All Forum Posts by: Hank Keller

Hi @Michael Stanley Nino - when i started RE 7 years ago i started local but similar to you was in the engineering field working FT. While attending a real estate conference i was introduced to an Indianapolis based turnkey company that allowed me to use my capital while still working full time. I spent a weekend looking at their business processes, build quality and the neighborhoods they were in.

In my experience the two most important things when investing out of state is to know the market (over 1 million in population with consistent growth, a business friendly government, inexpensive houses, and plenty of jobs) and get to know the team enough to trust them (Do they have construction and property management under 1 roof, how do they acquire their properties, do they know neighborhoods street by street, what is their screening process, etc)

Even though i live in ohio and there are some great markets in Cleveland and Columbus, because i have found a great team in Indy, i’ve Been investing with them over the past 5 years and now have 10 units with them.

I've used leverage in my local markets for growth and SDIRA with the turnkeys to grow my retirement. Make sure you set up your LLC's to protect yourself and find good teams to help you be successful.

Hi @Benjamin Mann - While all of the indianapolis turnkey properties i've Purchased over the past five years have been with a self directed IRA, i learned this past weekend while in Indy that you can participate in the rehab cost (after they purchase the property) with all cash and some financial qualification (not sure what it is as i've never pursued this method). The turnkey company owner also allows cash out refinance after the purchase. Having purchased 9 properties from them now, i can tell you that they have good rehab quality and encourage potential investors to visit them to meet the team and see their inventory.

I’ll also tell you that just like my 5 multi-family properties in ohio, i’ve Had maintenance issues and evictions and that they’ve done a good job on cost management and turn around time. Good companies are still out there, you just need to complete your due diligence to make sure they align with your strategy.

Hi @Blake Dailey, i’ve Been buying Indy properties while living in Ohio using a turnkey provider there in Indy for the past 5 years and now have 9 properties. None of those are in Marion county and for much of the rest of the city it’s wise to know street by street. I have a couple in the 16Tec area, a few in fountain square the rest are throughout the city. Even in those areas, it’s wise to have someone you can trust that knows a street by street assessment of each neighborhood and those that are beginning to turn for the better due to city projects. Still a great place to invest but make sure you find a company you can trust...

Hi @Steve Sun - i've Purchased 8 SFH's over the past 5 years with a turnkey provider in Indy. Their acquisitions team has also made the statement that it is street by street but because the city of Indianapolis has a large surplus of funds they are constantly revitalizing neighborhoods some of which are in opportunity zones so there is still good deals to be found.

Hi @Trae Floyd - I started with local rentals getting to 5 multifamily homes (OH) while still having a full time job. It's good to get experience locally, learning about the purchasing, repair, tenant screening and rent collection processes. My wife and i didn't start looking at out of state turnkeys until we felt we couldn't do more with our FT jobs. We ended up using self directed IRA's to purchase TK's (now at 9 in Indianapolis) and then also focused on our local rentals. I was then able to use one of my rentals as collateral to purchase a car wash and leave the corporate world.

For me, taking this approach, allowed me to be more comfortable in purchasing out of state with turnkeys. Now, I’m using one of my Indy purchases as an AirBnB with my turnkey provider to learn the processes to potentially do it in my Ohio market. 

I’d recommend local learning first...

@Andrey Keller - My Turnkeys were purchased through self directed IRA’s as my active income is now running a carwash in ohio. My philosophy is that good returns only come through solid research, then comprehensive due diligence. I found a company that has construction, management and brokerage under 1 roof and operates in Indy, Charlotte and Kansas City.. These markets have population >1 Million with consistent growth; Good jobs and low unemployment, inexpensive houses in working class neighborhoods that create returns of at least the 1% rule and are cities with excellent credit ratings allowing them to invest back into the city. My first purchases 5 years ago included visiting the company and interviewing the employees for the systems they use, inspecting the houses and then reviewing the monthly reports once the purchases were made. I now have 8 properties in Indy and 1 in Charlotte. I’ve had evictions and maintenance but they’re response has been quicker and more efficient than my Ohio properties. Returns have been as good and in some cases better than my Ohio properties. I dont have a construction background so the turnkeys have been perfect for my strategy. I’ve partnered with the TK company owner this year on an AirBNB and hope to use this knowledge to start an AirBnB on my personal house in a couple years. Hope that helps... Hank

@James E. Krause Not local to you, but I have turnkey properties in Indy and Charlotte and can share my experiences over the past 5 years.

I invest in Indy mostly because of the good returns. Been there 5 years and have had consistent 7-8% returns passive. Have 7 SFH's and just starting an AirBnB project.

It’s business friendly, inexpensive to purchase, has had a steady increase in population for decades, and great jobs. The state has a AAA credit rating and 100M in budget surplus which can help to significantly improve the city and civil services.

@Rob Bianco My wife and i had a duplex and triplex along with full time jobs and couldn't do more. We found a TK provider in Indy and made our first SFH purchase 5 years ago. In the past five years i've purchased two more triplexes and 1 duplex and 5 more TK's and been able to get out of the corporate life. The TK's outperform my locals because of the experience of the team and the market. PM for details.

@Fernando E. - Yes, i’ve used the company for the past five years and havent looked anywhere else as they have taken care of me and performed well. Appreciation has been about 3-5% in the other 5 Indy houses I’ve purchased from them and 16tec (a industrial area with neighborhoods around it) and fountain square have had much better appreciation. PM me and i’ll Provide details on the company