December 27th, 2013 Newsletter

3588 Sydney Place, San Diego, CA 92116

We have been able to find another single-family home to fix and flip here in San Diego. 3588 Sydney Place was brought to us by one of our business partners, Pacific Property Solutions, LLC. They have acquired a great fixer in the desirable Normal Heights neighborhood in San Diego. This house sits in the finger canyons north of Adams Avenue and has phenomenal views of Mission Valley.Itis a single-family residence with 2 bedrooms, 1 bathroom, and approximately 875 square feet. The property sits on 0.35 acres and was built in 1941. They will fully renovate the existing home (new roof, expand/remodel kitchen, dining room and current bath, refinish wood floors, rebuild existing garage, fully landscape, etc.) as well as add a master bedroom and bath to increase square footage to approximately 1,800.

For this property EAC has will provide a total of $210,000 in gap purchase and construction funding. Total hold time for this property is proposed to be 6 months. The purchase price is $476K and the repairs will cost an estimated $100K. ARV on this home is $710K, but we feel that this is actually a conservative estimate considering the large increase in square footage and wonderful views.

We have provided gap and construction funding to Pacific Property Solutions on two other properties, 1425 Paseo Orion (currently in escrow to sell $10K above ARV), and 434 Queen Anne Drive (3 weeks from completion) and have found their work to be very high quality and ARV’s conservative. We have done thorough analysis of this property, and we feel that this is a very safe deal and we are happy to continue working with Pacific Property Solutions both on this property and in the future.

Kevin Yoo, M.D.