Considering Turnkey Investment with Memphis Invest

Rental Property Investor · Bloomington, IL · Member since 2015 · 48 posts · 8 votes

Hi BP family...

I'm a part-time investor now with 3 cash-flowing, single-family rentals that I actively manage myself. With lots of travel for work, I'm looking to invest outside of my base area (central IL) and increase the "passive" aspect of my cash flow. That said, I'm having an initial call with MemphisInvest tomorrow to hear their sales pitch, and I intend to document my experience here in the BP forums.

I've probably over-prepared with my questions and criteria, BUT if anyone has any words of wisdom or can offer smart questions to ask, please let me know and I'll report back soon.

Cheers!

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Curt DavisBusiness Member

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

No matter what company someone looks into you are bound to find a % who have had either a bad experience or something didnt go as planned. At time there is no way to avoid this. So what happens if you find a few investors who had a less then desirable experience, you will also find many who have had a great experience. Considering their time in the business, number of markets they are now in and the size of their team, its fairly safe you will be talking with one of the better companies who are a TK provider in the country.

Also like @Chris Clothier mentioned, sometimes an investor is not a good fit for their company and the other way around. No one company is perfect.

@Antoine Martel welcome to BP, as you will find out there is a ton of information here as well as great networking opportunities. Also being as new as you are you should not be trying to burn any bridges as in reading your posts you make it sound like you have a lot of people who have purchased from Memphis Invest who had a bad experience and your wanting to put people in touch with them. It benefits you in no way to do this and could make you look very unprofessional to the people who may read these posts. Take care!!

Curt Davis - KAIZEN Realty538 Reviews

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Antoine Martel
Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
9y
Memphis Invest is a large company and they manage a ton of properties in a couple of major cities. I would recommend talking to some people in the past who have invested with them. Find these people on BP and ask them questions. I have heard a lot of bad stories.
3 Reply
Antoine Martel
Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
9y
See how defensive he got from three sentences. I would definitely recommend reaching out to people who have invested with them in the past. I can provide you a list of people to talk to if you would like.
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Billy Maloney
Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
9y
I have bought from Memphis Invest. I have had a great experience thus far. Been about two years. I think the fact that @Chris Clothier is accessible and accountable is an advantage to an out of state investors. If something goes wrong you can give him crap directly and from my experience he does his best to keep his investors happy. @JJ feel free to reach out or bounce any questions off me. I ll be glad to give you my honest opinion on my experience.
@JJ Mayerundefined
2 Reply
Joseph Salegna
Massapequa Park, NY · Member since 2017 · 62 posts · 48 votes
9y
@JJ Mayer I recently closed on 2 homes with Memphis invest and I can tell you I couldn't be happier. All of the staff I worked with from criteria selection to closing to customer service have been nothing but a great experience. Everyone made the process easy and seamless and always answered my questions. I suggest writing down all of your questions and submit them to the person you speak with or on your call just go one by one. If you have any more questions feel free to pm me.
1 Reply
Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
9y
No matter what company someone looks into you are bound to find a % who have had either a bad experience or something didnt go as planned. At time there is no way to avoid this. So what happens if you find a few investors who had a less then desirable experience, you will also find many who have had a great experience. Considering their time in the business, number of markets they are now in and the size of their team, its fairly safe you will be talking with one of the better companies who are a TK provider in the country.
Also like @Chris Clothier mentioned, sometimes an investor is not a good fit for their company and the other way around. No one company is perfect.
@Antoine Martel welcome to BP, as you will find out there is a ton of information here as well as great networking opportunities. Also being as new as you are you should not be trying to burn any bridges as in reading your posts you make it sound like you have a lot of people who have purchased from Memphis Invest who had a bad experience and your wanting to put people in touch with them. It benefits you in no way to do this and could make you look very unprofessional to the people who may read these posts. Take care!!
Curt Davis - KAIZEN Realty538 Reviews
Website View Page
5 Reply
Dean HarrisBusiness Member
Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
9y
There are all types of investment opportunities in Memphis! Be sure to source your properties well and make sure you check ALL your options!!
Best of Luck!
CrestCore Realty4.713 Reviews
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Hank Keller
Rental Property Investor · Mansfield, OH · Member since 2017 · 151 posts · 117 votes
9y
I've used a TK provider from Indy for the past four years with great results. PM me if you'd like the details
2 Reply
Kenneth Dai
Investor · Fairhaven, MA · Member since 2016 · 100 posts · 88 votes
9y
@JJ Mayer hope your call goes/went well. I purchased several properties with Memphis Invest, and have been very happy with them. There are probably lots of posts on good questions to ask turnkey providers, but since you asked... I felt the most helpful questions I would suggest are:
On rehab/purchase side:
What happens if property underappraises? What kind of evidence will I get for completion of rehab and addressing inspection deficiencies? What happens when I want to exit, are there examples of how MI has worked with investors who want to sell?
On the PM side, sounds like you already have some experience, but some questions that might give you more insight:
What's a standard lease document look like? Do you collect management fee when property is unoccupied or if tenant is delinquent? How do you qualify tenants? How do you retain tenants?
Good luck, I look forward to hearing about your experience investing out of state!
5 Reply
Phil LeNeveu
Rental Property Investor · Boston, MA · Member since 2017 · 43 posts · 18 votes
9y
Something seems a little fishy here....
https://www.biggerpockets.com/users/martelantoine
https://www.biggerpockets.com/users/AntoineMartel
0 Reply
JJ Mayer
OP
Rental Property Investor · Bloomington, IL · Member since 2015 · 48 posts · 8 votes
9y
Thank all for your replies, I really do appreciate it.
@Hank Keller- thanks for sharing another Turnkey option, I haven't considered Indy as a target. I will definitely take a look at the demographic projections for IN and consider Alpine.
Finally, @Curt Davis - thanks for the dose of practicality ;-)
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JJ Mayer
OP
Rental Property Investor · Bloomington, IL · Member since 2015 · 48 posts · 8 votes
9y
@Kenneth Dai - thanks for offering your experience with Memphis Invest and your suggested questions. They are now in my hopper for a future conversation!
0 Reply
JJ Mayer
OP
Rental Property Investor · Bloomington, IL · Member since 2015 · 48 posts · 8 votes
9y
@Kenneth Dai, @Billy Maloney, @Joseph Salegna - thanks for sharing, good to hear you've all had a good experience thus far with Memphis Invest. If you don't mind me asking, what market(s) did you invest in? why?
0 Reply
Evan SalvadorPro Member
Investor · Roseville, CA · Member since 2015 · 35 posts · 20 votes
9y
I've seen way more good things about Memphis Invest than bad. I plan on working with them after I finish buying a few more properties in Indy.
1 Reply
Billy Maloney
Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
9y
@JJ Mayer I invested in Memphis. At the time for cashflow reasons. They are in TX and Memphis. TX seems to be less cash flow with a better possibilities of appreciation (potentially) . Honestly what Ive seen from MI the numbers are tighter than when i bought and some people are paying more than the properties are worth. Why you would do that beats me. I will tell you this though. I have bought other properties on my own in other markets and the property I bought with MI is cake compared the attention my other properties demand. Heck of alot more work doing it yourself.
2 Reply
JJ Mayer
OP
Rental Property Investor · Bloomington, IL · Member since 2015 · 48 posts · 8 votes
9y
@Chris Clothier - Chris, noting my experience and meeting notes with your company below. Feel free to reach out to me direct if you have any questions.
-----------------
So, for an update on my experience with Memphis Invest.... Meeting #1: I met with Ashley Claunch, Manager, Portfolio Advisory Team, at 3:30pm, Thursday (8/24). Copied below are my raw notes from that meeting. We chatted for about 20 minutes, she was very amiable and professional, without a strong sales pitch, but a clear objective to make the introduction, build rapport, and set up the next step(s). Frankly, she did a really nice job, and I am at least interested in learning more. If anyone has any thoughts or reactions, please share.
- My Notes on Ashley's bio - she & her husband were flippers when they moved to Memphis, doing some rentals on their own; Ashley has been with M.I. for 9 years, started with helping their marketing events in different cities, done portfolio advising for the last 7 years
- (5 min) Started by talking about my experience and what I'm looking for, but didn't get deep into details here since we knew tine was limited
- (15 min) Talked about Memphis Invest - nothing earth-shattering here, but Ashley set then stage well for Memphis Invest as solid, reputable company to do business with
- Available properties are consumed in a few hours [I have to admit that I won't like the need to pull the trigger super-fast without doing due diligence. Will have to reconcile this...]
- Process Overview…
- Next steps:
4 Reply
Joseph Salegna
Massapequa Park, NY · Member since 2017 · 62 posts · 48 votes
9y
@JJ Mayer I own 2 properties. One in Memphis and one in Dallas. I wanted to diversify myself with and be in more than one location.
0 Reply
Kenneth Dai
Investor · Fairhaven, MA · Member since 2016 · 100 posts · 88 votes
9y
I own all in Memphis with Memphis Invest. The main reason is because I figured it would be best to start at their base of operations, plus I just liked the Memphis area when I visited.
1 Reply
David B.
Investor · Worcester County, MA · Member since 2016 · 122 posts · 72 votes
9y
@Billy Maloney @JJ Mayer
It seems like there is compression in the rates of return that I am seeing from the big turnkey providers in the classic cash flow markets in the Midwest and South. Formerly I'd see rent to price ratios of 1% or better.
Now, the big turnkey players seems to be offering houses at .9% and even as low as .8% (monthly-rent to purchase-price ratio)....so leveraged cashflow seems to be moving closer to break-even.
What are you seeing?
1 Reply
Bob Razler
Rental Property Investor · Boca Raton, FL · Member since 2017 · 329 posts · 237 votes
9y
Hello @David B.
I think you are going to see overall lower rates with turnkey because you are going to pay slightly higher for the property.
I am not disparaging it. You are paying for a service from them that has value. They are finding the deals, rehabbing (sometimes), renting it, marketing it to us and finally making a profit.
I think they offer a great service to investors.
Bob
0 Reply
JJ Mayer
OP
Rental Property Investor · Bloomington, IL · Member since 2015 · 48 posts · 8 votes
9y
Just going to add a follow up note here... Ashley from Memphis Invest followed up with answers to my many, many questions. (For us, it worked better for us to do this offline via email). They have been nothing but professional so far.
1 Reply
Account Closed
Gaithersburg, MD · Member since 2009 · 80 posts · 47 votes
9y
Did you pull the trigger on a property purchase?
0 Reply
Hau N.
CA · Member since 2017 · 153 posts · 74 votes
9y
bump. JJ, i was wondering how your search for turn key company went? did you go with Memphis invest?
0 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
9y
Hau N. I agree with the above. Tk is a great way to get started.
0 Reply
JJ Mayer
OP
Rental Property Investor · Bloomington, IL · Member since 2015 · 48 posts · 8 votes
9y
Quick update - still strongly considering Memphis Invest, and planning a trip down to Memphis for a little due diligence/networking in the next 30-60 days.
In the meantime, we have 3 properties for sale (off market) that we will exchange (1031) into a turnkey investment. Hoping they go quick! :-)
0 Reply
Patrick Shawn Faherty
Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes
9y
Split personality?

Originally posted by @Phil LeNeveu:

Something seems a little fishy here....
https://www.biggerpockets.com/users/martelantoine
https://www.biggerpockets.com/users/AntoineMartel
0 Reply

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