2015 11-17 EAC Community Weekly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

No updates.

John Hostetler, COO

St. Louis trip – Vil, Lou and I met in St. Louis this past week to meet with our great team, see our current properties, meet with local banks, and investigate where we’ll invest next.

Since Vil updated on the properties, I will not duplicate, except to expand on the Oregon Ave triplex: 3152 Oregon triplex – Met Ameren inspector on Thursday, as electricity hasn’t been on in several years. Half of building was good to turn on, with the other half needing small fixes. Scope of work will expand on this project from original because we want to make this and all of our properties from here on out both attractive to renters and trouble free from a maintenance standpoint. As such, we expect to draw solid tenants and higher-than-market rents. This has worked in Jacksonville, NC and we feel it will work similarly in St. Louis.

Illinois properties – We do have four duplex units under contract, but will have to determine over the few days whether or not these fit into our overall goals for the StL area.

B2R refinance – I have asked for an update on our appraisal results from our rep and expect later this week. The title work is nearing completion so we are now just waiting for our final few properties to complete and lease up.

Olga Levin-Diaz, CFO

In the month of November we have parted ways with Appfolio and are currently working on instituting our internal control processes that will take place instead. We work with excel templates our PMs use for reporting monthly activities and we are currently working on aggregating this information into one database from which we will be able to calculate important performance indicators.

We are also focusing our efforts on a project management software. At this point we narrowed our options down to Podio and Zoho and are evaluating both. The difficult part of the implementation for this kind of software is creating the workflow for our major processes. We will ask more people to join in as we develop it more and decide which product we will use. This was a long awaited project that took a back seat while we struggled with Appfolio, so I am happy we are finally able to get it moving forward.

MANAGING PARTNERS

Vil Nikollaj, Managing Partner

2420 Upas:
RBD confirmed closing this week. Plan to repay EAC after funds are released.

2608 Magnolia:
– Submitted revised offer to Ameren Electric Company. Awaiting response from legal department.
– If not approved, will continue with rehab plans

3152/3154 Oregon:
– Electric inspection approved to turn on power on one unit and only minor corrections to turn on power to other unit
– Roof and exterior work to be done prior to cold weather
– Design plans established

Other updates:
– Had a very informative and productive trip to St. Louis
– Met with the local team members and the opportunities look very promising
– Illinois bank accepted offer on 1 full duplex and 2 half duplexes (4 units total). Planning to perform minor rehab and flip properties to retail buyers if all due diligence passes.
– Offer accepted on 4-plex near local casino in Patch neighborhood of St. Louis
– Met with some local bankers and contacts for leads and financing options that will help EAC obtain the 50-150 units we would plan to purchase

Isaac Guzman, Managing Partner

As last week, I am out of town and will be unable to attend the weekly meeting. I have interviewed two potential GPs in Birmingham and have an interview scheduled for next week with another PM company which seems more promising than our current PM in Birmingham.

Chad Urbshott, Managing Partner

18110 Libby:
Libby will follow that closing.

4384 Ingleside:
Ingleside financing fell through so we have begun to remarket.

5750 Garfield:
Garfield is delayed until week of December 14th because of banking issues.

Linda Lin, Managing Partner

Awaiting updates.

GROUND PARTNERS

Lou Ellis, Ground Partner from Jacksonville, North Carolina

The five duplex buildings, 300-302, 308-310, 320-322, 328-330, and 332-334 Starling are all completed and ready for appraisal by the end of next week. The only remaining homes to be put into the next B2R loan are 504 Oak and 1106 River will be done 2 weeks after that.

Once B2R closes, the remaining 6 duplexes, 527 New River and 511 Nelson will be completed by about February for the next loan.

Steve Shaffer, Ground Partner from South Bend, Indiana

Awaiting updates.

Andrew Davis, Ground Partner from Orlando, Florida

602 Emma:
– I’ve uploaded the best comp I can find to the dropbox for what I think the property would sell for boarded up & vacant. It’s not an exact match in terms of property type, but it’s the closest in the area.

– I’ve found 8 people that either own multiple properties in the area or are most likely investors (LLC’s and corporations), I have my VA searching for their contact info now..

1215 Avenue L:
– The plumbing issue has been fixed. There is no damage to the structure or frame, so we will not need to be pursuing an insurance claim. The total cost for that will be $375.

– The work on the front unit should be completed by tomorrow, as soon as I receive pictures from Nick I will upload them to the dropbox.

– Sanita has been served with a notice to vacate the property. She turned violent yesterday, and has been screaming at the contractors doing the work on the front unit and began throwing things at them.

Giovanni Gracias, Ground Partner from San Diego, California

4748 College Ave:
- We are making the final push to wrap this project up this week.
- Final steps include completion of punch list and staging
- Projected listing price: $565K-$585K.

2672 Escala Circle:
- This project has been completed and will be on the market as soon as we get final pictures
- Stager is wrapping up final details and is expected to be finished by 2pm Weds.
- Photographer is scheduled to take pictures Weds at 3:30pm with a 24hr turn around for final pictures.
- The property will be on the MLS by Friday on a range from $530K-$560K

12081 Calle de Medio:
- The property has been on the market 2 weeks and received a ton of activity with 4 official
offers coming in
- We countered all offers and have accepted the one with the strongest buyer (per our cross
qualification lender).
- Accepted offer of $325K was finalized over the weekend and we officially opened escrow
yesterday with a projected 30 day closing.

George Flint, Ground Partner from San Diego, California

1222 Muirlands:
Arch met with the city today, permits should be issued this week.

Pescas:
Arch met with the city today, there was an issue with the setbacks, so there will be a delay in permits. Should have them early Dec.

Other updates:
Overall both projects are moving well and things are coming together.

John Allen, Ground Partner from San Diego, California

4336 53rd Street:
– We have completed our corrections for grading plan check. We are waiting for structural and civil to complete their corrections for our re-submittal.
– The project is being marketed and receiving lots of interest, according to the listing broker. We have received 2 LOIs, and countered both.
– The most recent offered 850k, and we countered last week to 910k. After driving the property with their equity partners, they decided to counter with 700k, which obviously isn’t even close. So we are moving on to other groups.
– We still have plenty of time until building plan check is completed and are still ahead of any potential buyer who will require a 45-60 contingency period before waiving contingencies.