2015 11-03 EAC Community Weekly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

No updates.

John Hostetler, COO

B2R Refinance – The appraisals for 8 of the 15 properties we are refinancing have been ordered and are in process. The remaining homes will be ready for appraisal within 3 weeks with the possible exception of 300-302 Starling, because we have another week until the old tenant is finally evicted by the sherrif. Even so, since that property has the 1-bedroom unit fully rehabbed and occupied and the roof and siding on the entire building done, it should be done prior to the end of the month.

South Bend financing – I have several feelers out with both local and national lenders and should be rate and term sheets from them this week. I am exploring both portfolio loan products and individual FHA / conventional loans for all of our properties there.

St. Louis – I’m very excited about the trip that Vil and I will make to meet with our team and walk all our properties. We have much to explore in the city also, as we have many neighborhoods which we are considering for future rentals and flips.

Olga Levin-Diaz, CFO

After much discussion and feedback from our partners we decided to discontinue using Appfolio as our property management software. It is apparent to us that the product has been built to accommodate property management companies and the whole accounting and reporting sections are built for that purpose. Since our business model is different we tried different work arounds to make it work us, but our final conclusion was that instead of providing more efficiency to our processes and helping our ground partners, this solution was making us work harder. Unfortunately, a lot of the things that were represented in the sales pitch ended up not being true and there was no way to know this unless we tried the software.

At this point we are evaluating alternative systems, we will continue to use our excel tools that were built to facilitate the reporting from our partners and we will come up with a way to aggregate the data from these reports in a way that will be useful to analyze the short term and long term performance of our rentals.

MANAGING PARTNERS

Vil Nikollaj, Managing Partner

2420 Upas:
– Closing on other property owned by RBD delayed until this week
– This funding will be used to pay balance owed to EAC

2608 Magnolia:
– Lou Ellis met with team and architect last week to discuss best cost-effective design approach
– Waiting for architect design. Anticipating we can reduce rehab costs by ~$20k

3152/3154 Oregon:
– Waiting for final detailed SOW

Isaac Guzman, Managing Partner

No updates.

Chad Urbshott, Managing Partner

No updates.

Linda Lin, Managing Partner

Awaiting updates.

GROUND PARTNERS

Lou Ellis, Ground Partner from Jacksonville, North Carolina

The following projects have been appraised thus far for our B2R refinance (but still waiting for result):
110 Cole
522 Oak
1800 Hargett
426 Nelson
322 Cougar
6524 Cordrey Court (Birmingham)

The appraisals for the following have been ordered:
317 Starling
332-334 Starling
320-322 Starling

The following homes will be completed and appraised within the next 3 weeks:
504 Oak
1106 River
527 New River
300-302 Starling
308-310 Starling
328-330 Starling.

Anthony Mwangi, Ground Partner from South Bend, Indiana

Awaiting updates.

Giovanni Gracias, Ground Partner from San Diego, California

4748 College Ave:
– We are in the final steps of completing this project now that we have the final ok from the citya and have update plans with the city.
– We anticipate being on the market in less than 2 weeks.
– Projected listing price: $565K-$585K.

2672 Escala Circle:
– Had the cabinet refinisher back in there this week. There were spots that didn’t take the cabinet staining very and had to be redone.
– Staging was put on standby until we are done with the refinishing of cabinets..
– Expect to be on the market next week once all final clean up is done.
– There are still a total of 2 comps active ranging between $535K-$549K and there are now 3 pending that were listed at $555K or higher.

12081 Calle de Medio:
– This project was completed last week!
– Listed on MLS for $335K.
– We have an offer that we are currently negotiating a counter and feel it’s a strong buyer. If they accept our counter we will accept their offer an open up escrow.
– Activity: The property has been shown a total of 11 times since last Wednesday.
PROJECT PICS: https://ranchophotos.com/12081-calle-de-medio-111/.

George Flint, Ground Partner from San Diego, California

1222 Muirlands:
– Permits are due any day now.
– Thus we will break ground shortly there after.
– Construction rehab refi loan is completed and we were able to do a 50/50 non-dutch interest on it, thus saving us money…

Pescas:
– Permits are due any day now.
– Thus we will break ground shortly there after.
– Construction rehab refi loan is completed and we were able to do a 50/50 non-dutch interest on it, thus saving us money…

John Allen, Ground Partner from San Diego, California

4336 53rd Street:
– We have completed electrical, mechanical and plumbing plans, just waiting for sign off.
– Structural engineer has started work on the buildings and retaining walls.
– Once we get both of these back, we will be ready to submit to building plan check.
– We received the plans back from grading plan check and are working on the corrections and revisions for the second submittal. The vast majority of the corrections are
– The project has been listed on MLS and has received numerous significant inquiries.