Market: South Bend, IN

EAC LP Properties

  • 226-228 Cleveland closing delayed to first week November due to buyer’s lender requesting additional documentation.
  • 126 E Broadway part of 5Arch refinance with EAC-South Bend properties delayed until first week of November.

 

EAC-South Bend:

  • Closed on 3 additional properties in October
    • 826 E 4th – property was rehabbed, rented prior to acquisition
    • 406 Marquette – rehab underway (furnace to be installed early Nov, paint, cleanout, egress window).
    • 1231 Cedar – furnace to be installed early Nov, expect completion Nov 10
  • 4 additional properties under contract in November (1005 Kinyon St, 1010 Kinyon St, 1129 Roosevelt St and 1702 Chapin)
  • Combined EAC & EAC-South Bend properties will hold 28 properties in the South Bend market with value of $1.3-1.6M
  • EAC is working with local lenders to build relationship with better financing terms to help continue to grow.

 

Market: Jacksonville, NC

Refinance Duplexes:

  • Refinance taking much longer than expected
  • All 4 Starling units appraised $117k, which is what we expected. Expect to close these refinances by mid-November.
  • 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:

  • Additional delays on rehab. Expect to complete rehab and list on market by mid-November.
  • Plan to list on market with realtor Diane Castro-Perez once complete

 

Market: Chicago, IL

  • Buyer lined up to purchase Old Elm. Plan to go under contract mid-November.
  • 14538 Kimbark – final inspection issues resolved and tenant moved in Oct 20, paying $1664/mo in rent through Section 8.
  • Prospective buyer interested in purchasing 2 Dolton properties (14331 Cottage Grove & 14538 Kimbark). Buyer is currently performing Due Diligence.
  • Our goal is to sell all three properties by the end of the year.

 

Market: Saint Louis, MO

3706 Jefferson: closed October 16 for substantial loss to EAC.

8100 S Broadway: under contract with new buyer with target closing date of November 8. Project will result in loss as well to EAC

3011 Utah: No offers.

Plan: Still working to dispose of remaining toxic assets in Saint Louis. EAC and Kevin will be absorbing these losses and taking advantage of tax write-offs in 2017, then working to rebuild in this market with better partners.

 

Market: Mortgage Notes: Chad Urbshott / Nathan Turner (multiple states)

2275 Union – Sold to our MP, Chad Urbshott, for quick sale, so we could return investor’s funds. Project was essentially break-even

325 Cedar Circle – We have buyer for $18k purchasing note through 401k. Waiting for closing date.

3539 Judy – Court date Oct 24 went well and currently the court requires one additional document to process the foreclosure. This will be delivered early November. Property will be listed with REO realtor once finalized.

510 High Grove - Buyer made two payments (Sep & Oct). After November payment, we will begin to market and sell Dec-Jan.

 

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: 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).