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.
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.....
@Peter Cung@Warren A. I do not think Richard ever really gave us a serious look and never reached out to us. I could be wrong, but his details are vague. Maybe he saw a before picture on our site, who knows, but as you guys know, we take a lot of pride in what we do and stand by our product. I recently cut a check back to Warren for some maintenance items that came back and out of the 8 to 1o properties he has bought, i have had to pay a couple of mortgage payments because a tenant was not in place 30 days after the sell. That is the advantage of going with TK companies that truly stand by their product. We manage the homes for Buy Memphis Now and I know they stand by their product and Mid South has some good programs where they stand by their product too. Thanks guys for chiming in!
@Carl Fischer Nashville has gotten so expensive, I can't even afford to pay attention there. I have been up there for the BP conference and will be there this weekend for the Titans, great city, but not sure there are any deals.