Post on 15-Jun-2020
BEN BAZER President of Business Development
Ben@GorillaCapital.com 541.915.4062
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Gorilla Capital provides funding for Single Family
Residential Fix & Flip projects nationwide via our
Joint Venture Program.
Gorilla Capital’s fund managers are actively seeking
local Fix & Flip operators who are capital constrained,
or are otherwise unable to capitalize on many of the
opportunities currently available in the distressed residential Fix & Flip space.
Gorilla Capital’s process is extremely streamlined and efficient - with funding up to 90% of the
purchase, rehab, and management costs.
Equity Participation and Joint Venture Program Highlights:
Commercial and residential projects accepted in all 50 U.S. states and internationally
involving both real property and non-performing loans
Brokers welcome
Efficient transactions with all decisions made and funded internally
Capital contribution amounts from $1M—$5M
90% Loan to Cost Ratio
12% Preferred Return, with flexible equity split at liquidation
Submit inquiries at GorillaCapital.com/JointVentures or call us directly at (541) 915-4062
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WHERE WE’VE BEEN
Over the last 3 years, Gorilla Capital has expanded into California, Florida, Georgia, Illinois, Michigan,
North Carolina, Texas, and Utah with our Joint Venture Program. These relationships supplement
Gorilla Capital’s core fix and flip business model – we are house flippers, who also partner with other
house flippers.
WHERE WE’RE GOING
We generally start each Joint Venture Fix & Flip Operator with a $250k-$500k commitment
(1-3 assets). Thereafter we will purchase additional assets as each of the original assets sell, and both
parties agree the relationship is meeting their expectations. We generally expect to grow the capital in
use to a minimum $1M commitment from Gorilla Capital over a 6-12 month period. When appropriate,
we will continue to scale up to $3M over a 12-24 month period, or we can leave it at $1M indefinitely.
We can continue to scale up to $5M and at which point we expect one of two things to happen:
1. The Joint Venture Fix & Flip Operator will start experiencing the demands of an organization of
that size, i.e. daily accounting, company health care plan, human resources department,
legal department, etc. and may prefer to convert to a Gorilla Capital operation and fully utilize
Gorilla’s infrastructure. The conversion can take place with a buyout of cash and stock, and the
JV Fix & Flip Operators may become officers of Gorilla Capital, Inc., with compensation packages
that are tied to the performance of the operations under their management. Those operations
generally scale up to $10M - $15M, with our Northwest operation currently at $13M as a good
example.
2. The Joint Venture Fix & Flip Operator will develop its own infrastructure, if it doesn’t exist
already, and we’ll continue with the status quo, and scale the operation within the boundaries of
each parties comfort level and expectations.
WHO WE’RE SEEKING
We have yet to part ways with a Joint Venture Fix & Flip Operator, and
believe much of that success can be attributed to the quality of the Fix & Flip
Operators we have selected to do business with. Although the Annualized
Return on Investment (AROI) is certainly important, we hold equally
important the honesty, integrity, and ability of our JV Fix & Flip Operator.
We highly value our relationship with our JV Fix & Flip Operators, and
believe they do the same.
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INVESTMENT AND PAYOUT STRUCTURE
The boiler plate terms of our typical JV Program provide for Gorilla Capital funding 90% of the
acquisition price, with the JV Fix & Flip Operator funding the remaining 10%. The JV Fix & Flip
Operator manages the acquisition, possession, rehab, maintenance and sale of each asset. Once the
asset is sold, the distribution of sale proceeds are as follows:
1. To any Costs of Sale (i.e. Title Insurance, Escrow Fee, Property Taxes, etc.)
2. To Gorilla Capital, the Total Capital paid by Gorilla Capital, including all Reimbursable Expenses
previously reimbursed to JV Fix & Flip Operator
3. To Gorilla Capital, Interest on Total Capital paid by Gorilla Capital, at a rate of 12% per annum
4. To JV Fix & Flip Operator, the Total Capital paid by JV Fix & Flip Operator, excluding all
Reimbursable Expenses previously reimbursed by Gorilla Capital
5. To JV Fix & Flip Operator, Interest on the Total Capital paid by JV Fix & Flip Operator, at a rate
of 12% per annum
6. To JV Fix & Flip Operator, all approved Reimbursable Expenses not previously reimbursed
7. Division of any remaining Sale Proceeds as Profit, per the Capital Participation Schedule,
usually 50/50
Every asset is titled under a unique LLC, which is
owned 100% by Gorilla Capital. Every asset owned by
Gorilla Capital is covered under Gorilla Capital’s
blanket property and liability insurance policies from
Lloyds of London. By distributing sale proceeds to the
JV Fix & Flip Operator after each closing, the tax
accounting is simplified as well, with each party only
having to file 1 tax return each year, regardless of the
number of assets we run through the program
(having 90%/10% ownership in the LLC would
complicate the tax issue and require multiple tax
returns).
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Sale Price Sale Cost Total Sale
Proceeds Gross Profit Hold Time
$240,000 $14,000 $226,000 $26,000 90 Days
Acquisition Cost
$160,000
Gorilla Capital (90%) $144,000
JV (10%) $16,000
Rehab Cost
$40,000
JV (10%) $4,000
Gorilla Capital (90%) $36,000
Total Investment
$200,000
JV (10%) $20,000
Gorilla Capital (90%) $180,000
12% Interest Expense
$5,918
Gorilla Capital (90%) $5,326
JV (10%) $592
Profit Allocation (Gross profit less interest)
$20,082
Gorilla Capital (50%) $10,041
JV (50%) $10,041
Net Profit Gorilla Capital
$15,367 JV
$10,633
Return on Investment (ROI) 8.5% 53.2% Annualized ROI (AROI) 35% 216%
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BENEFITS TO PARTNERING WITH GORILLA CAPITAL
In addition to providing insurance on the assets, Gorilla Capital provides some back office
administration and support, including a “Transaction Coordinator” for the closing of each
asset. Lindsay Courtney will work with your preferred escrow officer, and provide any
operating agreements, tax IDs, wiring instructions, certificate of authorities, executed HUD
and closing docs, or any other necessary documents. Lindsay will also provide purchase
support, such as generating a Proof of Funds for REO/Short Sale purchases, or wiring
purchase funds to the clerk of court, trustee, escrow company, etc. as needed.
Gorilla Capital has created other benefits as well. The JV Fix & Flip Operator can leverage Gorilla
Capital’s national pricing with vendors like Lowes, and participate in bulk purchase opportunities of
REOs, Short Sales, and Non-Performing Loans (NPLs) wherein Gorilla Capital secures the bulk
package, and each JV Fix & Flip Operator is able to carve out the assets in their respective territories,
and leverage the benefit of the bulk discounted pricing.
ADDITIONAL BACK OFFICE ADMINISTRATION AND OFFICE SUPPORT
ACQUISITIONS Evan Wiesner, Vice President of Acquisitions, underwrites the majority of
purchases for Gorilla Capital, including all REO/Short Sale offers for Gorilla Capital’s core
operations. When underwriting portfolios of bulk purchases, Evan distributes the asset
information to each territory and requests a full analysis from our Sales and Joint Venture
teams before determining the highest price Gorilla Capital will pay for the asset pool. Evan
has been with Gorilla Capital since 2009 and earned a Bachelor’s of Science in Business Administration
from Southern Oregon University in 2003.
ACCOUNTING Kevin Teel, Controller, manages and tracks all funds available for purchases.
As a CPA, Kevin knows all of the ins and outs of Gorilla Capital’s accounting needs, and
ensures we are complying with GAAP standards. Kevin is supported by our bookkeeper,
Jessica LaFavor, and our Accounting Assistant, Jessica Parker. The entire accounting team
assists in processing invoices and approvals for our core operations as well as Joint Ventures
for expense reimbursements. Kevin has been the Controller at Gorilla Capital since 2009. Kevin
received his Bachelor of Science from University of Oregon in 2007 and his CPA license in 2011.
MARKETING Ally Leavitt, Marketing Manager, is responsible for all of Gorilla Capital’s
marketing efforts. Ally manages the website’s IDX integration for Joint Venture Fix & Flip
Operators who opt to display their Gorilla Capital properties on the website. Ally is also the
point of contact for any co-op marketing or branding when possible. Ally has been with
Gorilla Capital since 2009, working in the marketing department since 2010. Ally received
her Bachelors of Art in Business Administration from University of Oregon in 2007.
Lindsay Courtney
Evan Wiesner
Kevin Teel
Ally Leavitt
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TESTIMONIALS
“We are very happy to be working with Gorilla Capital as a Joint Venture
Partner. We have found GC to be enterprising, flexible and accommodating.
This has enabled us to focus our energies on the common goal of maximizing
return on investment. Our own previously proven methods were readily adopted
by GC, so business has proceeded smoothly to mutual benefit. Any random
issues arising have always been dealt with promptly and with genuine fairness.
A nice - and productive - touch has been the periodic meetings in person.”
- Irving, Credit Solutions International, Florida
“In my continued relationship with Gorilla Capital, each interaction has been
a pleasant and professional one. Their ability to support quick acquisitions has
been most helpful to my company. Gorilla Capital's work ethic is only
surpassed by their outstanding employee base. Without hesitation, I recommend Gorilla Capital as a
top-notch company for real estate acquisitions.”
- Barbara Aquirre, Oro Financial of California
“Gorilla Capital has been an excellent partner to work with.
They do what they say and say what they do. They do not just
provide capital; they also provide experience and leadership
which helps everyone achieve elevated goals and benchmarks.
Having worked in the real estate industry for a long time,
we can attest it is a difficult environment to find trustworthy
partners; we feel fortunate to have teamed up with
Gorilla Capital. They have helped us increase our success in
the Utah market and with their continued support we look
forward to additional success in the future.”
- Mike Brenny, Busy Bee Realty, Utah
“We have been working with Gorilla Capital since 2012 and
have had a very positive experience. We have found that
Gorilla has a significant amount of expertise in the distressed
property sector, but they have allowed us to utilize our
business tools to maximize profits as local operators.
In addition, being part of a larger team has given us the
opportunity to maximize purchase power and use economy of
scale to our advantage. Overall, I would recommend Gorilla as
a solid capital partner.”
- Marat Tsirelson, Florida
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ABOUT GORILLA CAPITAL
The two founders of Gorilla Capital started the business on a
kitchen table and operated the business out of a pick-up truck for
the first 6 months before moving into office space in June 2006
and hiring two part-time employees. Those first two employees are
both still with the company, one as Human Resources Manager
and the other as Vice President of Operations.
Founded in Eugene, Oregon in 2006 at the height of the housing
boom, Gorilla Capital began with the simple motto of “we sell them
cheap, because we buy them cheaper.” The Gorilla model quickly
caught fire and the company branched out into 20 Oregon counties
and multiple states. Today, Gorilla Capital is one of the nation’s
leading purchasers of distressed real estate. By buying,
redeveloping, and selling distressed homes, Gorilla is actively engaged in the revitalization of
neighborhoods, increasing neighborhood property values.
Gorilla has been ranked by Inc. Magazine as one of the 1,000 fastest growing
companies in America, each of the last 3 years, and was recently ranked as the
20th fastest growing real estate company in America. Oregon Business
magazine ranked the company on the Private 150 list of the largest privately
held companies in Oregon. Gorilla Capital is also ranked as one of the 100 best
places to work in Arizona and Oregon by the Phoenix Business Journal and the
Portland Business Journal.
The company prides itself on being methodical, efficient and tireless in its
pursuit of properties that will appeal to the value-conscious homebuyer.
After research, inspection, assessment and purchase of the distressed real
estate, Gorilla Capital renovates the house and then offers the fully remodeled
home to the public at an exceptional value. A third party, one-year home
warranty backs all of Gorilla Capital’s homes.
John Helmick CEO
Ben Bazer President of Business
Development
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GORILLA CULTURE
Gorilla Capital has an unwavering commitment to:
Honesty: We wear it on our sleeves.
Integrity: We have a strong commitment to our reputation for
providing a good, fair value and responsive customer service. If
something isn’t right, we’ll follow through to correct it.
High Quality People: Gorilla Capital prides itself in only employing
motivated, highly competent individuals. If you are not a top performer,
you are not employed here.
Innovation: We are constantly challenging the status quo by learning, adapting, and finding
innovative ways to deliver a better real estate product.
Transparency: We say what we mean and do what we say.
Quality Product: We believe in the value of our homes and the quality
of work we provide. In fact, many of our employees have purchased one
of our homes for themselves!
Simplicity: Transactions with Gorilla are easy. We don’t have home
loans to pay off so we can sell any of our properties tomorrow. As a
powerful cash buyer, we are able to close quickly.
Work Ethic: We are passionate about what we do. Our team is
committed to success and whatever it takes to achieve it.
Balance: Work hard. Play hard. We encourage our employees to maintain a healthy personal to work
balance. As an example, our Headquarters hosts a kegerator and workout facility.
Camaraderie: We enjoy our coworkers and value our relationships.