Group Purchasing and Investment

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    • #26112
      Avatarmenotyou
      Participant

      Hi guys,

      Recently I have been thinking about scenarios where a group of neighbours get together to sell their homes to developers who are looking to buy 3-4 connecting properties. This got me thinking. Is there a way (a portal or a platform), where people can get together and pull their funds to buy big lots of land, or a block of units etc etc. I understand there are companies out there which organise this but going down that route makes me uncomfortable since it always feels these companies have their own agenda such as steering the client(s) to purchase in areas that suit them.
      Do you think that 5 strangers could agree on the size and the area of the lot they can buy together and if so, how do you see this being structured from a strategic as well as financial point of view?
      Really interested in everyone’s thoughts. The more creative the better.

    • #26132
      AvatarJack M
      Participant

      Brickx comes to mind. However, they only invest into established properties. Your idea sounds more like a lottery syndicate for property development 😀

      Watching this thread.

    • #26134
      AvatarMark Webber
      Participant

      Very interesting topic. There are various legal and structural mechanisms available on how you could theoretically realize such an initiative (a joint venture or special purpose company come to mind). The significant challenge to overcome is for all the parties to agree on the specifics (where to buy, how much to spend, the logistics of everything etc.). Thinking out loud it would be actually tremendously valuable if you had a company that managed the logistics for you without any vested interest in where you buy and how much you spend (i.e. no conflict of interest).

      Keen to see where this conversation goes.

    • #26187
      Avatarmenotyou
      Participant

      I guess what i am thinking about is a free market approach to this initiative. The individuals regulate themselves by opting to join groups that fit their investment needs. This means that the platform would require a grouping system with each group being defined by particular parameters such as desired growth, investment outlay and amount, type of investment etc. The second part of this equation would be than once the groups and forums are established, there needs to be a search process that is done to source the type of property fitting the criteria…
      Or, another way would be to already have properties fitting particular criteria listed on the platform with all-inclusive and accompanying documents required (approval, drawings etc) to build the project. Thinking about it now, this would then be a portal for developers where they ‘advertise’ their projects offering a crown funding option… This is specifically useful considering these times when a number of developers have had to pull the plug on their development due to restricted lending. However, having a portal which provides them with an opportunity for crowd funding could have saved a lot of projects.

      Lets make this interesting and think how this platform would be structured and how this would work? I see value in this service..

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