1337 College

Before Rehab

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Rehab Updates

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Address: 1337 College Street, South Bend, IN 46628
Type of Project: Single Family, Rental
Purchase price: $5,000
Rehab cost: $20,350
ARV: $40,000
Date of purchase: 12/22/2014
Projected timeline for refinance or sale: TBC
Ground Partner: Steve Shaffer
Company: Reliable Properties of Michiana, LLC
Contact details: reliableproperties@yahoo.com; (574) 217-7839
AddressProperty typePurchase PriceRehab costARVDate of PurchaseProjected timeline for
refinance or sale
1337 College Street, South Bend, IN 46628Single Family, Rental$5,000$20,350$40,00012/22/2014
Date of SaleSales PriceCoCAnnualized
% Difference of Projected
vs Actual ARV
% Difference of Projected
vs Actual Rehab
% Difference of Projected
vs Actual Timeline
Source of


Refinancing process.


Remaining properties needing refinancing: EAC is working on alternative methods of financing (other institutions and private investors). Working through details with one solution, but if any investors are interested in fully amortized loan, paying 8% quarterly, please email Vil (vnikollaj@eacgp.com).


Refinance in progress. Appraisals performed on subset of properties Feb 21, 2016. We hope to have these all completed by Feb/Mar timeframe.


In process of securing long-term financing on all remaining properties in this market. EAC will be doing a combination of institutional financing, personal loans and new mortgages based on value and lender criteria. This is long overdue and we hope to have these all completed by Feb/Mar timeframe.


Hopefully, I talked to our Loan Broker yesterday and today after this call to solidify the refinance to all the South Bend and Jacksonville properties that are not yet refinanced.


Finally we closed on the loan with B2R. I don’t want to go on and on about the experience yet again, so suffice it to say that the loan is done and we are done with B2R! All payoffs for the loans have been either been sent already or will go out today. It is great to have this behind us and we’re now on to refinancing the remaining Jacksonville and South Bend properties, as well as one in Florida.


B2R Updates: Got a call from them last night, Hunter is kind of helping push this thing through and what happened was, about a month ago, when Kevin and I signed the papers, the package went to the final underwriting and they wanted to go back out and have the appraisals looked at again. And so they sent each appraiser a whole list of questions and now they wanted on every single one of our homes are being refinanced. In the end, in this week, I think those were all finished in Friday of last week and so what Hunter told me was none of the appraisers changed their opinion and all stood by their numbers which is great and now they’re just trying to push through the last piece to the credit approval process and so I believe I’m going to have the answer tomorrow morning as to green light and its certainly is sure for me that its gonna go through some pressure on one thing or another, not the rate, but maybe the LTV would be likely reduced and he feels he can get it through, he is working with his boss and they feel they can get it through as is but if not it may slightly reduced, at this point we can get it done and its gonna be approved the next day or two.


B2R continues to be a thorn in my side. Kevin and I signed all loan documents on Thursday, March 24th, but because of their mistake of preparing 5-year term paperwork instead of 10-year, they are running it through one more final stage of underwriting. They requested clarification on items from their appraisal service last Monday and are awaiting those answers. I expect no issues, but the delays involved are nonetheless infuriating. I continue to follow up for updates and will let everyone know when we have a solid close date.


B2R has finally and we have come to the finish line, but we have credit approval and answered last couple of questions from our title company and looks like we have papers sent to us the next day or two. So fortunately, that will be done very soon.


I have to get these 2 loans done, the B2R and Barnett. I think were close to finish on those, were working all morining on Barnett on about a hundred pages of loan documents that we have to sign and get to them by Thursday (March 17) to close on that one. Then B2R is coming bak with more questions and finishing up that and I think were very close on that one too, but as soon as those are wrapped up, we can talk more about how to arrange things in North Carolina. As far as that goes, it will be we could buy down some of his equities or buy some of the 20% upfront that he has on the PM. We jsut need to figure out exactly how we’re gonna structure it. I’m sure we can work something out. 


Starting refinance process within a week.


Next round of B2R refinance on Southbend properties.


Having gone through this process twice with B2R now, I am even more inclined to finalize our next round for the South Bend and remaining Jacksonville properties with either Colony American Finance (10-year balloon) or Lima One Capital (30-year fixed.)


Will begin refi along with all others in the next two weeks.




I have several feelers out with both local and national lenders and should be rate and term sheets from them this week. I am exploring both portfolio loan products and individual FHA / conventional loans for all of our properties there.


We have had delays on our recent Indiana projects, and as such I felt it was critical to use my time there not only to build relationships and learn more about the area, but to evaluate our contractor, Mike Smith. Because my construction knowledge is limited, Lou Ellis offered to fly up with me so he could help me in this regard, and I’m sure glad I accepted his offer.We started by touring all of our projects (16 in all) with our Ground Partner, Anthony Mwangi, to get a sense of the neighborhoods, the homes, and the workmanship. Most of these homes are occupied and cash flowing, so only a drive-by was possible.

But we have two SFRs which are completed and still on the market to rent, and having just come from our Jacksonville rehabs I could immediately spot shortcomings in the rehabs. These homes just were not finished to the quality we come to expect when EAC rehabs a home. The kitchen cabinets were refinished rather than new, the interior doors had mismatched hardware, and baseboards were uneven and contained gaps. These and other somewhat small details aren’t obvious in pictures, but when standing in the home the impression is not up to our standards. In order to maximize our rental income and refinance appraisal, these will require some additional work, something we’ll be completing in the next two weeks at EAC’s expense.

Moving on to the 4-plex and duplex that are slated for a rent-by-room model, we found similar issues with Mike Smith’s work on these projects. Lou was concerned about some framing and HVAC issues he saw, but because Lou doesn’t know the local codes we decided to call the city (Mishawaka) for an inspection. To make a long story short, the inspector agreed with Lou and some of this work will have to be redone.

After much discussion with Kevin and Lou, we decided that it was in our best interest to remove Mike Smith from these projects. This bold decision was made much easier by the fact that Lou offered to take over all of the Indiana projects as GC and see them through completion. We found out that earning a GC license in Mishawaka / South Bend is extremely easy and inexpensive (perhaps part of the problem!,) so Lou has already taken this step.

In the few days since my return, Lou has lined up some excellent subs and a good crew that will help us finish these projects quickly. I cannot express how impressed I am with him … once the decision was made he just took over and has everything in control. Kevin and I are so appreciative of his attitude and skills when it comes to being and effective GC, but moreso as a phenomenal Ground Partner, and frankly, a great friend. He saw that we needed help and took charge to make things right.

Lou will be working his weekends and Monday in Jacksonville, and then flying to South Bend Monday night to spend most of the work there for the next three to four weeks, until these properties are buttoned up. I have high confidence that, especially with the help of his wife Barbara, he will keep things moving quickly in Jacksonville while finishing the projects in South Bend.


Just evicted tenant will be back on market for lease by 10/16.


Rehab completed. Tenant moved in on 6/1/15


Date of Purchase