INDY GOLD RUSH | Competing with Out of State Buyers Flocking to Indianapolis

How do local Indianapolis Real Estate Investors compete in an increasingly competitive market? The Home Value growth in Indianapolis is 42% since 2020. The Median home price in 2020 was $170,000, but it has increased to $240,000. 2%-4% mortgage rates have risen to 8%.

Many people are leaving bigger cities for more affordable living in Indiana. Large Out-of-State corporate investors are swooping in to grab up single-family homes and apartments. Competition for finding good real estate deals is increasingly hard to come by. It's like a gold rush in Indiana.

But there is hope for success in Indy for wholesalers and other local investors. Partly, it does take a bit of extra work digging twice as hard as we've been used to. Some of us have gotten lazy, taking the easy deals for granted. But there are deals out there.

Local investors and wholesalers have a lot of advantages compared to out-of-state buyers. Many out of state buyers have been developing bad reputations. This is where local investors with consistent track records and face to face encounters goes a long way.

Out of State buyers may be able to offer more money, and sometimes that's what it comes down to. But local buyers can offer trust, as many sellers are getting burned by corporate conglomerates. And many out of state investors are coming for 6-12 months and then packing up and leaving. For those local buyers sticking around, consistency builds your credibility.

It's not about making big adjustments for buyers right now. It's about make small ones. Maybe you can safely buy at a little higher ARV percentage than you used to be able. Maybe you need to attend more Meet-Ups and other events to make a few extra connections that get you that deal. Maybe you just need to have your ducks lined up better for financing to be a little bit quicker to get the deal when available, so you can close faster. Maybe it's exploring new areas that will be the next Fountain Square. Maybe doing delayed flips and continuing to rent for a few years is a successful recipe as properties appreciate.

The moral of the story is, those investors who are in the Indianapolis area for the long-term are the ones who will eventually win out in the end. In the mean time, listen to Brett & Ronnie discuss some tips and tactics that could help you in your short game at this season of the real estate market.