Memphis Invest Reviews?

42 Replies

Hi

I just signed up to Biggerpockets and live in Simi Valley. Since I live in outside the LA area, investing locally is way out of reach. The idea of investing out of area is a bit scary, so turnkey looks very appealing. My wife and I are looking for steady cash flow with minimal headaches.

Anyone have good or bad experiences with Memphis Invest? I'm a little leery of investing with turnkey, but this company seems to have a decent reputation, from what I gathered so far. One red flag for me about the company though is you must use the lender they provide.

thanks in advance

Michael

@Michael Guttman

@Chris Clothier is very active here on BP so you might get him to chime in on this.  I can not say for certain about the question you asked about having to use their lender, I have not heard any company force anyone to do that.  Our company, yes we like it if clients will follow our system as it makes the whole process a lot more smooth even when using our lender but never have we forced anyone to use our lender.  Chris might be able to explain this more.   

There are about a handful of legit turnkey companies in Memphis and Memphis Invest is surely a the top not only in Memphis but probably nationally.  Understand that their company might be the perfect fit for you and your investment goals but there is a possibility they are not.  You will need to speak with them to know this.  No one company is perfect for every client.  

Disclaimer:  I do not work for Memphis Invest.  Our company has sold them a few homes in the past and have done some business with them on the property management side of their business which is a separate entity.

Disclosure: I am a partner in Memphis Invest, GP with other family members.

Hey @Michael Guttman ,

Welcome to BP!  This is a fantastic site for investors to get answers,  We do have clients here on BP so hopefully some of them have alerts set up and will chime in although most are passive investors and are not on the site as often as active investors.  Like I said, hopefully some will join in on the conversation and share their experiences.

I did want to make one correction quickly to your concern.  You are not required to use any lender when purchasing a property with us.  Before we go to contract with any investor though, we are going to want to know exactly how the property is going to be purchased and what form of funding is going to be used.  About 3 in 10 use a lender when purchasing and each of those deals is done with a group of about 12 different lenders that are intimately familiar with our company, our processes and our operations.  All have met with us personally, toured our offices, met our team and so they know exactly how our company works.  That makes for a much more streamlined and stress-free closing environment for an investor.  We run a very efficient company and are not big fans of delays or leaving questions to chance.  We prefer to have a very predictable and streamlined, worry-free process and that can be achieved if we work on it from the front end.  Based on what we learn about you as an investor and your plans, we will recommend one or two lenders from that list that we believe will work best with you.

We have allowed investors to use a lender that they introduce us to, but on those rare occasions, we only move forward after our CFO has been able to meet with the lender and thoroughly explain to them all of the issues that we have learned over the years can come up when a lender is funding a turnkey deal.  A great example of an issue that a lender may have with turnkey deals is when the learn that the company selling the property also owns the property management company.  If that issue is not explained and discussed on the front end, it can come up in underwriting and cause a loan to be denied with some lenders.  We simply prefer to be very upfront with lenders on any issues they need to be aware of and prevent an investor from having one expectation and getting another.

So you are correct to raise a red flag and expect an explanation on that issue.  Our policy of preferring an investor use one of those approved lenders comes from years of experience and simply wanting each investor to have a quick, positive and stress-free closing process.  I hope that helps and hopefully you get more answers to your real question from some actual investors on here!  @Curt Davis  , thank you for the kind words and for chiming in - keep up the good work on your end!

Michael, I have a friend who purchased a SFR through Memphis Invest. He purchased all cash, and has been very satisfied with the company. The checks show up in his account regularly, he hasn't had any headaches (to date), and he is happy with the sales rep who follow up with him periodically.

Hi @Chris Clothier  , 

Thank you so much for your response. The detail and length of your responses posted throughout the forum, are why your company is at the top of my list to consider. 

Michael 

hi all,  

Memphis invest was the first company I contacted when I started my turnkey investing journey. I  had setup up the initial consultation with them. Like any person who is investing out of state I asked a lot of questions to the representative maybe a bit too much. When Our conversation ended  the representative not knowing I hadn't hung up was like "holy cow". I didn't like it one bit. After that I never ever got back to them. 

Yes I asked many questions but what they say behind your back matters to some when doing business. 

While many may love Memphis invest my experience was not what I expected from such a reputable company. 

Disclosure: co-owner/partner

Hey Stanley - 

I would like to personally apologize for any offense you took when getting off the phone with David.  I have looked at your record in our system and seen that you and David were on the phone back a few weeks ago for a little over an hour.  I have not spoken with him yet, but his notes were very positive about your plans for investing and he indicated that you had quite a number of questions especially as they pertain to property management.  Based on your forum post, he certainly should have made sure he was off the phone and simply left his desk if he felt overwhelmed by the call.  Whether he was having a bad day or bad reaction, either way, offending you should not have happened.

David is a good man and an excellent member of our team, but I will address your concern with him and find out what it was that caused him to react the way he did.  

Best of luck with you as you continue to look for an investing partner and if I can do anything for you, feel free to reach out to me personally.

Chris 

I am sure he is. I liked talking to him. I didn't have any problems during the call. What happened behind my back was not acceptable to me. I can't be a laughing stock for asking questions. 

I wish your business all the success. I wanted to do business with you guys but that one incident ruined a start of a great relation I had hoped. 

All he said was "holy cow"? You'll need a little thicker skin if you are going to invest in real estate. :)

As you can see from Chris' response, the team at MemphisInvest are top notch.

Am I expected to pay a higher than market price when I invest with Memphis Invest in buying a property?  That's one major concern I have with many of the turnkey companies.  Do I have negotiation room with them on the properties I'm interested in?  How's about the management side of the business?  Is the price competitive with the other management companies?  I'm registered with your seminar in Irvine, CA next month and I hope I'll be getting many of my questions answered.

Search in the site Wayne Memphis Invest is discussed often. They are highly reputable probably the largest turnkey company in the States now. Of course you will pay more because they are providing a lot more than most companies and those things all cost.  Their management is considered excellent and used by some other turnkeys who don't have it in house.

NOTE: If anything my company is a competitor of Chris so I have no vested interest in saying nice things about them :-)

@Dean Letfus  

 Kumbia  Dean  LOL... Just kidding ... Hope all is well

Yeah man we r good.  Just giving credit where it's due. You and I might think turnkey is a bad idea but the fact is people are going to do it so are best with a solid company!!

Go and buy a new plane and stop complaining :-)

Disclosure: Owner

Originally posted by @Wayne Tam :

Am I expected to pay a higher than market price when I invest with Memphis Invest in buying a property?  That's one major concern I have with many of the turnkey companies.  Do I have negotiation room with them on the properties I'm interested in?  How's about the management side of the business?  Is the price competitive with the other management companies?  I'm registered with your seminar in Irvine, CA next month and I hope I'll be getting many of my questions answered.

 Hi Wayne,  

Please make sure you introduce yourself to me next month in Irvine.  I will personally be there and be happy to speak with you one on one.  You need to ask all of your questions and feel comfortable with the answers.  You will not offend us in anyway if you do not feel we are the right investment company for you.  We may be or may not be a good fit for your investment needs, but we will certainly try to answer all of your questions so you can make a good informed decision.  

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Quick question.

What is the average cash flow on a property from Memphis invest (if any).

I see on their website that the median house price is 99k in memphis

I could put up 10%, so with property management vacantys, capx, P&I, PMI ect

What is realistic?

@Steven Torrez - I have 3 homes managed by Memphis Invest's property management company.  Current cash flows (after Property Management, Mortgage, Tax & Insurance only) are:

1) $250.27 - Rental 1 in memphis (30 year loan, $93k purchase price)

2) $200.00 - Rental 2 in Memphis (15 year loan, $75k purchase price)

3) $300.50 - Rental 3 in Houston (20 year loan, $125k purchase price)

I am going to buy a 4th home with them later this Spring.

@Allison Karrels
Allison, I'm curious about your experience with Memphis Invest. How did the appraisals come back compared to the asking price on these three deals? If they were lower, did you have any personal issue with paying the difference?

Originally posted by @Jeff Bethke :

Allison Karrels
Allison, I'm curious about your experience with Memphis Invest. How did the appraisals come back compared to the asking price on these three deals? If they were lower, did you have any personal issue with paying the difference?

 None of the appraisals came back lower than the purchase price so I did not have to deal with that situation.   All appraisals came back between 2-5k over purchase price. 

Originally posted by @Allison Karrels :
Originally posted by @Jeff Bethke:

Allison Karrels
Allison, I'm curious about your experience with Memphis Invest. How did the appraisals come back compared to the asking price on these three deals? If they were lower, did you have any personal issue with paying the difference?

 None of the appraisals came back lower than the purchase price so I did not have to deal with that situation.   All appraisals came back between 2-5k over purchase price. 

 Allison,

Would you mind discussing how you're financed on these? Is this another service they provided or assisted with?

All 3 homes are conventionally financed.  I used one of their preferred lenders for 1 purchase and a different lender for the final 2 purchases.   Both lenders (Supreme Lending and Bighaus Chapman) work with real estate investors and were very easy to work with. I compared the rates against quicken loans just for a general idea and everything came in basically equal. 

They don't have financing in house but they do have a few preferred lenders that they will provide to you so you can compare that i am sure they get some referral bonus from.

I know this is an older thread but looks like it got updated a couple of weeks ago. I'm interested in the turnkey homes also and Memphis Invest in particular. In fact I'm talking with a fellow today in a few minutes. I live in Mesa and home prices are in the 180K range to get a 3 bedroom. That doesn't leave much for investing. I'm also in my 60's so I'm not sure of the best way to invest in real estate to meet my needs as I don't have 30 years like many people to build up a nest egg. I do own 2 SFH locally and just rented one with one going to rent within a week. It's been quite a rid learning all this stuff now.

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