REI Nation Experience

REI Nation Experience

Member since 2021 · 11 posts · 52 votes

I know there has been a lot posted about REI or Memphis Invest. I thought I'd post about my experience. I've researched them for years. What I found useful was that they seemed to have a high number of investors that were happy. I went through their "approval" process and in the samples they sent me 3 out of 8 properties achieved a roughly 8.5% cash ROI or better. They seemed really intent on buyers creating a criteria before getting properties sent to them. My criteria was 9% ROI but I'd consider anything above 8%. On their facebook page, they posted in February that they bough 144 properties. I thought I was about to get an influx of properties that met my criteria.

So far 1 month later.....1 property met my criteria. After 3 out of 8 in their "sample" were 8.4% or higher. Only 1 property in 6 weeks was sent to me that was above 8%. I bought it. However, that property under appraised by $10k. I know that it's common with Turnkey companies to overvalue their properties. I agree with another recent poster that their renovation list is a bit vague. Most of the renovations to this property were paint, or "service". I'm fine with that honestly, but when it doesn't appraise, it makes me question the renovations and the value they actually provided. They said they bought 144 properties in February, and I only saw 1 property in March that met the criteria that was prevalent in their samples (that's 0.7% of actual properties vs. 37% in their sample meeting that criteria). And then that 1 property that met the criteria didn't appraise. You have to sign an agreement that you will come up with the cash if the property appraises up to 10k below the purchase price. I signed it and I'm going to honor it. All I will say is I'm very unclear of the value that the buying team provides. It seems like the main value is the property management and not the buy side. I'm hoping that they can rent the property before I close. I'll update in a few months with how it's going. My plan was to buy 5-10 properties this year with REI, but it seems like that's near impossible with the criteria I have (which seemed very reasonable based on their samples).

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Investor · Northern California · Member since 2022 · 3 posts · 8 votes
3y

Thanks for posting, Kevin. Wondering if you have noticed any changes in their product or price points now that the market has become a buyer's market. I'm weighing the benefits of paying a premium for turn key vs. working with an investor friendly agent. Thx!

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  • Middletown, DE · Member since 2017 · 13 posts · 9 votes
    2y
    Quote from @Sunil Pinto:

    I would like to post my experience in dealing with REI. They were a good company to start with but seem to have lost their way off late. Their charges for repairs have gone up the roof and they are not competitive at all. They don't provide any invoices for expenses and hold you at gunpoint so to speak. I would run away from these monsters as fast as possible. Especially their Texas properties in falls forthworth area is under terrible management. They just looking to bleed the investors so they are forced to sell. Death by thousand cuts….

    Could you shed some more light on your experience with REI Nation? Most comments I’ve read are positive and then this one was a shocker. I’ve been seriously considering working with them to jumpstart my REI journey.
    • New to Real Estate · Iselin, NJ · Member since 2022 · 67 posts · 22 votes
      1y
      Quote from @Kevin Harrison:
      Quote from @Sunil Pinto:

      I would like to post my experience in dealing with REI. They were a good company to start with but seem to have lost their way off late. Their charges for repairs have gone up the roof and they are not competitive at all. They don't provide any invoices for expenses and hold you at gunpoint so to speak. I would run away from these monsters as fast as possible. Especially their Texas properties in falls forthworth area is under terrible management. They just looking to bleed the investors so they are forced to sell. Death by thousand cuts….

      Could you shed some more light on your experience with REI Nation? Most comments I’ve read are positive and then this one was a shocker. I’ve been seriously considering working with them to jumpstart my REI journey.

      Don't work with REI nation. This is my personal experience. I bought a brand new house from REI nation and it's under management by REI Nation. As per standard agreement, They are supposed to not make repair more than $400 without my consent unless it's an emergency. Now, the AC wasn't working and they sent an HVAC company to make the repair. The HVAC company made repair worth 1440$ without my consent. They inform me afterwards that I'll have to pay as per that. If I had a choice, I would make the repair much less but REI nation being stupid company messed it up and now need me to pay the bill. Also, they owe me property management credit as part of the agreement. When I asked them to break the contract, I loose property management credit as well. I would never ever buy something from REI nation.
    • New to Real Estate · Iselin, NJ · Member since 2022 · 67 posts · 22 votes
      1y
      Quote from @Hemal Adani:
      Quote from @Kevin Harrison:
      Quote from @Sunil Pinto:

      I would like to post my experience in dealing with REI. They were a good company to start with but seem to have lost their way off late. Their charges for repairs have gone up the roof and they are not competitive at all. They don't provide any invoices for expenses and hold you at gunpoint so to speak. I would run away from these monsters as fast as possible. Especially their Texas properties in falls forthworth area is under terrible management. They just looking to bleed the investors so they are forced to sell. Death by thousand cuts….

      Could you shed some more light on your experience with REI Nation? Most comments I’ve read are positive and then this one was a shocker. I’ve been seriously considering working with them to jumpstart my REI journey.

      Don't work with REI nation. This is my personal experience. I bought a brand new house from REI nation and it's under management by REI Nation. As per standard agreement, They are supposed to not make repair more than $400 without my consent unless it's an emergency. Now, the AC wasn't working and they sent an HVAC company to make the repair. The HVAC company made repair worth 1440$ without my consent. They inform me afterwards that I'll have to pay as per that. If I had a choice, I would make the repair much less but REI nation being stupid company messed it up and now need me to pay the bill. Also, they owe me property management credit as part of the agreement. When I asked them to break the contract, I loose property management credit as well. I would never ever buy something from REI nation.

      @Kevin Collins Also, It wasn't a mandatory repair required by the state. It could have waited.

  • Member since 2021 · 11 posts · 52 votes
    2y

    @Kevin Harrison I can speak to my experience. I started my first post which created this thread and bought my first property with REI several years ago. I can say my personal experience has been pretty mediocre. I bought 8 properties through REI and then bought one on my own in an area REI manages (so 9 total that REI property manages). The first year is typically good for most properties, although I've had some rough starts. Last year, on my 9 properties I had negative cash flow after accounting for mortgage payments, etc. One of those I bought on my own, but even with the other 8 I was still close to negative cash flow and they were all properties I bought for cash flow. The property management has been hit or miss. I've had a lot of large repairs in the past year that just kill the cash flow. I've also had a couple evictions/ask to vacate on properties where the tenants were constantly behind in paying. When you add up legal fees, lease fees, loss of rent, etc. it can add up. My original plan was to buy 15-20 properties with REI if things went well. I bought the 9 properties within the first 2 years, but haven't bought one since. The customer service/property management hasn't been as proactive as I thought it would be. They are paying for some repairs now after I've had several issues and a brand new tenant moved out, but I'm still paying a mortgage without any rent coming in during those months.

  • Member since 2024 · 1 post · 0 votes
    1y

    @Kevin Collins Has your experience turned around or only continued to get worse?

  • New to Real Estate · Member since 2019 · 48 posts · 43 votes
    1y

    Would love to revive this post in hopes of gaining more info.

  • New to Real Estate · 11596 · Member since 2024 · 5 posts · 1 vote
    1y
    Quote from @Kevin Collins:

    @Kevin Harrison I can speak to my experience. I started my first post which created this thread and bought my first property with REI several years ago. I can say my personal experience has been pretty mediocre. I bought 8 properties through REI and then bought one on my own in an area REI manages (so 9 total that REI property manages). The first year is typically good for most properties, although I've had some rough starts. Last year, on my 9 properties I had negative cash flow after accounting for mortgage payments, etc. One of those I bought on my own, but even with the other 8 I was still close to negative cash flow and they were all properties I bought for cash flow. The property management has been hit or miss. I've had a lot of large repairs in the past year that just kill the cash flow. I've also had a couple evictions/ask to vacate on properties where the tenants were constantly behind in paying. When you add up legal fees, lease fees, loss of rent, etc. it can add up. My original plan was to buy 15-20 properties with REI if things went well. I bought the 9 properties within the first 2 years, but haven't bought one since. The customer service/property management hasn't been as proactive as I thought it would be. They are paying for some repairs now after I've had several issues and a brand new tenant moved out, but I'm still paying a mortgage without any rent coming in during those months.

    Hi Kevin

    How is your recent experience with REI? I just bought my first property with them and wondering what to expect going forward. I am hoping the cash flow will match their numbers in first year (fingers crossed) and all the "other expenses" will start from 2nd year onwards. Do you see the cash flow, appreciation and ROI matching their numbers after few years?

    Thanks
    -Alok
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y
    Quote from @Kevin Collins:

    @Kevin Harrison I can speak to my experience. I started my first post which created this thread and bought my first property with REI several years ago. I can say my personal experience has been pretty mediocre. I bought 8 properties through REI and then bought one on my own in an area REI manages (so 9 total that REI property manages). The first year is typically good for most properties, although I've had some rough starts. Last year, on my 9 properties I had negative cash flow after accounting for mortgage payments, etc. One of those I bought on my own, but even with the other 8 I was still close to negative cash flow and they were all properties I bought for cash flow. The property management has been hit or miss. I've had a lot of large repairs in the past year that just kill the cash flow. I've also had a couple evictions/ask to vacate on properties where the tenants were constantly behind in paying. When you add up legal fees, lease fees, loss of rent, etc. it can add up. My original plan was to buy 15-20 properties with REI if things went well. I bought the 9 properties within the first 2 years, but haven't bought one since. The customer service/property management hasn't been as proactive as I thought it would be. They are paying for some repairs now after I've had several issues and a brand new tenant moved out, but I'm still paying a mortgage without any rent coming in during those months.


    I think what you describe is pretty much standard performance for rental properties if your not paying cash and I am just assuming your putting max debt on them to try to get your return numbers into your criteria.. REI does as good as job if not better than any TK company in the mid west.. Its just kind of the nature of the beast and investing were over 50% of all homes are rentals its a different lifestyle than what we are used to at least on the west coast were maybe 10% of SFR's are rentals  renters rent apartments.
  • Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes
    1y

    @Jay Hinrichs great points here and I think you are spot on. I am now seeing how the REI Nation process works from start to finish and as someone who also owns my own rental portfolio here in Memphis in what I consider solid neighborhoods but also used leverage to purchase, sometimes your cashflow gets evaporated due to CAPEX and there isn't always rhyme or reason to it. I am confident that the 3 water heaters and 3 HVAC systems I put in place since Summer 2024 will give me some peace of mind in 2025 and beyond... for those properties. However, I find the real value in the longer term appreciation that shows up in 5-10 years of the daily grind of rental properties. Happy New Year Everyone!

  • New to Real Estate · Iselin, NJ · Member since 2022 · 67 posts · 22 votes
    1y

    Don't work with REI Nation. This is my personal experience. I bought a brand new house from REI nation and it's under management by REI Nation. As per standard agreement, They are supposed to not make repair more than $400 without my consent unless it's an emergency. Now, the AC wasn't working and they sent an HVAC company to make the repair. The HVAC company made repair worth 1440$ without my consent. They inform me afterwards that I'll have to pay as per that. If I had a choice, I would make the repair much less but REI nation being stupid company messed it up and now need me to pay the bill. Also, they owe me property management credit as part of the agreement. When I asked them to break the contract, I loose property management credit as well. I would never ever buy something from REI nation.

  • New to Real Estate · Iselin, NJ · Member since 2022 · 67 posts · 22 votes
    1y

    @Kevin Collins Also, It wasn't a mandatory repair required by the state. It could have waited.

  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    1y

    Hemal - I'll give you credit for one thing. You forced me to break my rule about BP posts. I hate duplicate comments. If you can't be original, don't post. But, since you went on your cut-and-paste journey last night, I am forced to post my response on each thread.

    --------

    I afforded you the same courtesy that I afford every owner who posts an issue or a complaint, and I waited to respond until you had an opportunity to speak with me. Given the way you’ve conducted yourself over the last few days, it wasn't easy to wait. However, I chose to act with integrity and wanted to allow you to speak with me and share whatever your grievance may be. You have not taken that opportunity, so as I said in my voicemail to you, I am responding here.

    You purchased this property in April 2023. It was newly built and one of roughly two dozen in this area that we sold to investors and continue to manage. The property was appraised for its full sales price and was rented on the day you closed the sale. You have experienced zero days of vacancy, the resident pays every month, and also signed a two-year extension of their lease with an increase in years two and three between 3.5% and 5%. You currently have a rental rate of 79% rent-to-price ratio. You have had exactly $212 in minor maintenance expenses since the day you purchased the property, excluding this occurrence. I’m not sure what else an investor can want from their first 27 months of owning a property…

    Our customer service team has called you multiple times to check in, and although you occasionally spoke, you rarely take or return their calls.

    Now, your complaint concerns the fact that we did not call you before performing work exceeding $400. Why did we not call first? Because it was over a weekend involving a quality-of-life issue for a nearly perfect resident. We moved quickly to protect the resident’s well-being, your asset, and your income. You took two days to respond once we notified you of the work completed. Imagine if it had taken you two days to respond to a request, and then you wanted to perform the work yourself? This is the very essence of why investors buy a truly Turnkey property and experience. A professional, turnkey company is responsible for the well-being and performance of investors' assets. This is what we've been doing for the past 22 years, and we excel at it.

    The weekend before July 4, the resident called with an AC issue. Air conditioning in June and July in Birmingham is a significant issue, and heating and cooling concerns are always a quality of life concern for our company, especially during the hottest and coldest times of the year. We sent a technician to the house twice over a two-day period. He quoted a price for repairs, and we checked with a second AC company on the same repair list, which allowed us to negotiate the price down by roughly 20%. Although extensive work was done and explained in detail to you, most of it was covered under warranty, resulting in a final bill of $1,440.

    Your resident was thrilled with the quick response and grateful that they were not left without AC on a hot summer weekend. The property management agreement allows us, as the property manager, to make repairs exceeding $400 in instances where your property would suffer greater damage if the repair were not made, or the resident would be in a poor quality of life scenario. This is the precise job that you and all of our 3500+ owners have hired us to do. Our reputation is critical, and how we treat residents on behalf of our owners is the primary reason for our ability to secure long-term occupancies and minimize vacancy.

    It is clear to me from the messages you’ve sent and the way you spoke to our team on the phone that you are not a good fit with our company. You do not view the value of the services we provide and the respect we afford all parties in the same way. This could have been solved so easily. You could have easily asked to use the credit to cover the costs. However, you were offended that we would even consider doing the work in the first place. As another example of just how far off we are in philosophy, you offered a solution to us – “Break the lease and increase the rent by $100 from next month because the tenant wants to use the AC”. That is asinine! Subsequently, we have sent you a termination notice for management purposes.

    In many cases, I provide other companies as references in the area for you to contact; however, I’m afraid that in this case, I don’t know anyone whom I would refer. I'm sure you will find someone, and hopefully for your sake, they are not on BP. Regarding the credit referenced, it was a credit for management services provided by Premier Property Management. It does not follow you to whomever you want to manage the property. Unfortunately, you chose this reaction and this path—best of luck in your future endeavors.

    FYI – you also posted this same review with 1 star on Google. Here is how three recent residents in a similar situation to your resident reviewed our service. If you want to manage this property yourself, take these into consideration.

    5 Star - “@Candice Burgner sent someone out to check our AC within a couple of hours. They fixed it in 30 minutes. All is working well.”
    Mark G

    5 Star - “My husband and I recently had to have some maintenance requests serviced in our home and our Zone Manager @Megan Weaver worked with a sense of urgency and efficiency that helped to get our issues resolved in a timely and professional manner.”
    Maggie D

    5 Star - “I had an issue with my Ac unit over the weekend and of course the offices were closed. @Candice Burgner the zone manager ended up contacting me that same day after I put in a work order using the online portal. She assured me that the order had been put in and she was just waiting on a company to get the order and reach out. That night the company company contacted me and let me know they would be out the next morning. The company came out and did repairs and my ac unit was back up and running. I appreciate the prompt attention to this matter especially when it is so hot outside! Thanks so much Candice you were awesome!!!”
    Agrapina W

    • New to Real Estate · Iselin, NJ · Member since 2022 · 67 posts · 22 votes
      1y
      Quote from @Chris Clothier:

      Hemal - I'll give you credit for one thing. You forced me to break my rule about BP posts. I hate duplicate comments. If you can't be original, don't post. But, since you went on your cut-and-paste journey last night, I am forced to post my response on each thread.

      --------

      I afforded you the same courtesy that I afford every owner who posts an issue or a complaint, and I waited to respond until you had an opportunity to speak with me. Given the way you’ve conducted yourself over the last few days, it wasn't easy to wait. However, I chose to act with integrity and wanted to allow you to speak with me and share whatever your grievance may be. You have not taken that opportunity, so as I said in my voicemail to you, I am responding here.

      You purchased this property in April 2023. It was newly built and one of roughly two dozen in this area that we sold to investors and continue to manage. The property was appraised for its full sales price and was rented on the day you closed the sale. You have experienced zero days of vacancy, the resident pays every month, and also signed a two-year extension of their lease with an increase in years two and three between 3.5% and 5%. You currently have a rental rate of 79% rent-to-price ratio. You have had exactly $212 in minor maintenance expenses since the day you purchased the property, excluding this occurrence. I’m not sure what else an investor can want from their first 27 months of owning a property…

      Our customer service team has called you multiple times to check in, and although you occasionally spoke, you rarely take or return their calls.

      Now, your complaint concerns the fact that we did not call you before performing work exceeding $400. Why did we not call first? Because it was over a weekend involving a quality-of-life issue for a nearly perfect resident. We moved quickly to protect the resident’s well-being, your asset, and your income. You took two days to respond once we notified you of the work completed. Imagine if it had taken you two days to respond to a request, and then you wanted to perform the work yourself? This is the very essence of why investors buy a truly Turnkey property and experience. A professional, turnkey company is responsible for the well-being and performance of investors' assets. This is what we've been doing for the past 22 years, and we excel at it.

      The weekend before July 4, the resident called with an AC issue. Air conditioning in June and July in Birmingham is a significant issue, and heating and cooling concerns are always a quality of life concern for our company, especially during the hottest and coldest times of the year. We sent a technician to the house twice over a two-day period. He quoted a price for repairs, and we checked with a second AC company on the same repair list, which allowed us to negotiate the price down by roughly 20%. Although extensive work was done and explained in detail to you, most of it was covered under warranty, resulting in a final bill of $1,440.

      Your resident was thrilled with the quick response and grateful that they were not left without AC on a hot summer weekend. The property management agreement allows us, as the property manager, to make repairs exceeding $400 in instances where your property would suffer greater damage if the repair were not made, or the resident would be in a poor quality of life scenario. This is the precise job that you and all of our 3500+ owners have hired us to do. Our reputation is critical, and how we treat residents on behalf of our owners is the primary reason for our ability to secure long-term occupancies and minimize vacancy.

      It is clear to me from the messages you’ve sent and the way you spoke to our team on the phone that you are not a good fit with our company. You do not view the value of the services we provide and the respect we afford all parties in the same way. This could have been solved so easily. You could have easily asked to use the credit to cover the costs. However, you were offended that we would even consider doing the work in the first place. As another example of just how far off we are in philosophy, you offered a solution to us – “Break the lease and increase the rent by $100 from next month because the tenant wants to use the AC”. That is asinine! Subsequently, we have sent you a termination notice for management purposes.

      In many cases, I provide other companies as references in the area for you to contact; however, I’m afraid that in this case, I don’t know anyone whom I would refer. I'm sure you will find someone, and hopefully for your sake, they are not on BP. Regarding the credit referenced, it was a credit for management services provided by Premier Property Management. It does not follow you to whomever you want to manage the property. Unfortunately, you chose this reaction and this path—best of luck in your future endeavors.

      FYI – you also posted this same review with 1 star on Google. Here is how three recent residents in a similar situation to your resident reviewed our service. If you want to manage this property yourself, take these into consideration.

      5 Star - “@Candice Burgner sent someone out to check our AC within a couple of hours. They fixed it in 30 minutes. All is working well.”
      Mark G

      5 Star - “My husband and I recently had to have some maintenance requests serviced in our home and our Zone Manager @Megan Weaver worked with a sense of urgency and efficiency that helped to get our issues resolved in a timely and professional manner.”
      Maggie D

      5 Star - “I had an issue with my Ac unit over the weekend and of course the offices were closed. @Candice Burgner the zone manager ended up contacting me that same day after I put in a work order using the online portal. She assured me that the order had been put in and she was just waiting on a company to get the order and reach out. That night the company company contacted me and let me know they would be out the next morning. The company came out and did repairs and my ac unit was back up and running. I appreciate the prompt attention to this matter especially when it is so hot outside! Thanks so much Candice you were awesome!!!”
      Agrapina W

       @Chris Clothier

      Your team has contact details of me and my partner who purchased the property together. They didn't check with nobody before making the repair of $1440. I can make the repair much cheaper than you guys. It's just a cover up for messing it up.

      I stated clearly I'd like to terminate the contract provided management credit is refunded. That is 16,000$ in management credit paid over 7 years because I paid premium price on the property. With that it will make 7% return on investment property bought from you. You're talking about forfeiting roughly $14,000. That puts my ROI to 0% and next few years are going to be 0 to 3%. That just shows you'll screw investor given a chance.

      To put it into perspective, on the investment of $60,000, next few years my return is going to be as following.

      $ 14

      $ 787

      $ 721

      $ 1,440

      $ 1,569

      $ 2,065

      Anybody wants to work with REI Nation now?

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