Posted over 8 years ago

September 2017 EAC Community Monthly Newsletter

EXECUTIVE PARTNERS

Kevin Yoo, CEO

No updates.

John Hostetler, CFO

Updates to come.

Vilson Nikollaj, COO

Market: South Bend, IN

Selling properties due to low appraisals:

201 Cleveland – Sold end of September
226-228 Cleveland target close October 20
126 E Broadway part of October refinance with EAC-South Bend properties.

EAC-South Bend:

14 properties with 3 closings delayed until October and 4 additional properties closing in November, bringing total acquisitions up to 21 properties since March.
AirBnB model on 1009 Kinyon
- So far this has proven to be very promising and educational for EAC
- Overall gross income is higher than typical rent due to football weekends primarily
- We are acquiring two properties in the same neighborhood and will explore expanding

Market: Jacksonville, NC

Refinance Duplexes:

Refinance taking much longer than expected
First appraisal on 324-326 Starling came in at $117k, which is what we expected
Three additional appraisals will be done in second week of October
Last two appraisals planned once 2245 & 2250 Onslow are complete

511 Nelson:

Delays on rehab. Expect to complete end of October.
All majors have been complete (electrical, plumbing, framing, insulation). Next phases is finish work.
Plan to list on market with realtor Diane Castro-Perez once complete

Market: Chicago, IL

EAC’s partner Profit From Rentals (PFR) is working with new marketing partner to help sell these properties. Our goal is to sell all three properties by the end of the year.

Market: Saint Louis, MO

3706 Jefferson: plan to close October 16
8100 S Broadway: under contract to close October, but buyer canceled.
3011 Utah: No offers.

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 40-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 – We have a judgement hearing scheduled for Oct 24. Once the hearing goes through the next step is the foreclosure auction which is typically anywhere from 2-4 weeks from the judgement date. We have an REO realtor standing by in case the house does not sell at auction.

325 Cedar Circle – Prospective buyer for Cedar & Union backed out, so still trying to actively to sell.

2275 Union – The holder of our mortgage note is a realtor/investor and sold the home on another land contract. We are working on trying to secure buyer for our notes.

510 High Grove – Buyer resumed higher payments in September to make up for lack of payments. If they fail to make payments, we have ability to quickly evict them vs. going through foreclosure. Plan to season loan until November, then begin to market and sell Dec-Jan.

Antonio Cerqueira, Managing Partner