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Dan T.
  • Anaheim, CA
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REI Nation (Memphis Invest) Case Study - Barltett (Memphis), TN

Dan T.
  • Anaheim, CA
Posted Feb 7 2020, 14:52

Hey everyone, long time listener, poster and reader - first time investor. I have been in the analysis paralysis state for a solid year. I get super close to making a move and back off when it's time to put pencil to paper. I feel that the simplicity of the BRRRR model is overstated - sure, it's the best way to create the most equity but also the riskiest way to enter the world of real estate investment. I have a full time job (55-60 hours per week), 2 daughters under 2 years old and a personal life so i started looking heavily into turnkey for my first investment.

I understand that TK isn't the fastest way to create wealth or equity. My goal is to have 15-20 of these under management in the next 10-15 years; the long game on this will hopefully outweigh the opportunity cost forfeited by choosing the TK model. In researching Turnkeys, it seems there are a LOT of companies to avoid. I narrowed it to Norada, Spartan and REI Nation. After researching the companies and markets in which they operate, then seeing Chris' replies on here and seeing his clients ALWAYS handled even in situations beyond their control, i decided to move forward with REI Nation.

I spoke to Taz to start,  he got an idea of what i was looking for. $150K-$200K property, A-B neighborhood, good schools, decent cash flow ($200+) when traditionally financed with 25% down and a COMPLETE renovation. Taz passed me along to a lender, I got preapproved and was passed over to Rick to hone in on their available properties. I looked at several in Arkansas, Oklahoma, Texas and Tennessee.

I finally saw one i loved in Barltett, TN 34814. As of today, I've locked my rate and put the Home under contract. I have a conversation planned with REI on Monday, i'll post all details as they happen.

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Davartay Miller
  • Architect
  • Memphis, TN
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Davartay Miller
  • Architect
  • Memphis, TN
Replied Apr 18 2021, 19:40

@Cole Perry This is awesome! What if I told you I have heard nothing but great things about REI Nation? I am sure our team will take good care of you.

BEST OF LUCK! 

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Replied Apr 19 2021, 08:47

Just jumping onto this thread as I closed on my first property (in Memphis) with REI this past Friday. We also signed our tenants to a 2-year lease on Friday also :). The rents I am getting exceeded our assumptions in the deal analysis phase. I think it just speaks to their quality. I have been very impressed with them thus far.

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Dan T.
  • Anaheim, CA
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Dan T.
  • Anaheim, CA
Replied May 27 2021, 16:09
Originally posted by @Marcus Little:

Just jumping onto this thread as I closed on my first property (in Memphis) with REI this past Friday. We also signed our tenants to a 2-year lease on Friday also :). The rents I am getting exceeded our assumptions in the deal analysis phase. I think it just speaks to their quality. I have been very impressed with them thus far.

 Congrats, Marcus!

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Dan T.
  • Anaheim, CA
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Dan T.
  • Anaheim, CA
Replied May 27 2021, 16:10
Originally posted by @Cole Perry:

@Dan T. Loved reading this thread tonight and learned a ton! I'm 25 and have a call set up in a few weeks with REI Nation to discuss investments in the Memphis area. Hoping to be where you are at in a few years

 That's such a crazy thing for me to hear. That's what i used to say to people. Best of luck, Cole!

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Dan T.
  • Anaheim, CA
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Dan T.
  • Anaheim, CA
Replied Aug 23 2021, 08:27

Checking in again - no issues to report and the house keeps going up and up in value. Estimates put the value at $215,000 (purchased 1.5 years ago for $179,000). I like the area so much, I purchased another in Bartlett about 5 miles away (from REI as well).

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Replied Sep 23 2021, 08:23

Great thread. I've been trying to figure out where I can start my RE investments with training wheels. I need something mostly passive, for now, and I want to own, not just invest. So I've been looking at turnkey options. I spoke with REI Nation a few days ago and it's good to hear the reviews of them here!

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Kyle Reece
Pro Member
  • Real Estate Broker
  • Plattsburgh NY
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Kyle Reece
Pro Member
  • Real Estate Broker
  • Plattsburgh NY
Replied Sep 23 2021, 12:10

This thread has been awesome. Lots of number and really getting into the details. I love it.

One of the most important things with Real Estate Investing is getting started. You can never win if you stay on the sidelines, as they say. REI Nation and investors like @Chris Clothier are a huge inspiration to me. I would love to be at their level. As many have mentioned throughout this thread, there are other ways to invest passively with varying levels of risk and return. Syndication is nice if your accredited but also doesn't allow ownership benefits of an asset. TK does allow for that long game benefits of RE but sacrifices on cashflow.


One strategy I haven't seen mentioned that Brandon Turner loves to use, partnering. The risk is higher and it can be difficult finding the right person. You get the benefits of cashflow and ownership and if you find the right partner, you could be the money behind the machine. If you have money to invest but no time, there are people with time and experience but no money. The thing I love about real estate investing is there's a thousand ways to do it. TK is an awesome strategy if you have a bunch of money and want control over an asset without much leg work. I prefer a more active role and want to do real estate full time but lack a lot of money. I also prefer multifamily properties, where I can get that $200-400 per door profit and generate $1600 on a 4 plex.

Passive investing can be done many ways and each has its own level of risk and return. It all depends on your goal and timeline. My goal is not the same as @Dan T., he is looking long term benefits, I want the cashflow and gains to steamroll into a real estate investing business that I can put on autopilot. For me that involves looking OOS and marketing directly to owners for off market deals. I will put in the time to build the systems upfront to create bigger results later. 

Congratulations for everyone getting started and for your continued success.

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Kyle Reece
Pro Member
  • Real Estate Broker
  • Plattsburgh NY
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Kyle Reece
Pro Member
  • Real Estate Broker
  • Plattsburgh NY
Replied Sep 23 2021, 12:14

-duplicate post

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Lane Kawaoka
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  • Rental Property Investor
  • Honolulu, HAWAII (HI)
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Lane Kawaoka
Pro Member
  • Rental Property Investor
  • Honolulu, HAWAII (HI)
Replied Sep 24 2021, 14:03

I used to buy turnkeys when I started investing in 2012 -2015. Great way to get started for sure. Let me know if you have any specific ?s

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Ankush Bhargava
  • New to Real Estate
  • SF Bay Area
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Ankush Bhargava
  • New to Real Estate
  • SF Bay Area
Replied Oct 3 2021, 10:32

This thread answers so many questions for a noob like me - I only started on this learning journey about a month ago, but already feel confident having drunkt he cool-aid :D Thanks to everyone who contributed. And great to hear the positive notes on REI Nation - I am planning to talk soon.

When investing out of state, what tips do you have on initial plan / what conversation to have with REI?

(disclaimer - I purchased the David Greene - long distance real estate investing, but not done reading it)

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Jer Yeung
  • Specialist
  • Los Angeles, CA
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Jer Yeung
  • Specialist
  • Los Angeles, CA
Replied Nov 10 2021, 12:45
Originally posted by @Dan T.:

Checking in again - no issues to report and the house keeps going up and up in value. Estimates put the value at $215,000 (purchased 1.5 years ago for $179,000). I like the area so much, I purchased another in Bartlett about 5 miles away (from REI as well).

It's been nuts to say the least.  I purchased my first from them in late 2018, and sold it a month and a half ago.  Purchased for $184k, sold for $256k, all while collecting solid cash flow in the interim.  In process of finishing a 1031 exchange into two more solid cash flowing properties.  

I did have a few things come up in the portfolio - minor repairs, one tenant had to move out because of COVID, and a few tenants needed rental assistance - but nothing near what the original concern was in mid 2020... REI Nation has been great at managing all the issues.

If anyone is on the fence still, and wants a passive asset, their model and setup is fantastic. 

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Luke Anderson
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  • Rental Property Investor
  • Enterprise, AL
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Luke Anderson
Pro Member
  • Rental Property Investor
  • Enterprise, AL
Replied Nov 10 2021, 12:56

Congratulations on making the jump! I don't know much about turn key investments but I agree that while the BRRRR method may bring the best equity return, I typically buy rent ready properties (that my property management team wants to manage). They are easier to deal with and you can go from purchase to occupied much quicker. I may pay closer to retail price for my properties, but as long as the numbers make sense and I can cash flow, that is the most important thing for me. My goal is also long term. Real estate investing is a long game, not a get rich quick scheme. Hopefully you have a positive experience with the turn key provider you are using, but even if you don't, you'll know more about what you do want in a property and the team you want to work with. Making the decision, whether good or bad, is the most important first step! Good luck!

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Dan T.
  • Anaheim, CA
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Dan T.
  • Anaheim, CA
Replied Jun 9 2022, 08:55

Following up on this property.

Original renters are still in the property, rent is now $1,345 (from $1,295), and the property i purchased for $179,900 is currently estimated around $260K by all sites. I've seen less than $500 in maintenance costs over the 2 years of ownership.

My portfolio has grown to 7 rentals (4 in OKC, 3 in Memphis), 6 of which I purchased from REI. I will likely make a summary thread in the future as a resource to people looking to pursue the TK path. I've been very pleased with my results investing with REI / @Chris Clothier.

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James Wachob
  • Real Estate Broker
  • Memphis, TN
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James Wachob
  • Real Estate Broker
  • Memphis, TN
Replied Jun 10 2022, 10:09

Congrats on the Bartlett property! I have several in this area and they have appreciated very well over the past few years. They have also attracted my ideal resident. When choosing my next investment I look at neighborhood as one of the most important features. If you have a GREAT neighborhood you can attract GREAT residents.

Bartlett is highly attractive because of their schools, shopping, parks, and low crime. It's also expensive. Finding a deal that will cashflow is hard but not impossible. Keep up the good work and let me know if your ever in town I'd love to connect. 

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Vinod Badami
  • Dayton, NJ
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Vinod Badami
  • Dayton, NJ
Replied Aug 3 2022, 12:17

@Dan T. have read this thread from your first post back in Feb of 2020. Just a great wealth of information. Thank you for sharing. Now that you are at 6 properties with REI in OKC and Memphis which location would you say is better? Also as one of the posts over the 2 years said - buying rehabbed property in OKC at around $200K does not make sense when new properties were available (and there are today) in the same price range, what was your reasoning for going for a rehabbed property? Thanks.