Investors in Indianapolis

[Shepard Solomon]

Hello,

I'm looking to invest with others in Indianapolis's redevelopment areas including Near Eastside, Christian Park, Irvington, Center Townships and Warren Townships districts. I'm interested in flipping or using BRRR. Let me know if you are interested in these areas as we can work together. Send me a request. Also this will be my first property I had to rehab and invest with others, so if you have expertise I'm willing to listen. Most of my properties are turnkeys. In addition, if you know where we can find blighted properties that is a plus. Thanks

[Ross Denman]

@Shepard Solomon the biggest collection of "blighted" areas and homes can be purchased directly from the city for less than $30,000 and vacant lots for less than $4,000. These are highly distressed homes which typically haven't been lived in for many years and haven't sold at multiple auctions. Many of them need demolished and the ones that are salvageable are in such distressed areas, it's nearly impossible to get a decent tenant. These may be areas that will work for section 8 if you can get the properties to pass the initial inspections. You can find these homes at https://public-indy.epropertyplus.com/landmgmtpub/app/base/propertySearch?

You can also find a list of many of the city initiatives and such here. http://liscindianapolis.org/where-we-work/

I'm watching Twin Aire very closely right now and keeping an eye on the near west and near northwest sides because of some upcoming developments. These can be tricky areas to invest in as they tend to bubble and the market goes soft when a ton of investors get in... this just happened in Fountain Square and Bates-Hendricks over the last couple of years. Several investors are not selling at their desired profit margins and having to rent or sell with little to no profits (or losses.) Be careful not to over rehab or commit too much money too early in these "up and coming" areas as you may not be able to recoup your investment for several years and you may not cash flow much until then if the tenant demographic is that poor.

I'm also watching the near NW side. There is an initiative (King Common) that is trying to revitalize the area around W 25th St and Martin Luther King Jr. The is the eastern edge of the Riverside/Near NW neighborhoods. Eli Lilly has just committed nearly $10 mil to be invested in building an amphitheater at Riverside Park and that's part of a 25 year roll out to revitalize that park (which is next to Marion College.) The Waterside project is quite a bit south of this area but between Waterside and 16Tech developments will have a direct impact on the Near West side and a secondary impact on the more impoverished neighborhoods of Riverside, Haughville, Near Northwest Side, and possibly Crown Hill.

When dealing in highly distressed neighborhoods though, you want to combine synergy with other investors or investment firms as rehabbing a home or two in the middle of a ghost town doesn't get you anywhere, but if 6-10 investors do renovations in clusters, they all add value together and can build on that. This may take the CDC (community development corporation) to help direct the efforts, but this tends to be a more effective strategy than just purchasing a few highly distressed homes in blighted areas and hope that someone actually wants to live there.