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Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast

Welcome back to the Straight Up Chicago Investor Podcast! Today, Tom and Mark sit down with Moises (Mo) Correa, founder of Proximal Equity Group. Mo went from a 2020 Avondale house hack to GP’ing large multifamily, raising $4.1M on a Louisville acquisition, stacking adjacent assets to operate 200 units as one, and contract-to-close on a 168-unit LIHTC conversion in Fort Wayne. We cover networking that actually converts, conservative underwriting that still wins deals, and the nuts and bolts of GP–LP structures that keep investors first.

Don’t “get creative” with your lease if it breaks the rules. We’re seeing owners use non-compliant attorney drafts and Franken-leases that conflict with Chicago/Cook County ordinances. Use the correct Chicago/Cook County/Realtor® base lease, keep addenda consistent, and have a local real estate attorney review for CRLTO/RTLO compliance, cover page disclosures, required bank info, etc.

Episode Summary

Background: U of I grad → M&A/investment roles (lower-middle-market healthcare). Left W2 after first house hack to pursue real estate full time.
First Deals: 2020 Avondale two-flat with non-conforming “in-law”; tenant issues → short-term rental → back to LT after insulating perimeter walls; cash-out refi. 2022 second Avondale two-flat with non-conforming attic (~$130k rehab).
Scale Up: Couldn’t make conservative Chicago syndications pencil for LPs, so expanded search. Built partner bench (underwriting, GC, local PM, guarantor).
Louisville Win: 160 units at ~$55k/door, fully occupied with low rents; raised $4.1M; executed plan for ~30% rent premium; added adjacent 40 units and operate both from one office (200 units scale).
Fort Wayne Off-Market: 168 units; post-LIHTC release (Feb ’25) unlocks below-market rents; secured before broad marketing with tight timelines and hard money after walk. Includes rebuilding a previously fire-damaged building (don’t demo, save and create value).
Structures That Work: LPs prioritized; GP comp tied to performance (acq fee, 2% AM fee, real upside at refi/sale). Internally, GP pie split by roles (acquisition, asset mgmt, capital, guarantor).
Underwriting Lessons: Overbudget capex/contingency, insure well, keep cash on hand, and balance conservatism with competitiveness, or you’ll never win a deal.

Questions We Answer in This Episode

Why leave a stable W2 after one deal? Timing, savings, house-hack carrying costs, fiancé’s W2, and the window before comp growth made leaving harder.
What went wrong in the basement “in-law” unit, and how was it fixed? No insulation behind framed walls; opened perimeter and spray-foamed; switched STR → LTR.
Is Airbnb always better? Not if the delta is small, $1,800 LTR vs. ~$2,000/month STR didn’t justify active ops + utilities.
How do you find out-of-state conviction? Local partner roots, a veteran GC, proven PM, rent/sale comps, and buying right (basis vs. replacement).
How did the $4.1M raise come together? Relationships built over a year+, co-GPs with track record helped fill and added conviction.
LP/GP mechanics in plain English? LPs in first position on cash flow/return hurdles; GPs earn via acq + AM fees and upside after performance.
Biggest operating hiccups? Fire (no injuries) and main waste line failures; insurance recovery helped but reinforced larger reserves.
Why post-LIHTC deals rock (if you know them): Strong bones from federal build standards, huge units (2–4BR), and rent ceilings rolling off.
Small vs. institutional buyers? Sub-$30M is less crowded; institutions with “must-deploy” mandates can outbid, be patient and precise.
When do GPs really get paid? Capital events (refi/sale) after driving NOI and meeting LP hurdles.

Timestamped Show Notes

00:00 – Intro & Market Updates: Mark shares GC Realty growth, new hires, and active investments including a Schaumburg sale-leaseback and Huntley industrial acquisition.

02:37 – Housing Provider Tip: Don’t “get creative” with leases, stay compliant with Chicago’s RLTO or Cook County RTLO and always use a local real estate attorney.

03:44 – Guest Intro: Meet Moises (Mo) Correa, founder of Proximal Equity Group, who scaled from house hacking to over 200 multifamily units.

04:24 – First Deal Story: Mo buys his first Avondale two-flat in 2020, lives in the non-conforming in-law, faces tenant issues, experiments with Airbnb, and learns the importance of insulation and screening.

12:46 – Leaving the W2: After a successful refi and savings cushion, Mo leaves his investment job to pursue real estate full-time, emphasizing timing, calculated risk, and support from his fiancée.

22:26 – Networking That Pays: Mo sends 100+ emails and takes countless coffee meetings, building relationships that later turn into partnerships and capital sources.

29:36 – Louisville Acquisition: Mo’s first large multifamily deal, 160 units bought at $55k per door, raising $4.1M and achieving ~30% rent growth through conservative underwriting and strong local partners.

43:22 – Scaling to 200 Units: Adds a 40-unit adjacent property to the Louisville portfolio, creating management efficiency and value through scale.

49:14 – Fort Wayne Off-Market Deal: Locks up a 168-unit LIHTC property before it hits market, leveraging local insight, speed, and creative deal structure.

57:11 – Key Advice: Surround yourself with the right partners, stay consistent, and don’t overanalyze your first deal, execution and learning matter more than perfection.

Takeaways for Chicago Investors & Housing Providers

Leases: Use the right base lease for your jurisdiction; keep addenda compliant; hire a local real estate attorney.
STR vs. LTR: If the revenue gap is small, the extra work/expenses rarely pencil.
Insulation matters: Non-conforming basements often lack proper envelope, spray-foam perimeter fixes comfort and complaints.
Scale with people: Underwriter + GC + PM + guarantor + co-GPs → capacity and conviction.
Buy right or don’t buy: Low basis (vs. replacement and comps) + full occupancy + below-market rents = durable upside.
Know LIHTC: Post-restriction deals can offer excellent bones and meaningful rent lifts, if you understand the rules.
Structure for trust: Prioritize LPs; align GP upside to performance; define roles clearly inside the GP.
Reserves & insurance: Overbudget, over-insure, over-prepare, fires and pipes happen.
Brokers remember pros: Give underwriting feedback even when you’re not the buyer; it earns first looks later.

Guest

Name: Moises (Mo) Correa
Company: Proximal Equity Group

Because finding good tenants and property management shouldn’t feel like online dating.

Dear Investor,

If you are an investor in either the city or suburbs of Chicago, I would love to speak with you about how we can help you on your real estate journey. At GC Realty & Development LLC, we help hundreds of Chicagoland real estate owners and brokers each year manage their assets with both full service property management and tenant placement services.

We understand that every investor’s goals are unique, and we love learning about each client’s individual needs. If there is an opportunity to help you buy back your time by managing your rental property or finding quality tenants, please check us out.

Best Investing,