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.
@Trent Lee what markets are you considering?
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?
i'd be curious if @Kevin Byrne has had a good 2 years. He had some solid input! Just now coming into research on TK properties as a "viable" source for investing.
@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 would love to see an update from those in the thread who purchased from MI a few years ago in this thread. Please let us know how the experience has been.
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.
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 ~
@Chris Clothier How do you have a house with no electricity for the stove? Was it supposed to be a ‘woodburner’?
@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... :)
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