Rich's Thoughts on Things

Legal Twist

Rich Kruse (Gryphon USA, Ltd.) — Sun, 06 Jul 2008 13:10:19 -0500

This question jumps into the realm of license laws, but with a little twist. This came up the other day.

Company A owns a 50% interest in Company B. Company B owns a 100% interest in a real estate development. In Ohio, there are license exclusions that allow direct employees of owners of real property to manage without a licence.

Can employees of Company A manage property owned by Company B in Ohio? Can they do it in your state?

The ruling from the court should come in next week. What do you think it should be? Why?

Office Condo Near Dublin

Rich Kruse (Gryphon USA, Ltd.) — Sat, 21 Jun 2008 09:44:23 -0500

Richard Kruse | Gryphon Realty Advisors | rfk@gryphonusa.com | 614-774-4118

8055 Corporate Blvd. Unit C, Plain City, OH

Great Office / Warehouse Wondo with Possible Owner Financing.

Industrial

offered at $275,000

Year Built	2003
Sq Footage	3,920
Floors	1
Parking	Uncovered spaces
Lot Size	Unspecified
Maint	$0 per month

DESCRIPTION

Newly remodeled end unit with 2 overhead drivein doors, 4 offices, reception, 2 restrooms, 2 kitchenettes (convert 1 to another office) 1600sf+/- Office & 2200sf+/- Warehouse. Can be split into 2 units. Near Dublin without the taxes. Sale includes built in furninshings and some warehouse racking. Seller will consider lease / purchase option and seller financing.

see additional photos below

PROPERTY FEATURES

New Interior Buildout

Heated Warehouse

Racking System Included

Some Custon Built In Furnishings

LOCATION FEATURES

Near Dublin OH Without Dublin Taxes

Easy Access to 270 Outer Loop

OTHER SPECIAL FEATURES

Motivated Bank Seller

Possible Owner Financing

Possible Lease Option

ADDITIONAL PHOTOS

Seller contact info:

Richard Kruse

Gryphon Realty Advisors

rfk@gryphonusa.com

614-774-4118

For sale by agent/broker

Equal Opportunity Housing

Posted: Jun 21, 2008, 5:07am PDT

Cash in the Trash

Rich Kruse (Gryphon USA, Ltd.) — Sun, 08 Jun 2008 08:13:10 -0500

Yesterday the debris removal started at an apartment complex I am dealing with. We have already found a little of everything. The usual suspects have all been uncovered including old clothes, smelly sofas, broken shelving units and porn.

In addition to stuff we do not want, we also find things we want like money. Nobody leaves stacks of cash laying around for us, but accumulating a big bag of change is fairly common.

I have been doing these debris removals in distressed projects for a few years. Sometimes the project is an apartment complex with issues and once was a 10,000sf commercial building full of "stuff". Something to be aware of is that the metal being removed has value. Between bed frames, old hot water tanks, refrigerators and misc. junk it is also not uncommon to end up with a few hundred dollars worth of scrap.

When dealing with a large project with thousands of dollars needing to be spent on clean up, a few hundred is important. If this situation comes in front of you, don't just let the trash guys take the scrap for themselves. Make sure to cut a deal for an offset on their bill if you allow them to sort the scrap.

Things that make you say hmm….

Rich Kruse (Gryphon USA, Ltd.) — Tue, 27 May 2008 17:17:27 -0500

Life as an interim property manager for distressed apartment complexes has its moments. Mostly aggravating, but sometimes amusing.

Today we had a tenant call who said that she needed extra time to pay the rent for May. Today is the 27^th. She got the notice last month about paying to our office and has talked to 4 of our staff, including myself, but still did not feel comfortable paying to people she didn't know. She was shocked to get the 3 day notice. According to her, she had the money but doesn't have it any longer. Now there is a disagreement with her employer about her paycheck. It should be cleared up "soon".

In brief, she was not given an extension and was told she needed to bring the rent in today or the eviction was going to be filed tomorrow. 30 minutes later she calls. Holy Cow !! She has the money.

I was not there when she showed up to make the payment, but I did receive a note attached to the money. Apparently Whitney thought her comment was funny because she wrote a little smiley face next to it.

"Tenant says she is moving out because she does not like that rent is due on the due date."

Next.........

History Repeats Itself......In Real Estate Too

Rich Kruse (Gryphon USA, Ltd.) — Mon, 26 May 2008 07:05:00 -0500

From 1989 to 1995 a little remembered government owned management company called the Resolution Trust Company (RTC) liquidated the assets of over 700 S&L's who went insolvent. They sold mortgages, condos, houses, land, commercial buildings and furniture, fixtures and equipment (FFE). Specialty brokers were used and billions of dollars worth of property were sold at auction.

Mike Norvell had a post the other day asking where and when will it all end with values dropping. If you ask me, it will be with the Y2K version of RTC Redux. The government is already getting involved in the bailouts.

A few days ago I posted about conducting multi-property and multi-seller auctions. I have been doing them since I started in the liquidation business in 1996. This was a little after the big RTC blowouts, but guess who mentored me in setting up and running these transactions? The guys that did it in the RTC days. Guess who is still around? The guys that did it in the RTC days.

These days there are about half a dozen companies conducting these mega sales around the US. Some even have TV commercials. Definitely, these types of auctions have picked up in the past 18 months. I think there are going to be more.

This started as a long answer to Mike's short question, but I think I should also point out that the average Realtor needs to strongly consider learning about the auction process. 20 years ago an enormous amount of product was being sold through REO type brokers and auctioneers. Agents are now flocking to sign up as vendors for the asset managers, taking classes, going to conventions and getting REO designations yet auctioneers are still looked at by the average Realtor as the whipping boy of the real estate industry.

Here's a tip, O'Neal. The REO industry reinvented itself just a few years back. The average REO agent just recently jumped on the bandwagon. The auction business has been around for thousands of years. The average auctioneer has about 10 years of experience.

Just my opinion, but I think there are going to be many, many more of the mega-auctions and eventually Uncle Sam is going to be very involved. It's coming like a freight train. Realtors in the know are going to have an advantage.

I am now off my soapbox.

Multi-Seller Auction

Rich Kruse (Gryphon USA, Ltd.) — Sat, 24 May 2008 08:00:09 -0500

Many people are seeing ads for the Mega-Auction that national auction companies are doing for the large lenders. This all sounds new and confusing, but it really isn't. I've been doing these types of sales since 1996. Other companies have been doing them even longer.

One of the biggest differences between our multi-seller auctions and the Mega-Auctions is that our sellers are generally business or individual sellers who are ready to sell at market value. How do I know this? Because we fully vet the client to make sure they are committed.

Here is how this works:

By combining the marketing efforts of multiple properties and multiple sellers, we are able to create a marketing profile that expands exposure from small local efforts to a more expansive regional effort at a minimal price.

As with any type of sale offering, the sales recovery is directly related to the amount of exposure created.

For a small flat entry fee a seller take advantage of thousands in exposure. We also charge all commissions to the buyer, so the sellers exposure is limited to the Entry Fee.

One of the keys to success is making sure that the properties you have in the event are somewhat similar so the marketing effort can be targeted. For example, having a mix of residential and small commercial in the same price point is good. An auction of investment property ranging from a small rental house up through a retail center is not as good. There can be an exception (of course) if you have properties located in a particular (limited) geographical area, for example.

We are working on setting up a multi-seller sale for August 2008 and the details are below. Many other auction firms throughout the US offer similar programs.
Entry Fee: $750 per property due at listing
Marketing Exposure Value: $10,000 minimum

Marketing Profile

Each property will benefit from the marketing targeted at bringing buyers to the auction including:

1. Local & Regional Print Media

2. Direct Email Campaign

3. Direct Mail Campaign

4. Auction Signage

5. Online Bidding

6. Internet Exposure

7. Media Relations

8. Additional Resources

Broker Referral

Brokers referring their current listings into the program may be eligible for a referral fee equal to what they may expect to receive as a full listing broker side.

Buyer Agents

Buyer agents are always welcome and have an opportunity to receive a 3% co-op. They will be required to attend showings with their client, register them and attend the auction. Simple!!

Closings

Closings for residential property and most small commercial property would be within 30 days of the auction. Larger commercial assets would have a closing within 45 days.

Full Terms

Full terms and conditions for real estate auctions are (for the most part) standardized for our auctions, however do get tweaked a little based on seller needs. Therefore, full terms will not be drafted until we complete in processing our sellers and their properties.

Please call or email if you would like more info on entering the auction, bringing buyers or setting up your own sale event.

$35 / mo. Rental

Rich Kruse (Gryphon USA, Ltd.) — Thu, 15 May 2008 06:14:03 -0500

The other day I saw something from afar that I have never seen before. It was a rental house that goes for only $35 a month. We tried to get a little closer to get a better picture, but the "driveway" had too many large potholes for the small SUV I was riding in. Thinking about it, the house rents per month for less than I would have paid ti rent this SUV for a day. My local contact was afraid to walk up. Don't know why.

The house is part of a large court case that I am working on. Eventually I will need to sell it, probably at auction. Luckily, we also have large tracts of acreage.

What is a $35/mo rental worth?

Gryphon USA Grows Auction Practice Group

Rich Kruse (Gryphon USA, Ltd.) — Sun, 04 May 2008 09:09:17 -0500

Gryphon USA Grows Auction Practice Group

Auctioneer Michael Hoffman To Head Gryphon Auction Group

Columbus, OH - May 3, 2008 Gryphon USA announces that auctioneer Michael Hoffman has joined the company to manage subsidiary Gryphon Realty Advisors - Gryphon Auction Group. Hoffman will focus on real estate and personal property auctions and appraisals, with special attention to clients in the corporate, banking and insolvency communities. He also will continue his efforts in real estate brokerage as a valued member of the Gryphon Realty professional staff.

"Michael's involvement with Gryphon will increase the companies capacity to undertake multiple auction opportunities at once throughout Ohio and, under his direction, Gryphon will soon be offering regional multi-property auctions through both live and online venues," stated Gryphon's president Richard Kruse.

Hoffman has been an auctioneer for more than six years, and has conducted hundreds of real estate and personal property in Ohio and Michigan. He has earned professional designations granted by the National Auctioneers Institute including Certified Auctioneers Institute (CAI - one of 2,500 designees nationwide) Accredited Auctioneer of Real Estate (AARE - one of fewer than 350 designees nationwide), Certified Estate Specialist (CES) and Benefit Auction Specialist (BAS).

Hoffman also is an approved auctioneer for the Franklin and Licking counties probate courts, and is an approved auctioneer for the United States Bankruptcy Court, Southern District of Ohio. He has recently been elected to the Board of Directors of the Ohio Auctioneers Association and is an active member of the National Auctioneers Association.

About Gryphon

Columbus-based Gryphon USA, Ltd. and its subsidiary companies focus on the wind down and liquidation from single assets through and including entire companies. The company maintains a real estate brokerage practice, auction group, property management division and appraisal division. Co-founder Richard Kruse also regularly holds engagements as court appointed receiver.

For more information, contact Gryphon USA, Ltd at www.gryphonusa.com or by calling toll free at 1-877-5-GRYPHON.

I'm Really Confused

Rich Kruse (Gryphon USA, Ltd.) — Fri, 02 May 2008 08:10:14 -0500

On one of the posts that I am following, an agent made the following remark:

In response to XXX XXXXXX pleas, I'd advise her to not buy at auctions but to have a realtor represent her always.

I guess I just don't understand the thinking here and hope someone can help me.

Why on earth would you discourage buying at an auction?

Most auctions encourage broker participataion. Most even provide copies of the real estate contract ahead of the bidding. At a minimum, terms of the auction are given ahead of bidding.

This is the most straightforward method of buying there is. What's the problem?

Court Ordered Possession

Rich Kruse (Gryphon USA, Ltd.) — Thu, 17 Apr 2008 19:19:07 -0500

Sometimes property gets turned over to an asset manager one house at a time and other times entire complexes come in at once.

Tomorrow should be an interesting day as we need to go seize a 72 unit apartment complex in Grove City, Ohio which is a suburb of Columbus. When taking on this task, it is a little more complicated that just one home.

If you are ever in this situation, here are some steps to consider:

You need to get control of the leases
You need to get control of the key box
With any luck, the income and expense records are on a computer. Life is easier if you can get the passwords.
If taking over the property under Court Order, you may need to seize the bank accounts of the title holder. Banks will usually comply IF you bring the Order in with you.
For complexes, there may be standing contracts to contend with

Lawn care
Snow removal
Outstanding maintenance agreements
Third party managers

If there are employees at the site then there are loyalty concerns. Is this person loyal to their job or to the title holder? You may need to fire.
Municipality issues

Contact the building or code departments to negotiate repair of violations and timelines
Contact the police department concerning the title holders access rights. Amazing as it may seem, some of them will continue to attempt rent collections even though they lost that right. Sometimes they need to be physically removed from the location under police supervision.

........and that is just the first day....................

Media Relations & Web Address On Signs Bring Business

Rich Kruse (Gryphon USA, Ltd.) — Fri, 11 Apr 2008 07:02:09 -0500

Good morning folks. Just a quick update on the "free media" campaign we initiated for the last project.

Gryphon Realty, through our auction group, offered 49 low income and investor grade condos last week. We initiated a press campaign that has generated 4 newspaper articles in the past 2 weeks.

One of these articles is at this link: http://www.dispatch.com/live/content/local_news/stories/2008/04/09/Condos_for_Sale.ART_ART_04-09-08_B1_OG9SHQK.html?sid=101

This article does not mention us by name, but has a photo of a number of signs. Interesting to point out that we decided long ago to put our domain on our signs so people could obtain information without calling the office. Web traffic has seen a bump in the past couple of days and even though the article does not name the company or me personally, we received about 40 calls since it came out inquiring about buying investment property.

One of the other articles can be seen at this link: http://columbus.bizjournals.com/columbus/stories/2008/03/31/story5.html

The article coming out today can only be seen by subscribers for the first week or so and while I have gotten is by a password protected email, it is not available on the web.

Download 2008-04-11 edition

The password on this download is "literal". Our article is on page 8. If it does not download, email me at rfk@gryphonusa.com and I can forward the downloadable email to you.

Generating these articles is not only increasing buyer calls and web hits, but we have also entered into conversations with other potential seller clients for both brokerage, auction and as receiver.

Today's tip. Put your website on your signs and start talking to reporters!!

Sold ‘Em At The Auction

Rich Kruse (Gryphon USA, Ltd.) — Tue, 08 Apr 2008 17:32:11 -0500

What do 49 individual condos I had listed all have in common? They are all in contract at a price acceptable to the bank and it only took about an hour to do it.

That is the sound bite. It actually took a lot of hard work over the past three weeks to pull it off, but today was a success.

Over the past 3 weeks our office undertook a regional marketing effort that encompassed print media around the region in city and national publications, posted to dozens of websites that spidered out to even more, implemented a media campaign, sent direct mail and held open viewings.

The end result was over 12,000 web hits on our site, close to 100 individual emails and calls and 18 registered bidders. Of the 18 bidders, we are in contract with 8 of them.

All we need to do now is get the contracts approved by the judge and move to closing.

Here is the real interesting part. We offered the properties two ways. First in bulk and then separately. When you look at the gross sales numbers, the sales numbers are only separated by $4950.00. Clearly these properties were sold for what they are worth in today's market.

Media Relations

Rich Kruse (Gryphon USA, Ltd.) — Tue, 08 Apr 2008 05:41:23 -0500

A friend of mine once said that if I ate a Snickers bar that I should put out a press release about it. I'm not so sure about that, but media relations is a large part of our corporate marketing strategy.

A media campaign can be designed around almost anything. For example, we send out a press release for every large event such as auction and when we bring on new staff. In addition our local business paper, Business First, holds a free networking breakfast about every 7-8 weeks. These events are great for seeing the reporters in a relaxed setting as well as networking.

I am writing this post because I get the impression that some folks are possessed about new marketing venues such as blogging. Not that blogging is bad. Quite the opposite, but the old school ways should not be totally discounted.

It is said that being quoted in the news media is the best advertising you can get. Someone else is proclaiming you the expert.

To prove my point (and pat myself on the back) I point to the last 12 months in our local market. There have been 3 articles in about projects I am involved in and 2 about market conditions where I am heavily quoted. I also regularly receive calls from reporters to get background for things they are writing about, to check facts and (drum roll) to get referrals to other local experts in town. There are an easy 6 articles out there in the last 12 months where I was able to direct the reporter to another expert that I do business with. The reporters remember it and so do the people I refer them to.

Something else that is neat is that I can track web hits and incoming call volume increases back to the days following sending out a release. It is significantly higher following an article with my name in it.

In short, media relations is good for business.

If you have never written a release before there are a ton of places online that can give you tips, just Google "press release tips". Who, What, When, Where, Why, How and Company Information.

The next thing to do will be to get that release out to the reporters. I have gone two ways. First, you can search your marketplace getting the names of the reporters in your field of choice and contact them about how to send a release. Most will want email while some of the smaller publications will still request a fax.

The second way would be to use a service such as http://www.prweb.com/. This is more global and has a fee associated with it.

I use both, but my personal list gets the most results. Part of that is due to the relationship I have developed over time.

Good luck.

Franchise Negotiations

Rich Kruse (Gryphon USA, Ltd.) — Sun, 30 Mar 2008 08:46:00 -0500

Hi folks. Today is question day for me.

I have an independent brokerage that is about 5 years old and getting to be pretty successful in our market niche. When we opened our own business, I had been working the foreclosure market for years. Now, it seems like the place to be.

Anywhooo, next week I am to fly out to visit with a franchise that does not have presence in my area. I have read through their offering package and see a lot of things that are great, but also a lot of things that are in need of negotiation.

Here's my big question: Do franchises negotiate or is it a take it / leave it deal?

For example, they seem to want 20% of the gross. I have agents that make 85-90% splits.

On their side, they have systems and national advertising, etc. (BTW - Their national ads are not run in my state right now)

On my side I have an established business that covers most of a state where they have no presence at all. It is a state that is near the top of the pack in foreclosures. We specialize in that and this franchise is breaking into it. We do commercial and they are breaking into that as well.

Are we in a position to negotiate at all?

When Good Neighborhoods Go Bad

Rich Kruse (Gryphon USA, Ltd.) — Tue, 25 Mar 2008 21:39:35 -0500

Hi folks. As many of you know, most of my business is related to the default and forecloure side. Today was a good day and a bad one at the same time. Recently I was lucky enough to be hired to auction off 49 units of property in a condo development. It is not what most people think of as condos as the properties mostly look like doubles. Thing is, each double is 2 parcels. Most doubles are liened by different banks and many have 2 owners.

While this is a problem, it also creates an opportunity for people to buy the unit next door or multiple units at a good price.

Right now 210 of 316 units in this complex are in foreclosure. Today we put out 49 auction signs. Looking back on the street, I realized that this is happening all over the country.

Court Ordered Auction - Woodcliff Condos

Rich Kruse (Gryphon USA, Ltd.) — Thu, 20 Mar 2008 18:06:00 -0500

Receiver's Auction - 49 Condo Units

Location: Whitehall, OH

49 Condos Near E Broad & Hamilton - Whitehall, OH
Selling at AUCTION on April 8th at 9:30 am
3 Bedrooms & 1 Bath Units with Full Basements
Vacant & Occupied Units
Some Rehab Required
Full Offering Package Available at: www.gryphonusa.com
877-5-GRYPHON
R. Kruse & M. Hoffman - Auctioneers

Pricing

Asking Price: $13,000.00

Flexibility: Auction

Additional Pricing Information: Selling at Auction

Property Location

52 N. Hamilton
Whitehall, OH 43213

Features

Bedrooms: 3

Bathrooms: 1

Parking: Yes

Year Built: 1953

Subdivision: Woodcliff

School District: Whitehall

Square Footage: 896

Agent Name: RIchard Kruse

Broker: Gryphon

Interior Amenities

Hardwood Floors

Basement

EQUAL HOUSING OPPORTUNITY

VFLYER ID: 1574190

Broker / Manager Need - Cambridge Ohio

Rich Kruse (Gryphon USA, Ltd.) — Tue, 04 Mar 2008 16:41:54 -0600

Hi all. I have a new project coming up for about 12 units around Cambridge Ohio, 43725 where I am going to be appointed by the Court as receiver, but my brokerage is pretty far away from the town. I'll deal with the Court, but I think I am too far away to do the field work.

Some single family and it looks like 1 or 2 fourplexes. Eventually we are going to need to sell them and may take them to auction. Right now I need a property manager who may also be able to get listings.

I don't know much except addresses. I looked on REO Network and found a couple of possibilities, but would like to see if I can get an AR member to be involved.

I really want someone within 10 +/- miles of the zip code if possible.

Please email me at rfk@gryphonusa.com or post here if interested and available.

Columbus Banks to Tackle Rehabbing REO

Rich Kruse (Gryphon USA, Ltd.) — Sat, 01 Mar 2008 09:04:40 -0600

Columbus Realtors grab your tool belts. It looks like the new job in town for REO professionals is called Rehab. I'm not talking board ups and trashouts here folks. We are talking new roofs and all. I'm talking about Realtor = General Contractor. Lucky for me I have been a GC, done rehabs and built houses from the ground up. So have some of the agents working for our brokerage division.

According to Business First Newspaper this week, "Several small banks have decided to repair and rent out the homes to boost their value." As a full service asset management firm in central Ohio, this brings a whole new level of work to the area.

Actually, this discussion has been going on for some time with our clients. My first reaction was "You are kidding, right?" The answer was no.

I guess I just see a lot of liability here. Most rehabbers will do a lot of the work themselves or hire out to non-licensed people. They do a good job most of the time, but the words permit and insurance are not in the vocabulary. Licensed companies are higher cost. Higher cost is not what my clients want to hear, or so they tell me. I can't see that this approach is going to be a good idea for community banks.

Now let's think about the tenants for a minute. I have been an owner, asset manager, broker and property manager in multiple locations including Columbus Ohio. Tenant and property management is not easy. Low income management is tougher. All of the properties contemplated in the article are, you guess it, in low income areas. Some of the problems include increased repairs, slow pay or no pay on rent and, my favorite, suing the landlord. You know who gets sued? People with money. What do banks have?

The banks see this approach as giving something back to the community and trying to solve the problem, at least on their properties. It is commendable. If you ask me though, it is a very slippery slope and the deck is stacked. A bank can't use unlicensed contractors. A bank can't skip the permit. A bank can't say no to a repair. After all, this is as much about good PR as it is about loss mitigation. If you turn one screw Mr. Bank, be prepared to turn them all.

So the die has been cast. Now that it is in the newspaper, my current client base is going to call to discuss it. Every time I think I am out, they drag me back in!!!!

NAR Poll

Rich Kruse (Gryphon USA, Ltd.) — Fri, 15 Feb 2008 02:45:28 -0600

I was just thinking that the NAR has worse propaganda and mafia retention tactics than the NRA. I posted on another blog that I could get away with turning in my NRA membership, but could keep my concealed carry permit.

If I turn in my NAR card I would loose my MLS permit.

I wonder how many people would pay their MLS uses or even pay more for MLS is they could junk the local, state and national associations?

I would.

I'm Fired and couldn't be happier

Rich Kruse (Gryphon USA, Ltd.) — Sat, 09 Feb 2008 07:43:34 -0600

I have recently been dealing with a portfolio of assets involved in a court case where the parties and I just did not see eye to eye.

For example, the crackhouse that is worth about $30,000 to everyone else in Columbus Ohio is apparently worth $45,000 to the divorcing owners and their bank.

You see, these assets all have value short of the debt and they must be sold so the couple who owns them can establish the shortfall for their divorce settlement. They are also considering bankruptcy.

The parties want me to somehow come up with the money to repair the properties so the Sec. 8 tenants can stay even though it will be $4-5,000 per asset to get them straight. I have 11 properties that generate about $8,000 monthly in gross rent. (total)

They also want me to pay the mortgages, which as part of the court case I don't need to pay. Long Story.

They also want me to change the locks on the tenants doors even though the tenants will just change them back out so "the man" does not have a key. I think they banded together to come up with this idea. The tenants I mean.

So no money, unreasonable expectations, terrible tenants, a lot of repairs and I am willing to loose the assignment. Problem was, the trustee told me (quote) "You're not getting out of this one so easy". Apparently if he was stuck in this mess, his misery needed company.

The good news is that I think the trustee is going to step down which will free both of us from this mess.

Not every dollar is worth it and this time, I am glad I am getting fired.

Next!

Ohio for Hillary

Rich Kruse (Gryphon USA, Ltd.) — Sat, 09 Feb 2008 07:19:32 -0600

Friends,

As many of you know Melissa recently went to Washington to take a position in the Hillary Clinton for President campaign. Now as Ohio has taken on a key role in the primaries, she has returned to Columbus to organize Ohio for Hillary.

Many of you have told me that you are also Hillary for President supporters. If you would like to become involved in her campaign here in Ohio, or attend events please let us know so we can get you involved.

Also if you are thinking of supporting her but are unsure and would like more information on specific issues or policies, please let us know and we will get you that information. The best way to reach Melissa is by her staff email at mkruse@hillaryclinton.com and mine is rfk@gryphonusa.com.

Thanks.

Rich and Melissa Kruse

R U Crapping Me?

Rich Kruse (Gryphon USA, Ltd.) — Thu, 07 Feb 2008 16:06:44 -0600

Note to all - This is pre-foreclosure !!!!

Attorney: Why can't you get in?

Me: Tenants are refusing to allow access and I don't have keys

Attorney: You are devaluing my clients collateral.

Me: What do you want me to do, just change the locks and tell the tenants that they have no say?

Attorney: Just get the court to order it.

Me: What?

Attorney: Rich, you are ruining your reputation

Me: I can live with that

WTF?

Offer By Instructions?

Rich Kruse (Gryphon USA, Ltd.) — Fri, 01 Feb 2008 12:38:42 -0600

Did someone start a new way of doing business? Today I was presented with an offer that had no signature, no buyers name, just the 4 capital letters and the agents signature + the words "presented by instruction".

Anyone lease think that we should at least get a signature from the client if for no other reason than that confirms the agent actually got the instructions right??????

WTF? Anyone want to hear my instructions? On how to present an offer maybe ?

2008 Plan - Drifting into Asset Management

Rich Kruse (Gryphon USA, Ltd.) — Fri, 01 Feb 2008 07:19:36 -0600

In the past month one of my clients took a turn that I never expected. They want to renovate their REO and sell it later. They want me to be the GC and the manager.

On the other side of the business, our receivership practice is booming. We have more than 10 projects going right now, most including commercial real estate. Projects are all over the state.

This is all creating a situation where our small business needs to look at where we are going and start turning away projects that do not fit the core.

First things first. We are not going to turn into a construction company. I do not have the time to run a construction company, I can't make enough money doing it and most of all, I can't buy into the plan of renovating crackhouses (a little), stuffing some tenant in there and beating on them to pay the rent every month. Long story, but I'm not going to do it.

Next thing is that I am not going to be the field guy anymore. Yes, I will go out to the property and do the initial in-processing, but I have very qualified people working for me. They do this and like doing it. They work with buyers too and I don't. I like the field too, but theses guys expect me to bring in the business and keep them fed. I have been hearing more and more that they want me to do more work that makes them money, ie. go book deals.

After this, I am going to hire a selling manager for the brokerage who is going to earn an override on all of the transactions and manage the agents.

Next, I am going to rotate out of property management. Someone is going to get hired to do this and I am going to share the deal with them. No salary. Make part of the income. They'll make more that way and I wont be hung on a salary.

Lastly, I am going to work on our business, Gryphon Asset Management. This is the company that handles all of the state court appointee assignments and the business line that create opportunity for all of the other entities, Auction, Brokerage and Property Management. We already have one client that has us as an all encompassing advisor and my goal for 2008 is to get one to two more local lenders to bring us on in this capacity.

As all of this goes on, a tier two goal will be recruiting. I need good people throughout the state and don't want to keep outsourcing. This is not a true priority that I am going to force however. Over the years, I have begun to believe in passive recruiting. The best people, the ones that have staying power, show up and are not chased.

This approach may shoot me in the foot with working for other asset managers, but I am not doing that anyway. We are not chasing the Countrywide banana nor are we making a killing on BPO's from REO Trans.

So there is it. My business plan for 2008 growth.

Making these decisions really takes a lot off my shoulders. Our business provides a Single Source For All Asset Management Solutions, that doesn't mean that I micro manage all of the projects.

Advice from Evil Rich

Rich Kruse (Gryphon USA, Ltd.) — Wed, 30 Jan 2008 20:27:19 -0600

Boys and girls, it has been awhile since I have offered any words of wisdom here but I, Evil Rich, feel that I must break out of seclusion and give you a lesson in what not to do.

DO NOT - send in an offer on a bank owned property and when the seller takes a while to respond, email the seller directly (around agent) and give them your unfavorable opinion of their response timeline capped off by calling the decision maker by name in the email to the "complaint department".

You have done a disservice to your client and made yourself look like an idiot, you dumba$$