May 11, 2017
Paul Grimme is originally from Nebraska. After 28 years in the
hi-tech industry he retired in 2016. Paul explains what lead him to
investing and buying apartments. Paul had not gone the typical
route of investing in single family homes but he did passively
invested in five multifamily partnership opportunities with over
1000 doors. On his first large real estate transaction, Paul bought
a fractured condo. Paul and his wife, Julie, bought 76 out of 108
units in the Village Condominiums in Waco, Texas. He bought 70% of
the total. One seller was selling a block of units that they owned.
The remaining 32 units were owned by individuals and were not
available for sale. A fractured condo can be an unusual investment.
Unlike apartments, where you buy ALL the units at one time; a
fractured condo acquisition is when you are buying a specific
number of units in a condominium complex. Investing in a fractured
condo comes with some unique challenges like “who controls the
management of the homeowners association and where and how those
dues going to be spent?” Paul reflects on the history of the
condominiums and how it became a fractured condo. The investment
strategy, over a period of time, is to purchase all the remaining
condo units, crush the condo association and then operate the
property like an apartment property.
Here is Paul’s contact info:
paul@cherokeecreekinvestments.com
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