Posted over 9 years ago

November 2016 EAC Community Monthly Newsletter

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EXECUTIVE PARTNERS

Kevin Yoo, CEO

EAC-South Bend Prospectus

EAC, GP has set up EAC-South Bend LLC (“EAC-SB”) which is wholly owned by EAC, LP and operated by EAC, GP to hold all income generating properties with strong monthly cash flow and future equity purchased in South Bend, Indiana. Investment opportunities will be made available first to our Preferred Investor Partners, then to our other Investor Partners, and last to the any other investors. Investor Partners can invest EAC-SB with the following terms.

Note: the following is preliminary as EAC is still awaiting final concurrence from our counsel to finalize, but EAC would like to know if our investors have interest in this product.

8% annualized interest.
Interest will be paid quarterly on March 31st, June 30th, September 30th, and December 31st of each year.
The interest payments cannot be rolled over back into EAC-SB.
The minimum investment will be $20,000.
Redemption requests of funds invested can be made at any time after 30 days.
Most redemption requests should be honored by 90 days.
EAC-SB will make all attempts to honor all redemption requests as expeditiously as possible.
EAC-SB, however, cannot guarantee that a redemption can be made or made by certain amount of time.
Any unpaid interest will be forfeited if a redemption is made.
The minimum amount and the maximum amount that can be redeemed at one time is $20,000 and $100,000 respectively unless approved otherwise by EAC, GP.
No more than one redemption every 90 days unless approved otherwise by EAC, GP.
This investment is a loan to EAC-SB secured against the assets of EAC-SB first and then by the assets of EAC, LP.
As such a Promissory Note will be generated and presented for review prior to investment.
It is not a mortgage against any individual or collection of properties.
EAC-SB will reserve the right to pay off any portion of the investment at any time. As such EAC-SB will likely pay down the principal on a quarterly basis.
Annual financial statements and tax returns for EAC-SB and EAC, LP will be provided upon request at the end of the fiscal year.

Investment Risks: The interest payments will depend on the cash flow of income properties purchases in South Bend and surrounding areas. The average return on income generating properties in South Bend are 15% which should allow EAC-SB to make its 8% payments. The interest payments, however, can be made only if the cash flow is adequate to cover the interest payments. The principal investment will be secured against the assets of EAC-SB and EAC, LP. Therefore, the principal investment can be recouped only up to the value of the assets of these entities. EAC-SB will not raise any more money than it needs. It will not raise any more money than it can afford to pay out the 8% interest. However, depending on the cash flow of the property, EAC-SB may raise more than the value of the property. EAC-SB will pay down the principal on a quarterly basis to reduce the risks to the Investor Partners.

The above terms can be changed at any time by EAC-SB but all Investor Partners will be notified of such changes immediately.

John Hostetler, CFO

Updates to come.

MANAGING PARTNERS

Vil Nikollaj, COO

BNF – George Flint
La Jolla market update: There has been a slow-down in the market due to the election and typical end of year slowdown. The current inventory is being absorbed and real buyers are getting serious and expressing interest. Homes are being heavily marketed: open houses, caravans, flyers, showcased on local San Diego television and at the main Pacific Sotheby’s office in La Jolla. We have had over 400 agents/brokers visit the property.

6645 Avenida De Las Pescas, La Jolla (SFR High-End Flip)
Schedule: Home officially on the market 40+ days (staged & final pics) with initial estimates by our agents of 70 days on market.
List price: Price reduced to $3.55M on Nov 1 to be very competitive
Listing Link: http://bit.ly/2dTE5t4 or http://www.6645laspescas.com/

1222 Muirlands Vista Way, La Jolla (SFR High-End Flip)
Schedule: Team has been working very hard to regain time. Expect to have Certificate of Occupancy (CO) week of Nov 28 and launch marketing later that weekend.
List Price: Price reduced to $4.59M on Nov 1 to be very competitive
Listing with renderings: http://bit.ly/2djFOny and pics from 12Nov2016 http://bit.ly/2ghLfoS

Southern California Alliance – John Allen
4336 53rd, San Diego (18-unit Apartment Land Entitlement)
SOLD! Returns were not as high as expected and the property took longer than expected, but we are pleased with the 20% annualized ROI for our investors.

PPS – Giovanni Gracias
4748 College (SFR Flip)
SOLD at discount to avoid foreclosure by first lender. All investors funds have been repaid with 24% annualized ROI with the sale of all PPS properties. Remaining balance owed to EAC is with internal funds and have been placed against two active flips being done by PPS. One in Burbank, CA and the other in Santaluz neighborhood of San Diego.

Lou Ellis, Managing Partner

Updates to come.

Chad Urbshott, Managing Partner

325 Cedar:
Our borrowers moved in last weekend and their down payment mostly paid for the closing costs. The remaining amount was covered by me and will be reimbursed as their payments come in. The first monthly payment is not due until Dec 1 as per our sales agreement and we’ll then sell the note in March. This should turn out to be another great return as the projected purchase price of the loan will be around $19,500. This will be in addition to the 3k as down payment and the 1300 received in monthly payments. Not bad for a purchase price of only 12k. Once expenses are taken out this will yield an approx 80% total return.

3539 Judy:
The foreclosure for this property is well under way and should be done by the end of the year. The house has been secured and is being monitored by the property preservation company there. Once this gets nearer to foreclosure completion I will have more updates for timing.

2275 Union Ave:
The attorney that had initially picked this file up has decided that he doesn’t want to deal with forfeitures anymore so we’re having to switch attorneys. I spoke with SN about this so that we don’t lose any momentum and they are reaching out to another firm they deal with in Ohio.

510 High Grove Ave:
The loan sale papers were signed over the weekend by Chad and were submitted today to the buyer. Closing date for this sale will be later this month.

4113 Huston Ave:
The attorney is working on the forfeiture and I have an update for timing next time.

Antonio Cerqueira

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
Note: Again with permit problems, do not think this can close until early January

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: Again with permit problems, do not think this can close until early January

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: Both units are rented now. Cash buyer pending to close on property. Several issues delayed his wire. We hope he can close soon