Q1 2026 Tallywood Investor Report

Headlines

In December we had the bank give us a big list of required deferred maintenance that they wanted done, and they have been putting a small bit of pressure on us about it.

In January the bank called us and said they hadn’t collected reserve requirements from us since the beginning of our loan and that the entire amount was due immediately.

Both of these issues created a cash crunch for us, and I’m happy to report that both have been solved. We have only one task left to fix for the deferred maintenance list and we have developed a good relationship with our asset manager. I’m fairly confident that once this last issue is completed we will be left alone. Vijay successfully navigated the reserve requirement issue by sending over the money and the next day he sent in receipts for the last 6 years that warranted us getting our capital back immediately.

So we have some cash in the bank, and as that accumulates we will get back to distributions

You can’t park your car there

With apartments, it seems we deal with “a one-time expense” ever month. On Easter Sunday some kids drove their moms car through a brick wall of our building

No one was hurt thankfully

Also, Rodrick had the place cleaned and boarded up the same day. Very proud and thankful of him for getting this taken care of on Easter.

There doesn’t seem to be any structural damage as the header stud is still in place and the area they damaged was framed for a door and window anyway. We moved this tenant into another vacant unit, insurance has already been contacted, and all will get fixed soon.

Financials

We are cash flow positive all year so far

2026 Q1 Financials.xlsx - Balance Sheet.pdf

2026 Q1 Financials.xlsx - Cash Flow.pdf

2026 Q1 Financials.xlsx - P&L.pdf

Exit

This is still something I'm working on every week.

As the market conditions improve so have talks with our brokers. We are working to reach 90% occupancy for 90 days (a Freddie Mac lending condition) and then we hope to go to market. I have been talking with them often to get this solved.

Thank you

As always, I am very easy to get ahold of

910.850.8127 - Alex