John Casmon

Innovation in Indianapolis with Sterling White, Episode 15

As a child, he had other kids selling Kool-Aid for him, so it’s no surprise he became a real estate entrepreneur at a young age. Sterling White began working in construction on commercial projects before purchasing his first single family home at the age of 23 – with no money. Today, he thrives with an innovative model that attracts investors and Millennial renters in the urban cores of Indianapolis and Dayton. He is the co-founder of Holdfolio and holds an $8.8M real estate portfolio. Sterling often shares his knowledge through videos and posts on BiggerPockets and tells us more of those insights on today’s show.

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Key Market Insights

Sterling started as an entrepreneur selling Kool-Aid in elementary school
Started by partnering with a mentor who was a multifamily developer in Indianapolis who wanted to jump into Single Family homes
New legislation allowed everyday, non-accredited individuals to invest in real estate
Developed a unique passive investing model that combines elements of turnkey and syndication
Acquires properties with their own capital, funds the renovations, leases units and then brings in investors
Indianapolis is very stable and less volatile than coastal markets
Growing MSA with employers like Eli Lilly, Simon Property Group, Anthem, Indy 500
Indy is more landlord-friendly than Chicago and benefits from the close proximity
Recently, purchased a value-add 46-unit in Indianapolis
Run numbers in worst case scenario, the move-out was more than anticipated
Loves the Midwest for stability and cash flow and has expanded to Louisville, Cincinnati and Dayton
Focused on urban core in Indianapolis and Dayton markets
Lots of boarded up houses and loitering is a big red flag when exploring neighborhoods
To learn a new market, Sterling would visit the area for a few weeks