Market: South Bend, IN

  • Rehab Status:
    • 406 Marquette – Rehab, per original scope, is complete, but PM is requesting some additional upgrades to attract $1500 rent vs. original $1250 projected rent.
    • 1702 Chapin – Rehab, per original scope, is complete, but PM is requesting some additional upgrades.
    • 228 E Battell – largest rehab and delayed with contractor issues. Finishing touches being done. Will send pics this week after completed project.
    • 1231 Cedar – Rehab, per original scope, is complete, but PM is requesting carpet just be replaced.
    • 1314 Eastbrook – Rehab started later than expected. Expect to wrap up mid-Jan.
    • Summary of 2017 Performance:
      • Overall a great year and we are very pleased with the performance to date.
      • 26 properties total:
        • 6 transfers from EAC LP
        • Unable to close on either 3-pack in December as planned
        • 71 bedrooms, 30 bathrooms, 28k square feet
        • 1 test property as short-term rental – we have had great success renting this property for Notre Dame games and currently renting to family having home restored due to fire for > $3k/mo (vs. $650/mo market rent)
      • Financials
        • All-in costs ~$900k
        • Valuation $1.2-1.4M (range based on 10 CAP vs. ARV)
        • Cash Flow $156/door/month after stabilization
      • 2018 Plans:
        • Acquisitions – Goal is 50 properties, but the following are under contract.
          • 3-pack – 1005 Kinyon St, 1010 Kinyon St, 1129 Roosevelt St: sellers still negotiating judgements with IRS/Debtors. Hope to have resolved in Jan.
            • EAC investor already funding
          • 3-pack – 920 W 8th, 1022 Edison, 1117 Canterbury: Transfers from HomeWorks
            • EAC investor already funding
          • 830 Eckman – 3 bed / 1 bath for Buy->Rehab->Refi
            • $32k purchase + $10k rehab, $70k ARV (60% LTV)
            • Seeking $42k for 9-12 months @ 10% interest, until seasoned for refi
          • 822 Bowman – 3 bed / 1 bath for Buy->Rehab->Refi.
            • $25k purchase + $9k rehab, $55k ARV (62% LTV)
            • Seeking $34k for 9-12 months @ 10% interest, until seasoned for refi
          • 14-pack – multiple properties (35 bed / 14 bath) for Buy->Rehab->Refi. Properties are being purchased at steep discount from investor seeking to get out of rentals. 12 are occupied and 1 needs $10k rehab. All others require minor work.
            • $273k purchase + $40k rehab, $450k ARV (70% LTV)
            • Seeking $313k for 9-12 months @ 10% interest, until seasoned for refi
              • Either one investor or multiple.
            • Plan to do few flips as well if they become available.
            • Financing
              • Plan to refinance existing 18 properties that were paid with cash or short-term financing after they are seasoned for 9 months to meet lender requirements.
              • Working with local banks to obtain better terms for lower price homes.

 

Market: Jacksonville, NC

2245 & 2250 Onslow Duplexes

  • Rehab is finally complete. All units passed final inspections.
  • Units listed for rent and are top priority to rent
  • Pursuing parallel path of refinancing and selling in next ~60 days.

511 Nelson:

  • Rehab is complete. Property is staged.
  • Will be listed first week of January starting for $95k.
  • Link to pics: http://bit.ly/2lx1J0n

2018 Plan: Still unclear, but we have 40 rentals in this market. Currently evaluating how we want to proceed in this market.

 

Market: Chicago, IL

16920 Old Elm - still in negotiation to sell to another investor in PFR community.

14538 Kimbark - listed for sale using new platform Roofstock.com, which allows buyer to purchase pre-vetted/inspected/verified properties.

  • Link to listing: http://bit.ly/2CmTIpr
  • Note: some errors in listing including rent, working to get resolved

14331 Cottage Grove - to be listed on Roofstock.com as well. Issues with getting inspection done due to tenant.

2018 Plan: Our goal is to sell all three properties and dissolve this entity once all sales are complete.

 

Market: Saint Louis, MO

3011 Utah: sold to another investor

2018 Plan: We have 3 remaining assets EAC is actively working to sell off. We are working to rebuild in this market with more selective projects.

 

Non-Performing Mortgage Notes: Chad Urbshott / Nathan Turner (multiple states)

3539 Judy – Hearing date is scheduled for February 2018. This project has had its challenges and is long overdue. Seeking to sell EAC’s position prior to sale.

510 High Grove – Note is being marketed after being seasoned. This project has had its challenges and is long overdue. Seeking to sell EAC’s position prior to sale.

 

Market: Philadelphia, PA (Antonio Cerqueira)

2018 Plan: 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:

South Bend, IN (reference details above):

  • 830 Eckman – $42k for 9-12 months @ 10% interest
  • 822 Bowman – $34k for 9-12 months @ 10% interest
  • 14-pack – $313k for 9-12 months @ 10% interest (single or multiple investors)
  • 8% fixed return. Cash flow paid quarterly. The minimum investment is $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.
  • Inquire with Vil if interested (vnikollaj@eacgp.com | 858-876-4845)

 

From everyone at EAC, we are very thankful to everyone for being a part of our community and hope 2018 will bring joy and prosperity to all. Best wishes to you and your families.