Memphis Invest

64 Replies

Originally posted by @Kevin Byrne :

Hadar Orkibi Alan Grobmeier Alan is right. With my fixed costs and no vacancy, repairs, etc... I cash flow $331/mo. I put down $27,180 plus about $4000 for closing costs (let's call it $32k total). Of course, the expenses are coming and I don't expect to cash flow that well on average. Also, I can't tell you how the numbers will shake out in 5 years. Only time will tell. Maybe someone with a property from Memphis Invest that has owned it for longer than 5 years will chime in.
For the record, the home was built in 2004.

You are making 12% COC. Not bad

I talked to a person from there. I asked about cap rates and whether i could look over their inventory and pick my property. Guy said no. He mentioned COC 14% and cap rate of 7%, which to me is too low.

I also wanted property under LLC not my name and he insisted i could not do that had to go through fannie mae. I don't think i can use them.

I invested with Memphis Invest in January 2019 and the experience has been phenomenal. They did a great job repairing the items identified in my Home Inspection Report, which was prepared by someone not on their recommended list of providers. I wanted to make sure I was getting an objective unbiased view of the property. From the time I selected a property and signed the PAS agreement, they were actively marketing the property for rent. They had the home leased before I closed.

Rental payments and notifications are timely and the monthly calls from my customer care rep are a nice touch. I like having access to all activity (i.e. income, repairs, fees, receipts, etc.) with my property via the Client Portal, but it leaves much to be desired from a technology perspective. They do have plans to upgrade the system so I'm really looking forward to the new platform. This is a customer-centric organization with a personal family touch!  Highly recommended! 

I am considering investing with Memphis Invest and have heard very good things.  If I am targeting a $200+ cash flow & 12% cash on cash with conventional financing is this possible with TK?

@Jeff McIntyre, @Kevin Byrne, and @Rhea Jackson:

Can you please provide an update now that you are a few years in with MI?  Have there been hiccups along the way where you’ve been able to test their problem solving and customer service skills?  Any vacancy issues?  Thanks in advance. 

I have seriously been considering started my RE investing journey with Memphis Invest and would also love to hear updates on your experiences of how it has gone. I also would love to hear more specifics with the numbers: my goal is COC 12%+ and want to know if this is realistic with Memphis Invest.

I've just closed on my first property with Memphis Invest and the experience has been excellent. From start to finish they are very customer service oriented and they really cover all aspects even assisting with lender recommendations and outside inspections. Numbers-wise my property appraised slightly higher than purchase price and I went with a property in Dallas, TX. Highly recommend them as a TK provider.

@Anthony Johnson be wary of Memphis Invest, just like any other company you will need to do your due diligence.  I am in the process of closing on a property and wish I could back out.

1.) The property that I am interested is $134.9k, but Zillow's Zestimate is currently at $67.5k (and that's rounding up), I knew this ahead of time, but decided to proceed anyways since the numbers worked out and received a phone call from Rick telling me how good of a deal this was

2a.) Inspection report came back with several red flags, first off they didn't run electrical or gas to the stove... because who needs either of these for the stove!??! No response from Memphis Invest on this so far.

2b.) They only ran a gas line with no shutoff valve to the laundry room so the tenants would have to open up the gas main to attach their dryer. No response from Memphis Invest on this so far.

2c.) MOLD! So much mold in the crawl space and closet. No response from Memphis Invest on this so far.

2d.) Aluminum and Copper wiring, everything I've read on this forum warns me about this, and Memphis Invest tells me that the "cosmetic electrical was dispatched and are done"

3.) The closing coordinator called me once I confirmed my interest in a place and said she would be reaching out to me 2x per week. So far, I have only heard updates from her when I reach out about issues.

I have other complains about Memphis Invest, but I decided to hold off on those until I hear how this fiasco closes.

What pisses me off the most is if I were to back out now is that I would lose my $2500 deposit, but then again, I would never have put this deposit down had I known the condition of the place ahead of time.

I really thought I was buying a turnkey property, but I guess not. Serves me right.

@Gerry Lopez . Why do you feel obligated to purchase a property that appraised at 50% of purchase price. It makes no sense!!! I believe you make your money when buying but this not the case.  How do you expect the bank to finance this?   PLEASE do not buy this cash!  How much is set aside for repairs?  Or does the price include all that?  I trust that you can find a better deal in this market.  What if you have to sell in 2 years?  I personally would rather loose $2500 now than much more later. Sometimes it's best to walk away!

@Gerry Lopez agree with everything Dominique said. Did the property appraise at asking price? Even if you lose your $2,500 in earnest money, it's not worth overpaying. If the workmanship really isn't up to snuff or even finished as in the case of the stove line, I would think you're not obligated to buy because you have an inspection contingency.

@Gerry Lopez Guys, I have to respectfully disagree. I have one Memphis Invest property in my portfolio and it has been one of the most profitable properties with BY FAR the least amount of headache. The cash flow has been what I expected (just okay), but the appreciation (unrealized, I know) has been great per Zillow, Trulia, etc.


I did have one month of vacancy due to eviction, but they took care of everything.  They got the deadbeat out and replaced her with a higher paying tenant pretty seamlessly. 

Being that I am not physically in the market, I am looking to sell my property to truly valuate the investment, but once I do I will be replacing it with two more.  

@Gerry Lopez

Hi Gerry, thank you for taking the time to return my call this afternoon.  After reading your post this AM, I went to work with my team to find out where the communication fell short.  Out of respect, I wanted to make sure that I spoke with you first before responding here on the site.

As a company, our reputation and integrity mean everything and I am glad we were able to identify how our communication could have been better.  Malorie had been in communication with you each week through the process, unfortunately it was not clear to you that we were addressing every item listed in the inspection report.  I think if you and Malorie had been able to connect when she was calling, that phone conversation could have gone a long way in clearing up any confusion. 

When I pulled our team together this AM, I did confirm that electrical, plumbing, mechanical and even a building permit were all pulled for this property and it passed each inspection.  However, there were some basics that we missed.  As I told you, we strive to be excellent in our delivery, but we are far from perfect.  We made some very human errors on this one including the scheduling an inspection before we had completed our punch list work and not being clear enough that each item would be finished.

After our conversation, I think we both agree that we may not be the right fit for your investment needs today and it is best that we not move forward.  We will reimburse your earnest money and the cost of the inspection.  We never want investors to feel pressured on an investment or even worry about earnest money.  

We rarely keep earnest money, even in scenarios where there is no fault. We want you, as an investor, to be confident in your investments and if not, we are happy to delay and even cancel. In this case, we are going to cancel the contract. We will put through the paperwork today and you can expect those monies returned in the next few days. The house does have a resident moving in on a two year lease on October 1, so I hate that this property is not the right fit, but fully understand. Be sure to let me know if I can do anything further for you. Best to you ~

@Alan Grobmeier The original kitchen had an 80's style combo oven, stove top and microwave that was all one unit and gas powered.  Our team had the gas line capped per code, but the electrician missed installing the electrical outlet to power the new stove.  Human error on their part. Our team caught the oversight and had a final punch list for completion, but the inspection occurred first and noted the same things we had plus a couple of additional, minor items to address.  In the end, this is why 3rd party inspections are good.  They protect investors and can serve as a score card for our team.

However, a wood burning stove may be something worth considering in the future... :)

Since this is a threa about Memphis Invest, I wanted to post this here for future readers.

We have been hard at work this year and some BIG changes have been happening at Memphis Invest. We've grown to over 110 full time team members in four states. The Clothier family purchased a 40,000 sq. ft. Class A office building in Germantown, TN. to move our corporate headquarters into. We made three C-Suite hires for the first time including our first Director of Human Resources, CIO and CFO. All three are incredibly talented additions to our company and strengthen the leadership team at REI Nation. We are on pace to grow our clients' portfolios by nearly 20% in one year to over 6,000 properties under management. If you know our company, you know none of this is happening by accident. It is all planned and the culmination of these changes is coming with the new year!

On January 1, 2020, Memphis Invest is taking the next step in their nearly two decade journey to becoming the most trusted and only truly nationwide Turnkey company! We are officially changing our name to REI Nation reflecting our growth into eight markets and highlighting our plans for our third decade in business.

Memphis Invest was started by the Clothier family to give passive real estate investors a trusted and consistent investment experience. Our focus has always been on high touch customer service and excellent property management. As we have moved into different markets, the brand ‘Memphis Invest' has always stood for quality and service no matter what city we were operating in. The strength of the Memphis Invest brand has been earned by our team every day and has helped us to acquire and manage over 2,000 properties in cities outside of Memphis for our clients.

As we move into 2020, we have been working on taking the strength of our brand and renaming it REI Nation as a more appropriate reflection of our growth and reach. Today, we operate in Memphis, TN; Dallas, Fort Worth and Houston, TX.; Oklahoma City and Tulsa, OK.; Little Rock, AR., and St, Louis, MO. With team members in every city trained to our specific standards and every property expected to perform to our high expectations, REI Nation will always be a Memphis Invest' company and those same standards and expectations will continue.

Our team is already reviewing several additional cities across the southern belt from Texas to Florida to North Carolina to plan and transition our future growth. In 2020, the REINation team have plans in place to purchase and renovate 1,060+ properties in our current eight cities. The same great attention to detail, customer service and excellent property management will be provided.

We are excited for what the future holds for REI Nation, our team and our clients. By the end of 2020, REI Nation will be closing in on $1 billion in asset value under management. As our markets grow, our team grows and the value of our clients' portfolios grow, REI Nation will continue to operate with the same core values that have made Memphis Invest the gold standard of the Turnkey real estate investment industry.

We will continue to post updates and changes through the year as we continue to grow.

Congratulations on the growth Chris and the Clothier family! Best of luck to you on your endeavors! Thanks for sharing your vision, it inspires me to be more purposeful about my future plans over the next decade(s) to come. 

@Chris Clothier Congrats on the growth. I think it is smart to rename to something that is not having a location associated.

Regarding the property that was discussed you mentioned the human error for the electrical outlet at the stove but what about all the other things? Those images of mold do not look to me like a minor final punch list?

As you recall I had been trying to purchase properties from your company as part of my 1031 exchange and it did not work due to communication issues but some of the descriptions of property issues make me wonder if the transition is causing some quality issues. I am asking because I thought there might be new opportunities in 2020.

Originally posted by @Axel Meierhoefer :

@Chris Clothier Congrats on the growth. I think it is smart to rename to something that is not having a location associated.

Regarding the property that was discussed you mentioned the human error for the electrical outlet at the stove but what about all the other things? Those images of mold do not look to me like a minor final punch list?

As you recall I had been trying to purchase properties from your company as part of my 1031 exchange and it did not work due to communication issues but some of the descriptions of property issues make me wonder if the transition is causing some quality issues. I am asking because I thought there might be new opportunities in 2020.



Hi Dr. Meirhoefer,

Hopefully your portfolio is doing well.  As I stated in my conversation with the buyer and here on BP, the mold in the closet, along with several other items not listed here were on our final punch list and were taken care of before the inspectors report was back to our team.  Heat, lack of air movement and water can form surface mold very quickly so this was not the first nor the last time we will see moldy discoloration show up on a final punch list.  Usually that list is completed before an inspection and from time to time we still miss things!  

As for quality issues, our attention to and daily willingness to address those is part of what has earned us our stellar reputation.  We take every failed inspection, even if it failed bcasue of timing, and address them as a team as teaching exercises.  We also bring our team together as well as our vendor teams together twice a year to go through best practices, city by city, and how we can insure our clients have the same experience and the same processes are followed regardless of where they invest.

Here is a recent picture of our renovation teams coming to Memphis for two days to train on our high expectations.

Originally posted by @Chris Clothier :

@Gerry Lopez

Hi Gerry, thank you for taking the time to return my call this afternoon.  After reading your post this AM, I went to work with my team to find out where the communication fell short.  Out of respect, I wanted to make sure that I spoke with you first before responding here on the site.

As a company, our reputation and integrity mean everything and I am glad we were able to identify how our communication could have been better.  Malorie had been in communication with you each week through the process, unfortunately it was not clear to you that we were addressing every item listed in the inspection report.  I think if you and Malorie had been able to connect when she was calling, that phone conversation could have gone a long way in clearing up any confusion. 

When I pulled our team together this AM, I did confirm that electrical, plumbing, mechanical and even a building permit were all pulled for this property and it passed each inspection.  However, there were some basics that we missed.  As I told you, we strive to be excellent in our delivery, but we are far from perfect.  We made some very human errors on this one including the scheduling an inspection before we had completed our punch list work and not being clear enough that each item would be finished.

After our conversation, I think we both agree that we may not be the right fit for your investment needs today and it is best that we not move forward.  We will reimburse your earnest money and the cost of the inspection.  We never want investors to feel pressured on an investment or even worry about earnest money.  

We rarely keep earnest money, even in scenarios where there is no fault.  We want you, as an investor, to be confident in your investments and if not, we are happy to delay and even cancel.  In this case, we are going to cancel the contract.  We will put through the paperwork today and you can expect those monies returned in the next few days.  The house does have a resident moving in on a two year lease on October 1, so I hate that this property is not the right fit, but fully understand. Be sure to let me know if I can do anything further for you.  Best to you ~

All rave reviews in this thread until this one and immediately a resolution and explanation was given (and with no reply's from the complainant thus far afterwards). All the worry about losing an EMD and the punch list repairs was more of a communication break down than anything based on the info I'm reading herein.
I have never purchased from Memphis Invest but I have met Chris in person several times at real estate events we both spoke at and/or attended. I fancy myself as a fairly good judgement of character and from the start, I had a very positive vibe from Chris. I have been recommending him to other out of state investors for several years now based strictly off my opinion of him and how I have seen his company operate and grow. This response here from Chris solidifies my original feelings about him and I can’t say enough how impressed I am with his willingness to fix a problem, address the concerns, and even cancel a deal and return all monies (including the inspection fee).

If that does not speak volumes about a man’s character and ability to see the long term and not just a quick buck, I don’t know what would. Good luck getting that from most other “turnkey companies” as I have listened to and have been made privy of numerous dissatisfied transactions (and rightfully so in most of them).