A Slumlord is “a landlord who receives unusually large profits from substandard properties” according to Merriam-Webster Dictionary. Most of these properties are located in low-income and rough neighborhoods and their residents are considered to have no choice when it comes to housing.
If this is the case, how can beggars be choosers? Renters in this areas have to settle for what is available to them and make the best of it. Most of these houses are dilapidated, require a ton of work and are not desirable to live in. So does being attracted to buying in these areas make someone a slumlord? The answer is… it depends. There are some investors that do buy in these pockets with no desire to fix up the neighborhood, reduce crime, and help the residents. However, there are other house buying companies, like ourselves, that are driven to renew neighborhoods that have LONG been forgotten.
In most cases, these houses need new roofs, rewired electrical, new mechanicals like furnaces and water heaters, updated plumbing, paint, along other items just to name a few. Often times, we walk into properties that it’s hard to imagine people living in, especially during harsh weather conditions. What separates us from “slumlords” is that our mission is to renew our city “street by street, house by house.” We put our own money, time, and resources into rehabilitating these properties.
Let me give you a quick walkthrough of what we do before acquiring properties in need of love. First, we keep in mind the amount of repairs needed. A prime example before we buy a house is accounting for the roof, furnace, water heater, foundation, electrical work, plumbing and so on before we buy. This is factored into our purchase price. We know that the property will be worth X after all rehab is complete. This is called the ARV or After Repair Value. When we buy, we have to account for the cost of all these items and how much the house will be worth after it has been fixed up. Therefore, we have to buy these properties at a reasonable price, so that we can make all the necessary repairs.
We are in this business for the long haul, so what we are selling is time. We are going to get our money back over time through renting out a nice home, and we have the time to wait until we get our money back.
Our mission to renew is our driving force, Buy to Renew is aimed at renewing our neighborhoods street by street, house by house and to contribute towards renewing our city.
We beg to differ, we are Slum Saviors. We are trying to create a solution, rather that folding our arms and just watching neighborhoods fall into decay. Like the saying goes, put your money where your mouth is and we are backing that statement up with our actions.
Our business of buying, fixing, renting or flipping houses is how we make a living. We treat others with respect while allowing homeowners to sell quickly and on their schedule.
For more information, please visit our website on www.buytorenewindianapolis.com or call us at 317-983-4141.