May 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
1222 Muirlands Vista Way:
– Restaged & remarketed.
– All repairs made. Property re-inspected with verbal clear inspection. Waiting for final report. Only open issue is La Cantina door repairs. We are forcing contractor to repair.
– http://1222muirlandsvistaway.com/
6645 Avenida De Las Pescas:
– Expecting to put under contract end of May
– Repainted exterior & remarketed.
– Awaiting final inspection report. Only open issue is La Cantina door repairs. We are forcing contractor to repair.
– http://6645avenidadelaspescas.com/
Market: South Bend, IN
Refinances in progress:
– Delays in appraisals due to demand for appraisers in the market.
226-228 Cleveland: Expected to refinance mid June.
126 E Broadway: Hope to complete by end of June.
201 Cleveland: Hope to complete by end of June.
EAC-South Bend: Acquired third new property with new partners at 65% ARV with rehab.
Market: Jacksonville, NC
Refinances in progress:
– Our portfolio lender denied financing of our duplexes with their current source of money due to their limits on quantity of duplexes.
– Our portfolio lender was already working on new loan product to help purchase/refinance row/townhomes in the Philadelphia market. Expect this loan product to be ready in June.
– First group for refi: 304-306/312- 314/316-318/324- 326 Starling St
– Second group for refi: 2245-2247/2250- 2252 Onslow and 511 Nelson.
Rehab progress: 324-326 Starling (nearly complete), 2245-2247 Onslow Drive (in process), 2250-2252 Onslow Drive (in process), 511 Nelson (on standby until duplexes complete).
Market: Chicago, IL
Our partner experienced major setback due to some major medical issues, so we are scaling back our operations in Chicago to allow our partners to stabilize.
20813 Homeland: Awaiting final inspection and expected sale by end of June.
14331 Cottage Grove: Awaiting refinance with Kimbark.
14538 Kimbark: Rehab underway after delays. Expected completion mid-end June.
New acquisitions: cancelled
Market: Saint Louis, MO
2913 Wyoming – Flip: Fell out of escrow due to inspection issues. Repairs are 90% complete. Garage still not built (issues with subcontractor).
8100 S Broadway – Rental: No changes. Property to be sold as-is.
3011 Utah – Flip: No changes. Property listed for sale as-is.
3706 Jefferson – Flip: No changes. Property listed for sale as-is.
Opportunities/Needs:
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. 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).
EAC-South Bend: EAC is seeking investors interest in 8% cash flow paid quarterly. The minimum investment will be $20,000. Redemption requests of funds invested can be made at any time after 1 year. Most redemption requests should be honored by 90 days.
MANAGING PARTNERS
Chad Urbshott, Managing Partner
3539 Judy: Ready to go into foreclosure. Taxes were withholding foreclosure, which are now paid. Property secured. Realtor ready to sell for $40k.
325 Cedar: Being sold with terms with seller financing. Have this loan out for purchase quotes.
2275 Union: Sold on terms to another realtor. He will likely sell on open market (best option).
510 High Grove: The buyers on land contract put $4k down and made one payment, then stopped making payments. The buyer never signed all the necessary documents to secure their interest, which works in our favor. We will be evicting (vs. foreclosing), then selling again.
4113 Huston: Borrower agreed to forfeiture (cancel contract). Owner was collecting rent, but not paying our Note. Plan to list and sell. Took possession May 28th, realtor is getting quotes for changing locks and tidying up the property.
Antonio Cerqueira, Managing Partner
2520 Ingersoll:
Expect to sell by mid June to ABC Capital investor for $150k. Waiting for long-term financing to finalize before moving forward with new rental acquisitions.
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