June 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:
– Negotiating with few buyers circling the property. Trying to get offers in writing. Anticipate end of July/early August closing.
– Extending loan and repairing La Cantina doors.
6645 Avenida De Las Pescas: Sold 6/28 for $2.9M. Our investors have lost significant amounts on this investment.
Market: South Bend, IN
Selling EAC properties due to low appraisals: 226-228 Cleveland, 126 E Broadway, 201 Cleveland to get our investors paid off on these properties.
Selling Properties co-owned with Miguel Hernandez for successfully litigating against Mike Smith our previous contractor and will be sold to Miguel Hernandez.
EAC-South Bend: Successfully purchased 6 pack of properties at very low ARV. Total of 10 properties in this portfolio. More properties on the dock for purchase and successfully financed. For more details on this partnership with HomeWorks, LLC please refer to this document. EAC-SB TIMELINE
Market: Jacksonville, NC
Refinances in progress:
– Rented 306, 312, 314 Starling with new tenants planned for 324-326 Starling
– Working with lenders to refinance remaining duplexes:
o Current lender, 5Arch, waiting for rate sheet on new program
o New lender, Federal Savings Bank, submitting docs in July
– First group for refi: 304-306/312-314/316-318/324-326 Starling St
– Second group for refi: 2245-2247/2250-2252 Onslow
Rehab progress:
– 324-326 Starling (only open item HVAC to re-install components)
– 2245-2247 and 2250-2252 Onslow Drive (50% complete)
– 511 Nelson – EAC has decided to flip this property vs. keeping as rental. Expect complete rehab end of Aug.
Market: Chicago, IL
EAC will be selling all current holdings at this time given serious current medical condition of partner. Our partner Justin Ericson has recently had surgery for cancer. Will re-evaluate at a later date.
20813 Homeland: all repairs made. Expect to sell mid-July.
14331 Cottage Grove: rented and listed for sale within PFR community but Homeland buyer interested.
14538 Kimbark: rehab complete. Searching for tenant. Listed for sale within PFR community but Homeland buyer interested.
Market: Saint Louis, MO
2913 Wyoming – Flip: Garage completing early July.
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 – Still in foreclosure process. Plan to sell on MLS once foreclosure complete for $40k.
325 Cedar – Waiting to sell note. Have one low offer on table, but looking to sell for more.
2275 Union – Buyer has made consistent monthly payments, so now able to sell note on the market. Also, working with current owner to see if they will refinance property as he is currently
510 High Grove – The buyer on land contract hired an attorney to dispute the eviction. Our partner and servicing company have all records proving the buyer has failed to comply. Expecting to go to court in July and evict buyer. Once evicted, property will be sold on MLS to expedite the sale.
4113 Huston – Property under contract to sell in mid-July for $35k.
Antonio Cerqueira, Managing Partner
Other Updates:
Waiting for long-term financing to finalize before moving forward with new rental acquisitions.
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