Funding for Baltimore development

3 Replies

Took a trip down to Baltimore today, to check out the possibility for growth and development. Enjoyed the city, but noticed a great deal of potential for housing. I was wondering if anyone would be able to give me tips on acquiring capital from the banking industry in Baltimore to take on the task of rehabbing and developing these underprivileged areas.

@Giles Ferrell if you are talking about seed capital, it isn't going to happen. 

If you have some capital to leverage or partners with money, then make up a presentation package for the bank. Show them your experience. If you don't have experience: then find a partner with experience, or tell them who you are going to use as a contractor, or give them previous experience in other businesses. 

Give them a plan of what you are going to do and how you will profitable. Give forecasts for sales, expenses and a budget etc.

Most importantly make it very clear how they are secured and how they will get paid. What collateral can you pledge? You are going to have your best success with smaller local community banks. Big Banks like Bank of America aren't likely to be interested unless you are planning a much larger scale than I suspect. .

Rehabbing and developing the underprivileged areas is like putting lipstick on a pig . Unless the whole area it turning better , you wont make a dime 

@Giles Ferrell I am not sure if you want to target underprivileged areas for personal reasons or what areas you were looking at, but sounds like you are looking to get into fixing n flipping and I would agree with @Matthew Paul

If you want to rehab for retail, you want to be where buyers are buying.  I would recommend getting with a local agent who knows Baltimore or another investor and figuring out what areas are solid.  If you are flipping to sell retail, focus on owner occupied neighborhoods, usually you say good schools if you are in the county, if your in the city they are less of concern.  City areas amenities is the focus  Canton, Fells, Fed, Patterson Park, Hampden .  Take some time to do your research, visit the city or different areas multi times.  

As for the capital, if you don't have your own, either borrow from family or some other source or you have to find someone who will partner and you convince them that you have some skill that they will benefit from partnering with you.  If you are talking about doing an entire redevelopment of an area, then you are talking a whole different level, but I would say walk before you run.  There are local banks that will give loans for rehabbing but like @Ned Carey gotta have your ducks in a row.  Happy to help any way I can.  Good Luck