First Time Investment property - Thinking of Memphis Area

Memphis, Tennessee
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First Time Investment property - Thinking of Memphis Area

Presley Balestreri
Member since 2020 · 5 posts · 1 vote

Hello, I have been researching and touching on investing in real estate long term for a few years now, but have yet to pull the trigger with my first property. 

I have always been interested in real estate and have viewed it as a potential to achieve my long term financial goals. My name is Presley, I am 24 and live in CaliforniaI own my own E-Commerce business and Manage a separate waste management company. My Goal for the next 10 Years would be to acquire 10+ rental Properties. I have been nervous with the markets to make the jump and purchase But I feel that I am ready.  

A few questions for the more experienced:

1) Purchasing Turnkey from a Turnkey Company vs Finding rent ready property on my own and hiring a management company for first deal?

2) My goal being multiple properties and owning a business currently, Setting up LLC for first rental property or purchasing personally?

3) Starting with SFH or a duplex in the Memphis area?

These are some of the questions I have. I am motivated to start this journey into this, It would be good to hear some feedback, any advice is appreciated.

Thank you,

Presley

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  • Joshuam R.
    Rental Property Investor · FL · Member since 2016 · 271 posts · 92 votes
    4y
    Quote from @Presley Balestreri:

    Hello, I have been researching and touching on investing in real estate long term for a few years now, but have yet to pull the trigger with my first property. 

    I have always been interested in real estate and have viewed it as a potential to achieve my long term financial goals. My name is Presley, I am 24 and live in CaliforniaI own my own E-Commerce business and Manage a separate waste management company. My Goal for the next 10 Years would be to acquire 10+ rental Properties. I have been nervous with the markets to make the jump and purchase But I feel that I am ready.  

    A few questions for the more experienced:

    1) Purchasing Turnkey from a Turnkey Company vs Finding rent ready property on my own and hiring a management company for first deal?

    2) My goal being multiple properties and owning a business currently, Setting up LLC for first rental property or purchasing personally?

    3) Starting with SFH or a duplex in the Memphis area?

    These are some of the questions I have. I am motivated to start this journey into this, It would be good to hear some feedback, any advice is appreciated.

    Thank you,

    Presley

     Step one, make a simple poster board with crazy goals or niches you want to be involve in and own. (10x mindset, Grand Cardone-ish)

    Step two, budget (masterfully) your monthly lifestyle expenses every dollar (Dave Ramsey-ish)

    Step three know your current buying power status, your 3 months improvement of such and your 6 months, and 9 months and 12 months milestone you like to achieve with your current stream of income and side gigs (same time cutting down expenses)

    During this process at the same time go find out first time buyer programs in your area and also very important is NACA(.)(com) great programs for buyers. (go learn and research as much on buying programs in your first 30 days.

    In summary if you have extra cash good amount and no time, then turnkey is best, if you have good amount of cash $20 or so and your current status wont let you qualify for loans, but want to move fast look into STR arbitrage, etc.

    If you want to move fast and no cash, knowledge up and find Gap funders , etc.

    Best wishes , good luck.

    (p.s. every investor you run into or follow as inspiration, please do not compare contrast your self or current position, these journeys are mixed with personal mindsets, events, and decision making. Do not be discourage down the line, keep going.)

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  • Seth Young
    Specialist · Southlake, TX · Member since 2021 · 213 posts · 157 votes
    4y

    1) I feel like a full service turkey company is beneficial because when the property is renovated then managed by the same company, it ensures the provider is not "selling off" their problems. 
    2) LLC is great for extra protection but for leveraging purposes, rates may be higher. I find most investors start out under their personal name to obtain better rates and have 1 million+ in liability insurance. It just depends on your situation and what you are comfortable with.
    3) Depends on what kind of investment you are looking for. For example, SFH typically have lower interest rates, quicker appreciation, better quality residents, easier to liquidate.. etc. So it just depends.

    I work for a turkey provider that headquarters in Memphis, feel free to reach out if you have questions. @Presley Balestreri Best of luck with all your investments. 

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  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    4y

    Hi Presley, I have worked with a few turnkey companies to purchase in the mid west area. I am not too familiar with the Memphis market but I can certainly speak on working with turnkey providers and investing out of state. Feel free to reach out.

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  • Alex Evans
    Memphis, TN · Member since 2022 · 230 posts · 99 votes
    4y

    Hello @Presley Balestreri

    I would be more than happy to help answer questions about the Memphis Market! 

    0Reply
  • Ruchit Patel
    Bay area, CA · Member since 2021 · 383 posts · 306 votes
    4y

    I have experience in investing out of state and with turnkey providers. I am from the bay area, California. We can talk if you want. 

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  • Terez Jones
    Memphis, TN · Member since 2022 · 40 posts · 17 votes
    4y

    Hi Presley, I know many many investors from California that invest in the Memphis market.  I will be happy the chat and assist.  Thanks!!!

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