The Truth about Indianapolis!!!

Hey, I’m in Indianapolis it’s a great market!

Here are some of those positives:

• Population growth
  
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• Job growth with higher wages
  
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• Business friendly
  
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• Diverse economy
  
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• Strong occupancy rates
  
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• Infrastructure development
  
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• Landlord friendly
  
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• Lifestyle ammenities
  
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• Acquisition price-to-rent ration
  
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• Education levels
  

What needs to be understood:

• Indy is a great market!
• There is a cottage industry in Indianapolis that may not have your best interests at heart.
  • Built around working with out of state investors
  • Wholesalers, rehabbers, contractors
  • PMs as project managers, construction managers, consultants, project managers
  • There are positives and negatives to many of the "VENDORS"

In the last 90 days I saw construction costs that included 30k change orders. Meaning, things not originally in the estimate. AND, I saw it multiple times, not to mention the 15k change orders, the 5k change orders, etc.

I’ve seen “companies” pick up these “great properties”, only to hold them for 30, 60, 90 days, or have them under contract and have to renew, or whatever these guys are doing. In my opinion, the junk being picked up and trying to be moved is of large proportion; hence this “cottage industry”.

I’ve also seen and been involved in situations where I, or the company I worked with, was selling a property and some “wholesaler” added 20, 30, 40%, and (without permission),pushed the property out as something they "had under contract".

Hey, someone is making money – is it the investor????

Now Indianapolis is great! 

I do think it makes common sense to really work hard to vet your vendors. I also think there is something to the idea of working with individuals and being a little leery of some of the “companies” and individuals. Just makes sense to me.

Personally - my opinion, is to be careful of someone who offers “all of it”. Now, there are a few TK companies that can be beneficial, but the overall question is – “Are you getting in at OVER MARKET value?” What is appreciation like in the Midwest? I’ll let you do your own homework on that one.

I’ve said it before. I will say it again. Vet those companies or individuals you are targeting to work with. Don’t let them vet you.

• Vet your providers
• Get 5 or 6 references ranging from 1 month to 1 year plus
• References should not include one dealWork with someone that will tell you theGOOD, BAD, and the UGLY
• If there is rehab involved - be careful and get a firm contract on construction/rehab costs
• Be very wary of those who have no responsibility or liability in your rehab
• Again, just my opinion on the market. It is a GREAT market, but there are also other great Midwestern markets.

******Don’t be afraid to go public about your experiences. Follow some of those tough-minded people – James Wise is a good example. I don’t care what market you are investing in – share your experiences and don’t be embarrassed. Get stronger and help others get stronger in their thinking processes on investment!

This is why BP is a great site.  Investors helping investors!!!!!!!