If you are planning to visit Memphis ...

If you are planning to visit Memphis ...

Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes

For all of the investors considering Memphis as a potential market, let me just say it is a wonderful town. Besides all of the economic reasons to go and do business in Memphis, the town is very beautiful, has tons of culture and the people are wonderful.

My recent visit included meetings with @Alex Craig, @Curt Davis, @Douglas Skipworth, @Bert Miller, @Tina Sandoval and @James Wachob. All of the aforementioned are consummate professionals and incredibly experienced. The wisdom they imparted and the time they shared to discuss all opportunities, even ones I had not considered, was fantastic.

Special thanks to @Alex Craig and @Bert Miller for taking the time to show me around town. I got lessons in person on questions I asked in the forum. The neighborhoods can vary widely street to street and so can the retail market, which is great to know regarding exit strategies. I was able to see the operations of three of the turnkey operators out there. Overall it was very exciting and ultimately reaffirmed my want to do business out there. 

I recommend anyone, regardless if doing turnkey properties or not, to reach out to anyone I have listed here. They are not the only ones out there, but they were the only ones I had time to meet. I spent 2.5 days out there and it was not enough.

Also, if you go, eat at the Rendezvous in downtown. Great ribs!

Good luck all! 

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Investor · Memphis, TN · Member since 2016 · 24 posts · 27 votes
9y

@Diane G. thats an interesting take. From Sunnyvale to Memphis, there are many paths out of the rat race. Here's to sitting pretty at the end of all of them. Cheers

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    9y

    I told you that you would love the Rendezvous!!!!!!!!

    Curt Davis - KAIZEN Realty538 Reviews
  • CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Alexander Price

    No objections to your rib comments.... Everything else, not sure...

    Just on OOS investing, I personally sold my OOS at $120K loss about 4 years and best decision I have ever made.... This morning, I met a new friend thru a mutual friend, who invested in TX about 8-9 years, told me regrets.... All his friends that stayed in CA are all so much financially advanced than him....All sitting on $300+ appreciation while he is collecting his $150/month cash flow.....

    So fly to Memphis, enjoy the culture, enjoy the people, enjoy the rib... for a week..... Then come back and suck up the skyhigh price and you will be sitting so pretty 10 years down the road.....

  • Investor · Los Angeles, CA · Member since 2012 · 108 posts · 23 votes
    9y
    Any suggest area to visit?
  • Investor · Memphis, TN · Member since 2016 · 24 posts · 27 votes
    9y

    @Diane G. thats an interesting take. From Sunnyvale to Memphis, there are many paths out of the rat race. Here's to sitting pretty at the end of all of them. Cheers

  • CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Fernando Parker

    It is funny that I just came back from coffee with this new friend.... who is still collecting $150/month...

    to get to the $300K equity that his friends all earned, he needs 2000 months of the cash flow or 166.7 years of doing that....Lol...

  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    9y

    can you say buzz kill Diane !!! 

    Not everyone is making $300k in equity and both markets are far different.  You can't even compare the two. In order to play in California you need a ton of money, in markets like ours you don't. 

    Curt Davis - KAIZEN Realty538 Reviews
  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    @Alexander Price

    The Memphis BBQ is definitely one of a kind!

    Memphis is a great town to invest in and the word is quickly spreading about all of the great opportunities here. I am an investor and I manage local and national investors and a couple of hedge funds as well. Our ROI's have been in the mid-teens for several years and we are really seeing great opportunities here in Memphis. Make sure you source your properties well. There are many options in Memphis so make sure you check them all out!

    Please feel free to reach out and ask any questions. I am happy to help and share our program with you. You will definitely find several different opinions on our investment market!

    Good Luck! 

    CrestCore Realty4.713 Reviews
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  • Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
    9y

    @Diane G., I actually generally agree with everything you say about investing in CA as opposed to going the out of state route, particularly as to rust belt markets that are flat or declining.  The only thing I would say about your Texas friend is that it sounds like he almost certainly bought a turd.  Appreciation (at least in DFW) has been ridiculous in addition to rent increases over the last few years.  However, as @Jay Hinrichs often says about Texas, it really is a local person's game.  Taxes, structural issues, etc. make it a very easy place to lose money in the long run.  (And I can never figure why someone in a high income tax state with low property taxes would choose to invest in a high property tax state with no income taxes)   I would also say that DFW experienced some long overdue run up, but that I can't possibly see it being sustainable.  

  • Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes
    9y

    Man this thread took a serious turn. @Diane G. I have looked and continue to look at properties in CA. I want to invest in CA, but entry point is incredibly high. I had a condemned house in my neighborhood auction with a starting price of 575k. Again, that was a condemned house. Recent comps for similar housing plans were 632-650k retail. That is rough to turn around. Considering you could rent it for ~3000/month, you'd see no cash flow without having a lot of money in upfront. 

    I want to invest in CA. It is just easier to take advantage of markets in my price range. 

  • Real Estate Broker · Memphis, TN · Member since 2015 · 95 posts · 77 votes
    9y

    @Alexander Price it was great meeting with you guys! Next time give us a heads up so we can show you around!

  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    @Alexander Price you missed out on the Veal from Jim's Place.  Although I understand your reasons for going with the pasta dish.

    @Curt Davis, LOL, buzz kill.  Yes, you are spot on with amount of money to get started in CA is much different then markets such as Memphis.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Alexander Price  if you want to stay in the bay area I would get serious about Richmond.. I have been buying there.. HUGE amount of jobs coming there right now... and over the next few years.

    you can buy a cash flow neutral to a little positive in the 200 to 250k range were else can you buy a property like that 20 minutes from the financial district in SF.. and its the same tenant base as you would get in Memphis... Just saying..

  • Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes
    9y

    @Jay Hinrichs

    Will do. How are you managing those?

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Alexander Price  I am loading up on lots currently.   I am not a cash flow investor I am a builder developer... :)  I will sell these to home owners and those that want cash flow.

    But have been studying the market... I think its got some real upside.

    Just like when I was buying homes in East Palo Alto for 15 to 25k each in the early 80s  ask me how many of those I still have.. and that was one rough neck of the woods... LOL

    Plus you can get some great ribs in Richmond as well.. but the chicken at Alex's place is some of the best fried chicken I have ever ate.

  • Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Alexander Price:

    Man this thread took a serious turn. @Diane G. I have looked and continue to look at properties in CA. I want to invest in CA, but entry point is incredibly high. I had a condemned house in my neighborhood auction with a starting price of 575k. Again, that was a condemned house. Recent comps for similar housing plans were 632-650k retail. That is rough to turn around. Considering you could rent it for ~3000/month, you'd see no cash flow without having a lot of money in upfront. 

    I want to invest in CA. It is just easier to take advantage of markets in my price range. 

    Alexander,

    Go ahead and invest out of state. Every man will have to learn his own lesson. The high entry point is to keep the newbies and less creative investors out. Look at J Martin's threads and see how he went from negative net worth to owning $1M+ of real estate in Richmond and Oakland in a few short years. He was able to quit his government W-2 job with a pension at the age of 31, and he is now traveling the world. I believe he's in Philippines at the moment.

    It's not what you think; it's how you think. This is coming from another unemployed guy like J sitting at home in his pajama typing away on BP. I didn't have much when I started out, but now I'm sitting on 10 times J Martin's real estate holdings just in a few short years with half of that in equity. That's what CA real estate can do for you and whoever is willing to think outside the box. It's a game and life changer. @Jay Hinrichs has repeatedly been preaching about it on here. It seems like it goes in one ear and out the other with too many CA folks. Everyone is looking for the path of least resistance only to find out the path is so rocky and they weren't prepared for it. Sigh....

    Best of luck.

  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
    9y

    @Alexander Price thanks for stopping by the office, you guys were a lot of fun and I look forward to doing business with you!

  • CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Curt Davis

    No need to "buzz kill" me, no matter what I say here, I know us californian will continue to flood Memphis, just as we did phoenix and Austin... Lol... Please don't forget to support us back by getting a new iphone every September, a new GoPro camera every December and a new Tesla every Febuary....Memphis is a beautiful city btw.....

    @Alexander Price Noticed that you already had 2 rentals in Memphis... How is the experience there?

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Diane G.  well I am only in Oregon but I bought TWO Teslas this year a S and an X for my wife for Christmas.. plus have been buying in Richmond so I am doing my part.. OH and I bought a new EYE phone yesterday along with the watch.. Only thing I don't do is spend money on facebook ads or any other on line social media stuff .. :)  cant recommend the TESLAS enough.. those are the best auto I have ever had and I have owned pretty much everything exotic to domestic.

  • CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Jay Hinrichs

    Lol... So how many do you still own in East Palo Alto?

    And are you currently building in Richmond? Sell me one at BP discount? 

  • Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    I agree with one thing ... if I'm in the mood for some good BBQ or good blues music, I'll look to Memphis. But when I'm in the mood for some good property, there's no place like home.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Diane G.  unfortuantly NONE>.. but most folks who are not really familiar with the bay area circa 1960's and 70s really don't understand what I am talking about.. LOL  I live in PA for 10 years and grew up in Cupertino.. so I saw it all.. I lived in Cupertino before HEY 280 was built . and where Apple headquarters is now  IE  HWY 9 and Steven Creek it was still gravel roads.. !!!

    My parents paid 22k for their Cupertino 2 story 2600 sq foot home back in the day.. its worth as you know more than 2 million today.. ..

  • CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Jay Hinrichs

    Richmond is NOT 20 minutes from SF financial district... it is more like 1 hour looking from the map, would you agree?

    Also, there is not 200 -250 SFH in Richmond anymore.... Are you still speaking 2008 terms?

  • Mansfield, TX · Member since 2016 · 37 posts · 2 votes
    9y

    Tina,

    How is the MF market in  Memphis?

  • Investor · Concord, CA · Member since 2017 · 2 posts · 2 votes
    9y

    Hello I'm new to BP from the beautiful Bay Area...thought I would confirm Richmond is 20 minutes to SF downtown WITH NO traffic, that may be only Saturday early morning or Sunday while everyone is at church in the morning or sleeping in. With traffic it will take the hour cause once they come out, the bridge gets packed again. Distance wise is probable like 15 miles or so. 

  • O'Fallon, IL · Member since 2016 · 14 posts · 14 votes
    9y

    There's money to be made in every market. It comes down to strategy and picking the right properties / neighborhoods. I operate in the midwest (St. Louis) and went from 0 to owning $20-25 million (without any partners) worth of real estate by employing my value-add strategy for garden-style multifamily properties. 

    With that being said, I am relatively young (25), so I do see myself "diversifying" by expanding operations into appreciation markets at some point in the future. 

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