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We have chosen Indianapolis for a variety of reasons. After completing transactions in Florida and California, we polled our prospective clients and the answer was consistent, they were looking for something safer. Florida and California admittedly are sexier, warmer, and more entertaining. They are also the states highest in foreclosures. So the niche that our clients wanted us to fill is the conservative and consistent part of their portfolio. With that in mind our research concluded that there are several principles required for performing real estate. Time-Tested Keys of performing Real Estate: State and Local Government, Universities nearby, Pro-Landlord Legal Climate, and a Diverse Local Economy. State and Local Government Paralleling the growth of the Washington DC area, other capitals experience something similar. While it is great to get a ‘good deal’ when real estate investing – it is crucial for the investment to perform. Sales, Income, Property Tax (and host of other taxes as we all know) will usually continue to flow into the state capital. There are no guarantees as we’ve experienced in the recent recession, but this is an added bonus. With new stimulus coming it is likely that government will be growing. (Over-regulation historically stunts public company growth.) Now you know why Trump just finalized 100 acres near the Potomac river near Washington DC Universities Every year thousands of students enroll in universities without fail, the tuitions continue to increase. One of the arguable recession-proof areas of real estate is campus housing, however difficult to raise rents because of the high amount of competition. Being near the economy of the universities would be advantageous. A few of the universities that Indianapolis is home to include: Purdue University, Butler University, Indiana University, University of Indianapolis, Marion College, Indiana Westland. Landlord Friendly We’ve all heard about landlording horror stories. Another reason why we have chosen the Indianapolis market is that the city is landlord friendly. In neighboring Illinois, Michigan, and Ohio we’ve heard stories of 30-90 days (or more) in evicting a tenant. In Indianapolis, we are usually near 14 days. Rare but we have the experience. Diverse Local Economy We would not want a dominate industry i.e. Detroit. The Economic Sectors represented in Indianapolis include Advanced Manufacturing, Agriculture, Information Technology, Insurance and Financial Services, Life Sciences, Sports / Motor Sports, Tourism, and Transportation / Logistics. Companies such as Conseco, Eli Lilly, Guidant, State Farm Insurance, Wellpoint, Roche Diagnostics to name a few. Forbes magazine ranked Indianapolis as the tenth “Best Place for Business And Careers” on its 2006 survey among the 200 largest metropolitan areas in the United States. Forbes Magazine Best and Worst Bang for the Buck Cities The worst of course were cities in California and Washington DC were median home prices are still $400,000, others poor scoring cities included New Orleans, Los Angeles, St. Louis, Milwaukee, Cleveland, and New York. |




