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7 Tips for Buying Your First Investment Property in Indianapolis

System - Tuesday, October 26, 2021
Property Management Blog

In a booming real estate market, many people consider purchasing their first investment property. It is the best time to test the markets and make a sound investment. 

Before getting started, there are some important tasks you need to complete. In this article, we'll give you some food for thought on real estate investing.

Keep reading for seven tips for buying your first investment property in Indianapolis.

1. Research Before Buying Your First Investment Property in Indianapolis

Understanding how to buy your first investment property is not something you should take lightly. It is more than seeing a property you like and purchasing it.

Research the industry and make sure you understand every aspect of the business. Know when to buy, understand what happens after you own the property. 

Most importantly, have a plan on how the property will make money for your investment property business.

2. Legitimize Your Investment Property Business

Don't just go out and buy your first investment property. Create a business plan to chart your course and understand where you want to take your business. 

Incorporate your Indianapolis investment property business. Make sure everything is legal and legitimate. Separate your personal money and property from your business investments, including opening a business bank account.

3. Secure Your Financing

Do you know how you will finance your first investment property in Indianapolis? The answer to this question is one you should know the answer to from the start. 

You can use personal finances, seek investors, take out a loan, or use a hard money lender. 

Weigh your options and understand the cost of each. You don't want to lose money on your first investment property.

4. Assemble the Right Contacts

Real estate investing in Indianapolis requires having the right contacts. You'll need to work with realtors, contractors, and people in the mortgage industry.

Building relationships with seasoned property investors can go a long way in gaining knowledge about the industry.

5. Choose the Best properties 

Choosing the best properties is vital to real estate investing for beginners. How your first investment goes will dictate whether the business will succeed. 

The best properties are ones you can make marketable quickly. The goal is to get them on the market fast and start earning income.

6. Follow Your Plan

Go back to your business plan often. Make sure you are going in the right direction. Make tweaks as necessary.

7. Grow Your Portfolio

Following the success of your first Indianapolis investment property, you're set to grow your investment portfolio. Repeat the steps that worked, and adjust or eliminate the things that did not work. 

Budget and reinvest into your business. 

It's Time to Build Your Property Investment Business

Your first investment property in Indianapolis will set the tone for the future of your business. Following these tips will help you start on a solid foundation.

After you start your portfolio, you'll need someone to manage the properties. Keep the focus on acquisitions and leave the rest to us.

Click here to learn more about our property management solutions.