2016 09-20 EAC Community Weekly Newsletter

Kevin Yoo, CEO

No updates.

John Hostetler, COO

Refinance – Now that the 4-plex in South Bend is complete, we are moving forward at full speed. We just passed the initial screening phase with our lender, Direct Money Lenders, and moving onto LLC setup and appraisals.

Oregon – There were many items the City inspector required prior to issuing the CO (Certificate of Occupancy,) including wrapping all of the windows and doors, replacing retaining walls in the front and back, and several smaller items. We have had all of those repairs done and now have two of the three units rented.

Wyoming – The final push on this property had been stalled by the search for the right finish carpenter. We met with a carpenter highly recommended by our agent, Mary Krummenacher, and we hired him to finish the trim and build the rear deck, which will start this coming Monday. This will be followed by final paint touch up and landscaping and then we can finally list. I will be traveling to St Louis next week to coordinate this and the other projects.

Winnebago – unfortunately the front portion of the brick of Winnebago partially collapsed in a storm . Our insurance adjuster has been out to assess the damage and we are waiting to hear, but have already completed the repairs over the past two weeks. On the interior we are still awaiting final HVAC, but are very close to the drywall stage.

Broadway – Broadway is sheet rocked and will soon be ready for paint in all four units.

Texas & Cherokee – Now going through the tax-abatement and tax-credit process for the first time. This will be done with a local expert, Maureen McMillan, and I will meet with her next week to walk through these two buildings and ensure that our plans will qualify for the maximum amount of property tax abatement (usually 5-years) as well as local and federal tax credits on construction costs.

MANAGING PARTNERS

Vil Nikollaj, Managing Partner

BNF – George Flint
6645 Avenida De Las Pescas, La Jolla (SFR High-End Flip)
Schedule: 3-week delay with finishing work due to some quality control issues. Certificate of Occupancy (COO) expected Tuesday. Staging after, clean up, stage, then listing party
List price: $3.5M – $3.75M (received verbal offer for $3.7M)
Update listing & pics (will be updated after staging): http://bit.ly/2cc9wOY

1222 Muirlands Vista Way, La Jolla (SFR High-End Flip)
Schedule: Insulation complete. Next Drywall (3 weeks) and Exterior Stucco. Expected completion November.
Final permit issue with retaining wall expected to be cleared up shortly.
Pre-listed at $4.15M as we did on Pescas. Goal is to find buyer to buy as-is and complete on their own with desired finishes or pay to have BNF finish.
Listing with renderings: http://bit.ly/2bzb1oR

Southern California Youth Alliance – John Allen
4336 53rd, San Diego (18-unit Apartment Land Entitlement)
Schedule: closing will be delayed Oct 13.
Property in escrow for $670k. Contingencies removed.
Projected final annualized ROI for investors 21%
Meeting on Monday 9/26 with city for final stamped plans. Next step (mylars) would take 5-8 days, but the city will expedite this process given their delays they have caused. The buyer is expected to be ok with not having official mylars approved since they would like to get started with grading ASAP. Plan to use the excavated dirt from 53rd for the Colony Drive – La Mesa project
Minor delay with LLC being used for purchasing, but Escrow/Buyer will resolve prior to close.

PPS – Giovanni Gracias
2672 Escala, San Diego (SFR Flip)
Property refinanced with other lenders. EAC repaid.

4184 33rd St Unit 3, San Diego (SFR Flip)
Property sold $307,000. EAC repaid.

4748 College (SFR Flip)
Cash buyer $465k backed out. Buyers thought they would be able to do modifications that were not allowed by the city vs. building granny flat as proposed and approved by the city.
Backup offer for $490k with 30-day close, but property 2 weeks from auction (Oct 7)
Due to tight timeline, EAC working on best path forward.

Lou Ellis, Managing Partner

Awaiting updates.

Chad Urbshott, Managing Partner

539 Judy:
In process of cancelling contract. Should be done around Nov and we can list property then.

325 Cedar:
Nathan spoke with realtor last week and she agreed that seller financing would bring the best return. She is modifying the listing and posting on Craigslist this week.

4113 Huston:
Received confirmation of the name on title, the attorney is moving forward and the cancellation of contract should be complete by Nov.

2275 Union:
Attorney is moving forward and should be complete by Nov.

510 High Grove:
Borrower made down payment and payments last month and this month. Next month Nathan will contact the performing note buyer and have him on board to close soon after the borrower makes the Nov payment. Will have the updated numbers on this loan sale as soon as Nathan has them.

Tony Banawa, Managing Partner

16920 Old Elm:
Renter canceled last minute but we have a new renter in place. We’ll have to go through 2 part inspection for section 8 tenant again because of new tenant replacement. 3 week time frame.

20813 Homeland:
Has new renter in processing. Property still going through HUD inspection. Takes about 3 weeks.

7718 S Loomis
Is closing in October for 185k. Purchased at 32,000, rehab 86,000, reselling 185k.

18279 Idlewild:
Has its first rehab draw getting started this week. Total rehab of 20k.

Antonio Cerqueira, Managing Partner

2502 Ingersoll:
About the deal: Fix and flip deal in up and coming Philadelphia neighborhood.
Duration: May-September 2016
Completed work: Demo, rough plumbing and electric, tiling, drywall, stairs
Remaining work: compound, Finish plumbing, electric, flooring
Pictures: https://goo.gl/jSXDrq (updated today)
Note: Got permits some of the flooring done. Do not think this property will close before late October

2520 Ingersoll:
About the deal: Fix and flip deal in up and coming Philadelphia neighborhood.
Duration: May-September 2016
Completed work: Demo, rough plumbing and electric, some drywall
Remaining work: Finish drywall, compound, tilling, Finish plumbing, electric, flooring
Pictures: https://goo.gl/jjAfBu
Note: Just got permits. Do not think this property will close before mid November

2167 66th Ave:
About the deal: Fix and flip deal in Philadelphia
Duration: May-September 2016
Completed work: Unit 1 already renovated Unit 2 renovation finished
Remaining work: Both units already renovated, ABC’s own inspection done, came just with minor things We expect this deal to close in about 4 weeks.
Pictures: https://goo.gl/tXE88J
Note: We got already an agreement of sale for this property.

Permits significantly delayed both Ingersoll deals. I so not think we will close before November.