Memphis Invest vs Memphis Turnkey

Columbus, OH · Member since 2018 · 164 posts · 126 votes

I am out of state investor looking to invest in Memphis, TN (mostly turnkey) and the two turnkey companies which stand out are Memphis Invest and Memphis Turnkey Properties, both have solid reviews. some of the reviews I read about Memphis invest are they sell their properties above retail, leaving investors with possibly very narrow profit margins.

can any of you share your recent experience or ROI with these (cap rate or perfoma's) and do they provide financing options or just cash offers.

cheers

Sachin

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Ned J.Pro Member

Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes

All the turnkey providers are going to say otherwise, your concerns about buying above market is very common in the turnkey model. That's the price you pay for turnkey..... people focus solely on the "cash flow" numbers they are given and forget to really look to see if the purchase price and future appreciation are really a good deal. Buying a house at/above the top of the market in an area that shows very little appreciation historically will in the long run eat a large portion of all the "cash flow" you get over the years. That doesn't become evident until you try and exit...... people think they will "hold forever", but most don't.... things change and you have to look at your exit plan too. Rehab to get to "for sale condition" and RE agent sale fees, can easily eat years of "cash flow" that don't get offset by having the place go up in value during your ownership. Not saying all turnkeys are bad..... you just have to look at the big picture....not just some "cash flow" number.....

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Koleton Daley
American Fork, UT · Member since 2017 · 175 posts · 76 votes
7y
Great choice on picking the Memphis market! We haven’t worked with either of them but I’m just glad to see that Crestcore isn’t considered in any of your options.. those guys are a unprofessional, unethical and downright dishonest in my personal opinion. Stay clear of them and you’ll be fine.
1 Reply
Account Closed
Investor · Dublin, CA · Member since 2016 · 19 posts · 13 votes
7y
@Sachin Amin I looked at an offer from Memphis Turnkey a few years ago. Over market and shoddy lipstick-on-the-pig rehab work. We passed on the deal and found much better properties working directly with a local RE agent.
5 Reply
Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
Originally posted by @Koleton Daley:
Great choice on picking the Memphis market! We haven’t worked with either of them but I’m just glad to see that Crestcore isn’t considered in any of your options.. those guys are a unprofessional, unethical and downright dishonest in my personal opinion. Stay clear of them and you’ll be fine.

Thanks for heads up!!!

1 Reply
Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
Originally posted by @Account Closed:
@Sachin Amin I looked at an offer from Memphis Turnkey a few years ago. Over market and shoddy lipstick-on-the-pig rehab work. We passed on the deal and found much better properties working directly with a local RE agent.

Thank you for heads up Richard...appreciate it..
1 Reply
Mark S.Pro Member
Rental Property Investor · KY · Member since 2013 · 1k+ posts · 540 votes
7y
Originally posted by @Sachin Amin:
I am out of state investor looking to invest in Memphis, TN (mostly turnkey) and the two turnkey companies which stand out are Memphis Invest and Memphis Turnkey Properties, both have solid reviews. some of the reviews I read about Memphis invest are they sell their properties above retail, leaving investors with possibly very narrow profit margins.
can any of you share your recent experience or ROI with these (cap rate or perfoma's) and do they provide financing options or just cash offers.
cheers
Sachin

Check out Mid South Home Buyers. Excellent, thorough, FULL rehabs.
5 Reply
Stephen Akindona
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
7y
@Sachin Amin, Memphis has some great turnkey options and some bad ones! The key is thoroughly vetting out any company you decide to use! There is NO company on planet Earth that has 100% positive reviews, you are looking for people that you can trust and if and when mistakes are made they will place your success over their own profits. There are a lot of companies in Memphis who do this and some that don't!
5 Reply
Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
7y
Originally posted by @Sachin Amin:
I am out of state investor looking to invest in Memphis, TN (mostly turnkey) and the two turnkey companies which stand out are Memphis Invest and Memphis Turnkey Properties, both have solid reviews. some of the reviews I read about Memphis invest are they sell their properties above retail, leaving investors with possibly very narrow profit margins.
can any of you share your recent experience or ROI with these (cap rate or perfoma's) and do they provide financing options or just cash offers.
cheers
Sachin

I do not know much about them, but I do know that Memphis is a pretty saturated market with OOS investors. I would suggest looking into a different market, maybe just for comparision.
Also, if you are looking into Turnkeys, please make sure it is a TRUE Turnkey Provider. They should ideally own the property first (NOT A MLS LISTING) renovate it while they own is, and place a tenant all prior to selling it. Never close on a vacant property. Also, the Turnkey Provider should stay on as the property manager. It should all be done in-house. They should not just turn you over to a new company after the sale. Everything should all be done in-house.
Try looking at:

Assessing the Risk of a Turnkey Real Estate Company

5 Keys to Turnkey Real Estate Investing
7 Reply
Adeel Makda
Investor · Skokie, IL · Member since 2016 · 43 posts · 15 votes
7y
@Richard Smith do you have any recommendations of which agents to work with?
0 Reply
Adeel Makda
Investor · Skokie, IL · Member since 2016 · 43 posts · 15 votes
7y
@Sachin Amin
If you want to learn more about the Memphis market reach out to Stephen. He has tons of knowledge.
@Stephen Akindona
1 Reply
Stephen Akindona
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
7y
Thanks @Adeel Makda! We need to connect again soon!
2 Reply
Koleton Daley
American Fork, UT · Member since 2017 · 175 posts · 76 votes
7y
@Adeel Makda Memphis is a great market. I would truly encourage anyone to own property there.. That being said avoid Crestcore reality group in your search for any of your real estate needs...
4 Reply
Ned J.Pro Member
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
7y
All the turnkey providers are going to say otherwise, your concerns about buying above market is very common in the turnkey model. That's the price you pay for turnkey..... people focus solely on the "cash flow" numbers they are given and forget to really look to see if the purchase price and future appreciation are really a good deal. Buying a house at/above the top of the market in an area that shows very little appreciation historically will in the long run eat a large portion of all the "cash flow" you get over the years. That doesn't become evident until you try and exit...... people think they will "hold forever", but most don't.... things change and you have to look at your exit plan too. Rehab to get to "for sale condition" and RE agent sale fees, can easily eat years of "cash flow" that don't get offset by having the place go up in value during your ownership. Not saying all turnkeys are bad..... you just have to look at the big picture....not just some "cash flow" number.....
7 Reply
Andrew AkinsPro Member
Realtor · Memphis, TN · Member since 2016 · 50 posts · 45 votes
7y
@Sachin Amin Memphis is a great market that has plenty to offer for investors.
2 Reply
Account Closed
Investor · Dublin, CA · Member since 2016 · 19 posts · 13 votes
7y
@Sachin Amin Memphis is a huge market with tons of qualified agents, but finding and working with an agent is a bit like working with a hairstylist. Nobody is going to know what works for you right out of the gate. It takes thoughtful communication and spending a bit of time with the agent to gain a mutual understanding. It doesn't just magically happen. The agent I worked with most in Memphis is Brittany Crocito. Of course she's great, but it worked because she was willing to work with my odd schedule and availability, and do a lot of stuff over the phone and video conf. I met plenty of other agents that I'm sure are capable too.

0 Reply
Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
@Richard Smith thank you
0 Reply
Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
@Stephen Akindona thank you.. will DM you
1 Reply
Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
@Tom Ott thank you...
0 Reply
Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
@Adeel Makda. Will do thank you for referral
0 Reply
Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
@Andrew Akins thank you ... I had my first conversation with Memphis invest... let’s see how it goes... not impressed with the numbers 150-200$ cash flow on a 100k property
1 Reply
Brian Ploszay
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
7y
Contact Douglas Skipworth for Memphis properties.
2 Reply
Koleton Daley
American Fork, UT · Member since 2017 · 175 posts · 76 votes
7y
@Brian Ploszay have you worked with him before?
0 Reply
Carl FischerPro Member
Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
7y
@Sachin Amin
I think Memphis is dropping in popularity. Consider Nashville.
[email protected]215-283-2868
0 Reply
Koleton Daley
American Fork, UT · Member since 2017 · 175 posts · 76 votes
7y
@Carl Fischer I would have to strongly disagree with that. There is a ton of economic development and a lot of opportunity to own some great property.. In our experience it’s great if you just stay away from Crestcore in Memphis... We feel they’re what give Memphis a bad name :(
(Google reviews of CrestCore)

0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Koleton Daley:
@Adeel Makda Memphis is a great market. I would truly encourage anyone to own property there.. That being said avoid Crestcore reality group in your search for any of your real estate needs...

Ouch.. what I understand though of the Crestcore portfolios is they are one of the few that will take on the C D class.
and your just not going to have consistent returns in those assets in virtually any big city in America.. some of this is probably caused by the investor themselves buying something they had no business buying.. I have never done business with Crestcore..
Podcast Guest on Show #222
JLH Capital Partners51 Review
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1 Reply
Account Closed
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
7y
@Sachin Amin
Your profile says you live in Columbus Ohio. Is that the case? If so, i’m curious why you would go through the hassle of investing out of state. You live in a market that’s already popular with out of state investors. Is it that hard to find deals in Columbus?
4 Reply

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