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
@Jay Hinrichs our issues with Crestcore are operational, managerial, fraudulent activity, and all out physical damage caused to our homes.. they’re very unprofessional, nearly impossible to get ahold of, “accidentally” over bill on maintenance fees, bill for items they never actually even do, collect rent from tenants that supposedly have moved out, meanwhile telling their property owners that a tenant is no longer living in the property... and all kinds of other stuff. Memphis is a great market. In our opinion, just stay clear of dishonest organizations like Crestcore and you’ll be fine. We’re not the only ones that feel this way either, we’ve made contact with additional people that have similar experiences and it’s insane how many have similar experiences... it appears as though they are dishonest in just about every aspect of their business.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Koleton Daley:
@Jay Hinrichs our issues with Crestcore are operational, managerial, fraudulent activity, and all out physical damage caused to our homes.. they’re very unprofessional, nearly impossible to get ahold of, “accidentally” over bill on maintenance fees, bill for items they never actually even do, collect rent from tenants that supposedly have moved out, meanwhile telling their property owners that a tenant is no longer living in the property... and all kinds of other stuff. Memphis is a great market. In our opinion, just stay clear of dishonest organizations like Crestcore and you’ll be fine. We’re not the only ones that feel this way either, we’ve made contact with additional people that have similar experiences and it’s insane how many have similar experiences... it appears as though they are dishonest in just about every aspect of their business.

I am not defending them as I have never done business with them or know anyone who has.. I did have conversations with them though on other markets they were thinking of opening in.. and it was my understanding they will take on these C and D class props.. which for most OOS investors never really make money long term.

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Warren A.
Bay Area, CA · Member since 2016 · 80 posts · 43 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.

@Richard Smith , are you talking about Alex Craig's company ? If yes, why do you feel their rehabs are shoddy lipstick on a pig? Please provide specifics. I've been investing with Alex Craig's company for over 2 years now and have found their rehabs to be very good , addressing deferred maintenance.
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Alma Bagaoisan
Member since 2019 · 66 posts · 15 votes
7y
@Jonathan Hulen I was going to ask the same ? Since I’m looking at Columbus area
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Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
Originally posted by @Account Closed:
@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?

I have already invested in Columbus, via one of the Turnkeys here - and will continue to invest, right now i am on wait list.
looking to expand out of state to diversify in other markets.

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Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
Originally posted by @Carl Fischer:
@Sachin Amin
I think Memphis is dropping in popularity. Consider Nashville.

Sure.. i just spoke to Memphis invest - they are interesting and i really like their processes which they have put in place, the numbers are little pricey but might provide me peace of mind in long run.
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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.

I think some one from crestcore did reach out to me :) - lets see how the conversation goes.
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Carl FischerPro Member
Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
7y
@Koleton Daley you are closer and most likely better informed. I wish you the best.
[email protected]215-283-2868
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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
7y
@Sachin Amin Why do you not buy a multifamily property in Columbus, Ohio that is not with a turnkey property?
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Daniel Z Fang
Rental Property Investor · San Diego · Member since 2019 · 73 posts · 34 votes
7y
@Sachin Amin I’ve worked with Memphisinvest, happy to share. Just shoot me a message
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Koleton Daley
American Fork, UT · Member since 2017 · 175 posts · 76 votes
7y
@Sachin Amin

We hope those conversations go well but what we found was that they would tell us one thing (When we could get ahold of them) and often times another thing actually happened. In our opinion, Crestcore was very good at talking and telling us what we wanted to hear. Who knows, Crestcore could be a totally different experience for you, unfortunately if you do some research online and ask for some credible references, we don’t think there is much honesty coming out of Crestcore. For how they’ve treated us and the others we’ve talked to, its absolutely unacceptable and we wouldn’t recommend them even to our worst enemy.

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Kevin FengPro Member
NJ · Member since 2019 · 29 posts · 13 votes
7y
@Koleton Daley ha..ha.. unfortunately I am using them right. I brought my first house there and experience is not great so far. Any recommendations?
1 Reply
Kevin FengPro Member
NJ · Member since 2019 · 29 posts · 13 votes
7y
Anyone has thought on Home River as property management?
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Account Closed
Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
7y
Originally posted by @Remington Lyman:
@Sachin Amin Why do you not buy a multifamily property in Columbus, Ohio that is not with a turnkey property?

For real.. in Columbus, but not only buying turnkey but in Memphis? What. At least im not competing with yet more dumb money locally i guess?

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Koleton Daley
American Fork, UT · Member since 2017 · 175 posts · 76 votes
7y
@Kevin Feng Please message me and let’s talk about what you’ve got going on with Crestcore. In our opinion, they’re one of the worst property managers out there. We’ve made contact with several others that feel the same way we do.
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Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
@Remington Lyman I did own 2 duplexes (multi family) got them rehabbed sold it for a very good return. It requires lot of hands on and involvement and right now I just do not have that kind of time due to my day job
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Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
@Koleton Daley thanks ... yes I have got enough of negative reviews in last few days.. I’ll put them on the back burner for now..
1 Reply
Axel MeierhoeferPro Member
Rental Property Investor · Escondido, CA · Member since 2017 · 684 posts · 550 votes
7y
@Sachin Amin curious which city you are aiming for. I talked to them in July and they had no $100K properties and ultimately never offered me even one property. I ended up buying 9 other properties form other turnkeys because my 1031 did not allow me to wait around for them. Sadly they still have not contacted me, even just to tell me that they will not make any offers.
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Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
Originally posted by @Axel Meierhoefer:
@Sachin Amin curious which city you are aiming for. I talked to them in July and they had no $100K properties and ultimately never offered me even one property. I ended up buying 9 other properties form other turnkeys because my 1031 did not allow me to wait around for them. Sadly they still have not contacted me, even just to tell me that they will not make any offers.

they sent me Perfoma's from few different areas . Tulsa, Memphis, Huston, Dallas , little Rock.
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Sachin Amin
OP
Columbus, OH · Member since 2018 · 164 posts · 126 votes
7y
Originally posted by @Account Closed:
@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?

@Jonathan

i am already invested in Columbus, currently waiting on my current turnkey provider to acquire few more properties before they are made available for investors

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Robert Collins
Rental Property Investor · Greenville County SC / Atlanta, GA · Member since 2017 · 403 posts · 120 votes
7y
@Sachin Amin
I may look into Memphis invest , if I can be all in for $20k down & make $200 cash flow that might not be too bad compared to the others that I’ve seen ,
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Koleton Daley
American Fork, UT · Member since 2017 · 175 posts · 76 votes
7y
@Robert Collins please feel free to reach out and we can talk more about the Memphis market plus put you into contact with other investors that can provide you with very helpful insight to Memphis and it’s property management options. Most importantly, the managers and organizations we feel you should stay away from.. Memphis has some real dishonest groups that do property management and are involved with the Real Estate market.
1 Reply
Peter Cung
Rental Property Investor · SF Bay Area · Member since 2012 · 25 posts · 24 votes
7y
Originally posted by @Warren A.:

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.

@Richard Smith , are you talking about Alex Craig's company ? If yes, why do you feel their rehabs are shoddy lipstick on a pig? Please provide specifics. I've been investing with Alex Craig's company for over 2 years now and have found their rehabs to be very good , addressing deferred maintenance.

I second your post, Warren. Bought my first turnkey with them and the rehab was great with no issues on capex or any other items. Still use them as a PM for my other properties - their team has always been responsive and I have had no issues on their rent-ready rehabs either.
2 Reply
Henry StoltzfusPro Member
Honey brook, PA · Member since 2017 · 17 posts · 11 votes
7y
@Mark S.
@Sachin Amin
I agree with Mark s. Mid South has a great team in place and does full renovations.
1 Reply
Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
7y
@Account Closed do you recall which property you looked at? We are excellent record keepers and I do not show a Richard Smith in our CRM. Maybe you came to your conclusions about the rehab without contacting our office. I have always took a lot of pride to do a great renovation to reduce our investors risk by addressing items that cause immediate and deferred maintenance, with the end goal of reducing risk by putting our investors goals in front of ours. This year, our average renovation is $31,000 and while that may not sound like much, considering the leverage of volume we use and what we pay for items, that is a big # and far more then simply lipstick on a pig. About over market, I would say 95% of our properties appraise at or above our sales price, the 5% that do not, we have always had comparable sales from the MLS to justify our sales price. A big misconceptions is that appraising is a science without some sort of bias.
901-848-9028
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