Posted over 10 years ago

2015 10-06 EAC Community Weekly Newsletter

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EXECUTIVE PARTNERS

Kevin Yoo, CEO

No updates.

John Hostetler, COO

Refinance – We signed up for our next tranche with B2R last week and expect to close on the following properties in about 75 days:

6524 CordreyBirminghamAL110 Cole DriveJacksonvilleNC522 Oak LaneJacksonvilleNC1800 HargettJacksonvilleNC504 Oak LaneJacksonvilleNC1106 RiverJacksonvilleNC317 StarlingJacksonvilleNC426 NelsonJacksonvilleNC322 Cougar LaneJacksonvilleNC300-302 StarlingJacksonvilleNC308-310 StarlingJacksonvilleNC324-326 StarlingJacksonvilleNC328-330 StarlingJacksonvilleNC332-334 StarlingJacksonvilleNC527 New RiverJacksonvilleNC

We expect the loan to be in the neighborhood of $1 million, with a total value of $1.4 million and an LTV of 70%.

South Bend properties – We started talks with Notre Dame FCU and Anthony Mwangi and I will meet with them during my trip next week. They have some good programs for both commercial and individual loans at very attractive rates. I also have several more local or regional institutions which I will pre-screen this week and plan to set up meetings while in South Bend.

Olga Levin-Diaz, CFO

No updates.

MANAGING PARTNERS

Vil Nikollaj, Managing Partner

San Diego

RBD Ventures – Roger Faulkner – 2420 Upas

No progress on this project, requested repayment as agreed upon
Scheduled repayment date 19 Oct

St. Louis

Mary Krummenacher/Sam Lord

3152 Oregon
- Offer on triplex accepted. Awaiting final inspection and rehab costs.
- Plan to send proposal for funding for ~$85k @ 12/15% ROI

Chad Little

10-unit SFR Portfolio (B/C Neighborhood)
- Property manager selling eager to sell
- Chad to perform walkthroughs Tues 6 Oct and provide estimates
Final Auction 2015
- New partial list available (~60 properties)
- Will monitor list and analyze prospects once available
- Auction date delayed to 17 November from 13 October

Isaac Guzman, Managing Partner

We have collectively decided not to move forward with Kevin Rizzo in the CT area, as he was not a good fit for our community mentality. Also, I have been asked to stand as the MP for the Birmingham area, as John’s focus has begun to shift towards other areas of the business. I have began connecting with previous contacts in Birmingham and also working on generating new contacts in the area through Linkedin, BiggerPockets and other networks of mine.

Chad Urbshott, Managing Partner

IIP Cleveland (Davor Rom):

All 3 properties are now under contract for sale, subject to financing, and set to close within next 5 weeks.

Libby – Oct. 13, Garfield – Oct. 30, Ingleside – Nov. 16

Note Purchase – Ft Worth (Nathan Turner):

We just learned a couple weeks ago that this note was originally scheduled for foreclosure auction on Oct. 6th (today) by the prior owners. Nathan was able to coordinate with the Servicer and lawyer on the file to keep it scheduled for today, once proof of the mortgage assignment was provided, otherwise we’d need to wait til next month. We set the foreclosure price at $35K, so if no one bids this amount or higher, then it will become an REO as of tomorrow since there is no right of redemption period in Texas. We have an agent on standby eager to list it as she has indicated that there are bidding wars for properties in this area.

Orlando Properties (Drew Davis):

As may have mentioned on last call, we have “Fired” our last Ground Partner in this area, due to non-performance, and have hired a new GP to take over, Drew Davis. Drew has agreed to take on the 2 properties, and undertaken to seek out a property manager to get them stabilized. What Drew found was a little disconcerting – shabby and uncompleted rehabs, as well as some tenants occupying the units unbeknownst to us and allegedly paying cash to the former GP! Drew has found a very enthusiastic PM who will be able to get these properties turned around and properly rented in short order.

Jacksonville, Florida

I attended a conference this past weekend, and one of the presenters was an investor from Jax who has over 100 properties in the city. He and his partner also do this for other investors, and have done over 400 to date. They will be buying, rehabbing and keeping/selling over 150 this year alone. I spoke with him and the idea of becoming a ground partner for EAC, and he seemed open to the concept. I will continue the dialogue with him, and potentially visit their operations if we can work out an agreement.

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 4 Plex

I was unable to get confirmation on the actual status and scheduling for an inspection but just from my visual inspection a couple of days ago, plumbing rough in appears complete on the UL and about 50% done on the LL. The plumbing work has taken longer than we anticipated. We are behind schedule on the siding install due to delays with the sub. All else on the interior is hinging on the plumbing getting completed and passing the rough in inspection.

Cleveland Duplex

Interior is about 90% done and buttoning up the final items. Also cut out and framed in a new window to the LL living room that was not in the original scope but whose addition became apparent as we were finishing up.

Dennis SFR

Rent ready and on the market.

Berkley Flip

Framing in basement completed. Added a living room, laundry room, half bath and bedroom. Installed an egress window in the basement bedroom
Framing for master suite completed. Added a full bath and walk in closet
HVAC guys installing a new furnace, central air conditioning unit and water heater and associated heat runs
Plumber in this week for the rough ins
Electrician has wired all the newly framed spaces

Giovanni Gracias, Ground Partner from San Diego, California

4748 College Ave:

Since the last update all water damage from the heavy rains have been completed.
We have been giving the green light to proceed by the city inspector for the changes we submitted and are now making the final push to finish this project. We have passed our final inspection.
UP NEXT: Final steps and clean up, final staging
Projected listing price: $565K-$585K.

2672 Escala Circle:

Carpeting has been replaced and flooring refinishing to be finalized this week.
Staging vendor has been found and will begin staging next weekend.
There were a total of 3 comps active ranging between $535K-$549K and there are now 2 pending that were listed at $555Kor higher

12081 Calle de Medio:

All kitchen cabinets have been installed and granite is being installed this morning.
Comps remain strong and we anticipate listing this property in the $325K range.
DATE of Completion: Project is finally completed, pending general clean up and pictures.
The property will be open to buyers this weekend and officially on the market once we have our professional pictures back.
Listing price will be: $325-$335K

George Flint, Ground Partner from San Diego, California

Muirlands:

Waiting for comments back from engineering department, once obtained we will adjust plans accordingly and have permits shortly thereafter. Refinance of acquisition loan will take place approx 1 week prior to having permits.

Pescas:

We are closing today and have received all comments back from the City. We will be adjusting plans this week and should have permits on or by Nov 6th. Refinance of acquisition loan will take place approx 1 week prior to having permits.

John Allen, Ground Partner from San Diego, California

53rd Street Updates:

We have finished everything needed for grading plan check, and I am in for a pre-submittal conference today to get ready to submit. Once I complete the conference, in which they look over the plans to make sure we have everything we need, I schedule an appointment with the planners to get in for plan check.
The deposit to get the work going will be due at that time. We can make the deposit online, I will send the invoice at that time.
I have moved ahead with a structural engineer for the load calculations of the retaining walls and buildings. This is required for building plan check. We have a call with him scheduled tomorrow morning, and he will require a deposit to get started, so I will send that when we sign the contract.
George Flint and his associates have completed their due diligence and reached out to their key investors regarding this deal, and intend to submit an offer shortly. An associate from Orange County has told me he expects an LOI this week, hopefully by Wednesday. I have also set up a tentative meeting with my land broker at the site for Wednesday or Thursday, in which we will get the ball rolling on listing the project.