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Builders offer new twist on move-up incentive

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A Detroit firm has come to Indianapolis with a new twist on the "move-up" incentive for new houses.

Marketplace Homes LLC is advertising its services in conjunction with national builders Drees Homes and Westport Homes Inc. Instead of offering to help would-be buyers of new houses sell their old homes, Marketplace is offering to become a rental property manager. The company says it will even guarantee lease payments from the old house for as long as six years.

However, there's no guarantee that those payments will cover the new mortgage payment. Or that home buyers will be able to finance a second mortgage.

"That's where it gets tricky. You do have to qualify for the second mortgage," Marketplace Homes marketing assistant Elyse Sarnecky said.

Marketplace makes its money on commissons paid by the builders. The company sends a "solutions manager" to the existing home to determine its rental value. Marketplace will then guarantee a certain stream of income, whether it successfully rents out the home or not. Sarnecky said the longest a house has gone unrented is about three months.

"The rental market is really strong right now," said Lisa Andrews, a co-owner at Carmel-based Silver Property Management Inc., a residential rental property manager.

Foreclosures have pushed quality renters into the market, but the crisis has also created a lot of rental inventory, Andrews said. As a result, rental rates are staying low. Andrews said she encourages single-property owners to see the rental income as a way to mitigate their losses, rather than cover a mortgage.

Andrews said she's not concerned about potential competition from the Marketplace Homes program because they're targeting traditional homeowners, not investors.

Marketplace's "buy now, sell later" program seems to have worked well in the depressed housing market of Detroit, and now it's expanding to multiple cities. Marketplace, which is privately held, says its program accounted for 200 sales of new homes in metro Detroit last year.

Marketplace says it has helped sell two new homes in the Indianapolis area in the past two months, one by Drees in Somerset in Fishers and one by Westport in Bay Creek East in McCordsville.

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  1. why oh why does this state continue to elect these people....do you wonder how much was graft out of the 3.8 billion?

  2. i too think this is a great idea. I think the vision and need is there as well. But also agree with Wendy that there may be better location in our city to fulfill this vision and help grow the sports of hockey and figure skating in Indy. Also to help further develop other parts of the city that seem often forgotten. Any of the other 6 townships out side of the three northernmost could benefit greatly from a facility and a vision like this. For a vision that sounds philanthropic, the location is appears more about the money. Would really like to see it elsewhere, but still wish the development the best of luck, as we can always use more ice in the city. As for the Ice growth when they return, if schedules can be coordinated with the Fuel, what could be better than to have high level hockey available to go see every weekend of the season? Good luck with the development and the return of the Ice.

  3. How many parking spaces do they have at Ironworks? Will residents have reserved spaces or will they have to troll for a space among the people that are there at Ruth Chris & Sangiovese?

  4. You do not get speeding ticket first time you speed and this is not first time Mr.Page has speed. One act should not define a man and this one act won't. He got off with a slap on the wrist. I agree with judge no person was injured by his actions. The state was robbed of money by paying too much rent for a building and that money could have been used for social services. The Page family maybe "generous" with their money but for most part all of it is dirty money that he obtained for sources that are not on the upright. Page is the kind of lawyer that gives lawyers a bad name. He paid off this judge like he has many other tine and walked away. Does he still have his license. I believe so. Hire him to get you confiscated drug money back. He will. It will cost you.

  5. I remain amazed at the level of expertise of the average Internet Television Executive. Obviously they have all the answers and know the business inside and out.

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