Small Investors

[Hadi Alajmi]

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.

Regards,,,

[Ned Carey]

@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.