One year ago we shared the story of HGR Real Estate Cooperative and Management, a cooperative-style real estate investment group started by local entrepreneurs Kim Gordon, Beth Nordaune, and Erin Nystrom. HGR, or HomeGirl Rochester, was launched in May 2017 to bring together groups and individuals who were interested in investing in real estate (primarily in rental home properties), but just did not have the time or finances to do so independently.
Since we last spoke with HGR a year ago, this trio of women has continued to make valuable connections with potential investors in the community to push their vision forward.
“We’ve also met with people that want us to bring together groups and buy investments so that they can rent the houses from our group,” Gordon explained. “It is amazing to me how difficult it really is for many people to find affordable housing that is also in good condition.”
Over the past year, HGR formed their first group of five female investors utilizing this cooperative-style business model to purchase a home for a young client who had a credit score just one point too low to buy the home herself. With the help of HGR, this client will rent the home from the first investment group for two years, with the intent to purchase the home at the end of that time frame. This process will allow the client to improve her credit score and amass a larger down payment.
“It was so great to not only have success with HGR, to bring a group together that has wanted to invest, but it had a ‘feel-good’ story with it too,” Gordon said.
Over the next five years, HGR aims to invest in five more rental properties with this first group of women. The business hopes to additionally create two more investor groups to purchase a rental property this fall using the same cooperative model.
“It is still a huge goal to reach out to as many people as possible to tell them about our concept and continue to build interest,” explained Gordon.
The business has investors seeking involvement in even bigger real estate projects; now HGR is tasked with finding just the right partners to make these visions come to life.