All Forum Posts by: John Clevenger

@Abir Stolov

Love to hear another investor is entering our market!

Can't tell you enough about how excited I am for Indy and it's growth over the next decade. With that being said, I have to agree with @Mike D'Arrigo, Indy is a market that can change street by street and having boots on the ground to help you navigate that will be a huge advantage. 

The areas you focus on will depend heavily on your goals. Happy to chat through what I'm seeing and give you the tools necessary to be successful here in this market. 

Good luck!

@Amy Mitchell

Clearly both Gloria and I are biased however when you look at the broad metrics of the Indy area comparative to other markets I believe it is the most well rounded. I've outlined below some of the noteworthy things that would be pertinent to your decision on our area. 

• - Median sale price is 230k as of Feb. 
• - Indianapolis has rent rates climbing at the fastest rate in the nation (+8%)
• - 3rd highest YoY rent growth since last year of the same time. (14.85%)
• - Unemployment rate of 2.2%
• - IU Healthcare (near Northside) announced in January a 4.3B expansion
• - Mayor Joe Hogsett announced in January $80M to Indianapolis parks. And $190M in facility upgrades
• - 16 Tech Innovation District
• - A mixed-use 60-acre development including advanced technologies innovation district, including offices, research laboratories, parking garage, housing and retail space plus parks, walking paths and other amenities
• - Elanco (Animal health Leader and spinoff of Eli Lilly) building their new $100mil headquarters just south of the Indianapolis Zoo
• - Indy Eleven Investing over 1 Billion in the development of their new Eleven Park. A mixed use development project including their new soccer stadium (over 20 acres)
• I'd advise doing your own due diligence but I'm a die hard believer in Indy and think others will grow to believe the same as time progresses. 
• I'll send over some contacts you may find helpful now. Let me know if you have any questions or want to hop on a call! I'm sure Gloria or I will be able to help you through whatever you need here in Indy!
• Good luck!

@Nicholas L.

Not home runs but base hits for sure!

@Dan Grove

Have to echo Gloria. Indy is of the safest and most straightforward markets in my opinion. Obviously we both have bias but I know I see beginners finding their footing here on a regular basis. Would recommend comparing it to other cities when doing your own due diligence but the more you look, the more you’ll find Indy is extremely well rounded. Always happy to chat through more specifics if needed, just let me know :)

@Ian Ortiz Santiago

Great question! I'm going to preface this by stating that it would likely be very beneficial to talk to accountants and attorneys in each of the locations you're thinking of creating your LLC. With that being said, I would assume having an LLC set up in the states would provide more protection. It may be worth looking into a Master Holdings LLC as well. I know of a few people that use them but haven't dug into the specifics.

Sorry I couldn't be of more help. 

Best of luck!

 @Alan Phan To not go negative, You'll want to make sure your rental income more than covers your mortgage at a minimum. It's harder in some markets like California as you may have noticed, but in the midwest and other lower priced markets it is very attainable. I know here in Indy you won't have a problem finding something that cashflows. 

Turnkey is a great way to minimize risk, however you pay a premium for that which often comes at the expense of CoC return. With the right property it will be a GREAT first investment property as it should be relatively hands off after closing.

Investing out of state may seem scary as you won't be able to be there yourself as much however it typically comes with far more opportunities comparative to more expensive markets. The key with investing out of state is having a great team in place. People that lead with integrity and transparency will make all the difference. 

Good luck in your journey!

Have to agree with @Corby Goade. It sounds like there isn't a perfect solution and it will ultimately be up to you to pick what fits best for you and your partner. I've outlined a potential situation that could make situation a little better.

I would recommend doing the renovations now and see what equity you can make from it. Maybe once it's done, refinance, or bring in another equity partner to get access to some liquidity to pay off your credit card debt (don't want to be paying high interest) or you could use that liquidity elsewhere to invest if that's what works best for you. Keep in mind you'll need to make the offer to a new partner enticing and your goal is to break even. So maybe you can give them all of the cashflow for the next year to buy in, you use that to pay off your cards, and then they are reduced back to their fair share after. It would be a longer payout for this but there are quite a few ways you could get creative with a new equity partner and I'm sure you could find a win-win solution. 

Looking forward to hear what comes of it! Let me know if you want to chat through some options!

Think there is some substantial validity in this, but do you think it could potentially be utilized in a different fashion? Personally, I'm incredibly ignorant on the subject compared to others, but find it fascinating. Like most service industries, there is nothing more important than the human touch as that is what people relate to and feel comfortable with. However, the relationship and efficiency of work can be supported with the use of new technology such as AI, can it not? 

@Dillan Mamou

I have some contacts to help you out, DM me.

@Zeriet Woldeab

Great to see you doing due diligence to put in place a great team that works for you.

I am biased when it comes to property management, but personally trust @kennyhall to manage any and all of my investments. Leads with integrity and trust and expects the same with anyone he is working with.

If you’d like we can hop on a call and discuss the area and other PM options to make sure it’s a good fit.

Regardless, excited to see a new face interested in our city!