Converting Condos Into Currency
By Jennifer Martin

The Mortgage Exchange's president says real estate investors can make millions. It was 10 a.m., and Mike Ditka was smoking a stogie when Joseph Aldeguer approached him with a proposal. "You're rich, but you're not wealthy like the Hiltons," he told Ditka. "I have a plan that can get you there."

The former Bears coach was thoughtful for a moment. Then, perhaps appreciating Aldeguer's bluntness, he fired back: "You're right. Tell me how."

A relationship was born, and the two are now developing and selling resort condos together. It's a simple concept: Ditka lends his name to the property, and Aldeguer, president of The Mortgage Exchange, a mortgage brokerage, finds qualified buyers from among his pool of clients.

The partnership has been a success. Aldeguer's clients have bought more than 200 condos at the first Ditka resort in Orlando, units they're renting for $150 a night. A second Ditka resort is under construction. Aldeguer, a former commodities broker, has made a name for himself with creative risks like these that pay big dividends.

When he launched his mortgage brokerage in 1993, he immediately saw a unique opportunity. "I realized a lot of banks don't really package mortgages for an investor," he says. "Even today, it's an aberration."

Aldeguer found banks that created the customized loan packages he was looking for, then began holding seminars on real estate investment. They drew standing-room-only crowds to his posh offices in Downers Grove, Ill. The Mortgage Exchange mushroomed, landing more than 50,000 clients and originating some $6 billion in loans to date.

Two years ago, Aldeguer took another intuitive leap when he kept hearing the same question: "What are you personally investing in?" "People had shelves full of books on how to make millions in real estate, but they were scared to take the next step," he says. "So I started giving them a peek at the condos I had bought."

The idea blossomed into a separate real estate division. When he sees a new development he likes, Aldeguer buys blocks of 200 to 300 condos at a premium rate, then resells them to clients. Aldeguer has a team of 30 real estate specialists who travel the world seeking developments with the right criteria-a relatively low cost per square foot, a condo-hotel with a high leaseback guarantee, a city with high business traffic or tourism.

"It's not about getting into as many cities as possible," he says. "It's about getting into the right city." Aldeguer also has partnered with the Mondrian, a new luxury condo development in South Beach, and is looking at new partnerships in Aspen, Mexico, Vietnam and Europe. He spends hours hosting weekend radio and TV shows in Chicago, taking calls and educating listeners about smart investments.

In essence, Aldeguer has opened up the world of real estate investment to people who might never have considered it an option, says Daniel Stramaglio, senior vice president of sales for The Mortgage Exchange.

"It's been a great opportunity for The Mortgage Exchange, and for our clients," Stramaglio says. "Anytime you help someone generate new wealth, it's very rewarding."