All Forum Posts by: Alora Glaze

I agree with the above - if you've done your research but you need to take the next step with investigating properties - then your best bet is to ensure you have your lender/financing available and then contact a realtor, preferably in the REI market, who can assist with navigating your market of interest and help find the property types that will work with your ROI model.
Typically, your realtor is you best asset who can point you in the right direction as far as contractors (make sure they're licensed and insured). Otherwise, join local groups for REI on facebook that can provide insight and reviews for those who are already operating in the area - I've always been a firm believer of learning from others and REI is no exceptiong (hence BP).
Once you get the folks corralled, things should move fairly quickly for you - so make sure all the pieces of the puzzle are ready to go before you put it all together.

Best of luck to you!!

The mid-west is a great market right now - lots of opportunities but few companies that can offer the "boots-on-the-ground" type service needed in order to manage the out-of-state projects. It can be done though! We work with out-of-state/foreign investors consistently and the key is communication and being the type of company that is technologically forward-thinking (i.e. the ease of sharing photo/video updates and making selections for your property).

Your first protection is making sure you can run the numbers for the right deal - looks like you have a good head for the numbers you need to hit, so you're on the right track already! Regardless if you're living in the same market you want to invest in - the numbers are going to work or their not.

As mentioned above - once you have your financing in place, and then finding your first "team member" i.e. your realtor is key. You don't need an agent who is in the REI market, but I do find that if you can lean in that direction that the connections and recommendations for the type of REI you want to do will come much more easily.
Make sure you only work with licensed and insured contractors - they're responsible for the financial and physical success of your project and it is key that you're working with a reliable professional.

With all that in mind - check out central Indianapolis. Great prospects for fix and flips and buy and holds - it is a street-by-street city which makes the opportunities plentiful if you know where to look (i.e. off market deals on social media or otherwise), not to mention - properties are cheaper and can allow your dollars to go farther, hooray for increased ROI!

Best of luck to you though!! Distance should never detour you from a good opportunity!

We work in the REI market to rehab and renovate in central Indianapolis - not only is it important to make sure your GC is licensed, but make sure they're insured as well! It is so important to properly vet the folks that will be responsible for handling your investment financially and physically.

Let us know if we can be of any help - best of luck to you!

Agree with the above - first time home buyer initiatives are very attractive ways to market your property. We work with lenders (i.e. Region's bank) who will actually draw up promotional material/flyers and market on their own website.
Consider also a buy & hold strategy for more these areas and wait for the appreciation to rise - but that really depends on what your rental comps are in the area too - the numbers have to work first!
 
Before any marketing though, make sure your finishes correspond with what the appreciation in the area may be leaning towards once you're done flipping. Maximizing your ARV helps you in future deals if you stick to that area, too (yay, comps!). Make sure you have extra safe-guards in place though, i.e. a security system installed once you receive appliances, cage your AC unit, etc. Having to replace these items is where the dollars can really start to add up so detouring folks who scavenge construction projects by having a security monitor (check out Simply Safe) will help, too.

Best of luck to you!

We do love the Indy market - but that comes with heavy bias haha

Definitely check-out groups on Facebook also - Real Estate Investors of Indianapolis, etc. for other opportunities to connect and review off-market deals.

Best of luck to you!

Regardless of hard money or conventional - you will most likely have to fund the first draw up front initially anyway. It will be necessary to have additional cash available to fund issues that may arise i.e. an unexpected issue not included in the original estimate / inspector doesn't catch a completed item on the draw list and only approves a partial draw, etc.
Every day work isn't being done to move your project forward is money you loose - making sure you have the necessary funds to ensure your project won't be delayed is key. Additionally - inconsistent payments to your contractors because of funding/draw issues can cause another whole array of problems that affects your credibility and the ability to keep a solid crew working consistently.

Just make sure you have all your lines of funding researched and ready before you get going.

Best of luck to you!!

@Benson Gee Awesome! Good luck with it! Don't be shy about joining several groups at once just to get more diverse information.
I am originally from San Diego but moved to Indianapolis about 5 years ago to start investing - California dollars go a bit farther in the midwest markets. I now assist out-of-state investors in the central Indy area with REI.

Your best options may be off-market properties - utilize social media (its free!).
Create a business profile on Facebook and Instagram that you wouldn't mind using to connect to wholesellers, realtors, and to make other connections associated with REI.
Markets all over the country have specific groups on Facebook for their area that allows them to connect and provide their information to get on buyers list & connect to realtors familiar with investment opportunities in the area (hopefully they've got some leads on contractors too) Groups for example: "Out-Of-State Investors (insert city)" or "Real Estate Investing (insert city)"
Start there to get some leads and to see what other flks are posting and what their takes are on that particular market you're most interested in.

Sounds like you have a good head about the numbers you'll need to look for in the right property - you'll often hear "analysis paralysis" thrown around a lot with new investors... so long as you're doing your research ahead of time and you have your connections/network laid out (i.e. realtor/contractor/lending) then there isn't any reason you shouldn't pull the trigger when the numbers work.
The important part will come when you turn over your investment to your boots-on-the-ground team who will be responsible for making your project move forward - making sure you're using licensed, insured, and fully vetted contractors will ensure that your money is being appropriately to protect your investment and to reach that projected ARV - the effort should be focused on maximizing your ROI so you can keep your momentum going! With that being said, do not try to hit a grand slam each time - this will help reduce your overall risk while still keeping you profitable - just because the ROI might be only 10k - doesn't mean it is a deal worth passing.

You have an open mind about it all, and that is half the battle - looking forward to hearing your progress!

Best of luck!!

Are you investing in-state or out-of-state? 
If you're in-state, and have access to pop by these potential properties - I would start by making connections with contractors that are familiar with BRRRR and buy and hold investment strategies. The rehab/reno on a property is what essentially gets you to your end-result ARV which will then determine how much ROI you receive. You may be able to find a contractor who can scope out the property for you ahead of placing an offer but in order to do that - you have to move quick and be willing to compensate appropriately for that time.

If you're out-of-state, I'd first make your connection with a realtor who is familiar with REI. They will be able to do the number crunching initially which is running the comps and determining your best market for the type of investing you need. Hopefully, by making that connection, it will lead you into meeting with contractors in the market who can put together estimates with real-world costs. More often times, then not, you'll find that the initial number crunching will determine if you want to move forward with a scope estimate anyway - so it is a good place to start initially to weed out properties you shouldn't spend your time on.

Zillow is fairly overrated- it does not have the best reporting for ARV and appreciation increases in several markets, so I wouldn't trust it's figures as anything to base a deal off of. But again, having a realtor that has access to MLS listings and full specs (including purchase history) would be a good place to start so you can get a head of the curve.

Best of luck to you!!