Memphis Invest: Thoughts, Reviews, Experiences, Advice?

16 Replies

Hi BP,

I just got off the phone with Memphis Invest. I have been researching them and a few other turnkeys for a bit. I would like to know if anyone has any info they would like to share with their experience of the company. If you have bought turnkey property with this company recently or in the past, please let me know how it went for you. Thanks for any info you can provide.

-Monica

Originally posted by @Monica McDowell:

@Jay Hinrichs Great to hear! I was thinking of doing the same in the near future. Did you ever consider buying from them? Thanks for your response! Much appreciated!

Chris Clothier is one of our founders of Aheroshome.org I personally am not in the rental business. I build new construction and do JV financing for flippers/builders developers.. that kind of thing.

@Monica McDowell I spoke with MI multiple times from fall 2016- spring 2017. I visited in person in spring 2017. I did not buy from them, but they are a very reputable company. I owned turnkey In memphis for several years, so I know it well (at least in memphis).

Here are the general pros and cons (for MI and turnkey in general).

Pros:

1. MI rehabs very very well.

2. Great customer service (they call you each month to check in.

3. Local expertise.

Cons:

1. Turnkey in general has a “buyers premium”, MI will have a higher premium (often 15-20k) than other turnkey providers

2. No matter the rehab, the rent has a limit to how high it will go

3. Your returns are going to be 7-9 percent long term, which is about what you can get from the stock market

4. MI will sell above appraisal value, which can be a major problem should you ever decide to sell

A great point to illustrate, point 2 under cons, is the turnkey provider I used (not MI) just sold a property (rehabbed) in memphis for 79k, with 785 rent. I bought a non-turnkey property on that same street for 55k, and got 815 rent. Only difference was an extra half-bath.

@Caleb Heimsoth Awesome info and insight Caleb!! Thanks so much! I will definitely keep that all under consideration. Since it would be my first investment property especially out of state I will have to weigh the pros and cons of turnkey vs non. Much Appreciated!

Another benefit of buying from Memphis Invest is their property management company, Premier.  Their property management is good. They focus on longer leases, pro active renewals, tenant screening, and keeping tenants happy and houses well maintained. Premier manages a few houses of mine.

For a first investment, since you probably want to have your best chance at a good first experience, Memphis Invest may be a good choice 

@Monica McDowell Sort of the Cadillacs of that space. Been around every block twice with 1000s of homes under belt and known to have a solid record by running tight rental ship for the investors. You may pay extra for all of this. 

@Matt R. Yeah that's what I am learning. The decision I have come to now is how passive do I want to be and how much equity and cash flow am I willing to sacrifice for that passivity. But from what I am reading and hearing the company seems legit and has great service. Thanks for your response Matt!

Hi Monica!  I wanted to give you a tip for connecting with investors for advice on my families' company.  We were just visited here in Memphis from a client out of the Bay Area and they shared with us a similar story to what we heard in the Spring when we visiting clients in Los Angeles.  The couple from the Bay Area said they correspond almost weekly with investors through direct messaging on specific questions on our company. 

It seems that after they commented on a forum thread about their experiences with us, they began to be solicited pretty heavily by other companies so they no longer comment in the forums.  We heard the same thing from several investors in L.A. in the Spring.  But, they are happy to share with investors who are doing research and have questions.

When you search the threads, many posters have posted their experiences.  I would make note of these posters and reach out to them through direct messaging and I think you will get some frank and direct assessments.

best of luck as you do your research.  Also, don't hesitate to reach out to me if I can help.  You posted a comment in reply to Matt that is a very legitimate concern for passive investors.  How to determine your comfort level with the services you are getting in return for the equity in your investment is a big concern for many investors.  It can be confusing because you'll get a different variation from different investors. Im glad to read that it seems like you are being patient and not just jumping into investing.  I'm happy to help you get clarity and comfortable with whichever direction you decide to go.  best to you ~

Originally posted by @David B. :

Another benefit of buying from Memphis Invest is their property management company, Premier.  Their property management is good. They focus on longer leases, pro active renewals, tenant screening, and keeping tenants happy and houses well maintained. Premier manages a few houses of mine.

For a first investment, since you probably want to have your best chance at a good first experience, Memphis Invest may be a good choice 

Thanks for the insight @David B. That is one of the factors I'm trying to weigh. Getting a good first experience with a turnkey provider or trying to wrangle all the caveats of a first investment myself. I know I will learn more about investing doing it all myself but I am also juggling risk factors especially being a first time investor. The fear of getting it wrong vs doing it right yourself. 

Originally posted by @Chris Clothier :

Hi Monica!  I wanted to give you a tip for connecting with investors for advice on my families' company.  We were just visited here in Memphis from a client out of the Bay Area and they shared with us a similar story to what we heard in the Spring when we visiting clients in Los Angeles.  The couple from the Bay Area said they correspond almost weekly with investors through direct messaging on specific questions on our company. 

It seems that after they commented on a forum thread about their experiences with us, they began to be solicited pretty heavily by other companies so they no longer comment in the forums.  We heard the same thing from several investors in L.A. in the Spring.  But, they are happy to share with investors who are doing research and have questions.

When you search the threads, many posters have posted their experiences.  I would make note of these posters and reach out to them through direct messaging and I think you will get some frank and direct assessments.

best of luck as you do your research.  Also, don't hesitate to reach out to me if I can help.  You posted a comment in reply to Matt that is a very legitimate concern for passive investors.  How to determine your comfort level with the services you are getting in return for the equity in your investment is a big concern for many investors.  It can be confusing because you'll get a different variation from different investors. Im glad to read that it seems like you are being patient and not just jumping into investing.  I'm happy to help you get clarity and comfortable with whichever direction you decide to go.  best to you ~

 @Chris Clothier DMing people who have posted about MI seems like a great idea! Thanks Chris! I have been reading great things about your company though. I am hoping to have a decision soon. But regardless thanks for responding and I wish you and your company continued success.