The market for Indianapolis investment properties is expanding, and becoming more accessible to private individuals than ever before. However, for those starting out their careers as commercial real estate investors, the selecting and appropriate financing can seem overwhelming. We have put together a handy guide to help you identify which Indianapolis investment properties are right for you, and how you can finance them to start generating revenue.
Defining Indianapolis Investment Properties
Indianapolis investment properties span a wide range of building types. Retail space, motels, hotels, offices, industrial plants, houses, and apartments all qualify as investment properties. For those starting out in commercial real estate, taking on a multi-stage construction project from the ground up may not be the ideal first time venture. However, Indianapolis investment properties that offer rehab projects, fix and flip opportunities, or the ability to renovate and rent out properties are great for first time property investors. Retail space can generate a lot of revenue from store owners, as can office buildings.
To Sell Or Rent Indianapolis Investment Properties
Buying and selling investment properties is a great way to make a large chunk of revenue very quickly. The process usually involves fix and flip loans which provide the capital to purchase investment properties and meet the cost of renovation. Commercial real estate investors in Indianapolis will purchase properties below market value, make renovations, and then sell them for a much higher price. Renting may not have a higher revenue yield to start, but can be more profitable because they rent recurs monthly. Obviously, the more units you have to rent, the more you can multiply your revenue. For the most part, Indianapolis commercial real estate investors will use a combination of conventional loans and bridge financing to cover all costs. Then the property will be renovated and rented out to qualifying tenants. There are even blanket loans, which allow people to purchase or renovate multiple Indianapolis investment properties all at once, instead of taking out separate loans for each rental.
Get Started On The Right Path
If you are looking for financing for Indianapolis investment properties, or you simply need some guidance as to what type of property is right for your goals, contact the experts at Liberty Commercial Capital. Our team has the knowledge gained from years of experience in Indianapolis property markets to advise and finance commercial real estate investors, both new and seasoned. Call our offices today and put our knowledge to work for you.