2016 07-05 EAC Community Weekly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

EAC is currently concentrating our investments in three cities: Chicago, St. Louis, and Philadelphia. We are buying multiple properties in each city. Most of the purchases are for the purpose of building a rental portfolio. Some of them will be for short term fix and flips. We, therefore, are developing two different types of investment opportunities for our Investor Partners.

1. Fix and Flips: This investment product well known to our IPs will be offered for 18% annualized ROI. They will be short 3 to 6 month projects.

2. Long-term income producing rentals: This unique and different investment vehicle has already been presented. We will provide our IPs 10% of cash flow and equity for approximately $30K per property. The uniqueness of this opportunity is that 100% of the principal invested will be paid back within the first few months to first few years of investment. This makes your internal rate of return greater than 20%. We plan to buy 50 to 100 property a year in the Chicago and Philadelphia market.

For those IPs that are looking for more EAC investment opportunities, we will be offering almost exclusively the above two products from now on. Please contact us for more information.

John Hostetler, COO

As you know, not every single property we purchase turns out as hoped. Fortunately, we have cycled through several of these problem properties over the past few months and are down to the last couple that need immediate resolution.

602 Emma, Lakeland, FL – We have a party interested in purchasing this 4-plex from us, but he is evaluating based on an inspection done in June. I contacted him again over the weekend and let him know that I am arranging to put this on the MLS for a quick sale. Our plan is to divest from this property within 60 days.

322 Cougar, Jacksonville, NC – This is actually a very good property for us, save for the fact that we have had difficulty refinancing it using our current lenders. The property has been completed and rented for quite some time, but because it shares a private driveway with three other homes, we need to obtain signatures from all three of the other property owners on a “Private Road Agreement,” which is easier said than done. I had previously asked our property manager to work on this and am now involved in stepping up this effort. If these signatures are not obtainable, I will put the property in my personal name and refinance it using conventional means.

MANAGING PARTNERS

Vil Nikollaj, Managing Partner

BNF La Jolla new builds
– Reference George’s updates
– Exterior pics: https://www.dropbox.com/sh/oqby6x2jl4q7pe3/AADLSVwLJ3P2allzjEZZx8Bja?dl=0

John Allen – 53rd
– Expect LOI and proof of funds from a group
– Other interested parties still performing their vetting
– Perfected ROI for investors 25-30%

Giovanni Gracias
– Awaiting updates.
– 33rd St North Park condo not listed
– College not relisted yet. Offer of $500k
– Escala listed, but no offers

Chad Urbshott, Managing Partner

Please refer on Nathan’s update.

Tony Banawa, Managing Partner

Homeland: Requested initial construction draw of $7,500
Old Elm: Renter about to move in at 2,241. Kevin signed LOI for Refi.
Loomis: Moving along. No longer doing porch upgrade.
Braemar: New Cash Buyer @165k. Closing 3rd week July.

Antonio Cerqueira, Managing Partner

2502 Ingersoll: Stairs finished, tile finished sheetrock finished. L&I shut job down. needs electric inspection
2520 Ingersoll: House needs wiring inspected before sheetrock and framing starts
2167 66th Ave: 1 unit totally done the other still under renovation

GROUND PARTNERS

Lou Ellis, Ground Partner from Jacksonville, North Carolina

Awaiting updates.

Steve Shaffer, Ground Partner from South Bend, Indiana

226-228 Cleveland:
Final stages of completion (punch list/electrical final). 4 units are listed for rent and anticipate a quick turn around to fill.

126 E Broadway:
Rented June 1, 2016.

Giovanni Gracias, Ground Partner from San Diego, California

Awaiting updates.

George Flint, Ground Partner from San Diego, California

1222 Muirlands:
Framing is complete with ruff trades started. Our goal is to start dry wall in 3 weeks. We will launch our pre-marketing and sales effort with sales team with the goal to capture summer buyers.

Pescas:
We are down to finishes, with flooring being wrapped up this week & tile starting this week. Our goal is to have the house done in 2.5 weeks & then landscape/hardscape will be completed 2.5 weeks after that. Fingers crossed we get a quick offer once we place on the market.

John Allen, Ground Partner from San Diego, California

4336 53rd Street:
53rd street has 3 serious options at this point:

1) I have a broker who says he’s got a group submitting an LOI to him shortly, at slightly above $700k. I’m waiting on that to come through.

2) Matt has a builder who is asking questions and is very real, Matt is pushing them for an offer. Matt has sold this group multiple properties before and they are actual players.

3) I have a developer that is still seriously considering purchasing it and having us build it out for him. I have yet to hear from him, only from his representative, but I have met him before and know his work, he is also very real.

We will see how all this plays out.

Nathan Turner, Ground Partner from Ontario

325 Cedar:
The house is now listed and the realtor sent me pictures of the house over the weekend. I have not been able to open the pictures however and will get them loaded to dropbox as soon as I’m able. By his report though the house seems to be in good shape. We’ll leave it on the market for 2-3 weeks and then if nothing has happened I’ll have him offer seller financing before we talk about lowering the price.

3539 Judy:
A breach of contract letter was sent on June 27 to the current borrower as a first step in getting the borrower’s attention and starting the forfeiture of contract process. The letter needs 30 days to expire before we can start a forfeiture and we’ll see if during the 30 day period it can elicit a response for a possible loan mod or deed in lieu.

Other updates:

We closed on the purchase last week on Wednesday and that I’ve asked our servicer to follow up with the old servicer to start the transfer as soon as possible.