Memphis Investment Properties BRRRR?

Question

I wanted to ask if anyone has had any experience with going through MIP's "Value Add" deals?  I've purchased 2 turnkey companies through REI Nation and am very happy with them but having to put 25% - 30% down each deal means I can buy 1 home per year.  They advertise that you can spend half the amount of money you would have on purchasing turnkey but you obviously take on much more risk and a hard money loan.  Any input on their company would be appreciated as well.  Thanks!

Jeb Durgin · Answer

Thanks for sharing your experience! It sounds like you've had good success with turnkey properties through REI Nation, but I can see how the down payments would limit your ability to scale quickly.

As for MIP’s "Value Add" deals, I haven’t personally worked with them, but I can share a few considerations based on how those types of deals typically work. The ability to spend half the amount of money you would on turnkey properties is definitely appealing, and it’s a great strategy if you're comfortable with the added risks and the work involved in the rehab process. The hard money loan component can help you access capital quickly, but keep in mind the higher interest rates and shorter term of the loan.

The key with value-add projects is to ensure you have a solid plan for the rehab and an accurate cost estimate, as these can often run over budget or take longer than expected. Having a clear exit strategy (whether selling or refinancing) is also crucial to make sure you're not stuck with high debt.

If you’re still comfortable with the risk and have the right contractors and project management systems in place, it can be a good way to increase your portfolio without tying up as much capital upfront.

Would love to hear how others in the group have found working with MIP or similar strategies. If you're considering moving forward, I’d also recommend connecting with someone who has already done a deal with them to get their feedback.

Best,