REI Nation (formerly Memphis Invest)
Does anyone here have any experience with REI Nation (formerly Memphis Invest)? We have been interacting with them for the past two months and have had the following issues :-
1. Cash flow negative - On all the properties sent over to us, with the amounts they charge and the cost of the house, the properties are cash flow negative (around $2K loss per year). I realize that some of the markets are crazy but their price seems too high.
2. Renovations cost - We were quoted around $50K each on renovations for multiple homes but when we asked for a breakdown, the numbers didn't match up. They also claim to provide a higher quality of finishes but do not provide any appliances - fridge, stove, microwave, washer, dryer, dishwasher etc. or maintenance on them.
3. Taken up within a few minutes - There is a known sales tactic to create FOMO but I find it surprising that most of their properties get scooped up in a matter of few minutes or so they claim.
4. Fees charged - They charge a 10% property management fees and 1 months rent (8.33%) for every new tenant. We have also heard that they charge a 15% fees on top of repairs and fixes. Is this standard?
Curious to see what other people think and if anyone is familiar with similar companies with more favorable numbers for investors.