how are you finding deals

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how are you finding deals

Jason MalabuteBusiness Member
Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 901 votes

How are you guys finding deals in 2019 in Indianapolis?

Last week a property hit the market. It was a great deal in a great area. It was gonna cash flow like crazy. I was in the process of making offer. Within 44 minutes someone already bought it. 😡

The rest of the time it seems like the properties are either in areas where my PM doesn’t want to manage or the numbers are not good on cash flow or cash on cash return.

It’s been 3 weeks since I visited Indianapolis. I only made one offer and I still have no property.How long does it take you guys to find deals in Indianapolis in 2019.

How are you guys finding deals and which neighborhoods (my pm only likes high rents $800 and up)? I’m willing to try anything. What works best in Indianapolis as an out of state investor .... Craigslist ads , direct mail marketing, both???

I’m kind of scared do wholesaler as an out of state investor because they normally buy in bad neighborhoods and/or properties that need major repairs. Since wholesalers often don’t want to work with your real estate agent it’s scary to trust them without your agent checking out and vouching the property for you?

I dont want to make offers on properties that my PM doesn't like that I will have to back out of later. That happened before and I was scared I was gonna get hit with a breach of contract.

I really appreciate your guys’ help.

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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
7y

@Jason Malabute As you've seen, Indianapolis is a very competitive market. You're going to find it very deals on the MLS, especially that don't need work that don't sell fast. The best deals aren't found on the MS and for sure not on Craigslist. They are bought at auction and through wholesalers. Yes, a lot of properties that wholesalers will offer are in rough areas, but it's up to you to do your homework and know the neighborhoods. You visited in Indianapolis. That was the time to really drill down and get to know the neighborhoods that you like and the ones that you don't like so that when something comes up, you know exactly what the area is like and if it fits your criteria. When you know what areas you like, you don't have to rely on the wholesaler or real estate agent to tell about the area. I'm also not sure I would place more trust in an agent than a wholesaler to guide you to the right areas. There are some agents that just want to seel out of state investors a property and don't have their interest in mind. Since you already have a PM that only manages in decent areas ($800 rent is C class in Indy), why not use their expertise to help you vet an area? Obviously, they don't want to manage anything that would be in a bad area or a problem for them. They would be your best source on independent advice.

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  • Zack Howard
    Member since 2019 · 32 posts · 22 votes
    7y

    I live in Indiana about 45 mins from Indy. If you can't find your deal there try looking a little further away. just today found a new listing for a 4plex for 140k full of long time tenants that looks promising. the investor competition away from Indy is near nothing so they sit with no offers for awhile just waiting.

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  • John Murphy
    Rental Property Investor · Warsaw, IN · Member since 2017 · 33 posts · 33 votes
    7y

    @Jason Malabute My partner and I are in a small market 2.5 hours North of Indy in a town called Warsaw that is home to 3 major Orthopaedic/Medical Device companies. It's a fantastic market with incredibly high demand and climbing rents. 

    We use a mix of direct mail and bandit signs and have generated a dozen leads, have wholesaled some, under contract for a few currently and have a decent list of buyers lined up. We drive for dollars and target plexes and smaller multis but don't shy away from SFHs if the numbers are there.

    Best of luck and feel free to reach out if you'd like to discuss!

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