Memphis Vacant Property Registry

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Memphis Vacant Property Registry

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Investor · Memphis, TN · Member since 2015 · 105 posts · 68 votes

Hello Memphis investors - 

This is a quick bit of info to let you know about the Memphis Vacant Property Registry.  It is a city ordinance enacted in 2013 to help fight blight in the city of Memphis.  Basically, if you have a property that is vacant for 30 or more days with no intentions of getting it occupied, you are supposed to register that property with the city for a fee of $200 / year.  This registration helps the police monitor vacant properties and, I believe, helps pay for the city to cut the grass so it doesn't show up on the tax bill (don't quote me on that).  Information is available here: http://safeguardproperties.com/Resources/Vacant_Pr...

This is a serious issue to me as I believe blight is holding Memphis properties down. I personally seek out delinquent owners who don't manage their properties and contact them directly.  For out of state or country owners, this is usually a problem with the management company, I know, but the owners still have to put the pressure on their management companies to keep the properties up.  

I recently bought my first rental property in North Memphis, in an area that is currently scrappy but has potential for growth.  There are a few junky properties nearby, including one owned by an investor in New Zealand.  I tracked down a phone number and we had a chat.  When I informed him of the registry, he simply balked, then cursed me out.  I emailed the property address and his contact information to code enforcement right after the call.

So, if you're reading this and you have a boarded vacant property in Memphis that you aren't planning on fixing up, please just register it with the city.  Yes, it hurts your precious cash flow but it also helps keep the city that much safer.  The boards on the windows do very little to deter the criminals in this city who would use these homes for nefarious purposes.  Registering the property pays for additional police coverage which protects your investment and the neighborhood.  

I'll probably catch a lot of flack for this, but it had to be said.  

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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
11y

@Account Closed

You must live in fantasy land if you think you are going to make a change in low income, high crime and vandalism type neighborhoods.  You expect the foreign investor who probably purchased a home in a terrible area but was told it was great to fix the home up, spend $10,000 when they have already been taken not only by the person who sold them the home but also by the criminals in some of these neighborhoods, just so it can happen all over again?  They should probably try and sell it and cut their losses but maybe cant, so lets then fine them for it.   

if you have a bleeding heart for low income, bad neighborhood type of renters then more power to you.  I know how that ends up and only a local stands a chance to make it happen ( or not hurt so much ).  Good luck

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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    11y
    Originally posted by @James Martin:

    @Chris Clothier What roles should the businesses and churches played? My wife & I have been buying rentals in Frayser for years and recently thought about buying up half of a street with vacant homes.

    Hey James,

    This biggest benefit to involving local businesses and churches is that you can provide labor opportunities and safe, affordable housing to their workers and members.  The labor may only be odd jobs or the actual labor of cleaning and yard work - hey may not be skilled laborers like carpenters or plumbing, electrician.  But you would be surprised what happens when you ask those questions.  The work steps forward and the local, neighborhood residents will respond with thanks.  

    When it comes to tenants, you have an opportunity to rent the property to someone who was alerted to your plans for cleaning and revival and they will support you.  They will help you find a quality tenant that will take care of the place.

    That is the theory anyway and it does work - maybe not 100% of the time - but it will go a long way toward your eventual success. 

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  • James Martin
    Property Management · Memphis, TN · Member since 2009 · 668 posts · 362 votes
    11y

    @Chris Clothier Hey Thanks! Great information

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Chris Clothier  I think the play for a company like you is to buy them then DONATE them to the Church's  and take the write off's... get the great goodwill you would no doubt get.

    I know when I had my painful days of foreclosing on 200 plus of these types of homes and ended up owning them  that's what I did with the one's I felt were beyond salvage.. I gave them to habitat to Humans and local Baptist church's.. Ergo I did not pay income tax for 4 years LOL... would rather have not gone through this very humbling and painful episode in my business life but I like many others learned in certain areas the chances for success are limited to non existent for 99% of investors ...  IT takes a local who knows it lives it and WANTS to be there.   

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  • Douglas SkipworthBusiness Member
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    @James Martin,

    If you and Kenisha buy half of that street, you definitely need to talk with Steve Lockwood at the Frayser CDC (if you don't know him already).  He knows all the local players and can get you the neighborhood support that @Chris Clothier was talking about.

    I say go for it!

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  • James Martin
    Property Management · Memphis, TN · Member since 2009 · 668 posts · 362 votes
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    Hey thanks Douglas! I actually don't know Steve Lockwood. I will most definitely reach out to you  if we are able to make this transaction happen.

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  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    11y

    @James Martin  Your up for that challenge in Frayser?  I gave Frayser one last chance when someone deeded me a house for Free with a tenant in place at $595.  I ended up losing money on a free house.  

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  • James Martin
    Property Management · Memphis, TN · Member since 2009 · 668 posts · 362 votes
    11y

    @Alex I remember that house your talking about. Actually, that particular neighborhood is where I'm interested in buying . I grew up in that area and have what I believe are strong ties such as old friends and family that still stay in the neighborhood. There's a lot of due diligence to be done before we take on this task, but just as Chris mentioned I actually know the director of the new Christ Medical Center. We have a relationship with several pastors & members at a few nearby churches. I personally know the property managers at Greenbriar, Persian Park, Overlook, Carriage House and a few more apartments in the area (went to school with a few). I know the owners of several small businesses nearby (tire shops, transmission shop, wrecker shop, Churches Chicken, Barber Shops, Paint Shops etc).  My old classmates & I have a reunion every year in July donating to the local kids at Westside Middle for back to school. We were able to make relationships with new staff members that was not originally at the school when we went there. Even so, I still understand the lack of resources, jobs, community development, and crime that consumes this area. The diligences I'm after are the things I don't know that I need to know! Alex I hope I'm not making a emotional decision?

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  • Account Closed
    OP
    Investor · Memphis, TN · Member since 2015 · 105 posts · 68 votes
    11y
    Originally posted by @Jay Hinrichs:

    @Account Closed  Devils night is coming up maybe this area of Memphis should just follow suit with Detroit and burn these places down... Then turn the lots into community gardens were the neighbors could grow veggies and fruits and do it all on the honor system..

    We see that here in Oregon there will be a little stand in front with freshly harvested fruits or veggies with a donation can ( Coffee can) and you just pull over and grab some tomato's or such and then leave your money in the donation can.. and every few days the volunteers that are tending the garden come by and empty the can.. and use that to buy things to better the garden... Nothing like fresh veggies from a garden.. I have seen pictures of these in Detroit even, so if they can do it there I am certain they can do it in Memphis as well.

    Your blatant sarcasm aside, that would be a pretty groovy development.  I have yet to taste a food as delicious as a homegrown tomato.  

    I believe in a middle ground between utter depravity and utter communitarian bliss.  A key component in reaching that middle ground is responsible ownership.  My lack of a fatalistic outlook (which some would call naivete) on impoverished areas leads to me believe that leaving a house vacant and boarded does little good to reach that goal.  Doesn't do much good for surrounding property values, either.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Account Closed  No sarcasm... have you been to Detroit ?  if so you will see community gardens all over the place.. just look at a recent National Geo mag they did a spread on Detroit and the community,  Along with Anthony Bourdain on one of his shows...

    .. And honor box's are used all over Oregon.. Why would this be seen as a sarcastic remark?

    What are you insinuating that these communities could not get together and grow a communal Garden.. that the people could not do that ?   And if that is the case and this area is that far gone then well there probably is no hope then is there .. for the neighborhood or the people that inhabit it is that the point of all of this...

    Its nots the houses wrecking themselves or the landlords purposely wrecking the houses.. right ?  who is responsible for the damage and carnage that happens to these homes ? 

    ... I think the issue is far deeper than beating on landlords that lose thousands of dollars trying to provide housing only to lose all their money because the PEOPLE that live there are so disrespectful to the owners and their properties. 

    Or is it roving gangs  or what the heck is it specifically that damages these homes like this and creates these kind of areas.. how do you fix THAT other than the next do gooder coming in and trying to refurb the area only to get wiped out..   Can you blame the guy from New Zeeland really... He was probably sold on cash flow and how great a deal these are only to have been sold a hood rat property and lose all his money.. How is it his fault.

    Is it not the people how live in these homes and destroy them as they live in them  Fault ?

    Or do they get a pass as a protected class and we should just look the other way and let some other person risk their lives and financial help to try and solve this issue.

    And again its not just Memphis is literally every big city in the US that has a blighted urban Core or SFR areas like this that have turned into low end rental areas.

    Wish you the best in your quest.. though.

    But in my mind until you change the people and how they live and respect property of others we will be having this exact conversation 2 decades from now..

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