Dear Investor,
Good news first: The San Francisco Giants have
won the National League Championship and the World
Series is kicking off on the 21st of October
in Kansas City, Mo, As you all know, NRES has invested
well in both areas. The baseball stadium for the Series
is about 2 miles from our Regency East Apartments, which
continues to be a great investment for NRES. The
economic impact of the playoffs/Series brought to Kansas
City has been significant. NRES has invested very wisely
in California, Missouri and Ft. Myers, Florida…excellent
investment areas!
Also, according to Doug Duncan, Fannie Mae’s
chief economist, they’re feeling optimistic about the
fourth quarter and predicting the economy will grow
three percent during the second half of the year.
Business spending and confidence are both up, and while
consumer spending dropped in July, there are even signs
of life in that area as car sales saw a bump in
August/September.
The bad news? "Recent housing
activity isn’t quite as positive having shown only
lukewarm growth since a promising start to the third
quarter, but our forecast is little changed from
August," said Duncan. "Purchase mortgage applications
have trended down over the past three months, despite
the declining interest rate environment. We believe this
suggests a residual conservatism on the part of
consumers and supports our view that the pace of growth
in the housing sector will be subdued during the
remainder of 2014, with modest improvement in 2015."
With that being said, NRES continues to employ
our acquisition strategy to buy houses when the market
slows and discount purchase opportunities are maximized.
Purchasing properties in Stockton after filing
bankruptcy has proven right on. The City is recovering
nicely and solid investments are still available with
the right timing.
Furthermore, NRES continues
to seek multifamily opportunities based on strong
positive cash flow and economies of scale. Apartment
rents are expected to rise eight percent cumulatively
over the next two years because of tight availability.
Today’s rental market conditions continue to
flourish. The NRES Team continues to maintain and
maximize the greatest return on your investment.
As a reminder, those
investor’s getting simple interest annually have the
best returns by not taking their monthly interest and
participating in profit shares after the sale the
property on a 50/50 basis with NRES.
You can read more on our
website at
www.nationalrealestatesolution.com.
Again, we thank you for your
investment relationship with the NRES Team.
Steve Puthuff
National Real Estate Solution
