Northridge News
June 2009
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Dear Investor,
The current economy presents questions and uncertainty about every area of life. How does this affect real estate? The press has been highlighting the effects of the economy and banking on residential real estate. Sales of homes and condos have slowed. This has affected our condo sales as well; however we have rental income in place to sustain these condo conversion properties. To counteract the difficulty of banks giving mortgages, we have obtained approval to hold financing on future sales. Our goal is to do this until we reach sales of 51% of our complex. At that point, we will receive FHA financing approval for buyers. Buyers need a 3% down payment and have less stringent qualifications.
When home sales are slow, there are more people in the rental market and interest rates come down. We
anticipate this situation to save us hundreds of thousands of dollars in interest.
In the last six months we have refinanced 610 Lincoln and are planning to refinance Westwood Apartments. Our plan for the Bartlett Lakes complex is to refinance in the 1st quarter of 2010. Presently with refinancing, the banks are much more cautious, if they are lending at all. Some banks have pulled out of the market completely. We are thankful to have maintained viable banking relationships to work with.
The current market accents the benefit of our strong recommendation for investors to diversify their investments. If one area, in this case condo sales slow down, there are added benefits on the apartment investment side to compensate.
We've survived a rough winter with above normal heating bills and snow plowing costs. You probably noticed these increases in your own homes. We are thankful for the warm spring weather and the rental business it brings.
In the corporate office, our efforts will be concentrated on getting settled in our new corporate office location and completing our online reporting service to update investors with statements and property updates. With the development of our new investor software we have run into some glitches that have to be rectified before we can safely put it on the website. Rest assured, we are diligently working to resolve these issues quickly. We hope you are all enjoying good weather, great health and the blessings of family and friends.
Regards,
Glenn Mueller, President
Northridge Holdings Ltd. |
Northridge Holdings, Ltd. | 1020 Fullerton Ave. Suite G | Addison, IL 60101 | (630) 889-9695
www.northridgeltd.com |
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