All Forum Posts by: Ian McCullough

@Stephen Barton

I couldn't agree more. I have been noticing this for a while now, Wholesalers have increased their profit margins by over 300% in many Cases over the past few years. often the investor ends up with a fraction of that, not normal, nor sustainable. Another issue is the taking advantage of out of state investors by selling them on the idea of cheap investment properties in the midwest. Don't get me wrong there are plenty of deals to be had but duping someone into buying a rehab rental at 42nd and post or 10 and rural is just mean. On the other hand this is starting to put money into neighborhoods vastly in need of improvement. It happened in fountain square... maybe it's not a bad investment, maybe its genius. I think it's the driver for the increase in wholesale price (at least a contributor), we just have to remind them with our offers that they picked up that contract for 8k and 100% profit is an aggressive but fair target, 35k is just being an @$$ lol. And the market moves on...

It is true that neighborhoods can vary by street and it is important to know the areas. There are still a lot of cashflow opportunities and Mike D is right, $150+ is virtually guaranteed if you don't leverage and buy fairly smart – I have a couple C-/D+ class (no debt) that do mid $400 cashflow even after Cap Ex Reserve. (but I personally would leverage on the buy for sure). Not sure why you want to buy it outright, never underestimate the power of leverage, in the beginning, at the end, whenever,if it works. Do your analysis, try a few scenarios (all cash, 20%, 50%), go with what looks the best. (I have some great spreadsheets if your interested-free btw). I would recommend contacting a knowledgeable and reputable property management company and utilize their knowledge of the areas that you are unfamiliar with. And I agree that you should look at the donut counties, I personally like Hancock and Shelby. Justin P. is right, I see variations of those numbers all day. You were not clear whether you were looking to buy a turn key or BRRRR type rehab, though if you are saying you are risk averse I would think you would prefer the lower risk of a turn key directly from a management/investment company (though there are still risks regarding the integrity of the management company you choose, there are a lot of questionable areas being sold for ridiculous prices and you don't want to be the one without a chair when the music stops). So do your diligence. All the advice on this thread is great. Definitely network, talk to others on here or at the meet ups about contractors, realtors, property managers, Real Estate Lawyers, Accountants. Think about your team. You can't be the best at all of it, so find your "thing" and hire the best for the rest.

Hey Nick, does that invitation extend this way? lol. Always interested in meeting other mid-west investors west of the Rockies.

Eric, thanks for the heads up on the closing info. I would be interested in your recommendations for a management company in the area, who you use, how many they manage for you, how flexible they are with contractor use, etc.

Hit me up, I lived there for 20 years. Moved back to Cali lol. But have 3 rentals there. Mark is right, really gotta kinda know the area.

Josh is right, it usually doesn't happen in Indy, Maybe in Lafayette or Bloomington with the college-centric community but in Indy your are better off getting multi family. Duplexes are all over the place, but know your neighborhood. One street could be the difference between getting paid or getting screwed.

Bro, walk away if you can. I am from Indy 20 yrs (moved back to cali recently - tahoe area). The area you are in is borderline ghetto. If you were in Broadripple proper or north of there then you're usually golden but south of 56th is risky, you gotta know the streets in that area. Try to stay outside of 465 if you dont know Indy (but that's not a hard and fast rule either). Pm me and I could show you some of the better areas in Indy, I see deals all the time in indy. I have 3 rentals there.

Are you looking for duplexes? or multi unit? There are some 30-60 unit complexes around 38th and Keystone, and you can find duplexes all over indy. But like Jaron said it can be street by street in Indy.