focused strategy for collective group of investors

[George Ozoude]

I have been meeting with several folks who would like to combine funds and start a real estate investing group. Any advice on whether or not it is good to have a focused strategy/target or more of a broad less defined strategy. 

Personally, I feel like we there are significant benefits to narrowing the strategy down to specifics like certain property type, financing strategy, neighborhood class, property condition, etc. While my colleagues feel it is better to have a less narrow focus and go for any and all deals that make sense. Any thoughts on this would be greatly appreciated.

[Paul Choi]

A good rule of thumb is, the more players involved, the more focused the target and strategy should be.  With "too many cooks in the kitchen" syndrome, I can imagine people in the group going all over the place and ultimately not agreeing on pulling the trigger on a deal.  Narrowing the focus helps reduce that.

On the other side, it's easier for 1 investor or 2 investors (partnership) to cast a wider net and come to a decision quicker.