July 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:
– Under contract with buyer. Contingencies have been removed.
– Expect to close August 15-18.
– We will have substantial loss on this project.
Market: South Bend, IN
Selling properties due to low appraisals: 226-228 Cleveland, 126 E Broadway, 201 Cleveland
EAC-South Bend: Closed on one new property, bringing total to 11 with 3 more planned to close in August and September.
Market: Jacksonville, NC
Refinances in progress:
– Leases/tenant move-in are in process for units 306, 312, 314, 324 and 326 Starling
– Docs submitted to lender for underwriting.
o Once approved, expect 30-day turnaround until financed. Goal is end of August, but may be delayed into September.
o Lender requested all homes be refinanced concurrently, which means they will want to see both Onslow duplexes complete as well 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 – awaiting HVAC inspection for final Certificate of Occupancy
– 2245-2247 and 2250-2252 Onslow Drive (75% complete)
– 511 Nelson – Remaining rehab to resume 8/3. Expect 4-5 weeks until completion, then property will be sold.
Market: Chicago, IL
EAC will be selling all current holdings at this time given current medical condition of partner. Will re-evaluate at a later date.
20813 Homeland: Selling July 31
14331 Cottage Grove: rented and listed for sale within PFR community.
14538 Kimbark: rehab complete. Searching for tenant. Listed for sale within PFR community.
Market: Saint Louis, MO
2913 Wyoming – Flip: In escrow. Home appraised $270k. Buyer’s accepted original inspection. All repairs made. Contingencies removed. Plan to close mid-Aug.
8100 S Broadway – Rental: Some interested parties in purchasing as-is. No offers.
3011 Utah – Flip: Agent’s plumber is interested in purchasing as-is. No offers.
3706 Jefferson – Flip: Some interested parties in purchasing as-is. Highest offer $30k.
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.
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.
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).
MANAGING PARTNERS
Chad Urbshott, Managing Partner
3539 Judy – Still in foreclosure process. Plan to sell on MLS once foreclosure complete for $40k.
325 Cedar Circle – Waiting to sell note. Have one low offer on table, but looking to sell for more.
2275 Union – Buyer has made 4 monthly payments, which qualifies as a “seasoned” note. Currently being marketed for sale.
510 High Grove – Negotiating with original buyer and their attorney. Will determine if best to require another down payment or evict and sell on MLS.
4113 Huston – Closing delayed due to lien issues. Working with title to resolve. Once cleared up, will be able to close on this in August. Sale price $35k.
Antonio Cerqueira, Managing Partner
Waiting for long-term financing to finalize before moving forward with new rental acquisitions.
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