EAC Community Weekly Newsletter

JULY 2018

Wish you all a Happy and Safe Independence Day!

We apologize for not sending out a newsletter in the past few months. We have been working through some system updates, moving from old office and refinances. 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:

  • 1129 Roosevelt St:
  • 2325 Corby Blvd
    • Rehab complete July 1
    • Pics: http://bit.ly/2K4bvGu
    • Home will be furnished for first AirBnB guest arriving July 6
  • 1733 Freemont
    • Closed in April as part of 14-pack purchase from another investor
    • Only remaining rehab requiring major repairs from package.
    • Expect to complete mid-July

 

Rental Status:

 

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
    • 2 in process: 406 Marquette & 2325 Corby
    • 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 lenders:
        • 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)

 

Market: Jacksonville, NC

Flips:

  • 102 Northview
    • $78k purchase + $18.5k rehab = $96.5k Total Cost
    • Sold $128,500 (expected ARV $130k)
    • Link to listing: http://bit.ly/2z9i99x
  • 638 Sandridge
    • $70k purchase + $25k rehab = $95k Total Cost
    • ARV $130k
    • Rehab:
      • Plan – Paint Interior and Exterior, New Kitchen, New Appliances, New Flooring Throughout, New Lighting, New HVAC, Install Privacy Fence, Repair Deck, Renovate both bathrooms, Landscaping
      • Progress: 75% Complete
      • Pics: http://bit.ly/2lPDvPw
    • 106 Northview
      • $75k purchase + $25k rehab = $100k
      • ARV $130k
      • Rehab:
        • Plan – New Kitchen cabinets, counter tops, back splash, Update both bathrooms (vanities, vinyl flooring, lighting, accessory kits), Interior and Exterior Paint, Add front post and handrails on porch, New Roof, Laminate flooring in hallway, kitchen, living area, Carpet in bedrooms, Update light fixtures, Stainless Steel Appliances, Landscape flower beds and pressure wash house and driveway
        • Progress: 50% Complete
        • Pics: http://bit.ly/2KK8jQ2
      • 104 Northview
        • $80k purchase + $20k rehab = $100k
        • ARV $130k
        • Rehab:
          • Plan – Kitchen remodel (countertops, backsplash, hardware), Bathroom remodel (vanities, flooring, accessory kits), Laminate (hallway, living area, kitchen), Interior paint, Update lighting, Landscape and pressure wash
        • Tenant delaying closing since May. Expect to close early July.

 

Rental Status:

  • We are at 89% occupancy with: 1 vacant, 1 eviction, 2 recent evictions requiring substantial turnover
  • 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:
    • Several properties required some deferred maintenance and turnover expenses, but these repairs are all complete
    • We are at 79% occupancy with 2 vacant units and 1 turnover.

 

Market: Chicago, IL

  • 16920 Old Elm:
    • Under contract to sell
    • Appraisal completed end of June and we expect to close sometime in July
  • 14538 Kimbark & 14331 Cottage Grove
    • We attempted selling on com, but after no success, we removed from their platform
    • Roofstock indicated they had little interest in Chicago market primarily due to investor concerns with high taxes
    • Properties are being refreshed and re-marketed via Chicago partner’s platform, com
  • Once all properties are sold, we intend to dissolve this entity.

 

Non-Performing Mortgage Notes: Chad Urbshott

  • We experienced mixed results with our previous partner. Delays due to servicing company issues and other management issues resulted in overall loss for EAC.
  • Moving forward, we plan to resume purchasing notes with our Managing Partner Chad Urbshott with the following structure to create a balanced win-win in the event of unforeseen issues or delays:
    • Example note investment: http://bit.ly/2z8w7IE
    • Investor paid first preferred interest
    • Profit splits incentivize partners to get notes to perform sooner
    • Fair disbursement of profits to ensure all parties compensated
    • Investors achieve double-digit returns, but never < 8% if profitable
    • EAC will borrow minimum amount projected and fund any overages
    • EAC adds layer of protection and vetting of partners/notes
    • Principal is not guaranteed, but Notes are purchased in bulk to mitigate risk
  • Contact Vil if interested (vnikollaj@eacgp.com | 858-876-4845)

 

Opportunities/Needs:

  • South Bend, IN (reference details above):
    • 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.
    • 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
      • Please let us know if you are interested in these types of investments
      • 8% preferred return + 1/3 EAC profit (50% of net)
    • Contact Vil if interested (vnikollaj@eacgp.com | 858-876-4845)

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