Happy Fall to everyone. Summer went by much quicker than expected. Please see the recap below and email us if you need any additional information or have questions. Thank you.

Market: South Bend, IN

Rehab Status: None Active.

Rental Status:

  • We are at 91% occupancy


Refinancing:

  • 51 properties total. Plan is still to refinance these properties in groups based on property valuation, seasoning requirements and loan maturity.
    • 16 properties refinanced to date
    • No longer refinancing Marquette & Corby due to lenders fees and poor appraisals
    • 10-12 properties are being pooled together in October
    • Packaging group of properties > $50k for portfolio lender in July
    • All properties ~$50k value or less we are pursuing two paths:
      • Lending partner package refinance
      • EAC private mortgages:
        • 15-20 year fully amortized loans @ 8%
        • Capped at 70% ARV
        • Debt Service Coverage Ratio >1.5 (50% more income than required debt. Most lenders require >1.25)
        • Loan sizes: $13k - $40k per property or package in groups or all together (preferred approach)

 

Market: Jacksonville, NC

Hurricane Florence made landfall in September and impacted much of the Carolinas, including our investments in Jacksonville. Many areas lost power, experienced flooding and damage to their homes. Overall EAC’s properties did not sustain much damage, so we were very lucky. Our partners and property managers have been very busy and we are grateful for their support. Areas are slowly recovering, but it will take a few months to get back to normal.

Flips:

  • 102 Northview (SOLD)
    • $78k purchase + $18.5k rehab = $96.5k Total Cost
    • Sold $128,500 (expected ARV $130k)
    • Link to listing: http://bit.ly/2z9i99x
  • 638 Sandridge (SOLD)
  • 106 Northview (UNDER CONTRACT)
    • $75k purchase + $25k rehab = $100k
    • Under Contract $135k – expect to close in October
    • Link to listing: http://bit.ly/2QziXbH
  • 2634 Idlebrook (IN PROGRESS)
    • $87k purchase + $20k rehab = $107k
    • ARV $160k
    • Rehab:
      • Kitchen remodel (countertops, backsplash, hardware), Bathroom remodel (vanities, flooring, accessory kits), Laminate (hallway, living area, kitchen), Interior paint, Update lighting, Landscape and pressure wash
    • Expected completion October 2018


Rental Status:

  • There is very high demand for housing (rentals & purchases) including Camp Lejeune due to the storm
  • We are currently at 97% occupancy
  • We are very pleased with our Property Managers and ground partners for pushing to get our occupancy up and our portfolio stabilized.

 

Market: Saint Louis, MO

  • Rental Status: We are at 100% occupancy with 2 vacant units and 1 turnover.


Market: Chicago, IL

  • 16920 Old Elm: Buyer canceled contract after 5 months while working through repair issues. Actively being marketed for $149k.
  • 14538 Kimbark: Actively being marketed for $125k.
  • 14331 Cottage Grove: Actively being sold for $125k.
  • Chicago has been a challenging market and dealing with housing authority / tenants is not worth the return. Once all properties are sold, we intend to dissolve this entity.

 

Opportunities/Needs:

  • South Bend, IN (reference details above):
    • Long-term mortgage loan (as mentioned above)
      • 15-20 year fully amortized loans @ 8%
      • Capped at 70% ARV
      • Debt Service Coverage Ratio >1.5 (50% more income than required debt. Most lenders require >1.25)
      • Loan sizes: $13k - $35k per property or package in groups or all together (preferred approach)
      • Contact Vil if interested (vnikollaj@eacgp.com | 858-876-4845)
      • 15-30 year, fully-amortized loans similar to bank loans
    • Non-Performing Notes (NPN): Chad Urbshott
      • EAC will be resuming the purchase of NPN with our Managing Partner Chad Urbshott
      • Example note investment: http://bit.ly/2NwbSvq
      • Additional details to follow in separate letter

 

Contact Vil if interested at vnikollaj@eacgp.com | 858-876-4845

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