All Forum Posts by: Jennie Berger

Hi @Margaret Steck -

Good question! When it comes to what's 'fair' for private loan interest rates, here's my take, based on what I've seen. (And by the way, I'm always looking to connect with other lenders as I build out my capital partners network.)

I've been doing private lending for the past year or so. The big thing for me is that I've been on both sides of the table – as a developer needing to borrow, and now as the one lending. So, I've seen firsthand that rates and points aren't just pulled out of a hat; they honestly change a lot based on the relationship you've got with the people you're working with.

That's one of the best parts about private lending, especially compared to trying to get a loan from a bank or some of the bigger hard money outfits – you actually have some flexibility. But, I've talked with a few lenders lately who have a very 'one-size-fits-all' deal: this much interest, this many points, no wiggle room. I get that it can make things simpler and quicker for them, but personally, I think that way of doing things misses the human side of it all. It can feel pretty transactional, you know?

For me, the best lending relationships, the ones that really work, are when you can shape the terms to fit what the deal actually needs and when there's real trust built up. That’s the kind of relationship-focused lending I value and try to do. I really believe that in the end, it makes for much stronger and more successful partnerships.

Yikes, @Carl Bongiovanni, so sorry you're going through this! We've done multiple gut rehabs (and new construction) on the NW side of the city since 2020 (Norwood Park East, North Mayfair / Albany Park, Kilbourn Park) and worked with 2 self-certified architects we love. Feel free to DM me for their info if @Riley Poppell's contact / dad doesn't work out for some reason. Wishing you the best with this!

Welcome to BP @Jalen Walsh! Some great advice above already. I would add the following:

First, get really proficient at estimating repairs—both honestly and accurately. One of the most significant mistakes I see wholesalers make is underestimating the true cost of repairs. Being in Chicago as well, we know there are a LOT of older homes (some very old, haha!) that often come with a host of potential problems, many of which aren't visible at first glance but definitely need to be budgeted for. 

As a developer, one of my main pet peeves when working with wholesalers in the past was being misled on numbers—albeit perhaps unintentionally—simply because they didn't have a solid grasp on how much it genuinely costs to rehab a property.

On another note, regarding getting your real estate license: I'd suggest perhaps not jumping into that immediately. It's a significant investment of both time and money. Being that you're just starting out, it might really behoove you to consider partnering with an established wholesaling team or an experienced individual first. This can be an incredible way to learn the ins and outs of the business from the ground up, see how deals are structured, and understand the nuances of the local market. Then, once you've gained that hands-on experience and feel ready to venture out on your own, that would be a great time to revisit the idea of getting your license.

And finally, I'd highly recommend diving into networking. Meeting and building relationships with people across our industry – General Contractors, lenders, developers, Realtors, other wholesalers, etc. – will help you cultivate a reliable network of resources. These connections will be invaluable when you find what looks like a 'good' opportunity (or one that might be a bit more complex than it first appears!).

Best of luck to you!

-Jennie 

There are SO many! Give them all a try and see which ones fit best and align most with you and your goals. A few of my faves IN the city:

1. Chicago Multi Family Meetup (even if you're not into multi family per se)

2. Windy City REI

3. Chicago Cash Flow Breakfast Club: Never been but a close colleague and friend of mine runs it

4. Chicago Real Estate Investors Meetup

Wishing you the best on your journey!

Jennie Berger

Hi @Lasparkle Hopkins!

Your opportunity in Auburn Gresham sounds like it could be very lucrative - particularly that you've sourced this entirely off-market with no competition from other investors. ;)

Thanks so much @Jonathan Klemm for the shout-out!

While this particular deal may not be quite the right fit for my direct lending at this stage (I typically partner with investors who have a few projects under their belt), I'm genuinely happy to connect for a brief chat. Perhaps I can offer some general insights or maybe even connect you with someone whose focus aligns better with a first-time BRRRR project like yours.

Feel free to DM me if you'd like to talk!

Kindly,

Jennie Berger

What an incredible video - thank you so much for sharing that link @Scott Mac! And as others have mentioned, 2, 3, and 4 flats are literally EVERYWHERE in this city!

Hi @Eshe Harvey!

It's great to see another female developer here in Chicago :)

I've also been developing properties in Chicago for the past five years – everything from SFH gut rehabs to new construction single-family homes and small multi-unit buildings.

While I'm currently taking a bit of a development 'hiatus' to focus on scaling my private lending operations, I'm always enthusiastic about connecting with other developers and aspiring developers in our area, especially fellow women in the field.

I'd love to connect with you, whether virtually or perhaps in person sometime if you're open to it.

Let me know if that's something you'd be interested in! 

Kind Regards,

Jennie Berger

Hi @Brandon O.:

I can understand your frustration regarding the unexpected credit score drop, especially when you have everything else lined up for your flipping projects.

I'm a private lender based here in Chicago. While traditional lenders can be very score-focused, many private lenders, myself included, tend to look at the bigger picture.

For us, while we do review credit, we often place more emphasis on the details within the credit report rather than just the score itself. Our lending decisions are typically based primarily on the strength of the asset (the property you're looking to flip), your experience (or the experience of your team), and the integrity and character of the borrower. So, a recent score hit, especially one you're actively disputing, isn't necessarily a deal-breaker.

Since you're in the Chicago area and looking to connect, I'd be open to a conversation to learn more about your projects and see if there might be a fit. It's always good to connect with other local real estate professionals.

Feel free to reach out if you'd like to chat more!

Kind Regards,

Jennie Berger

Hi @Kendra Chui!

I'm a private lender as well, based in Chicago, and have been lending on real estate fix and flips for the last year in both Illinois and Texas.

Beyond my lending activities, I also bring five years of experience as a developer and general contractor/builder. This means I've been on both sides of the equation when it comes to borrowing and lending money for real estate projects, so I have a pretty thorough understanding of what makes a deal work from all angles.

I'm currently looking to scale my private lending operations, and a key part of that is bringing in more capital partners who are interested in the returns and opportunities that real estate lending can offer. Your mention of your mother having funds available for lending is what prompted me to reach out, as this could potentially be a great fit.

I'm not sure what level of experience you or your mom might have in this specific arena, but that's where I come in. I manage the deal sourcing, underwriting, and servicing of the loans. My background helps me to carefully vet both the projects and the borrowers.

If this sounds like something you and your mother might be interested in exploring, or if you'd simply like to learn more about my approach to private lending, I'd be happy to set up a brief call to discuss.

I just sent you a private message and connection request. Looking forward to hearing from you!

Jennie :)