Gryphon Real Estate Investments Business Plan

  It is the intention of Gryphon Real Estate Investments, to clean up the neighborhoods of  Indian River County, of the blight of vacant, sometimes overgrown, and mostly unmaintained properties that are left sitting in the neighborhoods by uncaring lenders who have foreclosed on these properties, and then left them sitting like so many rotting carcasses to bring down the beauty of the neighborhood, along with property values.  Although not normally seen by the tourists coming to vacation in our beautiful little beach towns, these properties have to be endured by those of us that call Indian River County home, as well as the many snowbirds that live here too.

  The company is currently looking to offer private investors the opportunity to allow some of their investment capital to be put to work earning them an excellent return on investment, backed by a hard asset; for funding our renovation projects.  Considering the extremely low bank rates on CDs (below inflation), and the volatility of the stock market (not to mention the number of investors who have paid exorbitant fees to investment houses for the privilege of losing their money in the market); real estate in general has had a long history of top notch appreciation, and profitability; not to mention it’s extreme desirability.  We are tackling the part of the market (beginning to mid-priced homes) that badly needs attention because of a nationwide lack of inventory, and will keep your investment funds working to earn you a great return in a short time frame.  

  Our plan is to locate the derelict properties, do an inspection and create a rehab estimate, and use that estimate to negotiate a workable price which will allow us to pay you an interest rate that is higher than the banks are currently paying, as well as getting you your money back in a relatively short time frame so you can continue to use it for high return on investment.  We will create a property report with photos, showing the exterior and interior, a description of the property including renovation plans with the estimate, comparable properties to prove the after repaired value, and the rest of the numbers including your profit; along with an estimated timeline for the renovation and sale.  All properties will be insured, and the lender put in the first lien position on the mortgage or deed of trust.

 

  We will start with a single, lower priced property to give our lender a measure of comfort; and continue on with two or three more individual projects being renovated before starting to run concurrent projects.  We will then start to run two projects together, in order to bring our proficiency up to where we need it to be in order to run the projects with good efficiency.  We then plan on starting to operate by working our way up to three, and then four projects being run concurrently.  We are assuming this will take at least two years, and probably longer.  We are aware of the fact that projects sometimes run into problems with permitting timelines not meeting schedules, materials being back ordered, possible contractor problems, and the like.  We will be working with city/county departments to try and arrange as short a time as possible for permits.  We will also try and arrange a working solution with the utilities, and have multiple discount/contractor accounts, to save as much time and money as possible.  

 

  Because a big part of keeping a renovation on time and budget are the contractors; we will constantly be on the lookout for contractors with an excellent reputation, and an eye towards keeping costs contained.  We are looking eventually, to be able to keep from two to four complete crews, and a back up group of contractors working year round, with the help of a working general foreman/project manager, and a virtual assistant. 

 

  Although renovation of single family homes will always be our bread and butter product, and service, we will be looking at renovating and/or adding value to smaller apartment buildings to hold, somewhere down the road, as well as looking at mobile home parks; as we see a constant and ongoing need for both of these types of housing.  As we come upon, or create the situation, we will be looking to renovate an historical property, and possibly create a tiny house neighborhood to benefit our homeless/veterans.  And although at this time we don’t see commercial properties (other than small apartment buildings) as an interest, if a smaller property with good numbers came to our notice, we might be willing to work it.  But to start, we’ll move slow and steady; and as we gain proficiency, we'll start working on multiple projects.  

  We hope after a conversation, you’ll decide to put your investment funds to good use and profit with our company.  

Respectfully,
K.F. (Jack) Griffin
Gryphon Real Estate Investments, LLC