Cashing out option for Preferred Investors

We had an excellent question from one of our Investors about the cashing out option and how long it will take. We have generated another PDF email and we believe you will be very satisfied with our ability to offer you the cashing out option for your investments. Please read it carefully and ask any questions you may have.

As a Preferred Investor with the option of cashing out your investment quickly, you should realize that EAC has created a high-yielding money market account with rates no lower than 10% and could be as high as 20%. If you are a Rehabber, it will be an excellent place for you to hold your reserves and then pull out your money quickly when it is needed for another project. For an Investor, it is an excellent way to make sure that your money is always invested and not sitting in an account with no or little return. The speed of money. We have simply optimized it for you.

Dear EAC Community,

In response to my last email to you all, I had the following very good question from one of our Investors.

“Dear Kevin,

Thank you for the letter. I definitely want to open a sub-account with Citibank. Just one question, you mention that investors can pull-out money if they need to but just to know, how long would the process take?

Thank you!”

We are making it possible for a Preferred Investor to pull-out their money by the following methods numbered in the order of how we would do it. Please remember if you are not a Preferred Investor and do not have a sub-account with us, you will not have the option to pull-out your money.

1.Other Preferred Investors:

a.High-yielding short-term deals (e.g. Fix-and-Flip): Currently, we do not have enough of the fix-and-flip high-yield deals to deploy all of our Investors’ funds. When they do become available, they get taken very quickly. So, we estimate that if your money is in a deal like this, we should have no problem cashing you out within a matter of few days.

b.Lower-yielding long-term deals (e.g. Buy-and-Hold): Currently, we have plenty of these deals that we could deploy most of everyone's money. However, we are raising money for these deals consistently within a week or two. So, we estimate that if your money is in a deal like this, we should take 2 to 4 weeks to cash you out.

2.Line of Credit from an Institution: We currently have 14 single family and multi-family properties valued at about $930,000, with net equity of approximately $365,000. We are currently in discussion with multiple lending institutions. One of the options we are exploring is to set up a line of credit enabling us to cash out our investors if we cannot find another investor to take your position. If we have available line of credit, we should be able to cash you out in a day or two.

3.EAC Funds: If the above three methods do not work, we would cash you out with EAC funds. We are slowly but surely building up cash on our balance sheet so that we can cash out investors if this option needs to be exercised within a day or two.

4.Sale of the asset: If we cannot cash you out with the above previous methods, we will sell the asset to do so. The time it takes to sell the asset will depend on the marketability of the asset. For instance, a single family home will sell more quickly than a multi-family. We are buying these properties at 60% to 70% of the value of the property. If an Investor desperately needs their funds, we will sell it at such deep discount for quick sale, but this would take a month or two.

5.Dr. Yoo’s Funds: As a last option, Dr. Yoo will step in and cash out a Preferred Investor if none of the above funds will work. This should also only take a day or two after all other options are exhausted.

Kevin Yoo, M.D., CEO 858-449-9846 [email protected]

John Hostetler , CFO 760-519-4152 [email protected]

Olga Levin-Diaz 619-934-3359 [email protected]

Isaac Guzman 619-451-5473 [email protected]