November 2017 EAC Community Monthly Newsletter
NOVEMBER 2017
Market: South Bend, INEAC LP:- 226-228 Cleveland (4-plex) sold to another investor.
- 5Arch refinances 126 E Broadway refi’d into EAC-South Bend
- Overall: EAC-South Bend will hold 29 properties by the end of November and plan to close 2017 with 32-35 properties. We are very pleased with the performance of this Joint Venture. We have been able to create a sizeable portfolio of cash flowing properties all within 9 months of operations. 2017 Goals are to acquire any additional properties that meet our criteria and to complete rehabs of existing projects. 2018 Goals are to refinance short-term loans with local lenders and recycle investors’ funds into new projects and continue this trend. Our goal is to acquire additional 50 units in 2018.
- Rehab Status:
- 521 Geyer – rehab complete. Aiming for much higher rent than originally projected, $850 vs. $700. Link to rental listing: http://bit.ly/2AeKeJs
- 406 Marquette – furnace installed, bathroom tiled, home painted, egress window installation in progress. Expect to complete rehab early December. Prospective tenants in works with rent expected $100-200 higher than originally projected. Link to pics http://bit.ly/2Bib5mX.
- 228 E Battell – largest rehab in works. New doors, trim, new windows, new central AC, cabinets, countertops, sink and paint. Expect to complete rehab by mid-December. Link to pics http://bit.ly/2iWOHZP
- 1231 Cedar – All major repairs complete including new furnace. Expect to complete early December.
- New purchases:
- 1314 Eastbrook – Purchase $21k, rehab $9k, ARV $45-50k with rent projected $700-750. Expect to complete rehab by end of December.
- 1702 Chapin (REO) – Purchase $22k (REO), rehab $4k, ARV $40k with rent projected $650. Expect to complete rehab by end of December.
- Properties under contract
- 1005 Kinyon St, 1010 Kinyon St, 1129 Roosevelt St – still waiting on sellers and title to clear remaining open issues to close on these properties.
- 3 additional properties under land contract in works with no money down.
Market: Jacksonville, NC
Refinance Duplexes:
- All 4 Starling units refinanced with lender 5Arch November 17.
- 2245 & 2250 Onslow have been a challenge for rehabs, but nearing the finish line. Expect to complete rehab by mid-November, appraise and refinance shortly after.
511 Nelson:
- Rehab finishes being complete. Property with be staged and listed for quick sale. Expect on the market end of November.
Market: Chicago, IL
- 16920 Old Elm being sold to another investor in PFR community.
- 14538 Kimbark rented and being marketed for sale within PFR community.
- 14331 Cottage Grove being marketed for sale within PFR community. Refinanced our Hard Money Lender on this project in the short-term until this property can be sold.
- Our goal is to sell all three properties and dissolve this entity once all sales are complete.
Market: Saint Louis, MO
8100 S Broadway: sold for substantial loss to EAC
3011 Utah: Under contract to sale in mid-December
Plan: There are three remaining assets EAC is actively working to sell off. We are working to rebuild in this market with more selective projects with current partners and new partnerships.
Market: Mortgage Notes: Chad Urbshott / Nathan Turner (multiple states)
325 Cedar Circle – sold note to another investor for $18k, which was much less than projected. This was due to low value note being less appealing to prospective note buyers. Lesson learned.
3539 Judy – the attorney needed one of the documents from previous owners corrected. This is in the works. Once received, expect by December 1, the attorney can move towards final hearing date. Property will be listed with REO realtor for quick sale.
510 High Grove – Buyer has made three payments, which allows us to market this note to prospective buyers.
Market: Philadelphia, PA (Antonio Cerqueira)
We have resolved the financing limitations in the Philadelphia market and are very eager to resume operations in Philadelphia with Jay Walsh at ABC Capital. We welcome our MP Antonio back to the states on a more permanent basis. Plan to resume operations January 2018.
Opportunities/Needs:
Note: Looking for investor to 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).
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