All Forum Posts by: Jennie Berger

We haven't developed anything over 4 units at this point @Jonathan Klemm. Thanks for thinking of us to help here however!

Quote from @Faiz Kanash:

Hey guys,

Anyone happen to have any good general contractors or developers they're able to recommend for work on a duplex in cook county or dupage county? Trying to get an idea on who I could work with, as well as ask about rough ball park prices before committing into my first investment property.  Thank you!

We develop and build new construction SFHs and small condo buildings on the North side of Chicago.  Our approx build costs are between $145-$190/SF, depending on exterior structure materials & finishes. 

It's almost impossible to give you an accurate estimate based on limited knowledge.  However, this is a ballpark price based on OUR pricing that I feel comfortable sharing with you. If we were hired as GCs/Consultants for this, add about 15-20% on top of that. 

*Add in demolition fees (if applicable) and land costs to the above. Note that while lumber prices have come down, other materials (cabinetry, plumbing fixtures, etc.) are increasing still. So, you'll also want to factor in an extra contingency buffer into your budget for 'unknowns' and 'material price escalations.'

I hope this is helpful!

Quote from @Tony Angelos:

How would you evaluate a tear down that is zoned B-3-2 in Chicago? I'm not sure I totally understand this zoning designation.

What would you do with it after you tear it down? Always start there.

We currently have a property zoned B3-2 in a highly residential neighborhood. It makes sense for us to apply for a 'special use permit' to allow residential on ground level (instead of forcing commercial/retail on ground level, which is what its currently zoned for, by right).

We could also have attempted to rezone to B2-2 but didn't feel it was necessary considering the property next door, and everything else on the block (Residential all the way through).

If you email me more details I'm happy to help. Can jump on phone too if you like. Prashanth and Samuel (both architects) are excellent resources as well and can definitely get more into zoning minutia. I am happy to help you analyze this from an investors perspective too, providing investor/development/broker insight as well as number $ analysis. 🙌

Quote from @Crystal Smith:

Quote from @Mario Morales:

I am using a reputable company to do some work for me under 5K. They will bill me when the work is done. I will look at the work, and if satisfied I will send them a check. Do I need them to sign lien waver at some point?

If they are a reputable company they will have no problem signing a lien waiver.  Get one.

THIS. PERIOD. ☝️☝️☝️ Especially if you're planning to sell the house or property you're renovating right after. The title companies (in our experience) always require them before closing! We get notarized lienwaivers along the way, for each payment, from most of our contractors.
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'YOU WANT TO BE PAID? GIVE ME A LIENWAIVER.'
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This includes 'contractor' LWs and, if the GC or Sub is buying materials, a 'Materials' LWs or a paid receipt from their vendor.
 
(*The only ones we may not get LWs from are one-off smaller jobs like post construction cleaning, material movers, snow plowers, etc.) 

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Hope this helps!

Thanks for the kind words @Jonathan Klemm! I wish I had more good advice, but honestly, I've never renovated a house to rent. Therefore I'm not sure my insight would be of much value. It seems to me that the consensus is: shower glass door. Mainly, to protect your investment (ie the flooring in the bathroom and potential issues that could arise down the road from water damage). While I personally don't mind a nice shower curtain, and avoid cleaning the glass after my showers as much as possible (what a PITA, lol), I'd think the glass door is the better option.

Hi Ralph: 

We are developers and licensed general contractors with the city of Chicago. To emphasize what @Jay Hinrichs said--and yes I'm exaggerating but trying to drive a point home--you basically need a permit to breathe in this city. :) Do contractors (and homeowners) do construction work on their home without them? All the time. Do we? NEVER. 

If you're a contractor--or homeowner--considering selling in the near future (or strictly renovating with the intent to sell NOW)--you'd be shooting yourself in the foot to not get SOME type of permit. Depending on the amount and type of work, an 'easy permit' may suffice. (ie: A so-called 'over the counter' permit, which is easier to obtain, cheaper, and still covers a fair amount of renovations that don't include anything structural or heavy MEP work.) So, if this contractor you're referring to just replaced kitchen cabinets, painted, and sanded and refinished floors, eg, an easy permit would totally have covered all of that work. This all begs the question: if the contractor is so experienced, why WOULDN'T he have gotten a permit in the first place?

Be that as it may, are you asking about whether a home inspection will pass? Or inspection(s) by the city? In our experience, a home inspector has never asked for city permits. Only the buyer's attorney asks for a full report, as well as proof of the permit showing all inspector signatures, after we are under contract. 

I'd be remiss if I didn't add the following: We work on the North and NW side of the city. Our price point is mid-level (700-900k ARV). Though it 'shouldn't', it might actually make a difference. I've heard of quite a few contractors working on properties on the South side, and maybe other less expensive areas of Chicago, without permits. And those renovated homes get sold with no problem... Where was this property located?

I wish this was black and white. Nothing in Chicago is. Unfortunately. Not sure if this was helpful. Hopefully some others will chime in soon with more insight...

Hey @Kean Chew:

We love Lakeview!

1. Are you renovating to rent or sell?

2. Sharing some pictures here would probably help so we can see what really needs it the most.

Look forward to seeing what you got! :)

Jennie 

@Nick C. I would agree in part with this. Though I'd add that many newbie and inexperienced wholesalers are not lying but rather unknowing/clueless. Their repair estimates, timelines, and ARVs are calculated based on their best guess. Or the best info they received from so called 'experts' in those fields.

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I am not a wholesaler, per se. And though you don't technically need to have construction experience to wholesale, I believe wholeheartedly that those of us who GC our own projects, sell to retail buyers on the back end (projects we completed), and have construction backgrounds, usually prove to be the BEST wholesalers since our numbers are typically as honest and spot on as you're gonna find anywhere.

@Mark Kappelman Just found this thread and super curious about Airbnb bc I know it's a lot of red tape in Chicago. You mentioned an 8 flat would permit 2 STRs. Is that the minimum for 2? Meaning, if I have a 6 flat, am I only allowed 1 STR? I'm guessing by what you did to your 6 flat, yes... But wanted to be sure. Also, this was written a couple years ago so I thought some of the rules might have evolved...thanks for any feedback you can offer!

We just closed on an off-market condo downtown 2 days ago. We knew the condo market was not hot, and it's a bit saturated right now. Our belief is such: THIS IS CHICAGO, BABY. :) Plus we're near the water. 

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Our plan is to fix and flip (Should be on market by early Spring at latest). Plan B is to move in ourselves if we can't sell. Plan C is to move in for a year then rent it out.  Luckily, this building has no rental cap. (But owners do have to live there for 1 year before renting it out.)

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We also believe: Chicago will always recover! Especially downtown, anywhere in the vicinity of water (River or Lake). If people are gun shy now, NOW is the perfect time to buy IF you find the right deal.

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So, depending on the area, and HOAs, and of course your end goal/exit strategy, I say: GO FOR IT.