Warrior Win

Brian Kochendorfer

Brian Kochendorfer is the Managing Member of Arc Equity Group, a Chicago-based real estate investment firm specializing in acquiring and operating apartment properties in the Midwest. Brian is a general and limited partner in over 800 apartment units with a total value of approximately $60,000,000. He has 13 years of experience as a commercial real estate broker and has been involved in over $600M in real estate transactions throughout his career, primarily in multifamily. At Arc, Brian leverages his investment and brokerage experience to oversee the firm’s acquisition and operational strategy.

Property Details

Address: 1829 N Broadway, Melrose Park, IL
Number of Units: 45
Value Add Deal? Yes
Purchase Price: $3,150,000
Estimated monthly increase projected? $150-250/unit
Anticipated value after value add: $4,200,000
Estimated Cash on Cash Return: 11%
Estimated Internal Rate of Return: 15%

Warrior team
shout outs:

Which Warriors helped you with this deal, and how?

Rod Khleif – a few weeks after we closed I heard a flood company come on his podcast and talk about their process to remove properties from a flood zone. I called them right away and 2 months later just got a letter from FEMA confirming removal from the flood zone. This will save us 10k per year…that goes right on top of our NOI!

Any comments about your experience so far in the Warrior Program?

The networking has been great, and since I joined I’ve made offers on deals with others in the group as well as started a local meetup through people I met in this program

How did you find this property?

I am a broker and a client of mine told me he wanted to sell but did not want to list. I brought the deal to another client and we partnered up on it.

How did you structure the financing of this property?

Bridge loan with Arbor

How did you raise the equity?

Friends and family

What was the equity raise?

$1 Mil

What are some hurdles you had to overcome to get this deal done?

The bridge loan process was a nightmare compared to Fannie Mae. This property was in a flood zone and the lender made us put on excess flood insurance on top of the main flood policy, plus we have to use DACA accounts for the operating accounts during the bridge term.

What are some of the lessons you learned with this deal?

Avoid bridge loans if possible 🙂

Was this a joint venture or syndication?


* These examples depicting income or earnings are NOT to be interpreted as common, typical, expected, or normal for an average student. Although we have numerous documented successful deals from our coaching students, we cannot track all of our students’ results, and therefore cannot provide a typical result. You should assume that the average person makes little to no money or could lose money as there is work and risk associated with investing in real estate. The students depicted have participated in Rod’s training and coaching. The participants shown are not paid for their stories.