2016 06-21 EAC Community Weekly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

Awaiting updates.

John Hostetler, COO

Awaiting updates.

MANAGING PARTNERS

Vil Nikollaj, Managing Partner

BNF – George Flint (Muirlands & Pescas)
– John and I walked both properties on Friday. Both are moving along very well as George stated- Pescas
o Schedule: Pescas will be complete ~1 mo ahead of schedule (end Aug)
o Pre-listing removed from MLS since no buyers expressed interest in unfinished project. Many brokers indicated they are waiting for finished product.
o Pics: http://bit.ly/28NjulH
– Muirlands
o Schedule: Pescas will be complete ~1 mo ahead of schedule (end Aug) and Muirlands ~1 mo behind schedule (end Sep).
o Had interested buyer, but property was out of their price range.
o Pics: http://bit.ly/28K4khF

Southern California Youth Alliance – John Allen (53rd St)
– Property still being marketed for $700k
– Received an offer that was not very strong ($500k carry-back). Awaiting more information on buyer as well as other potential buyers circling.
– If no progress this week, we will make adjustments to sell this property ASAP

PPS – Giovanni Gracias
4748 College
– Price drop on June 15 after most recent Open House: 524,900 – $539,900 (pro-forma $552k)
– 1st lienholder filed Notice of Default due to missed interest payments
2672 Escala
– No update on refinancing
– EAC 12-month note due July 3
4184 33rd St Unit 3
– Property should be listed soon (expected this weekend)
– Pics near completion: http://bit.ly/28L004R

Chad Urbshott, Managing Partner

Please refer on Nathan Turner’s update.

Tony Banawa, Managing Partner

1008 Braemar:
Working on getting full price offer with no commissions needing to pay out. Initially trying to sell for $150k. They marketed it through Maverick’s clients and they were charging 6% commissions. Appraiser came in 10k short so that is $20k loss right there if sell it that way. With having to pay EAC $36k, wouldn’t make sense on their end. Currently remarketing it without having to pay commissions for full price eliminating that extra $20 loss on commissions and appraisal. Still ahead of schedule, just don’t want to give it away.

7718 S Loomis:

Loomis is moving along. It’s a full gut rehab so it’s a multi month rehab project. It’s under contract at full asking price. Justin’s pushing the GC to get the rehab done next month so we can close in August.

16920 Old Elm: Renter is about to move in. We have final rent determination for $2241.00 in which we were expecting between $2200-$2300. Currently working on the Refi @ 7.25% for a loan amount of $108,750. This is 75% LTV or 90% LTC whichever is less. Estimated cash out of refi is $12,865 for a monthly payment of $1,256.

Antonio Cerqueira, Managing Partner

This is my update from Philadelphia market

2502 Ingersoll St:

Rough electric and plumbing completed, now in Demo 2 phase and roofing. Everything pictures uploaded)

2520 Ingersoll St:

Rough electric and plumbing completed, now in Demo 2 phase. Everything as planned. (pictures uploaded)

2167 66th Ave:

Duplex. One unit almost completed. Second unit we planned not to renovate and keep tenant but unfortunately tenant passed away so we are now going to renovate the unit. (pictures uploaded)

GROUND PARTNERS

Lou Ellis, Ground Partner from Jacksonville, North Carolina

Awaiting updates.

Steve Shaffer, Ground Partner from South Bend, Indiana

226-228 Cleveland:
In final stages of completion, on rental market with target of July 1 for occupancy.

126 E Broadway:
Rented

Giovanni Gracias, Ground Partner from San Diego, California

Awaiting updates.

The post Giovanni Gracias, Ground Partner from San Diego, California appeared first on EAC Investments.

George Flint, Ground Partner from San Diego, California

1222 Muirlands:
Framing is basically done, ruff trades are full throttle – window installation starts next week. Targetting to start haging drywall in 4 weeks.

Pescas:
Down to finishes. Cabinets installed. Flooring and tike starting next week. Targeting to complete house less landscape in 4 weeks.

John Allen, Ground Partner from San Diego, California

4336 53rd Street:
-We have had an offer on 53rd Street, but it is a substantial carry-back offer. $700k, $500k carryback subordinating construction financing for 24 months. It’s a starting point, but not acceptable at this point in time.
-I am working with a couple new investors who I plan to send this package to tomorrow. They have interest in new construction projects, infill development.
-An associate of mine, Chip Bonghi, has 3 people who may be interested in not only buying the project, but funding construction as well. These people are very high net worth, and would be our best option to cash out with a return right away. One such individual, Brian Revelli, is looking at the deal now. If he passes, Chip will forward it to the other two individuals. I would like to go this route, because then we would be able to build it out ourselves and cash out EAC and its investors.
-Another associate, Jim Lackey, has a client who is driving the site today and reviewing the package.
-In summary, it seems we are at the right price point to generate offers. Vil said it best, this is like a high-end house flip in a way…it’s not the price point, it’s finding the right buyer which is the hard part.

Nathan Turner, Ground Partner from Ontario

325 Cedar: 

Originally it looked like we were going to have to evict the occupants of the house although in AL it’s called an ejectment which takes a bit longer. To help get around this I sent out our realtor to offer cash for keys and when he got there the occupants had moved out. We are now moving to change the locks and list the property, both of which will be done this weekend.

3539 Judy:

The servicing transferred on this loan to Peak servicing and I have asked them to send out a “breach” letter letting the borrower know that they either need to bring the account current or face eviction. This letter is intended to both get the process started on the eviction and elicit a response from the borrower to see if we can come to another arrangement. The borrower has 30 days from the date of the letter to respond and if they don’t we automatically proceed with contract cancellation and eviction. I have asked Peak to let me know what day the letter was sent and expect to hear back before the weekend.