Turnkey REI in Chicago and Memphis recommendations
Real Estate Consultant · Columbus, OH · Member since 2019 · 56 posts · 11 votes
Turnkey REI in Chicago and Memphis recommendations
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Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votesOK, so I read this and I couldn't just let it sit there, lol! @Sunir Joshi, this kind of information is hard to find because it is called confirmation bias. I love @Ali Boone and we keep talking about meeting up for pancakes again - one day we are going to have to do it. But, Ali is not a fan of Memphis. What she listed, IMO, is a great example of confirmation bias. Searching for confirmation of pre-determined biases. And it's ok and Ali is right, she does not like the market and has her reasons, but what was listed can be looked at entirely differently. They are her reasons, which are valid for her, but I have to push back for other readers.
The return an investor can get and how good it is, is not going to be determined by the city. To say that it is a fact that you can get higher returns elsewhere is kind of silly. The return is determined by price, investment class, leverage and even risk. You can find high or low returns in any city at any time. It doesn't matter what city you choose to invest in. The return you earn on your investment has much more to do with what you are investing in and how it is structured as well as the team(s) you choose to work with.
Percentage of renters - 55% of Memphians do not rent their houses. According to the website, department of numbers, which used percentage of rental households to total households to run their calculations, 39% of Memphis households are rentals. For comparison, Philadelphia, which is a city that Ali touts for investors (that may not still be the case, but I think recently that is true), has 34% of their households as rentals. When comparing across thousands of households that is a negligible number.
Industry - it is crazy to hear when people try to turn being "America's Distribution Center", as Memphis is known, into a negative. That status has led to six Fortune 500 companies to have major presence in Memphis with three of them having their world headquarters here. It has the largest cargo airport in the world, the largest inland port in the U.S., and is one of only four cities with 5 Class 1 railroads. That has led Memphis to be one of the fastest growing manufacturing HUBs in the U.S. with major growth across all fields of manufacturing, but especially in Bio Medical fields. Today, Manufacturing and distribution make up 34% of the jobs in Memphis. Considering that as long as the U.S. has an economy where we manufacture goods, Memphis will have consistent, reliable and stable jobs. I think that is a positive.
I'm not sure what is meant by drama, but Memphis absolutely has Hedgefund activity here and has several well-known companies providing Turnkey services for investors. Now, I hope that no one reads any of this as negative toward Ali. She has built her passive portfolio and I love how active and open she is for investors. I always appreciate that she mentions me and my families' company for investors interested in the seven markets we operate. I just wanted to point out that each investor has to pick and choose where they want to invest and why. Those are Ali's reasons and so they are absolutely valid for her. Other investors may see those same things differently as she noted!
@Shannon Phoenix, you have been given a couple of really good companies here in Memphis with @Alex Craig who owns Memphis Turnkey and @Douglas Skipworth who owns and runs Crestcore. They encompass a lot of opportunities in Memphis. I also am very familiar with @Mark Ainley in Chicago as well, so I think you have some really good companies to start investigating and networking with.
Best of luck to you!
30 Replies
- 7yDouglas SkipworthBusiness MemberRental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
Hi, @Shannon Phoenix.
You should definitely reach out to my friend @Mark Ainley in the Windy City. He's got one of the best real estate and property management companies in the whole country!
Investor's Guide to Memphis Real Estate - Real Estate Consultant · Columbus, OH · Member since 2019 · 56 posts · 11 votes7y
@Douglas Skipworth Thank you so much! I have sent @Mark Ainley a connection request! I’ll keep you posted on the outcome. I look forward to continued networking. :-)
I've never been a fan of Memphis for investing personally but I've always been an avid fan of @Chris Clothier with MemphisInvest. I have Chicago turnkey contacts as well but some of that will depend on your budget and what kind of property you are interested in. Chicago can be a little varied.
Reach out anytime if I can be of any help!
- Real Estate Consultant · Columbus, OH · Member since 2019 · 56 posts · 11 votes7y
@Ali Boone Thank you so much for the information. I will definitely reach out. Looking forward to continued networking with you!
- Member since 2018 · 2 posts · 1 vote7y
@Shannon Phoenix MartelTurnkey does a great job in Memphis as well as a few other markets!
- Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes7y
I highly recomend @Douglas Skipworth. Met him several times and he has a class operation. I am not sure if he does 3rd party management in Memphis. Good to see you Doug online!
- Real Estate Consultant · Columbus, OH · Member since 2019 · 56 posts · 11 votes7y
@Josh Salazar thank you for the information!
- Real Estate Consultant · Columbus, OH · Member since 2019 · 56 posts · 11 votes7y
@Adrien S. Thanks for information. Would love more information. Will send you my email address.
- Contractor · Southfield, MI · Member since 2019 · 38 posts · 19 votes7y
@Shannon Phoenix
Why not Detroit? Market is bigger and flips are cheaper
- Member since 2018 · 4 posts · 2 votes7y
@Ali Boone why are you not a fan of Memphis? I was thinking about investing with Memphis Turnkey. Given your significant experience with turnkey companies, I'd love to know your thoughts on this market.
- Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes7y
@Shannon Phoenix. I like Memphis turnkey for turnkey in Memphis
Originally posted by @Sunir Joshi:
@Ali Boone why are you not a fan of Memphis? I was thinking about investing with Memphis Turnkey. Given your significant experience with turnkey companies, I'd love to know your thoughts on this market.
Hi Sunir. I'll answer but just note this is all personal preference. There are a ton of Memphis investors on here who can (and likely will) defend Memphis, and I'm completely okay with that. My intention isn't to argue anyone about it- I say, rock to anyone doing their thing! It's no competition on my end :)
So personal opinions about it... It was such a huge booming market back in the day, I believe any boom that is going to happen there has already happened. Factually, there are just higher returns elsewhere. I used to go to school in TN and my experience of Memphis is that it's super-fun to visit but I've never heard of anyone moving there unless they had to for a job. I don't like that it's mostly just transportation as their main industry. At one time about 55% of the city were renters-- I like more owner-occupied cities for exit strategy. There was a lot of drama with investment properties on and off over the past decade with all the hedge fund activity there (not sure current status of it). But ultimately more than anything, it's more about higher returns elsewhere for me. There always has been (somewhere, at some time).
With that said though, I don't at all think someone is wrong for investing there. I think it can offer great investments and there are some great companies there who are killing it that you could buy through. It's just never been my focus for my portfolio.
- Member since 2018 · 4 posts · 2 votes7y
Thanks for the insight! Very informative and not the type of information that is easy to find.
- Real Estate Consultant · Columbus, OH · Member since 2019 · 56 posts · 11 votes7y
@Larry Shirley I am not opposed. I am open to any areas that can help build my portfolio. Let’s network.
- Contractor · Southfield, MI · Member since 2019 · 38 posts · 19 votes7y
@Shannon Phoenix absolutely we should what types of flips are you into at the moment?
Originally posted by @Sunir Joshi:
Thanks for the insight! Very informative and not the type of information that is easy to find.
You bet! :)
- 7yChris ClothierBusiness MemberRental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
OK, so I read this and I couldn't just let it sit there, lol! @Sunir Joshi, this kind of information is hard to find because it is called confirmation bias. I love @Ali Boone and we keep talking about meeting up for pancakes again - one day we are going to have to do it. But, Ali is not a fan of Memphis. What she listed, IMO, is a great example of confirmation bias. Searching for confirmation of pre-determined biases. And it's ok and Ali is right, she does not like the market and has her reasons, but what was listed can be looked at entirely differently. They are her reasons, which are valid for her, but I have to push back for other readers.
The return an investor can get and how good it is, is not going to be determined by the city. To say that it is a fact that you can get higher returns elsewhere is kind of silly. The return is determined by price, investment class, leverage and even risk. You can find high or low returns in any city at any time. It doesn't matter what city you choose to invest in. The return you earn on your investment has much more to do with what you are investing in and how it is structured as well as the team(s) you choose to work with.
Percentage of renters - 55% of Memphians do not rent their houses. According to the website, department of numbers, which used percentage of rental households to total households to run their calculations, 39% of Memphis households are rentals. For comparison, Philadelphia, which is a city that Ali touts for investors (that may not still be the case, but I think recently that is true), has 34% of their households as rentals. When comparing across thousands of households that is a negligible number.
Industry - it is crazy to hear when people try to turn being "America's Distribution Center", as Memphis is known, into a negative. That status has led to six Fortune 500 companies to have major presence in Memphis with three of them having their world headquarters here. It has the largest cargo airport in the world, the largest inland port in the U.S., and is one of only four cities with 5 Class 1 railroads. That has led Memphis to be one of the fastest growing manufacturing HUBs in the U.S. with major growth across all fields of manufacturing, but especially in Bio Medical fields. Today, Manufacturing and distribution make up 34% of the jobs in Memphis. Considering that as long as the U.S. has an economy where we manufacture goods, Memphis will have consistent, reliable and stable jobs. I think that is a positive.
I'm not sure what is meant by drama, but Memphis absolutely has Hedgefund activity here and has several well-known companies providing Turnkey services for investors. Now, I hope that no one reads any of this as negative toward Ali. She has built her passive portfolio and I love how active and open she is for investors. I always appreciate that she mentions me and my families' company for investors interested in the seven markets we operate. I just wanted to point out that each investor has to pick and choose where they want to invest and why. Those are Ali's reasons and so they are absolutely valid for her. Other investors may see those same things differently as she noted!
@Shannon Phoenix, you have been given a couple of really good companies here in Memphis with @Alex Craig who owns Memphis Turnkey and @Douglas Skipworth who owns and runs Crestcore. They encompass a lot of opportunities in Memphis. I also am very familiar with @Mark Ainley in Chicago as well, so I think you have some really good companies to start investigating and networking with.
Best of luck to you!
Originally posted by @Chris Clothier:
OK, so I read this and I couldn't just let it sit there, lol! @Sunir Joshi, this kind of information is hard to find because it is called confirmation bias. I love @Ali Boone and we keep talking about meeting up for pancakes again - one day we are going to have to do it. But, Ali is not a fan of Memphis. What she listed, IMO, is a great example of confirmation bias. Searching for confirmation of pre-determined biases. And it's ok and Ali is right, she does not like the market and has her reasons, but what was listed can be looked at entirely differently. They are her reasons, which are valid for her, but I have to push back for other readers.
The return an investor can get and how good it is, is not going to be determined by the city. To say that it is a fact that you can get higher returns elsewhere is kind of silly. The return is determined by price, investment class, leverage and even risk. You can find high or low returns in any city at any time. It doesn't matter what city you choose to invest in. The return you earn on your investment has much more to do with what you are investing in and how it is structured as well as the team(s) you choose to work with.
Percentage of renters - 55% of Memphians do not rent their houses. According to the website, department of numbers, which used percentage of rental households to total households to run their calculations, 39% of Memphis households are rentals. For comparison, Philadelphia, which is a city that Ali touts for investors (that may not still be the case, but I think recently that is true), has 34% of their households as rentals. When comparing across thousands of households that is a negligible number.
Industry - it is crazy to hear when people try to turn being "America's Distribution Center", as Memphis is known, into a negative. That status has led to six Fortune 500 companies to have major presence in Memphis with three of them having their world headquarters here. It has the largest cargo airport in the world, the largest inland port in the U.S., and is one of only four cities with 5 Class 1 railroads. That has led Memphis to be one of the fastest growing manufacturing HUBs in the U.S. with major growth across all fields of manufacturing, but especially in Bio Medical fields. Today, Manufacturing and distribution make up 34% of the jobs in Memphis. Considering that as long as the U.S. has an economy where we manufacture goods, Memphis will have consistent, reliable and stable jobs. I think that is a positive.
I'm not sure what is meant by drama, but Memphis absolutely has Hedgefund activity here and has several well-known companies providing Turnkey services for investors. Now, I hope that no one reads any of this as negative toward Ali. She has built her passive portfolio and I love how active and open she is for investors. I always appreciate that she mentions me and my families' company for investors interested in the seven markets we operate. I just wanted to point out that each investor has to pick and choose where they want to invest and why. Those are Ali's reasons and so they are absolutely valid for her. Other investors may see those same things differently as she noted!
@Shannon Phoenix, you have been given a couple of really good companies here in Memphis with @Alex Craig who owns Memphis Turnkey and @Douglas Skipworth who owns and runs Crestcore. They encompass a lot of opportunities in Memphis. I also am very familiar with @Mark Ainley in Chicago as well, so I think you have some really good companies to start investigating and networking with.
Best of luck to you!
Pancakes are for sure on! :) And this is one reason why I appreciate you so much--we can disagree until the cows come home but we can do it very friendly and respectfully. I absolutely love and value the information you offer folks! If only more people in this world could disagree so gracefully... (I think we'd be on our way to world peace)
If you're going to look at a city like Memphis, you should look long and hard at Memphis Invest. I went with them because of their operations and how the property management is looked at from a business perspective. The detail in their metrics and how they are used to define their procedures is impressive to say the least. I think of it as akin to investing in multi family as far as the scale of operations with the ability to scale and manage your own portfolio without having to worry about the rest of the investors or rest of the units. There is flexibility and diversification all in one.
Clearly there's more to it, but if you're looking at turnkey, don't just go by the numbers - get a feel for the actual operation that you'll be working with for management hopefully for the next 10-20-30+ years.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @Shannon Phoenix:
I'm highly interested in investing in Chicago, IL and Memphis, TN and looking into turnkey. Can anyone recommend any Turnkey REI or companies.
Please leave recommendations.
Memphis is well represented around here on BP. We've got Memphis Invest, Memphis Buy & Hold, & Memphis Turnkey Properties. All 3 companies have active owners here on BP who are well respected. I feel like you'd be in good hands with any of them.
- 7yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
I do think certain cities provide advantages over other cities, mostly on items such as property taxes and landlord laws. For example, for my own portfolio, I buy my Multi-Family in Little Rock over Memphis because the property taxes on Multi-Family in Little Rock are about 1/2 as cheap. I do agree though with @Chris Clothier, you can have great rentals in any market and market selection can be over analyzed. I know individuals who make great returns in some of the most random, small communities markets in Arkansas and Tennessee. As I type this, one of my best rentals is in Knoxville, TN.
- Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes7y
@Shannon Phoenix If you are looking at Chicago area, you might want to look at NW Indiana, where the taxes are lower, and the laws much more favorable to landlords. But why not look closer to home. Dayton is a really good market and still early enough in the turnaround cycle to do well. Or Cincinnati.
- Member since 2018 · 46 posts · 31 votes7y
Currently in the process of closing on my first turnkey property with Memphis Invest. They are making the process seamless and easy, and the customer service has been top notch so far. Quality of the rehab is excellent. Nearly $40,000 in rehab work and it certainly shows. Yes, you pay a premium price, but you are getting a premium product and service in return. Happy to share more if you have any questions.
- Attorney · Northbrook, IL · Member since 2017 · 719 posts · 549 votes7y
@Shannon Phoenix Anyone interested in turn key properties in Chicago, please reach out. I have a client looking to sell off some of his properties that have been rehabbed and rented. He can even stay on as property manager.
- Investor · Chicago, IL · Member since 2018 · 46 posts · 55 votes7y
@Bob Floss II Sure, definitely interested. Can you send them over?
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