All Forum Posts by: Jennie Berger

Hi @Ashwin Abichandani! 

Great to see you here, it's been a minute since we last connected. :) I'm a licensed agent and hang my license with Greystone Realty. Greystone is a newer, boutique, investor driven agency founded by a local broker / real estate investor formerly with Kale. What I love about Greystone is EVERY agent is an investor first, then an agent. I got my license to be able to wholesale legally and buy/sell my own developments and save on the commission. I wasn't looking to pay a monthly desk fee--and was in search of a place that fostered community, personal growth and self development, and outstanding mentorship and guidance. Greystone was, and is, the clear winner for me on all accounts. If you're interested in connecting with the owner, please feel free to message me. Whatever you decide, I recommend interviewing a few brokerages to find the perfect fit. Good luck! :)

Jennie Berger

Property People

I'm just here to say...WOW. There is SO much great, practical, palatable, and actionable advice here from SO many wonderful people. @Nathan Witte you have great support here already, and you haven't even attended a local meetup yet! 

I echo what others have said--get yourself to a real estate meetup soon and more importantly KEEP GOING to them. Start by attending a bunch, then begin to narrow your focus and attend only the ones that benefit you most, and where you may be able to connect with others who need you as well. By choosing 1-3 meetups to attend consistently, you'll maximize your investment of time, and start to become familiar with the people, the vibe, the intentions, and ultimately the goals of that event. Additionally, people will become familiar with you too. And that's what you want, because the more people who know you, and what you're trying to achieve, the more people you have access to and can lean on (and vv) when you need help & guidance. This also creates opportunities for joint ventures and partnerships, which can be helpful especially when just starting out.

Consistency is KEY so don't stop going to these meetups. Having an accounting background can be a HUGE asset as well. Congrats and good luck on your journey!

Jennie Berger

Property People

MTRs are my favorite investment strategy! 

Considering your starting capital, one thing you might also consider is rental arbitrage. I recommend narrowing down your preferred location(s) first based on your target demographic and what's practical for you to self manage. Then sort through less expensive rental listings online--1 bed 1 bath, studios, maybe 2 bed 1 bath. Then start reaching out to the owners / landlords / property managers with your plan. MAKE SURE YOU HAVE A STRONG PLAN that is honest, makes sense, and benefits EVERYONE involved. 

Keep in mind with MTRs you need money to get the place up and running, ie, to furnish. With rental arbitrage you'll also need enough funds for a first and last month's rent deposit. This is why I recommend starting with a smaller rental at a lower price point. If you choose a location near a major hospital that hires travel medical professionals, your smaller unit can be the perfect fit for their housing needs. This is a great way to get involved in MTRs with less risk and a lower barrier of entry. Good luck to you!

Jennie Berger

Property People

 MTRs can work in any city! As others have mentioned, it depends on your target demographic. I would add that where you buy your first MTR will depend largely on the following factors:

1. Your Budget: Some markets are in very HIGH demand for travel medical professionals (and business travelers but let's assume you're targeting med prof since you are one) but have little inventory and a higher entry point for investors. EG: California is a great example of a state with multiple cities that has high travel medical professional demand but not enough affordable inventory for those travelers. Yet this state can be prohibitive to buy in because of the price point. 

2. Your Knowledge of & Resources in the Area: Some people may disagree with me, but I recommend for those starting out to choose their first property either: 1. Where they live / close to where they live or 2. In an area that they either a. know really well (because maybe you lived there prior) or b. have a lot of local resources in. EG: My first MTR was my own apartment that I live in in Downtown Chicago. I have a 2 bed 2 bath, and I rent out 1 private bedroom & bathroom fully furnished. This was an easy way to test run the strategy with minimal risk and downside. After I gained the confidence by successfully renting my space out (almost 100% of the time over the last year), I decided to buy an MTR out of state. The location I chose was Knoxville TN, primarily because 1. I knew the demand there was larger than the quality supply 2. I lived there for 10 years, loved it, knew it would appreciate over time well, and know it well, and 3. I have a lot of local resources there. Friends, colleagues, referrals, etc. I'm confident if/when something goes wrong I have strong people to rely on.

My goal when investing in anything is always to minimize risk and have the most amount of control over the investment. What I did may not be your best trajectory, but hopefully it provides some food for thought on how to start with what I consider the 'lowest hanging fruit'. 

Good luck!

Jennie Berger

Property People

Hi Kevin: 

As an investor, GC, and developer, I believe design choices should ultimately boil down to 1 key thing: COMPS.

1. What are the comps for new construction SFH of similar size in your area selling for?

2. What are their bedroom / basement situations?

3. Follow those comps.

Generally speaking--as long as comps justify it--a finished basement is NEVER a bad idea. In fact, it's one of the most desired features by Chicago buyers / homeowners. That said, if your comps don't require it, and your ARVs aren't there to justify the additional cost of finishing a basement, leave it unfinished.

We have built SFHs on the North side of the city, and while our demographic and price point is different than yours, for a 3000 SF house we would generally do the following:

-4 beds (3 on the 2nd floor + 1 in the basement)

-3.5 baths (1 ensuite for the primary, 1 shared for the other 2 bedrooms on 2nd floor, 1 full bath in the basement, powder room on main)

-Completely finished basement with rec space, storage, laundry, wet bar

*I don't believe you'll be able to fit 4 decent sized bedrooms all on the 2nd floor with 3000 SF. But, then again, define 'decent,' and keep in mind your demographic.

Again, check your comps. Hope this is helpful!

Jennie Berger, Property People

@Anthony Mei I agree with . As a developer and general contractor focused on new construction of SFHs and small multi unit buildings on the North side of Chicago, I can tell you without a shadow of a doubt that they spent much more than $87/SF to build this. Remodeling homes at a similar ARV ($1.4MM) wouldn't even be as little as $87/SF, if done properly. It costs us between $155-$185/SF to build new construction nowadays, depending on finishes. Those are hard costs only and do not include the purchase of land or soft costs. If you were going to 'commission' us (or any GC / design build team) to build something for you, mark that up about 15-20%. I hope this helps!

 You'd also want to consider tenant communication and troubleshooting. I believe you can manage an MTR from anywhere, just don't forget to factor in time differences. If your tenant / guest has an issue and tries to call or text you, you'll want to respond in a timely manner. Plenty of MTR pros travel the world and self manage their properties... 

@Sarita Scherpereel I'm trying to RSVP on your website via the pop up box but it says '400 Bad Request.' Did you change the link by chance? I am planning to build an ADU myself and would LOVE to attend this event. Thanks! Jennie