All Forum Posts by: Ivan Guillen

@Zach Hoereth be there or be square 

Currently, I am working with a client that has several properties in Indianapolis. These properties consist of a 6plex in Irvington, SFR in Bates Hendricks, SFR near Meridian-Kessler, and two SFR east of Mapleton Fall Creek.

He wishes to keep the properties off-market for 1 week to try and sell them quick and at a discount. 

How do you guys advertise off market properties? What are the most effective methods outside of the MLS?

You will be better off acquiring the deal with cash, and then refinancing to pull your equity out. As a broker, I have seen that sellers prefer a quick close with cash vs. conventional financing. Cash would probably be the easier way to do it if you have enough for the acquisition and rehab.

Best of Luck!

My team and I are going through the same process, and we are looking at anything above 30 units! We have started to create a team that can tackle this project. We have vetted several PM companies to ensure they are equipped to handle at least 30 units. We have a few PM for various unit sizes, so one company may only be able to handle 30 units while another could handle 100+. The PM we go with will ultimately depend on if they can fulfill our needs, and the deal size we close on. The next part of our team is the investors, we will reach out to in order to raise private equity. When the deal emerges we will contact them with the opportunity. Knowing contractors is also crucial if you are looking at a place where value can be added. Lastly, my partner and I have been scouting opportunities and underwriting to ensure that the property will serve its purpose to the tenants and investors. 

Best of luck to you!

Being a local broker in Indianapolis, I often get asked by clients to search for turnkey properties. I want to start by saying that turnkey can actually be an excellent vehicle for the investor that doesn't have much time on their hands to take on a big project. What I see far too often is low returns on properties like this. This leads investors to either try to go in way too low with an offer in attempt save their cash, or they end up overpaying because the demand is so high, and this further diminishes their ROI.

Like I said there is nothing wrong with buying turnkey, but if my client has a contractor and property manager they trust then I would strongly suggest they go with something where they can add value. In my opinion, turnkey properties are not deals. For someone to acquire something that is considered a "deal," there has to be a problem. Usually once that problem is solved the investor is compensated. Turnkey means that someone has updated the property so issues are almost inexistent. This does not let an investor take on a problem, and due to that the seller receives the majority of the upside. 

Here is my suggestion, build a competent team consisting of a broker, PM, and contractor. Find a property where you can add some value (big or small), and fix the problems that the property has. If this is too time intensive, then turnkey could be your best option. As investors we pick what problems we want to tackle, and if the compensation will be worth our efforts. Do your due diligence and find out what problems you are willing to take on to see a higher ROI.

Would love to hear about your experiences with turnkey properties and what markets you have bought in!

The areas that you can invest in will ultimately depend on the purchasing power you have to start off. If you are looking to invest outside of the belt, in suburbs like Fishers, Avon, Carmel etc. there is typically a premium that comes with buying in these areas. I have a few properties within the Indianapolis city limits, and they have provided strong cash-flow. When investing within Indianapolis, it is important that your broker knows the areas since the path of progress varies from block to block. 

You mentioned that you were looking for a duplex, so I feel you are going to want to stay inside the belt because there is a larger supply of small MFR inside the city. If you need any help feel free to reach out! My team and I are all native to Indianapolis, and we have a portfolio consisting of 40+ units around the state.

Good luck to you!

@Mami Asakawa I would recommend that you stick to your buying criteria, and invest where you feel most comfortable. It seems that you are unsure about the area, and you desire an area with a higher demand. If I was in your shoes, I would look at what factors are driving demand in the areas you have mentioned and see if that makes it more appealing than Creve Coeur. Do some extra due diligence determine what city you are most comfortable investing in. 

You mentioned Indianapolis, and from being local, a RE broker, and investing in the area I can tell you that it is a strong SFR city. The city has been progressing quickly, and due to this it means that areas vary from block to block. If you are investing in Indy, make sure you have a strong team in place. Your broker should know all the areas in the city along with the values of the properties in the area, and your PM should be able to back their knowledge up. Relay your buying criteria to your broker, and give them feedback on the opportunities they provide.

If you have any questions about the Indianapolis market then feel free to reach out! Good luck!

@John Boland my team and I own a few properties in Indy consisting of SFR and small multi-multi family. We also have some larger multi-family in surrounding cities. The city is starting to progress so that makes it attractive to investors! Feel free to reach out with any questions!

Indianapolis contains lots of strong cashflow opportunities! As far as turnkey, I have noticed that many of these do not give investors the return they typically look for. You mentioned you were busy, and although turnkey seems like the best way to go, since there is no value being added the returns are usually ate up. In my opinion, turnkey properties are a good way to build up equity, and benefit from appreciation over time. If you are looking for high returns, then I would encourage you to invest in a place where you can add value and gain instant equity from the ARV. There are tons of B/C class properties in areas that are turning around, but they need some rehab.

To help you with time, you should have a competent team in place consisting of a broker who is knowledgeable on the values in the area (and MF investments!), a contractor, and a property manager! My team and I, specialize in investment properties around Indianapolis. We are all native to the area, and have kept up with the changes going on around the city. Our team has a portfolio consisting of 40+ units in Indianapolis, and nearby cities. These properties range from SFR to a 19 unit complex. Let me know if we can provide some help!

Excited for you to get started!

I live and invest locally in Indianapolis and have had great experiences with my units so far. Since you live in Champaign, IL, Indianapolis could serve you greatly. Property values here are relatively inexpensive when compared to other major cities. Indy is going through a lot of changes, and OOS investors have started to notice the rapid change! My team and I specialize in residential investments in the are, so if you need any guidance feel free to reach out! 

Good luck on your investing journey!