January 2017 EAC Community Monthly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

EAC is currently working very hard on getting financing on our properties and finishing off unfinished projects. We know we have gone beyond the original time period for many of our promissory notes with our Investor Partners. For this reason, we are extremely motivated to finish the process. There are no good explanations for the delay but that getting good financing was much harder than we expected and finding good partners, contractors, and others has also been a difficult challenge. Every one of our Investor Partners have entrusted their money to us, and as the CEO of this company, I am first committed to protecting and getting your principal back to you as fast as we can so you can invest this money elsewhere. I am then committed very much to get you the return promised to you. This will take getting financing as quickly as we can and will even take some of my own cash to make all of our Investor Partners whole. We have two strategies to get financing done. First, is an institutional lender called 5Arch out of Irvine, California with whom I have qualified and will be getting South Bend, Indiana and Chicago, Illinois refinanced. Two, is with Home Point Financial with whom John Hostetler, our CFO has qualified and will be getting Jacksonville, North Carolina refinanced. We very much appreciate everyone being patient with us. The Investor Partners of EAC have allowed us to grow and get to where we are. We have rewarded you richly in the past for this. And we are determined to reward all of you as richly in the current investments in short order. Vil Nikollaj, our new COO has outlined for us exactly how that will occur with each of our projects. As we pay off each project, I will be sure to reach out to each and every one of you personal emails explaining everything.

John Hostetler, CFO

Updates to come.

Vil Nikollaj, COO

La Jolla, CA – Luxury Flips with BNF – George Flint
6645 Avenida De Las Pescas: Property still showing well. We received two offers that were below asking. Submitted counter offers, but no acceptable offers back.
Web: http://6645laspescas.com/
1222 Muirlands Vista Way: Friday 1/27 home being staged, then pictures and 7-day turnaround for full marketing. Delays to exterior landscaping due to uncommon rain here in San Diego
Web: https://1222muirlandsvista.wordpress.com/

South Bend, IN
In process of securing long-term financing on all remaining properties in this market. EAC will be doing a combination of institutional financing, personal loans and new mortgages based on value and lender criteria. This is long overdue and we hope to have these all completed by Feb/Mar timeframe.

Jacksonville, NC – Lou Ellis/Tyler Skipper
Refinancing the following homes: 322 Cougar, 316-318 Starling St, 304-306 Starling St, and 113 Armstrong. Expected. This is also long overdue and we hope to have these all completed by Feb/Mar timeframe.

Remaining projects (11) are expected to be completed in the next 8-12 weeks: 312-314 Starling, 324-326 Starling, 2245-2247 Onslow Drive, 2250-2252 Onslow Drive, 511 Nelson. We expect to refinance these properties as soon as they become rented.

Chicago, IL – Profit From Rentals – Justin Ericsson/Willem Young
I visited Chicago on Jan 20th and toured the following properties.
18217 Idlewild: PFR did their own inspection to catch any issues buyer may have. Additional $2500 in repairs needed to ensure project funded. Expect to sell to investor buyer in next 30-45 days.
Pics: https://www.dropbox.com/sh/2gh8eepawrlrdc5/AADlrzNlHDX6dAdZc_DPgG1ga?dl=0
14331 Cottage Grove: Funded by EAC as test project with Property nearly complete. Will be refinancing
Pics: https://www.dropbox.com/sh/xrm7twneoh6t5lt/AAA1kK1BA25PNcgwaL9ajHhBa?dl=0
14538 Kimbark: Next test project in Chicago market. Working on financing and SOW.
Pics: https://www.dropbox.com/sh/tcb9u4s2nnur0ky/AAA4jKnWXxc_q7fKc35nTMSpa?dl=0

Saint Louis, MO
I visited Saint Louis the week of the 15th. After our Ground Partner left this market to return to Jacksonville, work has slowed down substantially. Based on the status of these projects, we have revised our exit strategy with our team in Saint Louis.
2913 Wyoming – Flip: property near completion. 1 week for interior. 3 weeks for exterior. Expectation is to sell for $250k.
Pics: https://www.dropbox.com/sh/k1xqov3qi8pnxiy/AAAHtZ56YwiCzhXCQk7vHZfta?dl=0
6844 Crest – Flip: Project is complete and actively listed. Receiving great interest from buyers.
Link to listing: http://www.marismatrix.com/matrix/shared/WQkdb9JRBlFd/6844CrestAve
3152 Oregon – Rental: Under contract for sale. Waiting for some repairs to be made and tenant to be evicted.
8100 S Broadway – Rental: Waiting for revised budgets to see what will be needed to complete this project. Nearly all major items have been done. Based on quality of the property and location, EAC intends to refinance upon completion and hold in our portfolio.
2835 Winnebago – Rental: Property not as far along as desired, so EAC will sell as-is
3011 Utah: property gutted and ready for rehab. Comps do not support the effort. EAC will sell as-is.
3706 Jefferson – Flip: Property partially framed, but damaged due to storm. EAC will sell as-is.
3217 Texas – Rental/Flip: Property not as far along as desired, so EAC will sell as-is.
3404 Cherokee – Rental/Flip: Based on risk/reward and equity built into this property upon purchase, EAC will sell as-is.

Seattle, WA – Queen Anne Townhomes with Dorado Group – Jay Hinrichs
The general contractor had some family issues, which caused some delays. He is back working on getting all final bids. Preliminary numbers appear under the original scope. The land owner is still on board with the project and gas started on groundwork to preserve the current permits, which helps both cost and timeline. Tentative closing end of February.

MANAGING PARTNERS

Chad Urbshott, Managing Partner

325 Cedar:
The borrowers were scheduled to make their first monthly payment this month and paid on Jan 3. I’ll start to market this note in March to get it sold in April.

3539 Judy:
Foreclosure was held up because of missing documentation coming from the old servicer. This has been recovered and we are back on track. I will be at a conference this week close to the attorney’s office and will drop in to say hello and make sure we’re moving as quickly as possible with this an any other notes in legal.

2275 Union Ave:
It was discovered last month that the contract was already cleared so we now own the house without the note attached to it. It is currently being cleaned out and my realtor has a few interested investors that will look at it next week. If needed we will then list the property for sale but are hoping one of her investors will pick it up and we can close within a couple of weeks.

510 High Grove Ave:
The borrower missed the last couple of payments so the sale is stalled for now. The servicer is seeing what the borrowers are able to do to get caught up with payments. I have also asked that a demand letter be sent just in case so that we can proceed with cancellation of contract if needed without delay although I’m confident that they will make up the missed payments.

4113 Huston Ave:
Foreclosure was held up because of missing documentation coming from the old servicer. This has been recovered and we are back on track. I will be at a conference this week close to the attorney’s office and will drop in to say hello and make sure we’re moving as quickly as possible with this an any other notes in legal.

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 finish, electric finish, flooring
Pictures: https://goo.gl/jSXDrq (updated today, also a video)
Note: Permits obtained, progress during the last weeks.Rehab expected to be done in 2-3weeks. Strong comps make us optimistic obtaining at least $150,000 if sold to homeowner

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:, compound, tilling, Finish plumbing finish, electric finish, flooring
Pictures: https://goo.gl/jjAfBu (updated today, also a video)
Note: Permits obtained, progress during the last weeks.Rehab expected to be done in 2-3weeks. Strong comps make us optimistic obtaining at least $150,000 if sold to homeowner