Indiana real estate investing for beginners, why buy investment properties in Indianapolis and how.

by | Indiana real estate, Indy Anna, Real Estate Investing

Indianapolis real estate investing for beginners, nine things every investor should know about the Indy market.

Here’s a breakdown of the Indianapolis real estate market for a total beginner and newbies.  Here are nine things every real estate investor should know about the Indy market.  If you have any more questions please let me know.

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Now for today’s class on the Indianapolis real estate market…

Indy real estate market for beginners BigReia.com

Investment properties in Indianapolis, Indy real estate investing for beginners – what every real estate investor needs to know about the Indy market.

Indy Anna explains:

– The NINE things every real estate investor needs to know about the Indianapolis real estate market
– How to find and do “1% houses” and duplex deals and how to make the most of those deals
– How to look at the Indy residential, multi-family and commercial real estate markets

To download the above BigReia Indy Guide click HERE.

Over the next 30 years the Indianapolis real estate market is set to grow by over 25%, one of the highest expected increases anywhere in the country – and one reason that is happening is because of INVESTORS moving here.  

Indianapolis is one of the FEW investment markets investors actually move to after they begin looking here for investment opportunities. Let that sink in- folks love Indy so much to invest in, in some cases they actually end up moving here themselves.

It’s not our weather that draws folks in lol, and let me give you the two leading questions people ask me when this epic cycle of property first begins, even if they don’t end up moving here:

“What kind of investment properties are there in Indianapolis?”

The other question, a very smart one:

“Are there 1% houses in Indy?”

Today we’ll get into both of these questions and you’ll also see why so many investors moving here personally after learning about the Indy market.

What makes Indy so attractive to real estate investors:

1.) Taxes.

We have some pretty simple Indiana property tax breakdowns 1%, 2%, and 3%, I’ve covered all of that in another video so just be sure to get that full breakdown there after this class.

2.) Favorable Laws.

Indianapolis also has a great deal of legislation that is designed specifically for real estate investors.  The landlord friendly Indiana laws include no rent rate caps, no mandatory utilities to be paid by owners, stricter evictions and so on.

3.) Good History.

Also Indianapolis has reasonable historic data for future appreciation projections.  Generally the Indiana real estate market is a flat market, a non-reactive market as it is called, so we don’t see the same appreciation rates as some other markets.  This means that that usually an investor in the Indy market can pretty easily predict their appreciation and cash flow situation for the coming years.

4.) Good Prices.

Indianapolis also has purchase price points that allow for investor friendly margins.  Indiana rental property prices allow for investors to buy good, positive cash flow rentals for under $150,000 on average.  High cash flow multi-family properties can be bought affordably as well, Indy duplex properties can be purchased under $250k.

5.) Stable and Growing Economy.

The Indy economy also supports good growth prospects.  Indiana’s economy is very well balanced both from a government standpoint in a State surplus of funds and numerous private & private economic developments.

6.) Less Regulations and Union Red Tape.

In Indianapolis we also don’t have unions to deal with, for the most part at least.  If you’re in the Indy Metro area and you drive three hours to the NW you’ll be in the Chicago union zones.  You’re going to go from seeing rehab crews and dumpsters on properties to seeing properties with pink and blue port-o-potties and no dumpsters to be found anywhere.  You can’t enter a house to use the bathroom facilities in Chicago and you must rent port-o-potties only from a company that happens to be owned by a family member of a Chicago council member  lol.  The piles of dirt/debris at the end of driveways?  To get a dumpster permit is such a pain that it is easier and cheaper to have crews haul it off from the end of the driveways every nigh.

It isn’t just Chicago with the unions, regulations and over the top permit-requirements, it is other areas too and for the most part Indy doesn’t have those problems.  In Indianapolis we aren’t slowed down by union regulations and permits like that of our nearest major metro area.  In the Indy market your rehab won’t be delayed because of waiting on the unionized foreman to show up on a job site.

7.) Cost of Living.

Another note here on the Indianapolis real estate market: the cost of living and quality of life. The cost of living in Indy has allowed us to be not only favorable for investors seeking large end user buying pools, but it’s one of the reasons so many national, multinational and international headquarters are within Indy borders. Making a little over $272K in San Francisco is the same as making $100K in Indy – so about ⅓ of the cost from West Coast living to the heart of the Midwest here in Indy.

8.) Business Headquarters.

Many businesses are headquartered here in Indy.  This is part of the last point, since Indianapolis is within a half-day’s drive of almost one third of the US population we are called “The Crossroads of America” and many businesses and large organizations come here.  This means access to many great renters and when we do our “Executive Tenant Model” we have short term leases signed with companies at high premiums.

9.) Big Universities.

Several big universities makes it easier to rent to high qualify college students.  We’ve made a few other classes about renting to college students and renting to foreign exchange students so you can check those out too.  We have more than five universities here in Indy to pull from for student renters. While this sounds a ‘buyer beware’ in terms of renter pool, it’s worth taking note that many of our student renters are in residency with University Hospital Indianapolis and Butler University (a private $chool) and these are not your typical frat party student renters.

We have plenty of ‘regular’ renters as well, just a quick note to not overlook our student renter population.

Also a quick bonus: Gas prices in Indianapolis are awesome.

Lol I’m actually going to upload my receipt from this week for you to see (Post COVID), if you’re on the West or East coast be prepared for some sticker shock.

The point of all that is to say that in the Indianapolis real estate market, there are many factors that make it attractive to both investors and homeowners alike.  It is much more than just the purchase price, property taxes and legislation.

Now that the foundation work established, let me get to that first question:

“What kind of investment properties do you have in Indianapolis?”

This is really asking:

“What kind of real estate market is Indy?”

– We have SFR/Duplex properties that span from Section 8 to right under 2% monthly rental yields
– We have numerous areas of gentrification for flipping deals, take a look at our other videos on Indianapolis flips and gentrification for more on that
– We have commercial properties with cap rates above 9% in some cases , for more on this you can check out our other classes on Indianapolis cap rates.

So there are good Indy real estate deals in residential, multi-family and commercial.

That leaves agricultural land and raw/vacant land.  For more classes you can check out our other classes on how to rezone a property, why I love vacant land, different ways of doing deals on vacant land with tiny houses and 57 ways to make 5k/month with vacant land to name a few.  Most land near the Indy metro area is not tillable so you would have to go outside of the immediate are, if you need help with that just text or email me.

Now, I’ve made a LOT of other videos on the Indy market, but most fitting to go with this class would be the Indy area Guide to get some deeper insight into where your deals might be located specifically.

For now, let me get to popular question number two:

“Do you have 1% houses in Indianapolis?”

Yes, the Indy real estate market definitely houses that are 1% which means houses that rent for 1% of the value.  So a $50,000 house would rent for at least $500 a month.  For the average buy and hold investor, whether using the BRRRR strategy or not (you can check out our classes on BRRRR for more on that) Indy will have these 1% houses that you’re looking for.

Most of the time, these houses are going to be in our Class B through C areas. To get into a higher monthly rental yields, the nearer to 2%, with SFR, we tip toe into Class D areas.

Just as with any market when we get into Class A areas, the cap rates go down down naturally as the purchase or ‘all in’ price of initial investment goes up.  But for our 1% houses here in Indy, we are usually looking at a purchase or all in price of less than $140k.

To be clear, that’s either rent ready now or purchase price + rehab costs, all under $140k.

What about MLS deals in Indy?

Okay, so let’s get to these MLS deals here in Indianapolis; It is pretty unheard of for investors to be able to get deals right off the MLS, but if you know your numbers these deals are everywhere, in ANY market.  Yes, we have wholesalers we work with and ‘off market’ deals are possible, but for 1% needs and getting nearer to 1.5% or 1.5%+ in duplex properties, the MLS is an easy fix.

Let me explain why this is; the “G, D & D” of wholesaling and not only Indianapolis wholesalers, but wholesaling in general

“G”- Greed.

An honest wholesaler will have an assignment fee of 3%-5% on a deal. Yes, 5% is STILL more than an agent will clear on a transaction so that’s PLENTY. Unfortunately many wholesalers, not just in Indy, have the greed bug bite them in the bottom and it takes over.

It kills the spread. There’s only so much equity in a property. One player in the game taking too much of it, doesn’t leave enough for the other players involved, including the purchasing investor. It usually means the seller was not given as much as possible in being fair and ruins the deal for them, that’s just not nice.

“D” – Disclosure.

We have some wholesaling groups here in Indy that don’t always give the full disclosure on properties. I will not name names but it becomes a deal breaker.  Actually pretty much ALL the wholesaling groups try this BS.

It kills the deal. When they aren’t upfront about the full disclosure of a property, once again the spread is killed. We’ve had offers in on $20K flips here in Indy and only while in negotiations did we find out the ‘advertised price’ of the wholesaled property didn’t include back taxes, to be paid by the buyer, just under $10K. On a $20K spread this kills the deal totally.

“D”- Daisy Chain.

If you’re looking to social media to find your next deal odds are you can sit down at any given moment and find a single property address, marketed by at least two if not three or more wholesalers. You may note a couple of thou$and in difference here on the same address.

It’s a mess.

There is usually only one true assignable contract on a single property.

Otherwise you’re looking at fold wholesaling a wholesale deal. Too many cooks in the kitchen, all trying to take from the same spread and in a lot of cases, the original wholesaler doesn’t even know their deal is being marketed by others.

So yes, we will work with wholesalers but the wholesalers we work with are going to be pretty exclusive and many of our deals will come from realtors before they hit the market or from the MLS and I can still get our investors the margins they want. If you’re a wholesaler watching this and think you’re of a higher professional standard; let’s talk and I’ll consider adding you maybe. But the LCs love wholesaling lol.

I’ve gone over these 1%+  SFR and Duplex properties in Indianapolis and  why Indianapolis real estate investing is so popular.

Let’s briefly touch base on commercial deals. Commercial properties for sale in Indiana or commercial properties for sale in Indianapolis that have higher cap rates.

I’ve made another class on this that has further info, but we may be looking a little outside of the box here in terms of moving from multi-family into more of a business setting.  Reason being, we are still under Indiana property tax caps of 3% for commercial, but we are looking at some things like essential businesses instead of multi-family.

One of the reasons -as an insider tip- that we have a few more essential business in commercial properties up for grabs is lease terms. While it’s most common to see a commercial lease term of 10 years, a few of our commercial business properties in Indy will sit on the market longer than usual. Why bother with ‘essential’ – a matter of who stays open and able to pay rent should we run into a situation like COVID again.

Why is this?

Out of State investors not understanding how one of our most major hospital networks does lease term policies.

We may have a commercial property for sale here in Indy with over a 10% cap rate, the tenant has been in place for 5 years +, and in some cases the tenant has invested over $100K in their own funds to get the property best suited for their needs.

10 year commercial lease terms- this is why these Indy properties usually end up being bought by Indy investors and not out of State investors, the secret out of State investors are missing out on. If you’re not from Indy, seeing a 36 month lease on a commercial property is alarming. Not knowing to factor in this is a network set lease term policy- and these tenants are in place by the decades after continuous renewal- can  get overlooked all too soon. It’s why you need someone local who knows the in’s and out’s of Indy as your boots on the ground honestly.

So in summary, here’s what we covered regarding the Indy real estate market:

The Indianapolis real estate market and a total breakdown for investors
Indianapolis 1% houses, duplex deals and commercial deals
Why we still work with Indianapolis MLS properties lol

Here’s what Forbes had to say about Indianapolis as one of the ranker’s on it’s nest places for Business and Careers

https://www.forbes.com/places/in/indianapolis/?sh=387887a554ef

Upcoming I’ll have a preview of our always FREE download and the adventures of our BigREIA friends, but for now

Make sure to go BigReia.com and get our list of over 100 FREE ways to find motivated sellers, we are providing the world’s clearest instructions on how anybody on the planet can create a passive income of at least $30,000 a month through real estate and business building:

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Make the Universe Smile.

Thanks so much!  = )

~ Indy Anna
Love (at) BigReia.com
(that’s my real number, so please text me first- Thx!)

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

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There's also a great class Azam did on how anybody can retire in the next 1-2 years with $30,000 a month in passive income by buying and selling businesses zero down.  What about Micro Flipping?  We have a great class on how to start micro-flipping real estate zero down from your house and make $500/day, speed wholesaling 101.

There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

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Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list. 

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Stay here at BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Income Ascension and Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
(YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

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