GD
properties LLC is an investment opportunity property management
company. We offer clean, safe rental units for the citizens of New
Castle, Pennsylvania and the surrounding community. GD properties will
balance safety, cleanliness and a positive atmosphere for all of its
residents. Not only will GD properties make a major impact on the city of New
Castle by cleaning up its vacant homes, but it will also become part of the community.
By
purchasing homes at tax sales, bank foreclosures and distressed
properties for pennies on the dollar GD properties will not only be able
to offer affordable rental units, we also will be able to create high rates of return secured with a first position mortgage on a property that is worth 2 to 3 times the original investment.
It is 0ur opinion that by purchasing properties, all
within a 5 mile radius of the center of Newcastle, we will be able to
give our properties the utmost attention while making a huge impact on the city. Maintaining a strong
presence in order to build a reputation with the city and its officials is a key factor in our business model. So many investors spread themselves out so thin that they are unable to give each property the attention it needs. By only purchasing properties within the 5 mile radius we can be the best and most efficient at what we do.
GD properties has remains successful because of strong commitment to the community's needs, market trends and solutions scenarios. We have built a solid reputation for straight talk, honest answers and the ability to offer professionalism and quality.
With vision and dedication, we have built a superior niche and maintain a high level of service to solve a wide variety of real estate and finance challenges for our clients.
Debbie and I formed G D Properties real estate investment company with a single vision: to specialize in revitalizing a community while being able to offer our financial partners the ability to earn high yields on their money while being secured by real estate worth at least twice their original investment.
After
spending several years as a member and then director of operations for a
real estate investment Association in Southern Mass called SS
REIA, I came to the realization that properties can not withstand great
appreciation for the long term. Many of my colleagues who had relied on
the continued apriciation of the real estate market found out very
quickly that what goes up must come down. I began to research where
investors could put their money so that they would not be at risk of
losing their money should another fall in the market occur.
After
researching the different markets around the nation. We met a gentleman
who had been investing in New Castle, Pennsylvania for quite some time.
With his knowledge, we were able to quickly establish ourselves in the
in the community. Our business model is to buy homes at tax sales, bank
foreclosures and distressed properties with an all in cost, including
purchase and rehab of not more than $22,500. The after repair value
(ARV) of these homes at this low point of the market is somewhere
between 50 and $65,000 per home. Due to the low cost of getting into
these houses we are able to fix, rent and then put an investment
opportunity (Private Lending Opportunity) out at $22,500 for a single
family home and $26,500 for a duplex, which is under half of the value
of the property that the investor has invested in. We in turn put a
renter into the property for the next five years as we wait for the
market cycle to come back around. Each of these investments are secured
in first position, as there are no banks involved.
It is the intention of GD properties to
not only prosper as a company, but to protect its lenders/investors to
the best of our ability. One of the most common mistakes made by
investors is they feel that they should have title of an investment
property. This puts all of the liability on the investor and leaves them
wide open and unprotected in the event of a lawsuit. Our properties are
each purchase in their own Realty trust no property can effect another
property, thus protecting each individual lender from incidents that may
occur on other properties. In order to protect our investors on their
own, individual property. We do not list them as investors, but rather
as lenders to the Realty trust that way, as your mortgage company on
your own private home has no liability you as an investor will have no
liability on the investment property. Should a property have a legal
situation the trust through its trustee only would be there to answer
all legal questions. If a judgment was to be bestowed against the trust
our lenders would need to be made whole, including interest, before any
of the assets could be distributed by the courts to a plaintiff.
GD
properties makes its money by its performance in running the properties
throughout the five-year investment. The lender is paid out by the
equity that is in the home when it is sold at the end of the five-year
term. This equity is built into the home at the beginning of the
investment rather than relying on any appreciation. Because the lender
is paid simple interest the performance of the property is irrelevant in
the calculation of the lenders payment. For example, if a lender was to
lend $22,500 with a simple annual interest of 12% they would receive
$2700 per year totaling $13,500 of interest along with their initial
$22,500 in 5 years at the sale of the house. Whereas GD properties makes
its money during the five-year term of the investment. The property
could be sold for $40,000, which is approximately $.70 on the dollar
making the investor/lender whole.
Our exit strategy is to sell
the home prior to the end of the fifth year making our investor/lender
whole. In the event that the market has not come back around to the
point that homes can be sold at this time our backup exit strategy would
be to refinance the property again making the investor whole at that
time.
Definition of the Market
The
city of New Castle, Pa. is on the western side of the state just north
of Pittsburgh Pa. Although a low income area and part of the great Steel
Mill shutdown of the 1970’s & 80’s New Castle has maintained at or
below national unemployment averages and remains a high rental with low
vacancy community. The March issue of Forbes magazine has, the greater
Pittsburgh area ranked number two in the recession recovery due to the
volume of grant money that has been appropriated in those communities
and the economic redevelopment that was already in progress as the
recession began. Both TNT and Phantom Fireworks corporations have made
New Castle their home and where as they are the two major fireworks
companies in the United States New Castle has become known as the
fireworks Capitol Of America. The emerging market consists of the 30
something age group who are working class tradesmen who are in need of
an affordable clean place they can call home. With a population of
28,000 in the city today the same as in the late 1980’s along with only 8
building permits for new homes in the past 10 years New Castles 12.3%
vacancy rate does not appear to be rising as so many areas in the nation
are.
G
D Properties LLC competitive advantage is as follows: We offer a clean
safe home that passes code enforcement 121 inspection regulations unlike
most other homes in the area. Each home will be gone through ensuring
complete safety for all occupants prior to move in. We will use section 8
guide lines for rental costs $475 for a 2 Bedroom home $500 for a 3
bedroom home and $525 for a 4 bedroom house. Our marketing and
advertising costs will be low due to simple marketing strategies and
high visibility. An area will be designated on each property to place a
rental home available sign with our toll free number. Based on testing
we have already preformed we will end up with a surplus of qualified
renters available to move into our properties. However, the direct
communication between tenants and our maintenance contractors will help
create a unique and pleasant product for the customer and ultimately
create longer tenancies. The main competition G D Properties LLC will
encounter will be older & run down, yet high cost apartment units
and single family rentals with no management.
Sales Literature
G
D Properties will have flyers posted at each available home as well as
selected public offices around New Castle. These will give the customer a
general outline of what rental units we have available and will explain
the benefits of each unit. We are members of the Lawrence County
landlords Association and are also registered with the HUD office as an
approved property management company. We will also advertise in the
local & regional newspapers including an on line campaign. Our
marketing strategies are simple but aim to reach a large amount of
people especially those in immediate need of shelter in the
neighborhoods that we are more densely populated in. The layout of our
publications and advertisements will have a simple and direct look
without being overly formatted. We will also have a Quarterly newsletter
that we will send out to our investors. This newsletter will inform the
investor as to the growth and outreach of G D Properties LLC. It will
also contain some human interest stories about our homes and the city of
New Castle. It will also contain information about upcoming projects
and new investment opportunities.
Fulfillment
G
D Properties LLC key fulfillment will be provided by management's
dedication to a safer & cleaner product. This is achieved through
the solid network of contractors, and communication systems that are set
up all dedicated to helping G D Properties LLC. We are hard workers who
have a solid backing from our network of contractors. We will maintain a
pool of professionals in which to pull from for our needed services.
This will help us develop a professional relationship with our
contractors as well maintaining our high expectations and reputation
with the community.
Technology
G
D Properties LLC property management will have the most up-to-date
communication technology provided both to the customers and to the
subcontractors. A toll free recorded maintenance line has been set up
for all renters to call in order to report any issue. This recording
will be sent directly to our contractor so that a maintenance crew can
be dispatched first thing in the morning. This system will also give
supporting documentation should there be a need in the event a legal
issue should arise for any reason.
Future Services
In
the future, G D Properties LLC will look to give each department within
the company the opportunity to become a more independent entity. This
will make expansion efforts more efficient, and will provide specialists
in their departments the chance to become more focused in their field.
We are in the process of conducting surveys in order to determine the
best possible markets for G D Properties LLC expansion.
The
initial management team depends on the founders themselves, with
back-up assistance from the property management department and or the
contractors that work for G D Properties LLC.
Organizational Structure
G
D Properties LLC depends on an organized division of responsibilities
in order to run an efficient, diversified enterprise. Main decisions and
responsibilities at the onset will fall on the shoulders of the
Director of Operations Debbie Morgan. She will focus on maintaining a
high quality and a cohesive business entity. Top division managers will
be given specific responsibilities such as marketing, finance, strategic
management, or research and development.
Management Team
G
D Properties LLC is completely departmentalized. The main departments
are finance, marketing, management, and research and development. Debbie assumes the responsibilities of the Managing Member. The company
will make all decisions in accordance with the company mission.
Employees are delegated tasks based upon their specialty. Every month,
the Managing Member will assess the results of these tasks, and the
personality of the employee involved, to determine if a personnel or
procedure change is needed.
Management Team Gaps
The
present team requires business development and administrative support. G
D Properties LLC will turn to Dynamic Public Relations to help create
business development programs, such as speaking opportunities through
local REIA’s, as well as forums and seminars that are important to our
ongoing development and growth. Regarding administration, we need a
strong finance manager to guard cash flow. Debbie Morgan will take on
the day to day responsibilities that are required to maintain an
efficiently run office enabling each entity to run simultaneously yet
remaining completely separate. Nicole Anderson who has been a part of our team since the beginning also plays a very important part on our team. Each of us knows every aspect of the operation so that if some thing should ever happen to one of us the others could seamlessly step into their roll. We are a team in every sense of the word.
Marketing and Sales Strategy
Competitive Edge
We
start with a critical competitive edge: there are very few property
management companies that offer the same level of systematized
communication as G D Properties LLC. This communication system called PB
next ties into our highly sophisticated property management software
called 360 Real Estate Investor which allows G D Properties LLC to not
only track, record and send correspondences between management, renters
and contractors but also produces in depth reports for controlling cost,
tax preparation and investor reports all at the touch of a button. We
also have a very high regard for customer service; something that is
unparalleled in this industry. G D Properties LLC believes it is
essential that the customer feels he/she is being treated with the
utmost care and urgency. All staff and personnel go through a training
program that teaches many of the skills needed for successful client
relations and customer service.
Marketing Strategy
Marketing
in a highly competitive housing industry depends on the recognition of
excellence, as well as a point of difference to display our units in an
individualized light. G D Properties LLC will build a reputation upon
these components. We will develop and provide a clean, safe living
environment unlike others in the area. It starts with the commitment to
customer satisfaction and fulfilling their demands. Our commitment to
quality and comfort includes safety and 24-hour customer service. The
aspect of our living developments that differentiate G D Properties LLC
from all other property management companies is our focus on maintaining
short response times on all maintenance calls leaving our
tenant/clients recommending us to all their family and friends.
Distribution Strategy
We
will focus on providing high-quality living in convenient locations
with a wide customer base. It is also important that we remain at the
upper echelon in the quality range when compared to competitors. We can
only do this by organizing and implementing a sound plan that will
assume responsibility for the functionality and appearance of G D
Properties LLC. We will have an updated Web site for anyone interested
in the Properties.
Marketing Programs
Our
most important marketing program is customer word of mouth. The only
way to truly know the quality of our units is through experience; hence
we must maintain the highest level of customer satisfaction. Rewards
will be given to clients or customers that refer new clientele to the
company. We confidently believe that the high level of quality that G D
Properties LLC will provide can attract a strong demand for our units.
Another incentive that we will use is the timely payment discount
program. Anyone that pays their rent by 5:00 pm on the 1st of
the month will receive a $50 discount. This will encourage people to
try to pay on time and also allows us to collect late fees without
calling them late fees. This structure of discount works with section 8
even though section 8 does not allow late fees.
Positioning Statement
For
people who desire clean safe living with the peace of mind of knowing
that any situation will be resolved with the utmost professionalism, G D
Properties LLC property management is without doubt the company to call
upon. G D Properties LLC will be able to fulfill their needs and
desires at an affordable price. Unlike most other property management
companies, G D Properties LLC is committed to guaranteeing customers
full satisfaction, with an automated answering service, and a website
that handles all complaints in a timely manner.
Pricing Strategy
G
D Properties LLC pricing will be set at the rate approved by section 8.
We are competing with rental properties that have similar pricing
structures. Our prices will be competitive with these other rentals
while maintaining the high level of quality and expert management.
Prices vary by unit from $475 to $575 a month. G D Properties LLC,
however, must try to follow market pricing trends in order to maintain a
competitive advantage.
Promotion Strategy
G
D Properties LLC most successful promotion will come in the form of
word of mouth, and signage on the properties themselves. Since we will
own real estate, we will be highly visible to the public. Since our
homes will be renovated prior to being made available, word will spread
through the community about our unique appeal. Along with word of mouth,
our most consistent form of promotion will come from ads in local free
publications. We will also be personally promoting our product within
the community through our contractors who are lifelong residents of the
neighborhood.
Sales Strategy Sales
Our
business is based upon providing customers with a safe clean home
filling all of their needs. We must be in touch with the needs and
desires of our clientele in order to best attract a consistent flow of
incoming residents.
Sales Forecast
The
following table and chart gives the forecasted earnings for G D
Properties LLC Property management home rental units. We perceive a
gradual increase in the total number of units over the next four years.
We allowed for but do not expect a 20% vacancy well above the actual
12.3 city vacancy. Also, we will only rent on yearly leases to ensure
that all rented units remain filled year round.
|
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
|
Rental Income $500
|
$6,000
|
$6,000
|
$6,000
|
$6,000
|
$6,000
|
|
Management Fee 20%
|
$980
|
$980
|
$980
|
$980
|
$980
|
|
Vacancy 20%
|
$1,200
|
$1,200
|
$1,200
|
$1,200
|
$1,200
|
|
Repairs 10%
|
$600
|
$600
|
$600
|
$600
|
$600
|
|
Taxes
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
$1,000
|
|
Insurance
|
$900
|
$900
|
$900
|
$900
|
$900
|
|
Total Expenses
|
$4,680
|
$4, 680
|
$4, 680
|
$4, 680
|
$4, 680
|
|
NOI
|
$1,320
|
$1,320
|
$1,320
|
$1,320
|
$1,320
|
Opportunity Knocks!
As
the nation faces what many describe as the worst recession in recent
history and the typical response is to retreat or climb under a rock to
wait out what feels like the storm of the century. A few out of the box
thinkers will always emerge on top for simply coming to the realization
that everything that goes up must come down or in this case (as history
has shown us) everything that goes down will eventually come back up.
It is with
this type of thinking that great wealth is built, and with the times as
they are the door is open for you and I to create such opportunities
for ourselves.
I
would like to tell you that this type of wealth doesn't take any work
at all, it is just handed to you, but the truth is it is a lot of work
and unless you hit the lottery it's not going to be just handed to you.
The good news is that it's not hard work and anyone can do it. You just need to take action.
No matter how many deals you have or have not done the simple fact is that it is just a matter of getting off the bench.
Debbie
and I have done just that. With our venture in the City of New Castle,
Pa. we have not only found a diamond in the rough, but an affordable one
at that.
If
you would like more information about how you can get involved please
don't hesitate to contact us. After all what do you have to lose except
great wealth.
This
is not an offer to sell securities. Potential investors must be
qualified prior to an offer being extended at which point potential
investors must receive and read our risk disclosure statement.
