Types of Investment Properties Offered

Rock Solid Real Estate that Actually Cash Flows

Success in real estate is achieved by acquiring only rock solid, investment grade real estate that actually cash flows. Indy REI’s experts locate the very best real estate opportunities in the Indianapolis market. All properties are thoroughly vetted to be sound investments that will allow investors to achieve their goals. Properties are grouped by their specific attributes into three categories; Class A, B, and C. All properties offered, across all asset classes, are redeveloped, top to bottom, to the same high standards with a client’s long-term cash flow in mind.

Class A Investment Property

The “Class A” asset class is for the ultra-conservative real estate investor. This asset class provides stability and is very low risk. Class A properties are more clearly defined as:

  • – Priced from $110,000 – $150,000.
  • – Rents for $1,100 – $1,500.
  • – Overall investment returns of between 12% – 18% per year.
  • – Very stable locations where “Owner Occupants” make up approximately 90% or more of the neighborhood.
  • – Located in very strong, high-ranking school districts.
  • – Lowest vacancy factor at 3.5% overall across this class.
  • – Lowest wear and tear due to more stable and responsible tenants.
  • – Easily liquidated soon after acquisition, if needed, for a slight profit.
  • – Typical investment requires $20,000 – $25,000 per property if using financing.

 


Class B Investment Property

The “Class B” asset is for the somewhat conservative real estate investor who is willing to take on managed risk. While this provides a higher return than Class A and the overall stability of Class B properties is strong, there may be years with a higher than normal vacancy but with this risk can come reward.

  • – Price points from $75,000 – $95,000.
  • – Rents for $900 – $1,100
  • – Overall investment returns of between 15% – 20% per year.
  • – Moderately stable locations where “Owner Occupants” make up approximately 75% of the neighborhood.
  • – Located in average school districts.
  • – Mid-level vacancy factor at 5% overall across this class.
  • – Normal wear and tear is expected.
  • – Easily liquidated soon after acquisition, if needed, for a break-even.
  • – Typical investment requires $14,000 – $20,000 per property if using financing.

Class C Investment Property

This asset class is for the investor willing to take on managed risk for the possibility of higher reward. “Class C” assets provide a much higher potential return than A and B. Class C properties are the least stable and throughout the course of time may experience higher than average vacancy and higher than normal wear and tear.

  • – Price points from $16,000 – $70,000
  • – Rents for $750 – $900
  • – Overall investment returns of between 20% – 28%
  • – Somewhat stable neighborhoods where the “Owner Occupants” make up approximately 50% of the neighborhood.
  • – These are NOT “War Zone” locations but will usually be within densely populated urban areas.
  • – Located in less-than-average school districts.
  • – Higher level of vacancy at times. 7.5% overall vacancy across this asset class.
  • – Higher than normal wear and tear is expected.
  • – Difficult to liquidate for a break even. Expect to spend a few thousand dollars if you have to sell within your first year of ownership.
  • – Typical investment requires $10,000 – $14,000 if using financing.

 

Blending together the classes of properties gives an investor a diversified real estate portfolio with balance, predictability and the highest consistent rate of return; not found when a portfolio is tilted toward one single class.