Turnkey in Memphis/Little Rock

13 Replies

Some quick bullets

  • I'm a foreign investor (non-US citizen)
  • Looking at this area due to friends (other investors, and people that live in the area).

I'm currently looking through Midsouth Homebuyers as 1) they come with high recommendations from a colleague, and 2) they offer finance options for foreign investors.

What's the problem?
There is just so much information out there I want to make sure I'm getting a good deal, and I want to see what my options are. There are a LOT of amazing people on here with advice for days, so, if you don't mind, let me pick your brains! 

Regarding loan rates:

Midsouth Homebuyers offer loans at 7.9% for foreign investors which is nothing to grumble at. A good rate IMO. I just wonder if there are other companies in the area that offer something similar, or lower (market research!)?? Turnkey Properties do not feature rates or whether they offer loans on their site (so I should probably contact them).

Also, other than my (multiple) friends' recommendations for Little Rock, what do BP members think of the areas of Memphis vs Little Rock? Appreciation, crime, rent prices, etc.

Thanks for reading.

James

@James York I'd reach out to Aaron Chapman at Security National Mortgage. I know he offers to foreign investors, but I'm not sure of the rate. Of every national lender I've worked with he's by far my favorite. I can't speak to those markets, but I can talk about OKC all day. It's one of the markets that his the 1% loan to value ratio and I've seen OOS investors flooding in the in the last few years, so it's not just me realizing the deals here! 

@James York with those numbers, I doubt any turnkey property you find will cash flow. I recommend other strategies

@James York are you comfortable with those terms? If you are wanting just a rental loan I feel that you can get better terms than that somewhere. But depends are they charging you points?

@Nicholas Covington

Thanks for the quick reply. Yeah, I’m keen to keep my options open and see if I can get a better deal elsewhere. There are of course a bunch of lenders advertised here on BP. I’ve got some leads on possible places that lend to foreign investors also. If you have any leads, please let me know 😉

@James York - hope you can make the meetup on Thursday. Several have properties in the US and we can share war stories. I think my recent issues with sending enough cash for closing is one of the biggest lessons learned - but that’s because I have been here too long so my US account is mostly dry. Lots of ideas from some of the group though - so let’s talk on Thurs! If you cannot make it, PM me and we can meet up or get an off-cycle meeting with people that own in both locations. Hope we can help you find a way!

@James York Just a word of caution. Please make sure you have someone you trust in the area giving you feedback on the property. Memphis and Little Rock are very similar in that certain areas can be fine, but there are a lot of BAD areas that can easily be disguised as decent/good areas by turnkey providers. I see properties listed by Turnkey providers in Memphis all the time, priced right at that 1% rule because they know a lot of investors target that, and it looks like a good return to someone not familiar with the area. Most of these are in rough areas, so the renters you'll get will cause some issues - this translates to significant additional expense, which their numbers do not account for. In these areas, turnover will likely cost you a good bit, as the renters are very hard on the property, and crime can cost you, also. There's also very little chance for much appreciation in these areas (outside of certain pockets, and those aren't huge), so buy for cash flow but be sure you are accounting for the right level of tenant and the expenses associated with that level... 

I'm originally from Memphis and have lived in Arkansas for the past 10 years. Just wanting to give a word of caution, as I see a lot of turnkey opportunities presented in these areas, and it worries me because they look great. Only knowledge of that area specifically would let you know it's going to be a serious dud. 

@James York I have few rental properties in little rock and north little rock mostly B areas, single homes and duplexes, no war zones no old homes. I like north little rock a lot. Smaller city with less crime and better city services.

I have a better offer for you.

9% interest with only 10% down.

This way you can amass more properties and have superb leverage to get wealthy faster with much higher rental income!

If interested send me your email, so I can send you information regarding the properties.

I agree with Kirby's statement. Can be a huge difference depending on what side of the road a property is on.

Hi James

I can only confirm what you probably already know (from your colleague). In my opinion you are in excellent hands with Mid South Home Buyers. I am also a foreigner buying from South Africa. I visited them for the second time (June this year) and first visit in 2017. They are "REAL" turnkey providers - Buy, proper rehab, place tenant, manage tenant and then you buy the property. I have 2 houses and the 3rd one is very close. FYI - they have just expanded their operation to Little Rock.

Regarding the finance - I also make use of it (40% / 10 Years) - Property still cash flows (positive) and it is easy to get the loan (basically no questions asked).

Originally posted by @James York :

@Nicholas Covington Thanks for the quick reply. It's 40% down, 10 year amortization.

There are a lot of non recourse, asset based lenders that require less than 40% down.

 

Originally posted by @Willem Botha :

Hi James

I can only confirm what you probably already know (from your colleague). In my opinion you are in excellent hands with Mid South Home Buyers. I am also a foreigner buying from South Africa. I visited them for the second time (June this year) and first visit in 2017. They are "REAL" turnkey providers - Buy, proper rehab, place tenant, manage tenant and then you buy the property. I have 2 houses and the 3rd one is very close. FYI - they have just expanded their operation to Little Rock.

Regarding the finance - I also make use of it (40% / 10 Years) - Property still cash flows (positive) and it is easy to get the loan (basically no questions asked).

 That's great to hear Willem! Thanks for the information. 

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