Indianapolis has many investment properties available. The key is finding properties that will give you the best return on your investment. There are several things to look for in a good investment property. Talk to a reputable real estate advisor who knows the Indianapolis area. They will be able to find affordable investment properties that will fit well into your portfolio and have all the features you need to turn a profit and be successful.

Location! Location! Location!

The first rule of real estate investing is location, location, location. The right location is crucial for a business to succeed. When evaluating Indianapolis investment properties, consider how well a business is likely to perform in that location. Know local economic trends and if your new building has the right features to house the type of business that will flourish in that area. You will also want to know if it is in an area that is easily accessible from other parts of town

Potential for Future Development

It’s important you look for properties that are suitable for future development. A piece of land with older buildings on it can be developed into something bigger and better in the future. Utilize the existing buildings for as long as necessary and then look for potential opportunities to upgrade your property. If you don’t want to develop the property on your own, you can sell it to the highest bidder when surrounding properties go on the market.

Future Cash Flow Potential

Buying commercial rental properties can be quite lucrative. A good investment property will provide a positive cash flow. Being able to lease your property to a profitable company is a long-term investment that will pay off big in the long run. A property with the right features will be picked up quickly and provide long-term, sustainable income. If it has true potential, companies will often pay top dollar to rent a building in a prime location.

Vacancy Rate

One thing to watch for is a building’s vacancy rate. Has it sat empty for an extended period of time? Do tenants only stay for a short period of time and then move on? Once you know the vacancy rate, you need to find out the cause of the quick turnover rate and determine if fixing the problem is worth the added expense. Remember, the vacancy rate may have more to do with the location of the property than the building itself.

Potential Increase in Appreciation

Many properties will increase in value over time. This can happen if the style of building becomes popular or if developers begin to look at the surrounding area for a large project. As the city continues to grow, expansion projects may call for the purchase of additional properties. If your building is in the right area, you may be offered above market value if the property is needed for the expansion.

Minimum Capital Requirement

A good investment property is one that doesn’t require a lot of investment capital. The key is to invest low and sell high, maximizing your profits and capital gains. This is commonly referred to as your ROI, or rate of return. If you are working with a good real estate advisor, they can find properties for you that are within your budget and can be purchased with the minimum amount of investment capital. In the long run, it will improve your rate of return and allow you to invest more in other projects.

Multiple Investment Loan Options

When you look at financing, one of the first things a lender will ask about is your profit margin. Knowing how much your property will potentially earn is important when considering your lending options. This can open the door to multiple funding opportunities. From small business loans to angel investors, there are several ways to get the investment capital you need. It’s important to do your research and find the one that works best for you in the long run.

When you start your search for Indianapolis investment properties, don’t try to build your portfolio on your own. At Invest With Ben, you have access to a team of real estate professionals who will be able to assist you with any challenge you might face. They will be able to find properties that will flesh out your portfolio and boost your overall rate of return.

When you want to be a successful investor, you work with a known leader in the real estate business!