Guys… my guest, Jim Huntzicker, just made a million dollar profit flipping an apartment building.
Jim was on the podcast about 3 or 4 years ago. He was in residential investing for several years, but then started studying how to invest in commercial and multifamily properties.
His office is in Schaumberg, IL outside Chicago. He went into commercial because residential investments in that vicinity cost more than he wanted to spend on them.
He’s currently buying a 140-unit apartment complex that needs $4M in rehab; he’s also in rehab stage on a 105-unit complex. The purchase and rehab numbers are high, and the profits are huge.
He’s using private money and buying as much as he can. After rehab, he refinances 80% and pays out to himself and co-investors. After that, all the investors have rental income as ongoing cash flow.
Jim did a lot of studying and research about commercial and multifamily investing before getting into it. Once he had a system in place, he could approach private lenders.
The $1M deal referred to in the title is one that he found during a lunch conversation at a MasterMind. It took longer to sell than he’d hoped but still made a $1M profit without a complete rehab.
That apartment complex was not maintained or managed well and had an occupancy rate of less than 50%. It was a bit of a slumlord situation, but $1M is $1M.
He mainly buys from individual operators who’ve owned properties for a long time, but can’t afford to maintain them. His marketing is soft… consisting primarily of introducing himself to other multifamily owners in order to share ideas.
Jim will invest in any area that can support the property. He does a rental analysis on every possible deal. He says it may take looking at 50 deals to find one that he actually invests in.
In spite of the fact above, Jim finds that commercial investing involves less of his time than residential. Plus, he can buy materials for rehab at wholesale rates.
Listen and learn:
- Jim is open to partnering with new investors who might have a deal but no idea how to close it.
- Profits are higher in commercial investing, but the risks are higher too.
- Jim generally holds the commercial/multifamily properties; the $1M profit deal was an exception.
- Jim is not favorable toward syndicates because they slow things down and overcomplicate deals.
Mentioned in this episode:
- Joe’s podcasts on iTunes: Real Estate Investing Mastery Podcast or REIM Podcast
- Email Jim with a deal: firstname.lastname@example.org
- Call Jim with a deal: 847.772.5302
- Please only contact Jim with valid leads of 90 or more units. Let him know you heard about him on this podcast.
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