Baltimore City Investment Alliance: Investment Proposition

[Carlann Mckenna]

I am a newbie to the real estate investing game but feel a strong commitment to giving back to the community. I realize that Baltimore City a unique, special, and beautiful place that needs improvements in many areas but we can also be sitting on a "goldmine". It is a place with great opportunities for new and experts investors to leave their footprint and mark. Anyways to the good stuff. I have been thinking that it would it be a good idea if 10-20 investors to come together and purchase properties on several streets. I will give an example. I am going to pick 2 random street in the Druid Hill Area 21217 as my example.

Newington or Mcculloh Street, Baltimore- Both street consist of renters, homeowners and boarded up houses that are full gut rehabs and some that are not. The street is not that long, the houses are impeccable once rehabbed well (most building you can get 4beds/2 to 3 bath)and both Blocks are not riddled with violence or extreme loitering.

• If 10-20 investors purchase these rest of the properties on the street and rent or sell them we can possibly make a impact on economy and our pockets.

• The idea would be to borrow funds for the Project from one or two Baltimore Banks

• Use our expert contractors from the groups to do the rehab.

• If need be advertise the properties by using one or two property management companies or several realtors from the Baltimore area. Or the investor can advertise their property of they feel fit.

• Develop a neighborhood watch of sort and negotiate with several security alert companies like First Choice or ADT to get a discount on their device. Hire the same property manager to manage the building.

• I believe if we come up with a strategy and develop a proposal the City of Baltimore may not only give us a discount but possibly assist with the process.

The key I believe is starting off with 1 street at a time that isn't too long, possibly a one way, dead end or have little traffic and the area around it will be developing. I spoke to some folks in the other BWI meet up group and Real Deal Meetup Groups who are close to city representatives/councilors, Banker owner who love the idea and willing to use their establishment for meetings, televised groups, etc. I just wanted to see who would be interested. THERE IS A LOT MORE TO THIS THAT NEED TO BE DISCUSSED. BUT IF YOU ARE INTERESTED PLEASE inbox me with your info . 

Richard Bailey has graciously offered his  office in Baltimore to meet up once we make a decision who wants to be involved.  So far I have 10 people interested from the BWI meet up group. I just sent the email yesterday and expect more people to jump on board. Richard I hope you have a large office :-)

Carlann

SORRY THE WORD WAS SUPPOSE TO BE PROPOSITION AND NOT PREPOSITION. 

[Ned Carey]

@Carlann Mckenna I don't want to be negative but I do want you to be prepared for what you want to undertake. This is much more difficult to do than you might think. Others have tried and failed. 

In fact some have actually tried and failed in Reservoir Hill where Newington Ave is located.

When choosing whether, when, or where to proceed, you should consider these factors

• 20 investors doing two rehabs each is 40 properties. While that may sound like a lot, it is a small drop in the bucket as far as hitting a tipping point in a neighborhood with 200-500 properties.
• Do the economics make sense? The streets you mention, have very large homes, and the cost to renovate is substantial. There is a risk that homeowners will not want to pay the prices needed to profit when the properties are completed. The tax assessments are outrageous there and holding as rentals may not be feasible given the costs.
• If each individual property makes sense to renovate at today's numbers, there is a much higher probability of success. If you are counting on the value of the area to up to make this economically viable then you are taking an incredible risk .

Despite the above, I am willing to meet and discuss the possibilities.