Asset Management & Recovery: February 2008

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

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.