Good Evening BiggerPockets folks, I am a small investor in Baltimore area. I am limit with my budget and hate to have a hard money or any kinds of loan in order to buy or to rehab a property. So, when I like to buy a property in certain area most of the active properties in the market are more expensive or i am in stock with big companies who buy a lot of properties for fix @ flip. Therefore, I came up with an idea where i need your advice if you guys think will work or not. Or if you guys have similar ideas or suggestions. My idea is i am looking to gather more than 10 small investors like me who like to do the business in Baltimore city, and all of us buy all the properties in one street and rehab them at once, so in this case the value of the properties in that street will boom up and the small investors get their profit. I can speak in details later on, but for now i need to hear the thoughts about what you guys think in the idea.
I will mention 2 points of the details!!!! the rest will talk about it later.
1- It's not going to be one company, every investor can work by himself. I will build an email list for the connection between the investors, so all small investors can meet together and then we can decide which street we are heading to buy with the respect of the chosen street criteria !!!!!!!
2- Every investor needs to sign a contract after he purchase a home that he is going to rehab the house in a mount of time, so no house in a target street will left with no rehab.
I think it's a great idea . A creative way to increase profits and work together . I like that everyone would be working together but individually at the same time . It should also help prevent people breaking in the property if u guys can work out a system for that too. I'm sure people like to feel their investments are safe and not being broken into . I say great idea
@Hadi Alajmi yes as @Edgar Sulca said it is a great idea. However it has been tried before with mixed results. One problem is getting enough properties on one block to make a difference. It is easy to say "Buy up a whole block" but it is rare that most of a block is for same at one time.
Also different investors will work at different speeds to get their projects done. This means the first investors in or finished do not get much of an advantage of the increased pricing.
Rather than start from scratch it may be better to look for areas that are already starting to transition. The Oliver neighborhood north of John's Hopkins hospital is such an area.
Good luck in your project.
i like it
@Ned Carey As i said above, I can tell about the details for the idea later on. and in matter of the time, we can set a time that no one can sell the property until one year pass or when all properties is finished with the renovation. I think one year or 6 months is enough for any investor to look for a contractor and finish the rehab job. and for the advantage of the property that can be managed by lot between investors, so who is number be announced first, he or she has the ability to pick any property among all purchased properties in the block. It simply fair enough contract who wants to join the group :)
great idea I'm small investor my self ,this is a profitable idea because not just with return but also with building a team that can do business together in long run, if you do it once and it works then the future is unstoppable .If you ever consider doing business in disney florida area count me in ,I'm on board ,good luck.
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