2016 07-26 EAC Community Weekly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

Today, we had our biweekly EAC Community Teleconference. We had just our EAC Executive Team and few of our Managing Partners attend and only a few of our Investor Partners tuned in and only for short periods of time. We now realize that the meeting is no longer a good venue for our Community to understand what is going on at EAC. We have had previous discussions that we should do away with this meeting and believe it is time to do that. Instead, we will focus on the EAC Community Newsletter as a means to communicate with our Community. We will try to make this document more complete and informative. We will continue to have our EAC Managing Team Meeting biweekly starting Tuesday, August 2, 2016 at 12 PM PST. Everyone is welcome to attend. Please contact our Virtual Assistant Madel Santiago ([email protected]) if you want an invite. This meeting is more for business strategies for EAC and will not cover the performance of particular properties. Keeping our Investor Partners abreast of their investment is a priority for us. Please contact any of us anytime and let us know how we are doing.

John Hostetler, COO

Awaiting updates.

MANAGING PARTNERS

Vil Nikollaj, Managing Partner

La Jolla Flips – BNF
Pescas
– Projected list price: $3.55-3.75M (Pro-forma $3.7M)
– Project is on budget
– Change of plans with direction from Realtors, is to finish exterior as well prior to list for finished product
– Based on recent comps, could price as high as $4M, but with timing and carrying costs, plan to list at lower price and push for a bidding war
– Pictures: http://bit.ly/2a7M0zz

Muirlands
– Projected list price: $4.6-4.8M (Pro-forma $4.6M).
– Based on recent comps, could price as high as $5M, but with timing and carrying costs, plan to list at lower price and push for a bidding war
– Project may be over budget. Additional $100k being borrowed from construction lender to pay for unforeseen west and south retaining walls. If remaining reserves are not used, the overage will be limited to $25k.
– Completion end of Sep/early Oct
– Pictures: http://bit.ly/2a462wA

53rd Street – John Allen
– Project under Escrow for $710k
– Should close this week, but John will stay on to finish remaining permitting (<3 weeks)

PPS – Giovanni Gracias
4748 College
– Relisted $529-549k, remarketed to investorsw with potential for second unit (permitting and renderings)
– http://bit.ly/2a57627

2672 Escala
– Listed $560-580k, some verbal interest, but nothing in writing
– 25 days on market, with current supply in Mission Valley at 0.9 mo.

33rd St – NP Condo
– Property listed 7/6 for $310k (http://bit.ly/2a460Vz)
– Some interest, but no offers yet. Current supply in NorthPark is 0.8 mo.

Lou Ellis, Managing Partner

Wyoming – Final items prior to listing:
1) Replace hard wood flooring that buckled due to improper install – half done now
2) Wrapping windows on side of buildings, front already complete – starting today
3) Build deck in rear yard – starting over weekend
4) Second coat of paint downstairs (waiting for flooring to be finished)
5) Install carpeting (want to do last because it is a very light color and want to avoid stains)
6) Master bath vanity install

Jefferson – Finishing framing within a week and then ready for mechanicals.
Broadway – Downstairs apartments are sheetrocked, second floor going this week.
Winnebago – Minor framing problems to be solved by end of next week, then sheetrockers from Broadway move to Winnebago.
Texas – Rebuilding of floors and structural work 60% done, framing to start after Winnebago
Cherokee – Still in design phase until Wyoming done, structural work done at Texas, and Broadway / Winnebago to finish work.

Chad Urbshott, Managing Partner

325 Cedar:
There was a misunderstanding with the realtor after he had gone to see the property and was waiting for me to give him the go ahead to clean out the leftover trash. There is not too much mess but a clean house will show much better and for the $500 expense I think it’s well worth it. The cleanout will be later this week and then we’ll list the property.

3539 Judy:
A breach letter was sent out and expires on Aug 5. Once that expires we’ll start the forfeiture process right away and work toward taking back the property.

2275 Union Ave:
Servicing transferred on Friday July 22 and I’ve asked that a breach letter be sent today. (July 25)

510 High Grove Ave:
I spoke with the borrowers living in the house and we have negotiated that they will start making payments again starting Aug 1. We are cancelling the old contract and starting fresh with a $4000 (10%) down payment, a 10% interest rate amortized over 10 years to give them a $475/m payment. The plan for this note is to let it season for 4 months then sell it as a newly performing note, meaning we can sell the note after the Nov payment is received.
I will be receiving the paperwork and down payment later this week and the regular monthly payment will start in August.

4113 Huston Ave:
Servicing transferred on Friday July 22 and I’ve asked that a breach letter be sent today. (July 25)

Tony Banawa, Managing Partner

1008 Braemar:
Expected to close in 1 to 3 weeks.

16920 Old Elm:
Renter moving in within 2 weeks

20813 Homeland:
Rehab started. Completion time approximately 2 weeks.

7718 S Loomis:
No new updates on Loomis. Still under rehab.

Antonio Cerqueira, Managing Partner

2502 Ingersoll:
About the deal: Fix and flip deal in up and coming Philadelphia neighborhood.
Duration: May-September 2016
Already Done: Demo, rough plumbing and electric, tiling, drywall, stairs
Update: Construction work is temporally stopped due to L&I inspection
Pictures: https://goo.gl/jSXDrq

2520 Ingersoll:
About the deal: Fix and flip deal in up and coming Philadelphia neighborhood.
Duration: May-September 2016
Already Done: Demo, rough plumbing and electric, some drywall
Update: Stairs done
Pictures: https://goo.gl/jjAfBu

2167 66th Ave:
About the deal: Fix and flip deal in Philadelphia
Duration: May-September 2016
Already Done: Unit 2 already renovated Unit 1 Demo done
Update: Rough electric and plumbing almost done
Pictures: https://goo.gl/tXE88J

Note: We got already an agreement of sale for this property.