April 2017 EAC Community Monthly Newsletter
EXECUTIVE PARTNERS
Kevin Yoo, CEO
No updates.John Hostetler, CFO
Updates to come.Vil Nikollaj, COO
Market: San Diego, CA
EAC selected new agents to take over projects in the first week of May. Properties will be removed for few days, minor repairs made, then rebranded and aggressively marketed for a quick sale.
1222 Muirlands Vista Way: Accepted offer at $4.3M NET, but during the inspection two solvable issues (moisture related) made the buyer back out. Issues have been repaired. Property back on market.
6645 Avenida De Las Pescas: Received a lower than acceptable offer from buyer that was unwilling to come up in price.
Market: South Bend, IN
Refinances in progress: 226-228 Cleveland is expected to refinance end of May-first week June.
Remaining properties needing refinancing: EAC is working to re-appraise the other two properties (126 E Broadway and 201 Cleveland) then bundle with two other properties below.
EAC-South Bend: Acquired two new properties with new partners at 65% ARV with rehab. Seven more under contract at 60% ARV.
Market: Jacksonville, NC
Refinancing complete: 113 Armstrong
Refinances in progress: 316-318 Starling St (appraisal came back very low), so bundling all completed duplexes together including 304-306, 312-314 and soon 324-326 Starling St for portfolio loan. Will test one property appraisal first.
Completed projects: 304-306 Starling (one side rented), 312-314 Starling (actively listed)
Projects in progress: 324-326 Starling (near complete). In queue: 2245-2247 Onslow Drive, 2250-2252
Onslow Drive, 511 Nelson.
Market: Chicago, IL
18217 Idlewild: Sold.
14331 Cottage Grove: Property complete and appraised at $123k (-$2k below pro-forma). Waiting to be refinanced with Kimbark and two other properties purchased from PFR.
14538 Kimbark: Permits delayed, but finally approved. Rehab beginning first week of May
New acquisitions: Awaiting final numbers to secure financing.
Market: Saint Louis, MO
2913 Wyoming – Flip: Home under contract for $274k cash and no appraisal. Garage still to be built
(weather & contractor delays). Plan to close June 8.
8100 S Broadway – Rental: Property to be sold as-is.
2835 Winnebago – Rental: Property sold April 26.
3011 Utah – Flip: Property listed for sale as-is.
3706 Jefferson – Flip: Property listed for sale as-is.
Opportunities/Needs:
NC equity interest: EAC is seeking an investor to purchase equitable stake in NC holdings with 8% cash flow. With depreciation deductions at 30% tax rate, this would be ~10% with equity on back-end. Either part of the 41-units EAC holds or select few properties and hold on your own for simplicity. Will share same Property Management support (8% fee and dedicated staff).
Note: An investor in the EAC community is selling notes due to an immediate need of funds for another project. Notes are $50-$100k range each owed by EAC paying 8% on fully amortized 30-year loan with balloon payment in 5 years. Please let us know if you are interested in assuming their note.
MANAGING PARTNERS
Chad Urbshott, Managing Partner
510 High Grove:
The notice terminating occupancy was posted on Mar 31 and expired at the end of April. I have asked my realtor to go by and verify that they have vacated and should hear back later today. Once vacant we’ll list the property for sale.
4113 Huston Ave:
The tenants have moved out and the realtor is meeting with the borrower this weekend to exchange the keys. This house will be listed next week.
2275 Union Ave:
The borrower is making regular on time payments. I will be sending out the terms of the loan later this month for a sale of the loan next month.
325 Cedar:
I was not satisfied with the offer we had received so put the buyer on hold while I shopped the loan around a bit. I got a much better offer (21k) and the buyer is in the due diligence period now. Assuming they are satisfied, we will close later this month.
2504 Judy:
The foreclosure process is near completion and we will be pursuing the sale of this home immediately after.
Antonio Cerqueira, Managing Partner
2520 Ingersoll:
About the deal: Fix and flip deal in up and coming Philadelphia neighborhood.
Duration: May-September 2016
Completed work: Done
Pictures: https://goo.gl/jjAfBu
Note: Property finished. Listed with a realtor for $175,000 looking to sell to a homeowner but at the same time, our Ground Partner is marketing to their buy and hold investors for $150,000 (they close fast and no realtor commissions). Should sell within 4 weeks. Similar to 2502 Ingersoll, profits will compensate for delay in construction.
Working with our Ground Partner to bring more deals.
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