Did you know that available inventory of for-sale houses in the Indianapolis area is shrinking? For Real Estate Investors (REIs), it’s becoming increasingly more difficult to find deals in the past two years, especially ones with a great profit potential. This is a big problem for many REIs in our area who rely on traditional strategies of finding and obtaining investment opportunities. But what do you do when the tried-and true-methods don’t work so well anymore? Is it time to change your strategy?
There’s really only two choices to think about: (1) keep doing what you’ve been doing and hope that things will improve or (2) consider some new strategies of finding and obtaining real estate investment opportunities in Indianapolis. Hint, this whole article is about option number two and we hope you find it helpful.
Here are our top five REI niche options for Indianapolis investors.
1). As-Is Properties in Any Condition
Start looking for vacant or distressed properties where a house once stood. Maybe all that remains is a concrete foundation. It could have been a home with fire damage or one that was destroyed by a force of nature, like a tornado. Basically, you’ll be buying the property as-is, most likely at a discount from the owner. So what do you do with a property like this after you buy it? There’s a few options, but one of the most popular things to do is bring in a manufactured home, place it on the concrete pad, secure it down, hook up the utilities, and then sell the dwelling to a new buyer. Just be sure to check with your town to make sure this strategy is approved in your area.
2). Probate Properties
Sadly, about 8,000 people will die each day in the United States and that adds up to 2.9 million annually. Many of these estates will end up in probate causing a lot of unwanted stress for direct family and relatives. You can actually add value to the lives of these families while also acquiring a new investment property. Start by reaching out to probate attorneys or looking for estate sales in the Indianapolis area. Once you find an interesting opportunity, just contact the Executor of the estate and make an offer.
3). Foreclosures & Financial Hardships
The last couple years of the pandemic have been rough for a lot of homeowners. Many of which are struggling financially, getting laid-off, facing foreclosure, and could really use some help. In addition to acquiring more investment properties, you can also improve the lives of families in the Indianapolis area by helping them out of financial hardship. These are what we call Distressed, Motivated and Flexible (DMF) sellers who will benefit from a quick cash sale of their home. This is sometimes referred to as a Cash-for-Keys Offer. Complete an assessment of the home and approach the seller with an offer to buy their distressed property.
4). Tired Landlords & Unwanted Properties
Search the Indianapolis area for landlords with unwanted properties or those who are just tired of dealing with tenants and rental properties. Maybe, like a lot of landlords these days, they’re dealing with tenants who are not paying rent but still need to pay mortgage, tax, and utility bills each month. Find landlords that have had enough and make them a cash offer with the promise of a quick closing. As an additional tip here, you can also make a cash-for-keys offer to the tenants.
5). Build Your Network!
This is something you should always be doing, but in case you haven’t been keeping up, consider this is a friendly reminder. Reach out to investor-friendly real estate agents or realtors in Indianapolis who specialize in off-market properties. Make an introduction and let them know you’re a REI who is ready to make deals happen now. This is a win-win situation for everyone because the agent or realtor will earn both front and back commissions.
We hope you found these tips helpful!
Need help finding or liquidating properties in the Indianapolis area? Please keep WILMOTH Group in mind. We are a full service property management and real estate sales brokerage servicing the communities in Indianapolis and we’re here to help you.