Mid South Homebuyers - anyone deal with this group before

Charlotte, NC · Member since 2011 · 2 posts · 1 vote

I am interested in knowing if anyone has purchased a turnkey property from this group in Memphis. Appears as though they are doing everything right but would like to know if anyone here in Bigger Pockets has had their boots on the ground there (or currently do) and what you thought about this group.
Thank you

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David Hutson

Rental Property Investor · Tampa, FL · Member since 2013 · 404 posts · 421 votes

10y

@Daniel Day,

I'm local to you and have 5 properties with them. I have nothing but good to say. They are professional and easy to work with. The only downside is the long waiting list.

They plan to do 280-300 homes this year and can't keep up with the demand. I talk with them often and have been out to visit them. They have a new office and warehouse so if you are going out soon make sure you go to the right location.

David

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Jason Stallings
Vero Beach, FL · Member since 2013 · 2 posts · 0 votes
13y
I am currently looking into dealing with midsouth and was wondering if you went ahead with your purchase. Any feedback/information you have would be very appreciated. Thank you.
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David Beard
Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
13y
Michael Gilmore - here you go, Jason Stallings, this will notify Michael via email (if he's still using the same email as he was two years ago). Since he posted just twice, I kind of doubt he'll ever stumble across your post otherwise.

This particular company, which says they move a healthy10 props per month, has a lower price point, with sales prices in the 50s and 60s, than the largest players in town such as Memphis Invest and Memphis Investment Properties. This means they're buying them in the 20s and 30s (distressed state, of course). So I'd expect these would be somewhat inferior neigborhoods and more challenging tenants, which is something you need to be particularly cautious about in Memphis.

I'd do my due diligence carefully, and try to talk to some current owners that have multiple properties and have owned them for a few years.
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Jason Stallings
Vero Beach, FL · Member since 2013 · 2 posts · 0 votes
13y
Thank you for your assistance.
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Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
13y
Jason -

David hit the nail on the head. The owner of that company is a guy named Terry Kerr. He has been an investor for about 10 years as far as I know and has a very good reputation for being honest and trustworthy. He does business in some areas of town that I am not interested in working anymore and quite frankly have not done very well in the past. But Terry knows them well and seems to do a good job.

I can tell you that when i am talking to investors that are interested in lower price points or are interested in the particular areas that Mid-South specializes, he is the person I recommend they talk to. I have not purchased from them and have not experienced their property management or service after the sale, so David makes a good point to try and talk to some investors that have owned for a few years. But I can tell you that from everything I have heard locally, he is an expert in his areas and conducts himself and his business in a good way.

Beyond that, I can;t tell you much more. Hope that helps. Good luck with your investing.

Chris
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Daniel Fisher
Real Estate investor · Atglen, PA · Member since 2011 · 90 posts · 21 votes
13y
My former boss invested through them and he is very happy with their service.
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Ross Ingram
Insurance Agent · Fayetteville, AR · Member since 2013 · 2 posts · 0 votes
12y
Second to Chris' post.
I met Terry awhile back. Great guy who knows his niche.
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Laura Williams
Kansas City MO · Member since 2014 · 357 posts · 349 votes
12y
@Michael Gilmore and @Jason Stallings was wondering if either of you had purchased through Mid South Home Buyers and what your experience was? I'm thinking of buying from them and would love to have some feedback. Thanks guys
1 Reply
Petru Popovici
Investor · Littleton , CO · Member since 2014 · 30 posts · 10 votes
12y
I have worked with MidSouth and am currently working with them on buying a few more properties....
They have been amazing from buying the property to property management...
Sure could I make more money if I do it myself sure I can I know that... But I work a full time job and don't have time to do that.
So for me it's perfect. If anyone has some other questions for me please feel free to ask
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Neil Anthony
Accountant · Newark, CA · Member since 2014 · 10 posts · 5 votes
11y
@Petru Popovici
How many properties do you own though them?
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Petru Popovici
Investor · Littleton , CO · Member since 2014 · 30 posts · 10 votes
10y
Sorry for the year later response, I haven't been on the site for awhile. I have 4 properties through them and am in the process of buying another one currently. I have been pretty happy. I did have one tenant move out after a year and they did about 800 in damage...which actually Midsouth was nice enough to split with me. I had one lady file for Bankruptcy and i'm receiving two months of her rent from the bankruptcy court, she is still living there and hasn't miss a payment since.
I have had the properties for 2 years now.. all the numbers add up.
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Rob Hoffman
Oakland, CA · Member since 2016 · 104 posts · 47 votes
10y
I am on a waiting list with Midsouth as we speak and in search of the same information.
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Daniel Day
Sacramento, CA · Member since 2016 · 2 posts · 0 votes
10y
I appreciate all of the feedback on the company. I have heard that Terry is a great guy, and that his team is the best. It does look like their projected cash flow might be off as they don't take into consideration CapEx or maintenance. I am hoping to fly out to Memphis soon to get a better idea of their setup!
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David Hutson
Rental Property Investor · Tampa, FL · Member since 2013 · 404 posts · 421 votes
10y
@Daniel Day,
I'm local to you and have 5 properties with them. I have nothing but good to say. They are professional and easy to work with. The only downside is the long waiting list.
They plan to do 280-300 homes this year and can't keep up with the demand. I talk with them often and have been out to visit them. They have a new office and warehouse so if you are going out soon make sure you go to the right location.
David
3 Reply
Daniel Day
Sacramento, CA · Member since 2016 · 2 posts · 0 votes
10y
@David Hutson ,
Thank you so much for the advice. I am looking at buying my first property and was referred to Terry and his team as one of the best turn key operations. I was interested in buying in a few months so I guess I should probably get on the waitlist.
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Dean Hulsing
New to Real Estate · International · Member since 2015 · 30 posts · 5 votes
10y
https://www.yelp.com/biz/mid-south-home-buyers-mem...
I was doing some "internet research and checked this out on Yelp. Not able to make much out of two reviews but it is something I thought that I would add to this forum. Hopefully it helps.
1 Reply
Jon Crosby
Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
10y
So far I'm sold on their business model and am reaching out for some more info from Liz and Terry. We are currently holding some funds for another national turnkey outfit but really like what these guys are selling. Plus our interaction with the other outfit is a little slow and lacking 'interest' in our investment it seems like. As for the Yelp reviews, the one reviewer only had that one review, no picture or profile so it's suspect on it's authenticity. And the other guy from SD, basically gives 1 star reviews EVERYWHERE he goes! LOL That being said, I think my biggest due diligence will be digging into who they are renting to and what areas they are in, probably pay for my own neighborhood assessment or use my RealtyTrac account to validate everything else.
@David Hutson it's great to hear a local guy having a good experience thus far, please PM me if you have any other advice for us. As we all know Memphis is the 'hot place' at the moment so I will be curious as to what kind of exit strategies you might have setup for these properties. Thanks all!
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David Hutson
Rental Property Investor · Tampa, FL · Member since 2013 · 404 posts · 421 votes
10y
@Jon Crosby
Exit strategy? I'm going to die old and leave it all to some military support group to continue to collect on all of my properties or to sell them. I'm going to be one of the older gentlemen who have a great reputation back there and own 50-100 properties. My job will be to travel around the country/world sight seeing every few months. That's my dream.
Reality is that I have purchased several homes in Memphis over the past few years and will continue to do so. At this point the only reason I would considering selling my Memphis properties is to complete a 1031 exchange into an apartment complex or some other multi-million dollar property. I'm in the middle of my monopoly game and I have a lot of little houses. I retire from the military in about 4 years and will look for an apartment complex or a hotel. I probably will change my strategy as I get older but for the next 10-15 years I want to continue to build my portfolio so I can travel the country and world.
Get on Mid-South's list if your not already on it. There are also several other quality companies in Memphis. Check them out as well. Then buy as many as you can, let the tenants pay off the mortgage and then retire and collect/cash checks every month.
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
10y
just stay out of 38127 and you should be ok. Rarely do investors have any real long term success there. Good luck
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Brandon Riahi
Investor · Dallas, TX · Member since 2015 · 27 posts · 28 votes
10y
I have had mixed experiences. I have purchased a number of homes through them. They make buying super easy and are very friendly and responsive people to work with. I would say the first year and a half were amazing 10+ % returns. Our returns have diminished since mid 2015 primarily due to vacancies and more recently - repairs. Love the folks enough to hang in there longer but have stopped purchasing until I can see the trends reverse. Had a return of 6.84% in 2015. The first 6 months of this year we were at 8.39% annualized and the last 3 months were really bad- dropping that return to 7.44% annualized. This is primarily due to repairs in the last 3 months of 13%, 32% and 23% and a vacancy in each of the last 3 months (plus just informed of one more). Still if we can net around 7% by year end its not that bad - but not great either, for the risk. Below that and I believe you can find returns elsewhere. I would say if you do proceed, make sure you have put enough down on the homes that you can cover not getting 50% of your rents (July we received 54% and August 56%). We recently purchased a home through Memphis Invest. The return starts lower (higher cost property but a higher quality one as well) but its what you keep that counts so we have a wait and see attitude. They have a good rep. If they do well, we have budgeted for 5 more homes with them in 2017 and my uncle is ready for 10 once he sees how we do (fortunately he waited until this year). Hope that helps
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
10y
are your homes in 38127?
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Dean Letfus
Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
10y
It's way more than just Frayser you need to stay out of. Parkway Village is now a zoo, Orange Mound, huge parts of 38115.
7 years of investing there I can't believe how many zips we can no longer safely buy in!
Still love the city but you have to be careful.
The exit strategy comment is also a key one. If you pay retail in Memphis it can be 20 years before it is worth what you paid.
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David Hodge
Rental Property Investor · Laguna Niguel, CA · Member since 2015 · 142 posts · 98 votes
10y
Dean Letfus what parts of 38115 are good/bad?
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Dean Letfus
Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
10y
South West corner is bad but many streets that were good when we were buying there for a hedge fund are pretty rough now. You definitely want to get a local to drive them and stick to rents above $950 to ensure you're in a reasonable area.
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David Hodge
Rental Property Investor · Laguna Niguel, CA · Member since 2015 · 142 posts · 98 votes
10y
Dean Letfus ours is just east of the Fox Meadows golf course. Seems like a nice area. Hopefully it stays that way for a while.
1 Reply
Dean Letfus
Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
10y
I think you're pretty safe in there. We have to be very careful as we supply non resident investors only and don't want issues for overseas clients down the road.
It's all very easy to say that good management is the key but if an area has declining demographics it hits values and rents often so you have no exit strategy.
We got burned early on which with hindsight was the best thing that could have happened because we know what to look for and have never had a single bad property since.
Sad to see so much of 38118 turn bad so quickly though that caught us all.
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