While having a cup of the V60 Pour Over at Calvin Fletcher’s Coffee Company on Friday, I overheard a young couple discussing whether or not they should start flipping houses here in Indianapolis. I’ve been investing in Indy real estate since long before they were born, so I couldn’t help but to give my two cents. Sam and June were glad I did, and so was I.
The couple had never bought an investment property in Indianapolis, or anywhere for that matter, and weren’t confident they could make a solid business out of it. I confirmed that it was a lot of hard work and that many new investors struggle. But, I also told them that running your own investment business can be very rewarding if you’ve got the right training, tools, and resources behind you to help you succeed. If you’ve got that covered, and a strong work ethic to boot, then flipping houses is a very good business to be in—especially in Indianapolis.
Why Flipping Houses in Indianapolis is a Good Business
When you think of the country’s hot spots for investing in real estate, Indianapolis may not be the first city to come to mind. A lot of attention is given to places like Austin, Portland, and several of Chicago’s up and coming neighborhoods to name a few. And, perhaps that’s justified. Significant housing market shifts and the big numbers that often accompany the upswings always make for great headlines. But, just because all eyes aren’t on Indianapolis yet doesn’t mean that you shouldn’t take a closer look. Here are some of the reasons why.
Compared to other major metropolitan areas, the Circle City experienced a swift rebound after the housing crisis and the market has only continued to improve. In the last year alone, for example, foreclosures on single-family homes in the region dropped by 53.4% and the sale of foreclosure inventory now represents only a 2.7% share of the total market, according to the MIBOR Realtor® Association. Additionally, their data shows that median home sales prices on all sales of single-family homes gained a more than 10% lead on last year’s numbers and, for traditional sales specifically, homeowners are getting 95.4% of their list price. This indicates a healthy increase in the demand for housing, but also an overall uptick in consumer confidence.
Of course, Indianapolis and the surrounding communities didn’t have as much difficulty returning to solvency as cities in states like New Jersey and Nevada have experienced. For example, though jobs across all industries were cut by more than 20,000 between 2008 and 2010, according to the U.S. Department of Housing and Urban Development (HUD), emerging industries like healthcare and information technology moved in and balanced things out. Now, overall employment is back to an impressive 97%, reports the Bureau of Labor Statistics. With unemployment holding well below the national average, economic stability across the region remains the norm. And, for investors, like me, who prefer to steadily build a business in a market that’ll support a decades-long career, rather than engage in the grab-and-go approach you often see in more volatile markets, Indy’s relative stability is especially appealing. That it’s currently on the upswing is an added bonus.
Strong housing demand, however, creates a downside: housing is becoming scarce. As of April 2018, the year-over-year change in available inventory for the region dropped by 32%. And, that number is likely to grow bigger as more people move to the area from cities where the cost of living is considerably higher. In fact, the Indiana Business Research Center recently reported that more than 20,000 people relocated to the areas surrounding Indianapolis, Carmel, and Anderson last year. Marion County, in particular, acquired more than 6,000 new residents—the second largest increase in the state. A boom in population can certainly be an additional boon to the local economy. It will likely help to drive home prices further north as the demand for housing continues to grow. But, where does that leave investors who need to find enough real estate investment opportunities to build a solid business on?
If you’ve got an effective real estate investor lead generation system in place, you’ll find houses to flip in Indianapolis even where competition may be increasing. High employment rates and low foreclosure starts don’t account for all that’s going on in people’s lives, nor do they paint a full picture of the financial troubles many homeowners face. Divorce, illness, death, and other traumatic life events often come with debilitating expenses that stretch people thin emotionally and financially. And, all too often, unless they know where to turn for help, distressed homeowners who may actually be motivated home sellers will keep their situations under wraps until things become unbearable. If you can find them, or help them find you, then you’ve got the potential solution to both of your problems.
If you also have great investor training under your belt and a resourceful team to help you make smart decisions about buying and renovating property to resell, then the leads on distressed homes you do find have a better chance of becoming the kind of deals that yield good returns.
The Best Way to Set Your Business Up For Success
Years after I started investing in Indianapolis real estate on the side, I became an independently owned and operated HomeVestors® franchisee. Wanting to turn my part-time passion for real estate into a full-fledged career, I knew I’d have to get better at finding leads and flipping houses. A HomeVestors® franchise was the best option out there that could help me do both—and it did. I received comprehensive training, access to a network of regional franchisees to lean on for advice and referrals, and my own Development Agent for one-on-one mentoring. And, to sweeten the deal, I’m also able to leverage the nationally-recognized “We Buy Ugly Houses®” ad campaign that drives distressed homeowners directly to franchisees like me—regardless of market conditions.
If you’re looking for a solid business model to give your investing career a boost, like Sam and June, take a closer look at HomeVestors. Call today for more information.
Each franchise office is independently owned and operated.