Pricing & Sales Terms:

The following are the prices per cabin, down payment required, payments, association fee, estimated rental income and owner's expected annual payments. Owner financing is offered at the seller's bank rates or a match of whatever the buyer can obtain. A cash sale is not preferred but will be accepted.

Cabin	Price	25% Down	Approx.  Yearly Payment*	Annual Fees:  Real Estate Taxes, Association Fees & Insurance**	5.5% Guaranteed Yield***	Gain/(Loss)
Bass	$165,000	$  41,250	$ 8,666	$0	$  9,075	$   409
Bear	$280,000	$  70,000	$14,706	$0	$15,400	$   694
Caribou	$215,000	$  53,750	$11,292	$0	$11,825	$   533
Deer	$250,000	$  62,500	$13,130	$0	$13,750	$   620
Fireside	$600,000	$150,000	$31,513	$0	$33,000	$ 1,487
Moose	$450,000	$112,500	$23,635	$0	$24,750	$ 1,115
Muskie	$385,000	$  96,250	$20,221	$0	$21,175	$   954
Northern	$290,000	$  72,500	$15,231	$0	$15,950	$   719
Sunset	$270,000	$  67,500	$14,181	$0	$14,850	$   669

• The Approximate Yearly Payment is calculated assuming a 30 year mortgage at an interest rate of 5.75% (a home equity rate).
  
  
• Management pays real estate taxes, insurance & association fees for the first two years
  
  
• 5.5% Guaranteed Yeild for the first two year

Only 3  units will be sold in 2008, then the project will be off the market.   All remaining unit prices will increase and the offering will return on the market in 2009.  There is a scarcity of private property and area property values are rising much faster than the value of money.

IRS Tax Information for Investment Real Estate

Tax treatment of vacation property depends on how owners use the property.  If the taxpayer does hold it out for rent, Section 280A vacation home rules apply.  The level of personal use must be considered and the 14 day or 10% of rental days test must be applied.  The use of deductions including (1) interest and taxes, (2) operating costs, (3) depreciation will be determined by the level of personal use and will need to be allocated.  Please consult your tax advisor to assess your unique situation.

Investment Comparison:

Consider the comparison of purchasing an investment cabin at Northern Lights Resort to buying an individual cabin.  Using a $250,000 cabin for our example and including the tax benefit (assuming a 40% tax bracket), a Northern Lights investment cabin would have out of pocket costs for everything of about $10,145 and a tax loss of $24,296 or for someone in a 40% tax bracket it is almost a break even.  Assuming the same interest rate on a mortgage, an individual cabin would cost $22,000 per year if it was not in the Northern Lights rental program and therefore not receiving income and investment stautus write offs.  This of course is only the financial benefit.  Also consider the maintenance benefit of not having to mow the lawn, put in and take out the dock, or maintain the beach.  When you spend time at your Northern Lights investment cabin, you spend your time enjoying the cabin and the lake. 

Special Attention Disclosure

Tom and Pat Ossell are the owners of NLRO/NPC.  Tom is a licensed Real Estate Broker and Pat is a licensed Real Estate Sales Agent.  It is the desire of Tom and Pat that all buyers are well informed about all aspects of such a potential purchase.  Future income and potential for appreciation are not being mentioned.  Tom and Pat plan to own one or more units for themselves.  We highly recommend proper investigation and due diligence.  The area on the map designated as "additional real estate" is planned for a 4 unit 2 story building.

Closing Comments & Alternatives

The owners, Tom and Pat Ossell, thank all present and former guests for their patronage to Northern Lights Resort Outfitting  Any cabin rental fees that previous guests have paid since 2003 shall be a credit against the purchase price as a thank you for being our guest.  It is our desire to have a congenial group of investor owners with similar attitudes for the prospering of Northern Lights Resort Outfitting; owner guests who will feel the pride of ownership of NLRO and will spend time at the property in and out of season.

Northern Lights will always remain an operating resort.  When reviewing this information you may think that this investment isn't right for you for the long term because when you retire you may want to live there full time in the summer and being that the units must be in the rental pool 6 out of the prime 10 weeks that doesn't give an owner that option. The property adjoining Voyageurs National Park is appreciating at an unbelievabel rate.  National Park Condos is an investment that will keep pace with area appreciation.  When you are ready to retire, either continue to hold NPC as an appreciating investment or sell the NPC unit and buy an area single family home to live in all summer.  Property in this area is increasing much faster than the value of money or what most people can afford to save.   This is an offering for a  recreation investment, it just happens to have a lot of fun and services attached to it.  When the project is entirly sold out the operation will be governed by the owners.  To retain the property as "investment property" and take advantage of the related deductions, discuss with your accountant if you may use the unit more often than the IRS guidelines by paying the market rental rates, for which you are returned 75% on the rental split.

If the time for such a purchase is not right for you, or this concept is not the right match, we hope that you will continue to be NLRO Guests.  As an alternative to NPC, check out Vermilion Estates at www.vermilionestates.com.  This is a common interest community of Lake Vermilion access lots which has a community sewer and water system.  This is a scenic big timber parcel where you build exactly what you want.  This property is within 5 miles by road and 2 miles by water to Fortune Bay Casino and “The Wilderness” Championship Golf Course.  If you are not ready to purchase at this time, and want to be kept on a lease let us know. 

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