Looking for BRRRR Property in Indy?

Question

Hello BP!

I'm a brand new investor located in Sacramento - California, looking to buy 2 SFH or Small Multi-Family Properties in the Indianapolis Area by the end of the year!  I currently have $120k cash saved ready to make a cash offer in something in the $60-100k range (which would save me a little left over for rehab), so I have money for the rehab. I can also get-preapproved for a mortgage for up to $300k if I need to but I wanted to try and pay cash for my first property if I could. I choose Indianapolis after researching great Out Of State Markets, but I'm certainly not married to it - just wanted to have a home base before I jump from market to market.  I've found 2 Realtors in Indy through BP.  In the last six months they've brought me a small handful of properties, and I've made 4 offers.  One realtor I stopped using because they became unresponsive.

My goals haven't changed of wanting to buy 2 BRRRR Properties by the end of the year.  My dilemma is this - my current realtor is a great guy and he's helped me out a lot up till now, but seems reluctant to want to send 2 offers a week like I want to find a great deal.  I understand where he's coming from and not wanting to waste his time, but I've also told him that I'd like to form a long lasting relationship where we can buy 2 this year, then hopefully at least 4 next year... I feel loyal to him, but frankly I feel like I'm going to get to the end of the year with nothing to show for it with the pace we are going and that's what I told him... What would you do if you where me? I'm considering these options: Looking for other Realtors in the same market, switching to a different market entirely, or seeking out a partner.  Open to any/all suggestions or referrals.  Thanks in advance.

-Nick

Whitney Hutten · Answer

@Nick Wilson Good for you for getting started!  Indy is a great market.  Looking at your price points, I'm wondering if you have a two issues: actual deals on the market (he can only send what's available), and the fact you haven't closed a deal yet (so yes, we would be putting in a lot of time not knowing if you will close).

How are you relating to him?  Does he have you on an automated search?  Does he have access to off-market deals? Are you researching areas and sending him deals you like to engage him?  Or, are you having him do all of the work?

Also, consider building out multiple ways to get deal flow... realtors, property managers, turnkey providers, wholesalers, other investors.

Lastly, if the deal isn't there... it isn't there.. so pushing for 2 is just arbitrary.  That said... I'm sure there is a deal to be MADE :)

Graziano Casale · Answer

@Nick Wilson we are in similar situation. I'm closing my first deal on a SFR in Indy that I found off MLS. Looking into BRRRR opportunity, and so far can't find a deal that works.

It doesn't hurt to be in a wholesaler distribution list, the more deal you analyze, the better chance to compare when a good deal hits your table.

Maybe we can partner moving forward, I'm open to the idea

Good luck

Graz

Ritch Bonisa · Answer

@Nick Wilson I see BRRRR properties all the time, but usually they are off market.

Richard Bonisa · Answer

Nick, where are you now on this. Give us some feedback.

Jeb Brilliant · Answer

@Nick Wilson I’m a full time investor in Indiana living in LA. This is totally doable but you’ll need some good people in Indy if that’s where you are committed to. I’d be happy to chat about the city and if you want some referrals let me know.

Good luck.

Christopher Petrillo · Answer

Hi @Nick Wilson have you thought about buying off market properties?  There are a lot of wholesalers here that have houses under contract.  A lot of times you get them for cheap and can fix them up to make them rent ready.

Joe R. · Answer

@Nick Wilson I would say do all three things you mentioned. It may require a little more time commitment initially on your end but I think it would be the right thing for you to do.

Ric Ernst · Answer

@Nick Wilson you seem to be exactly where I was a year ago and heading down a similar path...price points and all. Once you finally close that first deal, it can become addictive if it goes well.

@Whitney Hutten asked a good question. "How are you relating to him (your Realtor)"? Just like anything, this is largely a relationship business. They payoff for selling a $60k house isn't all that great so be as low maintenance as you can and really show your appreciation for his efforts. If you don't feel like you have a good relationship, find a new agent. Call one of the bigger brokers out there and ask if there is someone on staff that deals with your specific market. They will usually be a more junior agent which is fine as you can both grow together.

I actually bonus my agent after deals close...I send a check to his house with a thank you note. He always responds to my calls and has even represented me in off-market purchases for a fee. Best of luck to you!

Looking for BRRRR Property in Indy?

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