Market Downturn Offers Value
Individual real estate foreclosures and stalled developments are at levels not seen since the early 1990s. Commercial properties are beginning to feel the effect of a slowing economy with rising vacancies and escalating energy costs.

Lenders lack the resources and desire to manage real estate acquired through foreclosure.

As foreclosures increase, lender-owned real estate (REO) has begun to dominate market pricing as banks and finance companies scramble to unload properties.

Developers today cannot afford to match financiers’ ability to liquidate product in a declining market. The result: discounts not seen since the early 1990s for those with means and vision. Granite Mountain will take careful advantage of the current real estate price depression, credit crunch and the banking industry’s economic nightmare to acquire quality assets at attractive prices and manage and/or rehabilitate those properties for maximum profit.

A Focused Portfolio with Limited Risk
Everyone is trying to predict the bottom of the market—but at what risk?

Through our substantial experience and proprietary banking relationships we will focus our efforts on acquiring assets that have long-term economic value. When appropriate, we will partner with the bankers and lenders on troubled projects, allowing us to earn a targeted return while permitting the bank to participate with us on the upside.

Our risk management strategy calls for a quick return of capital and a long-term return on capital.

Plus we know how to minimize the operational, development and other disposition risks associated with each project and still make substantial profits on the sale.

Granite Mountain Capital will focus on:

• Improved and unimproved residential real estate in markets like California, Arizona, Texas, Florida and Nevada, which already lead the nation in foreclosure rates.
• Smaller projects, $5–$20 million, where larger equity funds do not invest.
• Projects with limited operational and vertical development risk.
• Bank and lender REO assets at a discount to book value and cost.

Greater Leverage with Less Capital
For an investment of $1–$5 million, investors will benefit from the financial power and diversification of a $50–$100 million real estate fund run by experienced and internationally connected professionals with diverse management backgrounds.

The fund will last approximately five to seven years, allowing you full access to your equity and profits after a maximum fund life of ten years.

The Granite Mountain Capital Management team will also contribute a minimum of $3 million of equity to the fund to ensure the personal commitment of the management team and the appropriate alignment of interests.

The fund will operate a minimal annual budget and managers will receive the bulk of their compensation only upon the success of the fund. We look forward to sending you a complete offering and Subscription Agreement for your careful attention and review. And we look forward to reaping the rewards together.