the economic value and the IIF (insurance in force) of the Fund are expected to increase each year over the next seven years." Even the Wall Street Journal (11/15/11) reports that "the independent audit shows that loans made over the last two years are performing far better and are expected to be profitable. While rising losses could prompt new calls for the FHA to take steps to reduce their role in the markets, housing analysis warn those steps could be counter-productive if they prevent qualified borrowers from accessing credit."

MYTH : EXTENDING THE CONFORMING LOAN LIMITS WILL PUT FHA AT GREATER RISK

FACT: The 2011 Actuarial Review actually shows the opposite to be true. The review states, "FHA experience indicates that more expensive houses tend to perform better compared with smaller houses in the same geographical area, all else being equal."

MYTH: FHA IS NOT SERVING ITS MISSION

FACT: In 2010, FHA was used by 56 percent of all first-time homebuyers, and 60 percent of all African-American and Hispanic homebuyers. In addition, 85% of borrowers obtaining homes at the higher loan limits had incomes below $150,000, and nearly 65% had incomes less than $100,000.

MYTH: EXTENDING THE LIMITS WILL SERVE MILLIONAIRES BUYING MCMANSIONS

FACT: Although some have argued this provision provides financing only for high-cost markets, more than 100 counties throughout the Midwest and more than 200 counties in the South experienced declines averaging more than $64,000. The majority of markets that were impacted by the loan limit decline are NOT high cost.

FHA Bailout Not Necessary - Additional Facts

Moody's July 2011 forecast predicts a return to positive home price growth of 1.21% in FY 2012 and peaking at 6.08% in FY 2014 and between 3 - 4% in FY 2018 and beyond.

According to the Actuarial Report, if the private secondary market reestablishes its prior role in the market, FHA's market share will likely revert to its historical norm of 8 - 10 percent.

According to the Actuarial Report, the economic value of FHA's MMIF will increase in the future, rising by an average of $8.32 billion per year through FY 2018. The insurance-in-force (IIF) will increase by an average rate of 6.28% per year through FY 2018. The economic value is expected to grow at a substantially faster rate than that of the IIF. The economic value is projected to steadily increase over the next 7 years to reach $59.45 billion by the end of FY 2018.

According to the Actuarial Report, FHA's current cash reserves total $33.7 billion - a $400 million increase from a year ago.

According to the Actuarial Report, it is anticipated that FHA will again reach the 2% excess reserve requirement by 2014 - sooner than was projected in last year's actuarial report

FHA estimated that the Fund has total capital resources of more than $28 billion at the end of FY 2011. The MMIF is projected to have $1.19 billion in economic value that can be used to cover unanticipated future claim losses on the existing portfolio.

FHA insured 60% of all African-American and Hispanic homeowners in 2010, according to HMDA reports.

FHA insured 56% of all first-time homebuyers in 2010, according to NAR.

FHA borrowers in FY 2011 have an average credit score above 700. This is the first time the average credit score for FHA borrowers broke the 700 mark.

Easements

orop — Wed, 28 Sep 2011 22:46:00 GMT

Easements can be a source for friction between neighboring property owners. Obviously the more specific the terms, conditions, and location of the easement, the less opportunity for debate between the parties. Something that is often overlooked is the care and maintenance of the easement. For those having an interest in a road, a well-crafted road maintenance agreement by one of our local attorneys is worth a lot when warring factions cannot find a consensus of opinion. However, there is a provision in ORS 105.175 that provides that "Failure to record the agreement shall not affect the enforceability of the agreement among the parties to the agreement and any other person with actual notice of the agreement." It further provides that the allocation of those maintenance costs may be appropriated taking into account the frequency of use, distance of use, the size and weight of the vehicles used. While this works well in normal and customary circumstance the statute also goes on to state: "Those holders of an interest in the easement that are responsible for damage to the easement because of negligence or abnormal use shall repair the damage at their sole expense." Hopefully this can take out some of the drama that can electrify a potentially divisive situation.

Curt Johnson SIOR

An Opportunity for Thought Or A Teachable Moment?

orop — Mon, 19 Sep 2011 16:08:00 GMT

Now that the spotlights are turned off and dismantled from the backside of Coker Butte, the McPhail's find a way to get comfortable in their new "digs", and the ABC crew is off to their next community "Takeover", I think there is time for pause for meaningful thought.

I think this was a wonderful community event! Bringing good people together to do a good thing for some good people. That is what we do here, have always done and hopefully always will. No less, the Leather's Playground, saving Mt. Ashland, the 4-H Youth Livestock auction each year, even the annual United Way drive are a few other community successes for which we can brag and have community pride. After working my shift on the build, I noticed people walking a little taller, a little prouder, and behaving a little kinder. These collaborative projects have a way of doing that to us and for us.

One of the things that struck me in this process was, considering Oregon's and Jackson County's penchant for land use strangulation, how in the devil does one go about accomplishing such a feat in 106 hours? How do you navigate the permitting process? How do you navigate the inspection process? And lastly, how do you hope to cope with the permit fees and system development charges? What I heard was that this was such an advertising boon for the region that the ends justified the means. And if a national broadcasting network camera is in the house, you can gather consensus in a hurry! If the figures promoted by the producers are true, the ends are quite significant. However, I would have preferred to hear from officials, "Yes, we are going to do this as it is significant AND we are going to investigate ways we can do this better, faster, cheaper, and less intrusive for all us who remain here in Happy Valley every day" That is the part I didn't hear any talk or thought given. Before the glow is gone, the pats on the back fade, and folks return to their routine of trying to make a living, I wish we can do community introspection on the subject. Not just when the lights, camera, action are in play, not just when Amy's Kitchen is planning an expansion, but even when Billy Bob wants better "digs" for Emmylou!! Yes, let's figure out how to "Move that bus" blocking our view of all of our little economic development projects across the region. Give it some thought. Ask some questions. I think we can do better or at least try.

Curt Johnson, SIOR

"MOVE THAT BUS"

orop — Wed, 14 Sep 2011 16:05:00 GMT

It is "Reveal Day" for the McPhail family's dream home! Extreme Makeover Home Edition Jackson County Edition organizers are saying that they are shooting for 3:00 to reveal the house to the family but are suggesting those wishing to be there to show up early. The public is invited to join in the ceremonial outcry of "Move That Bus" and volunteers are encouraged to wear their blue shirt and hardhat, they will try and get you to the front of the pack. County officials are saying that this has been a great boost to our community with very little negative effect on resources, for the most part all time and supplies have been donated by volunteers.

Fall Webworm

orop — Tue, 13 Sep 2011 22:39:00 GMT

From Wikipedia, the free encyclopedia: "Fall webworm, Hyphantria cunea, is a moth in the family Arctiida known principally for its larval stage, which creates the characteristic webbed nests on the tree limbs of a wide variety of hardwoods in the late summer and fall. It is mainly an aesthetic pest and is not believed to harm otherwise healthy trees."

It looks like Halloween early in Southern Oregon, all due to the "Fall Web Worm"! This little pest is making its appearance all over our valley and is paying special attention to the Madrone trees. The webworm is so numerous right now because of the late summer we had, its natural predators normally wait until the warmer summer weather to come out and feed.

Although this little caterpillar creates an unsightly home is it relatively harmless. The only damage it creates is to the leaves that it eats, but to the tree owners they are not so pretty to look at. On rare occasions there are some infestations that are so bad that the trees are being damaged to the point of removal, the experts' advice is to remove the nests by cutting the infested limbs out although some people just use a broom or lawn rake to pull them out.

Many people are confusing this caterpillar with the "Tent Worm" which can cause considerable damage to trees. The web of the tent worm is much different than the webworm. The web of the Tent Worm are much neater and attached to the trunk of the tree or in the crooks of the branches while the web of the Webworm are usually at the ends of branches and incase the leaves.

Extreme Home Makeover Family Chosen

orop — Wed, 07 Sep 2011 21:01:00 GMT

Earlier today, September 7, “Extreme Makeover: Home Edition” traveled to Medford, Oregon, to surprise the McPhail family with the door knock that can change lives.

As a young newly married couple, C.J. and Lindsay McPhail decided they wanted to spend their lives helping others. They started the Southern Oregon Chapter of Sparrow Clubs, a non-profit organization, which helps children with medical issues by pairing them with a school which adopts them as their school’s "Sparrow." C.J. found himself speaking to students, businesses, and anyone who would listen about the incredible power Sparrow Clubs gives to both students and Sparrows. His amazing ability as a public speaker motivated thousands of students to raise funds, perform service work, and create programs all in the name of their Sparrow. Not only were C.J. and Linsday a part of raising hundreds of thousands of dollars for kids with medical needs, they were also able to help transform schools through challenging students to look beyond themselves and serve.

C.J. and Lindsay never imagined though they would one day need the help from the very same organization they devoted so much of their time to. Soon after moving to Portland and running a chapter there, their oldest son Sawyer was diagnosed with a form of Autism and their second oldest son Thatcher began to start showing signs of Autism as well. With their children regressing, the family moved back to Medford to live on a 50-acre family property next to Lindsay’s parents. The boys showed great progress, but Sawyer still faced several challenges due to his lack of social cues. Much to the family’s surprise, Sawyer became a Sparrow and through his endearing personality, he helped put a face on autism and brought awareness to over 900 students in his adopted school. While the property and the outdoors are great for the children’s progress, the house is not built for their needs.

The electrical system is from 1958 and recently an outlet actually sparked and shot small flames, Rewiring would be difficult since the home is made of cinderblocks. The windows are all original and are a safety hazard because they are huge and are not tempered glass, meaning if they break the glass won’t shatter. The plumbing is poor and leaks creating mold in the bathrooms. Lastly, there is no heat in the back of the house. Only the kitchen, living room, and front bedroom have ventilation so the family is forced to rely on space heaters in the winter, which is extremely costly and not eco-friendly. Moving away from the house is financially impossible and not desired since the property is crucial to the boy's progress.

The “EM:HE” design team has just seven days to build a brand new home for the McPhail family. The McPhails have been whisked away on a dream vacation to the new Aulani Disney Resort & Spa in Hawaii, while “Extreme Makeover: Home Edition” team leader Ty Pennington, designers Paul DiMeo, Paige Hemmis, Ed Sanders and new designer comedian Jeff Dye and local builders Ark Built Renovations as well as community volunteers, build the structure.

"Our community has been extremely gracious during the planning and preparation stages of the build. Companies across our Southern Oregon have stepped up and donated time, services, money and products to get this job done," said Rush Behnke of Ark Built. "We are very excited to actually start the build process, which is going to be a collaborative effort of the program and our own fleet of volunteers from throughout Southern Oregon."

Spectators will be able to be onsite in a special viewing area beginning Friday, Sept. 9, at 8 a.m. All spectators and volunteers must visit the site via a free shuttle service with pickup and drop-off locations to be announced.

Spectators are encouraged to bring cans of nonperishable food to the build to benefit the ACCESS Food Share Pantry Network of 25 pantries. Special food drive barrels will be set up on the site beginning Friday, September 9. Food drives in other communities in which Extreme Makeover: Home Edition has built homes have been highly successful in helping feed the hungry.

The series is produced by Endemol USA, of Endemol Holding, and executive-produced by Brady Connell & George Verschoor. David Goldberg is Chairman, Endemol North America.

http://www.facebook.com/notes/extreme-makeover-home-edition-jackson-county/extreme-makeover-home-edition-design-crew-surprises-the-mcphail-family-in-medfor/270079646344080

Extreme Makeover Home Edition

orop — Wed, 31 Aug 2011 18:47:00 GMT

As many of you have probably heard a local family will be receiving a new home by the TV Show Extreme Makeover Home Edition! and they have a local Facebook Page and are looking for volunteers: "There are now only 2 shifts left open for volunteers! Day 5 shift 4 needs 18 people and Day 6 shift 4 needs 26 people. Both of these are 2am to 8am shifts. Thanks everyone!"
Visit their Facebook Page at http://www.facebook.com/emhejacksoncounty or the website http://www.joinextreme.com/supporters/oregonsponsors

Electronic Progression

orop — Wed, 10 Aug 2011 22:46:00 GMT

In the last 20 some years, there have been many changes in real estate. Most notably is the way Listings are advertised and how property details get retrieved and delivered.

There was a time when the compilation of relevant listing information took virtually a week to assemble, then called the "MLS Book". Now, all that information and generally much more can be gathered electronically in the morning and uploaded to a virtual MLS Book that only exists in the "Cloud" by the afternoon. The electronic progression continues with the introduction of QR Codes into the real estate realm.

Quick Response (QR) Codes are square bar codes that enable smart phone users with the proper app support to snap a scan of the code and be taken directly to the product listing, listing broker, or listing company that the user is interested in. Users can also quickly add "business card" information into their contacts.

One will find us using QR Codes with greater frequency. Listing flyers and flyer boxes will have an associated code attached as well as company signs, business cards and other promotional materials will have codes directing to our company and our brokers. We know we are only scratching the surface of utilizing QR Code technology, we do recognize their importance in helping us to propagate information to a greater number of people and in a media that is user driven.

How can we make QR codes fit your needs?

CONTROLLING WEEDS ON YOUR SMALL FARM

TerryD — Mon, 12 Apr 2010 20:52:00 GMT

Melissa Matthewson, OSU Extension Small Farms
Spring and Summer: increasing day length, warmer weather and the spring bloom of trees, shrubs and flowers, but what we do not
welcome is the emergence of weeds on our farms. In some cases, with biennial weeds like thistles and teasel, rosettes have already appeared
on the farm, but many of our nasty summer annual and perennial weeds show their faces in the coming months. Weeds can
have various impacts on our farms including decreased grazing potential, decreased crop yields, increased erosion, toxicity to our animals
and family, and decreased property values. They can also be costly to control. So, what can we do as small farmers and landowners
to control weeds on our farms?
The first step in controlling weeds is to identify exactly what weeds you do have on your property. If you do not have any identification
books on hand, you can use the internet or you can bring in a sample to the Extension office and we can help you identify it. Once identified,
it is important to know the life cycle of the plant as well. Knowing whether it is an annual, perennial or biennial will affect your
management decisions and control options.
An annual weed completes its life cycle in a single year. Preventing annual weeds from going to seed is the best control option, although
it is important to remember that you may have a build-up of weed seeds in your soil from past plant life cycles. Summer annuals
live from spring to fall and winter annuals germinate in the fall and winter. Examples of common annual weeds are pigweed, lamb’s
quarters, and yellow star thistle (winter annual).
A biennial weed requires two seasons to complete its life cycle. In the first year, it develops roots and low-growing foliage. In the second
year, it will send up a flower stalk, set seed and mature. They are easiest to control in the first year by removing the rosettes. Common
biennial weeds include teasel, bull thistle and poison hemlock.
A perennial weed lives more than two seasons. Year after year, perennial weeds will produce foliage, seed and mature. Most invasive
weeds that we encounter are perennials. Some perennial seed can remain viable in the soil for years, sometimes germinating ten years
later. Common perennials include dandelion, curly dock and field bindweed.
Prevention is crucial in managing the spread of weeds. Plant clean, weed-free seed in your pastures, minimize bare ground and overgrazing,
plant and maintain desirable plant species and sanitize your equipment. Beyond prevention, there are mechanical, cultural, biological
and chemical controls for each type of weed. Choose the method of control based on the plant’s life cycle and your future objectives
for the site.
Mechanical control of weeds physically disrupts weed growth. This is the oldest method of control and usually, the most effective for
annual weeds as long as you apply the mechanical method before seed sets. Various methods of mechanical control include mowing,
cultivation, hand-pulling, burning, mulching or solarizing.
Cultural control of weeds includes practices that encourage desirable plant growth. Fertilization, irrigation, and planting appropriate
species at optimum densities are practices that help desirable plants out-compete weeds. Common cultural methods of control include
shading, water and nutrient management, proper seedbed preparation, planting of native species, and destruction of weed competition
before planting.
Biological control is the intentional use of living organisms to reduce the population of a pest. Biological control can reduce pesticide use
and can efficiently suppress weed populations, but it is not a total eradication option. Biological control in the state of Oregon has been
used on many weeds including yellow star thistle, leafy spurge and bull thistle, just to name a few.
Chemical control is the use of existing herbicides to control weeds. Effective use of herbicides is determined by knowing the life cycle of
your plant, understanding pesticide safety, and reading the label for proper application and protections. Think about what you would
like to do with the area when the weeds are eradicated. If you are going to use herbicides, make sure the residues will not affect the
future use of that site. It is also important to know if the herbicide is selective or non-selective, so you do not accidentally kill plants that
you had not meant to kill. The Pacific Northwest Weed Handbook is a great resource and lists various weeds and their chemical control
with proper application rates and times.
In general, inventory the weeds on your property and identify them properly. Ask yourself
what land management changes you can make on the farm in order to minimize
your weed problems. Decide on the best method of control based on the plant’s biology
and then monitor your success over time. Weed management is a long-term process and
there are usually no short-term solutions for large infestations, but successful weed control
is possible with correct information and management techniques. For more in-depth
information on weed control, please go to the OSU Extension website at http://
extension.oregonstate.edu/catalog/.

First Time Homebuyer!

TerryD — Tue, 30 Mar 2010 21:01:00 GMT

The IRS "First Time Home Buyer Tax Credit"! Time is running out.

Here is what you need to know-

You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.

If you enter into a binding contract by April 30, 2010 you must close on the home on or before June
30, 2010.

Here is a link to a PDF document on the IRS website to give you the detailed information: http://www.irs.gov/pub/irs-pdf/p4819.pdf.

Groundwater Use

TerryD — Mon, 21 Sep 2009 21:21:00 GMT

The Water Resources Department has initiated a public rulemaking process

related to the implementation of provisions in SB 788 for recording exempt

groundwater use with the Oregon Water Resources Department (OAR Chapter 690,

Division 190).

This is to notify you that the public comment period has been extended by

the Department to October 15, 2009 (by 5:00 pm). In addition, the

Department has scheduled public hearings on September 22nd in Salem,

September 29th in Pendleton and September 30th in Bend. Please note that at

each of the public hearings, and prior to the formal hearing, the Department

will provide time for an informal question and answer session to allow

people in attendance an opportunity to ask agency staff questions about the

proposed rules.

The draft rules and Notice of Open Comment Period and Rulemaking Hearing can

be found at http://www1.wrd.state.or.us/cgi-bin/notices.pl?oar_notices

2009 Stimulus Act

TerryD — Wed, 08 Jul 2009 00:08:00 GMT

Recently, I read an article relating to national commercial real estate conditions and the 2009
Stimulus Act. Many real estate owners and developers are negotiating with their lenders to modify
existing debt and the Recovery and Reinvestment Act of 2009 provides some beneficial tax relief.
With tight finance, increased vacancies, downward pressure on rents, owners are looking for relief.
The move to negotiate with lenders for debt relief, including forgiveness, has become a popular
means of capital preservation. However, debt restructuring can result in cancellation of debt
(COD) income for tax purposes, especially when the loan is reduced or the owner pays off the
loan at a discount. Most often, the cancellation is taxed as income at the borrower’s ordinary rate.
Let’s say an owner owes $500,000 on a mortgage and the lender agrees to reduce the principal to
$350,000. Unless there is an exception that applies, the owner will recognize $150,000 of ordinary
income.
The Stimulus Act gives owners an alternative. The new provision allows them to defer COD
resulting from 2009 and 2010 transactions until 2014. The owner must recognize 20% of the COD
in 2014, and in each of the next four years. The new alternative is simpler and has fewer
restrictions.
Applying this new rule to our example, if the principal of a $500,000 mortgage were reduced to
$350,000, instead of immediately paying tax on $150,000 of income, the owner can now defer the
income until 2014 and recognize $30,000 in each year from 2014 until 2018.
Secured and unsecured debts are eligible. Property value isn't considered. The basis of an owner's
property isn't reduced, and he continues to depreciate 100% of his original cost. The property
must be used in the owner's “trade or business”.
Many commercial property owners are now asking their lenders for debt relief. The 2009 Stimulus
Act alternative will allow them to restructure debt on their troubled assets without the punitive
tax consequence as before.
Information gathered from sources deemed reliable, but not guaranteed. It is recommended that
individuals check with all appropriate professionals for legal, accounting, and development advice
Curt Johnson, SIOR

In Case of An Emergency!

TerryD — Tue, 24 Mar 2009 22:18:00 GMT

Every homeowner should set up an emergency plan for their house hold. This plan should include a list of emergency shutoffs and other important items in the house to be aware of in case of an unexpected situation. You may need to find an expert to help locate, repair or maintain some of these shutoff valves and switches. Tag these items and take a tour with your family or anyone who may be at your home. Take the time to explain what these items do and how to operate the controls. Here is a basic list of some of the items to tag, for a more detailed information contact your local utilities, police and fire departments.

• Main electrical disconnect Furnace & Air main switch

• Water main valve or well shut off Emergency release for garage

• Water heater shut off door

• Any gas valves or mains Fire extinguishers

• Air conditioning disconnect Emergency toolbox

Provided by Craig Corrales National Property Inspections craignpi@earthlink.net

Jackson County

TerryD — Tue, 24 Mar 2009 22:09:00 GMT

JACKSON COUNTY INCLUDES 2,801 SQUARE MILES! The counties principal industries are lumber, agriculture, manufacturing, and recreation. Its major points of interest include the Shakespearean Festival, Historic Jacksonville, Southern Oregon University, the Peter Britt Festival, the Rogue River, and many parks. Rural land owners with small acreage (nine acres or less) make up 27% of the rural landownership in Jackson County. Those with 49 acres or less account for 70% of the rural landownership. The natural and cultural history of Jackson County is diverse and fascinating. The landscapes we see today were formed over millions of years by glacial ice migrations, massive floods and red-hot lava flows. The Native peoples, include the Modoc, Shasta and Rogue River tribes who lived in the region now defined by Jackson County. Did you know that acorns were used to produce flour used in bread, puddings and soup. Did you know that Jackson Counties Agricultural has grown to over a 60 million dollar industry and the first commercial orchards were planted in 1885. There are many hiking and riding trips you can take to enjoy the Southern Oregon region. ( information obtained from the Jackson Country Rural Living Handbook).

Watering Tip

TerryD — Tue, 24 Mar 2009 22:06:00 GMT

Landscaping and a healthy lawn impress buyers! Here is a guide to help you with your lawn.

LAWN SPRINKLING GUIDELINES (from the annual water quality report, Medford Water Commission):

This should be a handy reference. For their Lawn Watering Infoline call 541-774-2460

NON-ROTATING SPRINKLERS: ROTATING SPRINKLERS:

May/September: 44 min May/September 115

July/Early August 70 min July/Early August 175

Especially Hot Periods 80 min Especially Hot Periods 200

PROTECT YOUR SOIL WITH THESE PLANTS

TerryD — Tue, 24 Mar 2009 22:02:00 GMT

These plant species are commonly used by farmers in Jackson

County. An improved pasture will consist of a well balanced mixture

of grasses and legumes.

Grasses

• Orchard Grass is a highly productive grass suitable for hay or pasture

on well drained soils. It is not recommended in combination

with tall fescue.

• Tall Fescue is highly productive grass that grows well in a wide

variety of conditions.

• Perennial Ryegrass is a “cool season” grass used in pasture or hay production. It is

compatible with a wide variety of soil conditions.

Legumes

• Ladino White Clover is a long lived highly palatable perennial clover well adapted to

irrigated pasture production in southwestern Oregon.

• Birdsfoot Trefiol is a long-lived, deep rooted legume suitable for hay or pasture in areas

with drainage problems. It is very winter-hardy and tolerant of dry summer conditions.

• New Zealand Winter Clover is a long-lived perennial clover adapted to wet soils and

irrigated land. It is not tolerant of acidic soils.

Nutrient management, based on soil tests results, and irrigation water management are a

couple of easy steps that rural landowners can take to improve forage production on pastures

in Jackson County. Jackson Soil & Water Conservation District, USDA Natural Resource

Conservation, and Oregon State University Southern Oregon Research & Extension

Center are excellent sources of information about these management activities.

Commercial Real Estate

TerryD — Tue, 24 Mar 2009 21:44:00 GMT

I have been asked to comment on the state of the industrial real estate market, particularly noting any trends from 2008 to date

A review of Southern Oregon Multiple Listing Service data indicates that there are presently 23 offerings between 10,000 square feet and 50,000 square feet. The average time on market for those products is 218 days. Since early 2008, one transaction transpired and it is believed to be an acquisition by a junior lien holder protecting their interest. Therefore, there is not much market activity to report.

What is being seen with leasing activity is an increase in vacancy, which should be placing downward pressure on market rates. However, most brokers and property owners continue to quote rates in keeping with historical market conditions. Many potential tenants are asking for rates at half of the offering price. Presumably, negotiations settle somewhere between the ask and offer or a twenty-five percent rental rate reduction. What that does to reduce the overall value of the asset is the same, if not more. A rate reduction has an immediate impact to value of the asset and with current finance and investment markets in turmoil, capitalization rates are increasing in response to real estate risk. Not all that long ago, capitalization rates on high quality long-term letter of credit tenant were as low as 6 ½ to 7 percent. Many of those same assets are now in the market at 8 ¼ to 8 ¾ percent. That equates to a 20% mark down based on the same income stream. Coupled with rate reductions to the income stream, actual values can easily be written down 30%.

I am currently engaged in lease re-negotiations with tenants for property owners. Being keenly aware of these adverse conditions, I have encouraged my clients to be proactive in keeping their projects filled and viable…even if the means reducing rates in the interim. As much as I would like market conditions to be different, that is how I see commercial real estate in southern Oregon over the past year. With that said, what it may mean is that there may be real estate investment opportunities showing positive cash flow positions.

Curt Johnson, SIOR

Importance of Appreciation in Value of Agricultural Property to the IRS

TerryD — Thu, 24 Jan 2008 01:18:00 GMT

The value of farmland in American’s heartland has been appreciating in value even as the value of many other sectors of the real estate market have been declining in recent months. The fact that one’s farm property -- whether used for agriculture, livestock or horses -- is appreciating in value is of importance from an economic standpoint, and it helps one do battle with the IRS in the event of a hobby loss audit.

Under the hobby loss rule if you have losses in connection with any farming activity, whether horses, livestock or agriculture, the IRS may suspect that the activity is engaged in as a hobby rather than a business. Many farms have a history of losses, on and off.

This Factor is called “Expectation That Assets Will Appreciate in Value.” The term “profit” in IRS Regulations encompasses appreciation in the value of assets such as land and/or livestock used in the activity. The leading case on this point is Engdahl v. IRS. The taxpayer’s land appreciated from $83,l46 to $225,000 over a several-year period. The Tax Court held that this in itself was indicative of a profit motive. There are many similar rulings in Tax Court cases.

One important Tax Court case observed: “If losses, or even repeated losses, were the only criterion by which farming is to be judged a business, then a large proportion of the farms of the country would be outside the pale. It is the expectation of gain, and not gain itself which is one of the factors which enter into the determination of the question.”

The appreciation in value of farm property takes on importance particularly in situations where the taxpayer has been unable to show any profit years. Appreciation in value of your farm or ranch property can help prove that you have an honest expectation of making a profit despite a string of losses. The fact that a portion of your farm is used for a residence or other purposes does not preclude the IRS from considering overall appreciation in value.

This element can be crucial if you are audited by the IRS and cannot show any profit years in recent history. Appreciation in value of your farm or ranch property can help prove that you have an honest expectation of making a profit despite a string of losses.

Improvements such as barns, arenas, pastures, fencing, breeding sheds, stalls, storage facilities, irrigation, ponds, lighting, and landscaping all fall within the type of improvements likely to help increase the value of the land itself.

According to tax regulations, the appreciation in the value of the land used in the activity helps to explain a taxpayer’s willingness to continue the venture despite operating losses sustained during a number of years. It is strong evidence that the taxpayer conducted the activity with an honest and actual objective of making a profit.

However, sometimes (perhaps often) the IRS will argue that the farm property -- particularly in horse and other livestock ventures -- is not economically tied up with the land, so that any appreciation in value is largely irrelevant. This position of the IRS, if and when taken, is contrary to many Tax Court cases on the subject.

It is recommended that taxpayers get a formal appraisal of their property every couple of years to help substantiate the fact that their overall venture is doing well because, if the farm were sold, there would be a significant recoupment of past losses. In a formal appraisal, the appraiser should be able to say that the land is used exclusively for the venture, and that the highest and best usage of the land is that of a farm, whether it be a horse farm, cattle ranch, or agricultural activity.

You should also be able to prove that the land was purchased, maintained and improved with the expectation that it would appreciate in value, and that this increase would enhance the overall profitability of your venture.

To recap: If you are engaged in any type of farming venture, whether it be horses, livestock or agriculture, and if you sustain a significant period of losses that you utilize to offset your principal source of income -- it is important to show that you acquired the farm property with the expectation that it would appreciate in value. You should keep documentation to prove the improvements you made to the property. You should have periodic written appraisals of the property, and the appraisals should indicate that the activity is tied up with the land, that the highest and best use of the property is as a farm, whether horses, livestock or agriculture, as the case might be.

Contributed By: John Alan Cohan, Attorney at Law

John Alan Cohan is a lawyer who has served the horse industry since l98l. He serves clients in all 50 states, and can be reached at: (3l0) 278-0203 or via email at johnalancohan@aol.com

Tax Withholding Requirement for Sellers

TerryD — Thu, 27 Dec 2007 00:04:00 GMT

Warning on withholding of funds at closing

This is an update on the Oregon Law (HB2592) that will require an closing agent to withhold funds from seller’s proceeds at the closing of non-Oregon residents or those that will not remain an Oregon resident after closing. Most title companies will provide Oregon Department of Revenue forms, shortly after opening of escrow that must be returned in advance of closing by the seller. If they do not, the closing agency may retain up to 4% of the sales price of the home. If the ODR forms are returned, the withholding may be 4% of the seller’s proceeds. There are potential delays i f forms are not returned or if there is a lack of proceeds to cover the withholding. This information was provided by a title company.

Why use a Real Estate Agent

TerryD — Wed, 13 Jun 2007 00:13:00 GMT

Your Real Estate agent is your “Information Headquarters”. We are able to give you up-to-date information on what is happening in the marketplace and what conditions might affect your personal real estate goals.

A Real Estate agent is more than just a sales person! They act on your behalf as “your” agent, providing you with expert advice and guidance. They strive to make your home buying or selling experience more informed and less stressful.

If you are buying a home, an agent can assist you in the selection process by researching the market and showing you only those homes that meet your specific needs as well as providing you objective information about each property. Once you have settled on your “Perfect Home”, they will help you negotiate the purchase of that home, optimally saving you both time and money. A Real Estate agent will help guide you through the entire closing process and make sure things flow together as smoothly as possible until the front door keys are in your hand.

If you are selling your home, a real estate agent will research both the current market conditions and your home selling goals. They balance how quickly you want to sell your home with the market conditions and present you with the optimal price to list your home at. Your agent will handle all of the advertising of your home to both other agents and the public. We know when, where, and how to advertise your property to obtain the best results. Here at Oregon Opportunities we advertise properties on as many as 20 different websites depending on the property type, as well as many different print ad publications. We do what it takes to get a buyer to your front door and then make it their front door.

In short your Oregon Opportunities team of Real Estate agents with their years of combined experience will be on “Your Side” from beginning to Closing.

Staging Your Home For Sale

TerryD — Wed, 30 May 2007 21:06:00 GMT

Staging a house for sale is a concept foreign to many home sellers. But it has been immensely popular in the San Francisco Bay area where sellers have reaped huge benefits from their efforts. In a recent Inman News article, they said the sellers don't have to fix up their home before selling if the home is priced right. There are basically two reasons why sellers should prepare their home for sale, a sales price closer to the listed price and a quicker sale. A few quick and easy cosmetic improvements ideas that can really make a difference: remove old window coverings and leave them off, remove some furniture, change out olders light fixtures, paint outdated cabinets and change cabinet knobs, and even think about painting the walls a trendy decorator color. The goal of fixing up a ahouse for sale is to get it into move-in ready condition. Fixer-uppers appeal only to certain buyers who usually want a break on the price to compensate for the condition of the property. By sprucing the property up for sale, you appeal to a much broader audience.

Welcome to Oregon Opportunities Blogs

admin — Tue, 27 Feb 2007 11:33:00 GMT

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