All Forum Posts by: Jennie Berger

I'm with @Carlos Ptriawan on this one. If this is your first rehab, it might be best to take on a more cosmetic project. Albeit, I know that's very difficult to find in Chicago, with all of the old buildings. 

If you underwrote this deal very conservatively, and have $100k+ extra dollars in your budget (that includes a contingency for all of the unknowns, possible continued inflation, a surge in materials & labor pricing, longer hold times, etc.), then it could work by hiring a well qualified GC to handle EVERYTHING, like @Jonathan Klemm & Quality Builders, for example. 

Don't even consider hiring a 'so-so' GC for this. ESPECIALLY because you are not a GC, and most likely have little to no construction experience. So you cannot baby sit them to ensure they're doing everything 100% correct and getting all of the necessary permit(s) and inspections along the way. 

A lot of people do hire GCs that claim they can do it for this "great price". Bear in mind--with all due respect to the brilliant, diligent, and talented GCs here-- General Contractors in Chicago are a dime a dozen. And the majority of them will NOT tend to repairs properly. Which will end up leaving you with higher repair and capex expenses, and God knows what else, down the road.

Jennie Berger

Property People 

I was going to ask the same question, @Jonathan Klemm! Glad to learn more about this service.

We have used a UPS Store address for the last 3 years and it works out well. I don't believe they scan all the mail, but they might offer that as an add on (not sure). What I like about the UPS store is it's brick & mortar, as opposed to a PO Box.

I swing by there once a month to grab any mail. Of course, we do most things online, so there is rarely anything of much importance in that box. For privacy purposes, however, I agree. Best not to use your home address, if possible.

Jennie Berger

Property People

Hdy Joshua!

Are you sharing this event on any other platform as well? You may get a bigger response. 

I'm looking forward to attending and meeting you. South Loop is my hood so I love how convenient this is!🙌

Jennie Berger

Property People

STR operator in Chicago beware! 

Not to sound like a fear mongeror--and I'm basically echoing what everyone else here has already written. But, I've spoken with an STR attorney, and read numerous articles and threads on the city's website, as well as participated in STR-specific Facebook groups over the last year and a hald, and my conclusion is thus: I'm basically terrified of how Chicago treats STRs. This is not the investment vehicle for me in Chicago. MTRs, however, are a whole other ballgame. I believe both @Tom Casey & @Jonathan Klemm touched on it as well. Have you considered this strategy as an alternative?

We bought two properties this year so far, both in Chicago.

1. One came from a Realtor we have worked with on various deals prior. She had access to an off-market development opportunity where the developer was selling his 'shovel ready' project. 

2. The other was listed on the MLS. It had been on the market for almost a year, at various price points. We got it for about $150k under ask. Our tear-down and new construction plan for this property required us to go through a zoning variance and special use permit process for the last 4 months. This is likely why other investors / developers shied away from the opportunity.

One way we have been able to find deals is by identifying properties that are on land currently zoned for something 'bigger'. For example: #2 above was a 2-flat in disrepair sitting on a lot that was zoned for much more residential (and commercial) units. In other words, the 2-flat was not the highest and best use of that property. 

As developers who specialize in new construction, I believe we live in a specific niche in our market--we don't operate by the same 'rules' as quick flippers and 'buy & hold' investors. 

Jennie Berger

Property People

We were going to split an oversized lot in Edgewater into 2 parcels. The goal was to tear the existing house down, split the lot, and build two new SFHs, side by side. *Note: By right, we were zoned correctly and had the proper sized lot to be able to do this.

I'm not sure if my situation is relevant to your property since you have 2 existing buildings on it, but...

I spoke to a couple of attorneys who have experience with these types of endeavors (applying with the county for the split) and they recommended the resources below.  

*Note: I did not hire the attorney for this purpose, so they were just giving me guidance on how to go about this.

If you'd like to DM me, i can refer you to a name of an attorney I like who was very helpful.

These resources may be helpful to you as well. Take a look.

https://www.cookcountyassessor.com/form-document/divisions-and-consolidations-applicationdivision

Instructions and filing fees here: https://www.cookcountyassessor.com/divisions

Jennie Berger

 ☝️THIS.☝️ End of story. 🙏

I am currently working with a friend of mine who works for an attorney who does just this. They charge a percentage of whatever they end up saving you. So, if nothing changes, you pay nothing. 

Another option a colleague mentioned to me is a flat fee service. He used it for appealing taxes on his personal condo. I believe he said he paid around $150 and got to keep 100% of his savings from the appeal.

Since I haven't completed my process yet, I have nobody per se to recommend. However I hope this gives you some options!

@Tom Shallcross We'll be there. Can't wait!

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