2015 9-8 EAC Community Weekly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

What is the Mission of EAC Community?

I have become more and more convinced of publicly stating and emphasizing the Mission of EAC Community. It is to create financial freedom and independence for each and every member of the Community. Anything short of this is not worth our efforts. Real estate investment is the vehicle through which we will accomplish our goals and not the end product of what we are about. In the upcoming updates, I will try to show you clearly how EAC Community will help you accomplish financial freedom and independence.

We are also a team. Generation of wealth is a team sport. We cannot accomplish our Mission without the contribution of each and every Partner of the Community. As such you cannot be part of this Community without being a team player. Please consider this and look at yourself and ask how you are contributing to the EAC Community. Ask yourself how much you are giving to the EAC Community. And this is not the obvious contributions of an Investor Partner that brings the funds, the Managing Partner that uses their time, and the Ground Partner that finds the deal. It is much more. It is attending our meetings and making comments that would help another Partner. It is contacting other members of the Community and giving them help in their projects and their participations in EAC Community. Their success will be our success and ultimately your success. And each member is equal to the next. No one including myself is more equal than the next person.

We will be different than any other real estate investment company out there. We will function differently and our goal of ultimate financial freedom and independence for every member through working together as a team is the fuel that will drive this Community.

John Hostetler, COO

Awaiting updates.

Olga Levin-Diaz, CFO

Awaiting updates.

MANAGING PARTNERS

Vilson Nikollaj – Managing Partner

San Diego – RBD Ventures (2420 Upas)

• Still awaiting approval. Corrections being done to drawing and engineering this week.
• Plan to have telecon with Roger later this week to go over the delays, path forward and EAC’s exit strategy

St. Louis – Mary Krummenacher/Sam Lord

• Awaiting data on potential 10-unit acquisition

Other

• Currently evaluating project management programs to help streamlining and sharing of information among team

Isaac Guzman, Managing Partner

Dr. Yoo and I have had some very insightful discussions with our current GPs in MA and in CT. It appears that we can do a better job at managing expectations for GPs moving forward. It appears we are now in a stalling pattern with said GPs and will be looking for ways to overcome these issues and use this as a launching point for new standard of GP relationships.

Chad Urbshott, Managing Partner

IIP Cleveland (Davor Rom):

Ingleside – leased, Section 8

Garfield – pending lease

Libby – pending lease

They have all finished renovations and are rent ready. I am awaiting POS inspection reports and occupancy permits so that we can recoup the escrow funds held by the City.

Fort Worth Texas Note (Nathan Turner):

Purchase Price – $16K,

Workout Costs – $8.5K

Total Investment – $24.5K

Anticipated Selling Price – $36K

Anticipated Profit – $9K (worst case)

ROI – 37%, Annualized – 74%

Kissimmee Florida (Frank Veliz): ?

Linda Lin, Managing Partner

Awaiting updates.

GROUND PARTNERS

Lou Ellis, Ground Partner from Jacksonville, North Carolina

Awaiting updates.

Anthony Mwangi, Ground Partner from South Bend, Indiana

Cleveland Fourplex

We passed the electrical and HVAC (heat runs, furnace, central air) inspections however, we encountered a delay with our plumber. Due to scheduling issues on our end, he took a large job before starting on our project. When we were finally ready for him, we could not get him to start until he finishes that job. To stay within the budget, we have to wait for him since his bid was the most reasonable. This will add about 3 weeks to finish the job. Stone work is done and siding will be done by the end of next week. Once the plumbing is done and approved by the city, we can hang drywall and expedite all the other finishing items.

Cleveland Duplex

Experienced some delays with the drywall finisher which held up the other things that come down in sequence. Catching up now and should be finished by the end of next week.

Dennis SFR

This will be finished and rent ready as of tomorrow. Currently tying up the loose ends and final touches.

Berkley and Broadway

Scheduled to start next Monday 9/14/15. Material packages for both are being assembled and purchased this week.

Frank Veliz, Ground Partner from Orlando, Florida

Awaiting updates.

Giovanni Gracias, Ground Partner from San Diego, California

4748 College Ave:

• We are at week 8 of the project. My architect submitted changes to the plans and submitted for review with the city Development Office. The changes included electrical & foundation plan changes.
• EXTERIOR: Shed to house water heater and washer/dryer will be completed this week.
• INTERIOR: Flooring, touch up paint, and bathroom upgrades completed. Waiting to close off wall where inspection will take place.
• UP NEXT: Final touch up work, landscaping in from of house, staging.

2672 Escala Circle:

• Painting was completed except in the kitchen. Kitchen will be painted after cabinets are stained.
• Cabinets, handrails, and hardwood floors will were sanded and will be given 2 more coats of paint to achieve desired sheen/finish.
• Staging quote has been received but vetting 2 more staging companies for pricing.
• Another unit 2 doors down from ours hit the market on Friday at $549K making our overall comps stronger.

12081 Calle de Medio:

• After letting go of the original contractor I have had to subbed out the remaining work.
• AC repair taking place this week.
• Final details to the kitchen install taking place this week.
• Staging furniture being delivered on Weds along with appliances
• Comps remain strong and we anticipate listing this property in the $325K range.

George Flint, Ground Partner from San Diego, California

Muirlands:

• Plans still with the city
• We are waiting for last comments
• Targeting to have permits in 3 to 4 weeks
• Will start working on construction refi in 1 to 2 weeks
• Demo on unpermitted building in the back started

John Allen, Ground Partner from San Diego, California

4336 53rd Street Updates:

• While we projected to be in grading plan check by now, we will need another 10 days or so to complete the grading, landscape, and storm water quality management plan to be ready to submit. The hold-up is the storm water quality management plan. The engineers in charge of this (BWE Engineering) is a large firm with a stellar reputation and offered us the easiest path to compliance, but they are probably also one of the busiest, so they are behind their projected timeline. We need the specific size and location of the BMP’s from BWE in order to complete the landscape plan and revise the grading plan to submit.
• Additionally, we took a week off of the grading plan work to prioritize assisting a buyer to analyze and cost out the site improvements. The buyer underwrote the costs and anticipated a higher number than I budgeted for site improvements, with specific concerns surrounding the grading and retaining walls, so I spent some time circulating the grading plan with an RFP for the grading work, export, and retaining wall construction. We expect to receive bids this week. With the main goal being to sell the project, I felt it was important to facilitate an offer.
• During the most difficult stage of the approval process, we have avoided any major setbacks and are moving full-steam ahead. Once the grading plan, storm water quality management plan and landscape plan are submitted, we will have plenty of time to complete the building plans for submittal.
• Most importantly, it looks like we have a buyer that intends on submitting an offer. At this point, they are attempting to determine what the right price would be. If the site improvements are higher than I anticipated, their offer would be lower than the $950,000 asking, which is why I wanted to spend the time getting together a precise site improvement breakdown to mitigate any concern over the cost of the improvements. Once it is complete, the buyer can feel more comfortable submitting an offer.