Indiana or as it is also known as "the Hoosier State" represents to many farm land and the great American Heartland. Few realize that Indiana has the 16th largest population of all the United States with a population of over 6.5 million residents. Its economy is extremely well diversified and the work force is highly skilled. Indiana does have its agricultural base, producing corn, soybeans, grapes, melons and numerous other cash crops. But the largest employing sector in the state is manufacturing. What this has to do with buying foreclosures will be covered shortly.
Unlike many of Indiana's Rustbelt neighbors, the states manufacturing base has been developed to focus on high skill manufacturing such as steel, industrial machinery, medical equipment and pharmaceuticals. Eli Lilly is the single largest corporation to head quarter in the state. In conjunction with a highly skilled work force several other variable make Indiana business friendly and therefore less vulnerable to down turns in the economy.
There are few union members in the states of Indiana in comparison with its neighboring states and the population is dispersed throughout the state and not concentrated in one geographic area.
As an example Chicago is the home to 65% of the State residents while Indianapolis is home to less than 20% of the Indiana residents. This dispersion of citizens keeps the cost of labor down and real estate less expensive.
With the population more evenly spread across the state from cities like Fort Wayne with 250,000 residents, Evansville with 120,000 residents, South Bend with 105,000 residents, Gary with 98,000 residents, Carmel with 85,000 residents, Hammond with 80,000, Bloomington with 70,000, Muncie with 65,000 it is no wonder that the state of Indiana has not felt the same sort of pain as either Illinois or Michigan.
This does not meant to say that Indiana has not felt the pain of the real estate crisis and the global economic meltdown. These preceding facts and figures are meant to create a greater understanding of why Indiana is one of the bright spots of the financial recovery with real estate leading the way and not following as it may do in other states that are less diverse economically.
Indiana ranks 14th in the country for the number of foreclosures per housing unit compared to neighboring Illinois which ranks 6th. Unemployment in Indiana is 10.1% which is 30% lower than Michigan. Both sister states are highly unionized, have high concentrations of population and are less economically diverse than Indiana.
Still foreclosures have touched every neighborhood, town and city in Indiana, but this is more to do with sub-prime mortgages that have still to work themselves through the system either by selling, refinancing or being foreclosed on. Signs of the downside of sub-prime mortgages started showing up as a spike in foreclosures in 2006 and had become a full fledged epidemic by 2008 in the normally consistent state more known for the Indianapolis 500, Indianapolis Colts and NBA Pacers than its financial problems.
Foreclosures are in no short supply in Indiana even though the economy of the state appears to one of the most solid and diverse in the nation. Indiana gross state product is greater than many entire nations at $220 Billion dollars annually. This $220 billion statistic combined with other indicators of financial stability show that Indiana will recover from the recession and the real estate implosion sooner than most states.
When buying a foreclosure it is important to consider the employment situation in the particular area. For example buying a foreclosure in Westfield with a population of under 10,000 may prove problematic as the required population to generate a resale or a tenant is less likely in the same amount of time as qualified buyers or renting population is greatly reduced. The wise investor will look to homes in counties such as Allen County, Bartholomew County, Clark Delaware Elkhart, Floyd, Grant, Hendricks, Hamilton, Howard, Johnson Lake La Porte, Madison, Marion, Monroe, Porter, St. Joseph, Tippecanoe, Vanderburgh, Vigo and others.
Of note is the many counties in Indiana that have what would be considered high populations.
This higher than average number of desirable counties offers the real estate investor more latitude and more choices in buying foreclosed homes.
The savvy investor does not lock their search to a small corner of any one area. It is best to know the area that you are buying but this does not mean that you cannot learn about new areas around the primary focus.
Indiana has hundreds of little towns that offer foreclosure buying opportunities, it is the resale of the foreclosure home that must be taken into consideration. As stated only 20% of all Indiana residents live in the Indianapolis metro area while the state has the 16th highest population density in the nation. This indicates that the population is evenly spread and that veering away from major population should not be necessary.
Regardless of the number or location of foreclosures Indianapolis offers smart Real Estate investors the opportunity of a life time as the number of potential buyers has not diminished and there is an abundance of foreclosed homes at reduced prices that can be taken advantage of.
Population data is very important when it comes to making a purchase of a home, be it a foreclosure or not. You must have someone that wants to either buy it from you or rent it from you in the future. With a Real Estate investor the word future can mean later the same day as with an owner occupant "future" could mean 3 to 5 years. Either way, if you are buying a foreclosure in Indianapolis, anywhere in Indianapolis the population of the area must be taken into consideration. High population means a better chance for a quick and profitable sale. As long as that population is gainfully employed the foreclosure buyer is making a safe investment and Indiana offers a highly skilled, secure work force as possible purchasers or tenants. The more rural the home the lesser the chances of getting the quick sale that can mean all the difference, especially in a troubled economy.
