Turn key in Little Rock AK

20 Replies

Recently, I came across a website which advertises a turn key investment in Little Rock AK.

The company is called Memphis Invest and they claim to do everything for you with a + cash flow and manage your property.

? - Does anyone have any comments on this company? How credible is this companies turn key investments?

@Percy Matsunaga That info must be a little dated. The company has rebranded to REI. They are a very good turnkey provider but have recently had some issues with the inventory and balancing sales price with appraisals. They are not hiding it and state that their superior quality in renovations leads to less maintenance in the long run but is not always appreciated by appraisers.

There is probably some truth to it but with increasing qualification and underwriting criteria it could mean you have a substantially higher down-payment if the bank is not financing 80% of the sales price but only 80% of the appraised value.

Are you determined to invest in Little Rock? I have developed an approach I call the Ideal Wealth Grower system and we are working with some turnkey providers in other locations that don't face these issues. My big guiding light for IWG is the balance between performance and quality. We have been very successful working with out-of-state turnkey providers at great performance and wonderful quality. Our rent collection during the pandemic so far has been 99%.

To me that shows that the balancing can work and the price points are more attractive than what I have seen from REI in their 7 locations. I am not selling any properties. I am only investing in properties and mentoring people if they like and want to apply my approach.

I like REI a lot and would go as far as calling them the gold standard for how to run a turnkey operation. Over the years there are others that I work with who do it the same way with a better balance of the key indicators.

Maybe there is some truth in the Karate Kid movies were the student at some point gets as good if not better than the master :)

If you like me to help you, PM me and we can talk and see if you like me to help you.

@Percy Matsunaga

Percy,

If you're interested in turnkey I would highly recommend @Zach Lemaster over at Rent to Retirement. You can find their reviews on this website and all of his references on his page. They provide high quality, fully renovated rentals in cash flowing markets. 

I recently just closed on a property with them. The inspection came back almost flawless and the unit already had a tenant in place. I also was provided local contacts who assist me with tenants, maintenance, etc. 

If you're interested in turnkey I recommend checking out their website or reaching out to Zach directly. He can be a great resource in getting you a quality investment.

If I can answer any questions or be of more assistance feel free to message me.  

@Joseph Crunkilton Thanks for the shout out!

@Percy Matsunaga

 Happy to answer any questions you have about investing in different cash flow markets throughout the US!  We work in AR, and it is an excellent market with lots of upside!  New Amazon center development that has just broke ground!

@Zach Lemaster @Joseph Crunkilton @Percy Matsunaga Percy, I agree with what Joseph said. Zach and I have been in contact for some time and he has good deals. 

What's very important about out of state investing, besides a high-quality property and a great turnkey provider like Zach is the post-purchase side of things. I am doing this for about 20 years now and have seen horrible (initially because I didn't know what I was doing) to really good property management.

I know it does not always apply to Zach's offers but looking ideally at having the team that renovated the property also manage it is a good thing to have in my experience because then they have a strong incentive to do the renovation well.

I also suggest adding a clause in the purchase documents for the first 12 months post-closing. Anybody confident in the quality of the work will have no problem guaranteeing it for a year and many things come with longer warranties. One additional thing that can apply is this little nugget: ask to get/have TK buy the extended warranty. 

This does not apply (or hard to do) for a deal where the renovation is already complete and a tenant is already in place. If, as can often be the case with Turnkey providers, the renovation will complete around the time of closing, you want to make sure they buy the extended warranty for anything that could break, i.e. appliances, anything electrical, heaters, coolers, etc. In most cases for a whole house, it might add $500 - $1000 to your purchase (of which the bank pays 75% as part of the mortgage) and you can sleep well because any initial repairs are covered by the turnkey (1-year warranty) and the rest for several years by the extended itemized warranty.

For my mentoring clients that always leads to a rapid accumulation of the reserves (vacancy, maintenance, CAPEX funds) because they never need to touch them for years after purchase.

@Axel Meierhoefer Thanks for the kind words, and very informative follow up that will assist any investor looking to purchase out of state successfully!  I hope all is going well with your investment endeavors!

@Zach Lemaster Yep, thanks Zach. The portfolio is now at 9 properties and working on the next deals as soon as I can see how stable rent collection will remain/be this summer. I know the stock market is reaching new heights and supposedly millions of new jobs have been created, but this weird thing in my tummy is not yet calm, so I will give it a little more time. :-)

Originally posted by @Percy Matsunaga :

Recently, I came across a website which advertises a turn key investment in Little Rock AK.

The company is called Memphis Invest and they claim to do everything for you with a + cash flow and manage your property.

? - Does anyone have any comments on this company? How credible is this companies turn key investments?



Percy - 

I've done a few with them - they do a great job on rehabs and they do a great job on the property management side, which is what you're really looking for. Appraisals and valuations seem to be what get the most noise, but they've always stood by their guaranteed variance in the appraisals. Sometimes they come in low, sometimes they come in high, but what appraisers don't take into account is that all the deferred maintenance is done up front. An appraiser won't take into account that the roof, water heater, hvac, garage door, flooring, etc are all new versus used per se. It might not matter for most buyers that they are appraising for, but it should matter to a turnkey buyer, as those are the major items that will be the source of headaches in the future for a landlord. The difference often ends up being that the deferred maintenance is done up front so you have a fresh start.

Keep in mind the biggest piece of what you're buying is the property management side of what they do, and how they manage the tenants, vacancy, maintenance, etc.  It's way more than just collecting rent and sending it over to you as the owner.  I'd recommend chatting with them to go over how systematized everything is from their rehab to their property management.  I opted to visit in person and see their operations and properties early on in my investment with them, and I came away thoroughly impressed.  There's a reason they are considered the gold standard in this space.  

FWIW, throughout the pandemic, I haven't had a single tenant miss their rent.  Communication has been great (between me and them, and from what I can tell from them and the tenants).

Shoot me a message if you have any questions!

@ Zach Meierhoefer

I’m looking for a turn key property initially in the AR Little Rock market. I’m not locked into that market, and I’m open to other markets in the US. 

could you tell me more of your business? 

You can PM me and we can go from there 

@Axel Meierhoefer

Thank you for all that info. It’s a lot to digest in all at once. 

I’m not locked into the AR market. If there is another market that you are in and that meets my needs I’m definitely interested. 

You can PM me and we can go from there 

@Percy Matsunaga Happy to answer any questions you have.  Lets set up an initial introductory call.  Feel free to reach out to me with a time that works best for you.  Looking forward to connecting.

@ Mike D’Arrigo 

Thanks for the incredible info. I did not realize that Chris C is part of the BP. 

I’m definitely going to check out his Turn Key company when the Airlines start opening up flights. 

Do you have any TK properties investments with them? If Yes, which parts of the US did you invest in? 

@ Jer Yeung 

Great to hear some more positive feedbacks about Little Rock and that TK company. 

Do you still have any properties with them? If yes, are you invested in LR, AR? Or are you in other parts of the US? 

Originally posted by @Percy Matsunaga :

@ Mike D’Arrigo 

Thanks for the incredible info. I did not realize that Chris C is part of the BP. 

I’m definitely going to check out his Turn Key company when the Airlines start opening up flights. 

Do you have any TK properties investments with them? If Yes, which parts of the US did you invest in? 

Percy, no I don't. I guess you can say that we are technically competitors although not in the same markets. 

 

Originally posted by @Jer Yeung :
Originally posted by @Percy Matsunaga:

Recently, I came across a website which advertises a turn key investment in Little Rock AK.

The company is called Memphis Invest and they claim to do everything for you with a + cash flow and manage your property.

? - Does anyone have any comments on this company? How credible is this companies turn key investments?


Percy - 

I've done a few with them - they do a great job on rehabs and they do a great job on the property management side, which is what you're really looking for.  Appraisals and valuations seem to be what get the most noise, but they've always stood by their guaranteed variance in the appraisals.  Sometimes they come in low, sometimes they come in high, but what appraisers don't take into account is that all the deferred maintenance is done up front. An appraiser won't take into account that the roof, water heater, hvac, garage door, flooring, etc are all new versus used per se.  It might not matter for most buyers that they are appraising for, but it should matter to a turnkey buyer, as those are the major items that will be the source of headaches in the future for a landlord.  The difference often ends up being that the deferred maintenance is done up front so you have a fresh start. 

Keep in mind the biggest piece of what you're buying is the property management side of what they do, and how they manage the tenants, vacancy, maintenance, etc.  It's way more than just collecting rent and sending it over to you as the owner.  I'd recommend chatting with them to go over how systematized everything is from their rehab to their property management.  I opted to visit in person and see their operations and properties early on in my investment with them, and I came away thoroughly impressed.  There's a reason they are considered the gold standard in this space.  

FWIW, throughout the pandemic, I haven't had a single tenant miss their rent.  Communication has been great (between me and them, and from what I can tell from them and the tenants).

Shoot me a message if you have any questions!

   

   Ditto. Everything you said Jer. I have 7 properties with them, with one who has been a little slow, but their collection efforts have been excellent, a lot better than mine would’ve been! I highly recommend them. As far as the price of the house goes, consider the value of the overall investment, not just the sales price versus the appraisal, especially if you’re buying for long term.