Memphis invest versus other turnkey companies

25 Replies

@Manpreet Kaur I haven’t invested with Memphis invest but I went through the vetting process and visited their headquarters in Memphis.

Memphis invest is best described at the premium of the premium of properties and turnkey. They’re customer service is top notch and their rehabs are immaculate and any property you buy from them would essentially be new.

That’s the good part. The main “downside” is you pay a fairly substantial premium for this. Some people are okay with this and others aren’t.

They are one of the pioneers of turnkey product in Memphis
Please direct message for any questions on memphis investments.
Happy to help

I don't have any experience with Memphis Invest ,but since you asked about other turnkey companies, I run one right here in Boise, Idaho, which happens to be the fastest growing metro area in the United States. Appreciation and rents here are, relatively, excellent and vacancy is non-existent. When we have a vacancy, we literally have it filled in less than a day with high income earning tenants with credit scores in the 700s and clean background checks (not to mention fair-housing compliant). Any vacancy here will result in 40 inquiries the next afternoon. Investing in this area has been very good to me, and it can be for others as well. Feel free to PM me if you want to learn more. Best of luck!

@Manpreet Kaur As others have mentioned Memphis Invest has been a trailblazer, and together with their operations in Houston and Dallas, they are likely the largest turnkey company in the country.  I haven't invested with them, but another company I have invested with, modeled much of what that they do on the MI model for systems and integrity, and they have been an excellent company for me.  

Now, one thing as you are evaluating who to work with is to be clear about the various ways turnkey is used.  For me a true turnkey provider, acquires the property, rehabs it, and has property management in place all before you close on the property. You are able to buy using conventional financing this way, have an appraisal and a 3rd party inspection prior to closing on the deal.  This is how MI works, and many other turnkey companies, some definitely better than others.

This is very different from a company that may market itself as "Turnkey" but are really offering more of a service that helps you identify a property to buy (or even wholesale one to you), but you buy it in its pre-rehab state (can require a cash purchase), pay for the re-hab (again cash or hard money lending), then when that is complete then may then tenant it for you or turn you over to a property management company.  There is a lot that can go wrong along the way here for you, and you are taking all the risk upfront.  To get an idea of just how badly this can go with an unreliable company - do a BP search for another company who's initial are MI - Morris Invest.  

This MI is an extreme example of a corrupt provider, and should not be seen as typical, but it can highlight the various things to look out for.

As a successful TK provider in Indianapolis, we look UP to Memphis Invest as the best in the business. They have incredible systems in place...both from a rehab AND a customer service standpoint. They definitely stick to B class areas...nice, stable, etc. This will result in a little less ROI, but their finished product and their service is outstanding. Highly recommended.

Originally posted by @Manpreet Kaur :
Hello, Has anyone invested with Memphis invest and how was the process? Also, what about other turnkey? Thanks

Memphis Invest is one of the bigger names in the industry. Very well respected in the space. As for other companies jump around this site & you'll see a ton of other major players. You'll also wanna check out the Morris Invest threads to see how not go about entering the space, lol.

@Manpreet Kaur If Memphis is your market of choice, then you can't go wrong with Memphis Invest. They have an excellent reputation and set the standards that other good turn key companies model themselves after. Just like in any business, there are good turn key companies and bad one. Here are some of the things you should look for in any turn key company that you are considering.

In general, the ones to avoid are the ones that:

  • Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)
  • Don't allow for your own independent property inspection
  • Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)
  • Require you to pay for any renovation upfront
  • Sell only in cheap. low end neighborhoods
  • Don't accurately represent the neighborhood/property classification
  • Don't have consistent rehab standards for all properties

Hi Manpreet. I will give @Chris Clothier and MemphisInvest props all day long. I haven't personally invested with them just because I've never bought in Memphis, but if I were to buy in Memphis, they'd be my guys. I've met Chris personally and talked with him several times and I really value what he has to offer and I think he's a great guy. I think he's built a great business model with MemphisInvest.

I do work with other turnkey providers in other markets as I've primarily bought turnkeys for myself, so if you ever look outside of Memphis, I'm happy to help anytime with those.

Originally posted by @Manpreet Kaur :
Hello, Has anyone invested with Memphis invest and how was the process? Also, what about other turnkey? Thanks

I haven't ever done anything with them, and do not know of anyone personally who has.

But everyone I hear comment on them who has seems to find them as an ethical above board company. If I was an investor with a really long time horizon and wanted passive or near passive exposure to SFH's, or wanted exposure to passive real estate in areas I didn't already work, then I would consider Memphis Invest as a company.

Now having said that,  remember what you are getting, you are in a hot real estate market, EVERYONE is buying properties as fast as they can.  And its nearly impossible to get any real discounts on rehabs.  SO you are buying a property that has been rehabbed, and is being run by a first rate company.  But they are going to be selling the property at retail value, and then managing it for you.

If you end up being able to get a property whose returns work for you, then great.  But that is almost certainly going to be a long term investment.  It is highly unlikely that you will get outsized returns in this market, at least in the next 3 or 4 years.  I don't think anyone has a magic wand that will sell you a fixed up property, with huge cash flow at a below market price.  And I don't think we will see the same capital appreciation that we have over the last few years.

I personally think we can do better as investors than using a turnkey company, but we are willing to be active investors to do so.

There are several legit turnkey companies here in Memphis and at the end of the day, how can you say one is any better then the other? We all do a nice renovation, property management is good and we all sell a similar home. 

Also no company is really in competition with each other. 

Perception is the reality. 

Originally posted by @Curt Davis :

There are several legit turnkey companies here in Memphis and at the end of the day, how can you say one is any better then the other? We all do a nice renovation, property management is good and we all sell a similar home. 

Also no company is really in competition with each other. 

Perception is the reality. 

 What you talkin about dawg? I consider EVERY COMPANY that sells rental real estate my competition...

Larry F. Your post was very informative to me as I am looking to expand my portfolio out of state. Thank you. If you don’t mind me asking, what turnkey company are you currently using? And in what markets? (A few of the areas covered in your profile are actually on my target list also.

Originally posted by @Chris Chantavong :

Larry F. Your post was very informative to me as I am looking to expand my portfolio out of state. Thank you. If you don’t mind me asking, what turnkey company are you currently using? And in what markets? (A few of the areas covered in your profile are actually on my target list also.

 Chris, I will PM you.

Originally posted by @Glynn Williford :

As a general rule in Memphis, Curt hit it on the head. There are several reputable companies in town.

On another note, 25 SFR cash flowing rentals in Memphis just came up. Most north of 240. $1.3mm PP, 181k NOI. 13.9% ROI. Class C and D 50/50 mix. Call/text my cell at 73I-6I6-5OOO Principals only. #HereComesTheCloser

 who would in their right mind want to buy a bunch of low class C D rentals ??? at least out of state folks.. I think you also should put this in market place.. so much money has been lost by west coast investors buying D class.. OUCH.

There are a number of so called Turnkeys here in Memphis. Reality is that Memphisinvest is arguably the only genuine one. There is enormous competition in this market and many players are under funded and do not have decent management. As long as you know you are paying top dollar, nobody gets close to @Chris Clothier for quality and dependability long term.  Their rehabs are second to none.

And as Jay says above, avoid C and D grade inventory unless you're a local.

I invested with Memphis Invest. I read a lot of good things about the company before investing so I was very excited to do business with them. Going through the whole process was nice and easy - awesome customer service. They made me feel at ease. I am going through a rough patch right now. One house went through an eviction about 6 months after the deal. Now tenant from the second property is not making payments. So I am hanging in there ...

Updated over 2 years ago

Update: They found me a new tenant for my house. They continue to give me the same great service that they’d been giving me from the very beginning. I had been telling everyone about their awesome service before this and will continue to do so. It's great feeling like I made a good choice investing with them and that I am in good hands.

Originally posted by @Jay Hinrichs :
Originally posted by @Glynn Williford:

As a general rule in Memphis, Curt hit it on the head. There are several reputable companies in town.

On another note, 25 SFR cash flowing rentals in Memphis just came up. Most north of 240. $1.3mm PP, 181k NOI. 13.9% ROI. Class C and D 50/50 mix. Call/text my cell at 73I-6I6-5OOO Principals only. #HereComesTheCloser

 who would in their right mind want to buy a bunch of low class C D rentals ??? at least out of state folks.. I think you also should put this in market place.. so much money has been lost by west coast investors buying D class.. OUCH.

lol, I almost spat out some of my soda after reading this post. Perhaps newbies in California that are BLINDED by the low prices of these out of state properties with their rental guarantees. We're so used to properties virtually renting themselves with tenants that rarely ever contact you for any issues..... We see the 2% rent ratio and we're hypnotized!

Originally posted by @Corby Goade :

I don't have any experience with Memphis Invest ,but since you asked about other turnkey companies, I run one right here in Boise, Idaho, which happens to be the fastest growing metro area in the United States. Appreciation and rents here are, relatively, excellent and vacancy is non-existent. When we have a vacancy, we literally have it filled in less than a day with high income earning tenants with credit scores in the 700s and clean background checks (not to mention fair-housing compliant). Any vacancy here will result in 40 inquiries the next afternoon. Investing in this area has been very good to me, and it can be for others as well. Feel free to PM me if you want to learn more. Best of luck!

 I'm interested in properties in Boise, do you have a list of available properties?

Hi @Cody H. - Our company doesn't hold stock, we work with each individual investor to identify properties that match their buying criteria and investment goals and manage the asset from there, at their direction. Our clients can be as involved or as passive as they like, and each deal and relationship is different, depending on the needs of the client. Let me know if I can help you in any way!

Originally posted by @Marie J. :

I invested with Memphis Invest. I read a lot of good things about the company before investing so I was very excited to do business with them. Going through the whole process was nice and easy - awesome customer service. They made me feel at ease. I am going through a rough patch right now. One house went through an eviction about 6 months after the deal. Now tenant from the second property is not making payments. So I am hanging in there ...

@Marie J Hi Marie - thanks for your post. Sorry to hear about the eviction experience but good to hear it was rectified. I am currently going through the process with my first contract signed with them and so far, totally agree with your comments on the superb customer service. Curious to know which market you had the eviction issues with. Are you able to share?

 

The eviction was with my first tenant for the property in Dallas, Texas. This new second tenant is awesome! Always on time with the full payment. I've had the same tenant for the one in Memphis Tennessee the whole time since closing, maybe 3/4 years. I can't remember. He is not as consistent with when he pays and it's in chunks. But he has paid every month. Congratulations going through your first contract with Memphis Invest! They are great!!!

@Claudine M.  The eviction was with my first tenant for the property in Dallas, Texas. This new second tenant is awesome! Always on time with the full payment. I've had the same tenant for the one in Memphis Tennessee the whole time since closing, maybe 3/4 years. I can't remember. He is not as consistent with when he pays and it's in chunks. But he has paid every month. Congratulations going through your first contract with Memphis Invest! They are great!!!