What's the best Way to Attract Buyers for Memphis Real Estate

57 Replies

I recently read an article that Memphis TN was an very good place for real estate investing.  I have know for at least a year that a lot of foreign investors have been looking for property in the area. I also understand that Memphis has one of the highest percentages of renters in the country. The prices are relatively low an t d rents are reasonably affordable.

As a wholesaler based in Illinois I'm trying to find the best ways to attract more investor/ rehabbers as well as some foreign investors to offer inventory to.

@Karl Smith

This will be very difficult for you. Understand that in Memphis alone there are about 6 of us who have legit turnkey companies and the others who are turnkey or say they are for the most part are shady or small time. 

The foreign investors typically buy turnkey as they get the whole package ad dont have to piece things together.  

My suggestion to you would be to align yourself with a turnkey provider and market for investor buyers and if you get a legit buyer and they buy from your partnered turnkey then you would get your negotiated fee.

@Curt Davis,

In Memphis, they're off market proprieties on all corners for sale just waiting for cash buyers.

Joe Gore

@Karl Smith  

Memphis is a great place to wholesale and we have a ton of property you can wholesale here. I would suggest you contacting @Melodee Lucido  and ask her how/what she does because she has been very very successful Wholesaling here in Memphis. Super nice lady!!

I wish you the best Good Luck!!

There are almost no true turnkey companies in Memphis any more actually. Terry, Alex and Chris would be the only 3 left.

Just be careful not to pay too much, Memphis is a funky market......

I heard? Memphis is loaded with off market proprieties.

Joe Gore

Not true Joe. I have some of the cities biggest wholesalers trying to buy houses off us. Inventory has shrunk enormously in last 2 years.

it's fascinating how the biggest wholesale and turnkey providers are needing help buying from a guy who lives in Fiji!  

@Dean Letfus,

I just did a scan and found over 200 off market proprieties in Memphis just waiting for cash buyers.

My 2cents,

Joe Gore

The fact I live in Fiji, and am currently in Toronto is completely irrelevant to the fact we have full time buyers in Memphis and sell hundreds of houses Curt.  We have very good relationships with lots of wholesalers, all of whom are short of stock.

I am sorry the fact I get to live overseas and you don't upsets you but my advice would be to get more successful so you can also live where you want to......

Anyway joe you will probably find most of those are in war zones or are ridiculously overpriced. The real buyable inventory is very limited, almost non existent these days. We struggle to find more than 3 or 4 homes a week many weeks.

@Dean Letfus,

You say they are over price so what are you paying of the FMV?

Joe Gore

I thought you live in Fiji bc you are restricted from moving back to New Zealand due to bankruptcy?  I must have heard wrong. 

Yep you heard wrong. I have a home in NZ as well but we choose to live in Fiji. All of which has nothing at all to do with the current inventory in Memphis.  You really need to get a hobby man.

@Dean Letfus,

What do you call ridiculously overpriced?

Joe Gore

Hey Joe valuing properties in Memphis is super hard. We buy on yield. After all hard and notional expenses a property must give a 10% return after rehab. 
We are buying 3 and 4 bed 2 bath homes in decent areas in the 35 to 60K range. Occasionally up to 80K if the rents are north of $1250 a month.

Ridiculously overpriced is people selling 3 bed 1 bath homes in war zones for 20K or more. Sometimes 5K is overpriced in Memphis :-)

I apologize Dean, www.stuff.co.nz must have printed a false story on 11/29/2011 about you on their website. You should contact them and get them to remove the false claims against you and your business.

@Dean Letfus,

I notice that homes are going for 30% of the FMV in Memphis, and buyers are lined up to buy, and they are buying in the hood and war zones.

Joe Gore

@Joe Gore

I am sure there are plenty of deals available in less then desirable areas of Memphis.  Most legit turnkey providers are not selling anything in those areas. 

I get several emails a week with available home for sale in war zones but pass on them all. Though the 30% of FMV sounds great, its really not in those areas.

I have seen many of the hedge funds buy homes at retail price that are in the higher priced areas, even they know those are better investments.  Wonder if they know something the rest of us dont?

Only the ones who want to lose money would be buying them Joe.

@Curt Davis,

There are very good deals outside of the hood and war zone, but no one is willing to pay 45% of the FMV.

Joe Gore

@Joe Gore 

How did you scan to find over 200 properties off-market in Memphis?

I'm just going to stick my head in long enough to say that I would LOVE to be able to have a business that allowed me to live in New Zealand OR Fiji.

Back to the "conversation"...

Thank you Derrick for your kind words. 

I do offer turnkey properties at 70-80 cents on the dollar---most in good areas. I am not a strictly turnkey company----and yup, maybe I am small time. I consult with different buyers out of state and internationally and make sure they don't end up with problem properties---unless they don't mind that.

Everything @Deanletfus has said here is absolutely true. It is growing harder to find the great deals in great areas. It is easy to look from the outside in and think there are great deals. great prices etc. It looks different from the inside!! 

Dean is a great person to work with, is very fair and truly knows this Memphis market. He is not the only person I work with but I do enjoy it when we work together.

@curtdavis business in this market (in any market) is best built by forming good relationships with the leaders in that market. If you have never had tough classrooms to learn from (i.e. bankruptcy, illness, catastrophe, et all) then maybe you haven't been playing big enough. You definitely have no right to criticize another's path of learning. I am not saying it is necessary to experience those challenges but it isn't good to judge another until you've walked in their shoes. Then again----each to their own.

I was living high on the hog a few years back and then health issues took me to my knees and I lost everything. It has been humbling, and now joyful, to experience recreating myself yet again. Life happens.

Soooo to get back to the OP. @Karlsmith, Memphis is a wonderful market. It's best to take time to get to know the people working hard in this place. There is money to be made here---but it's not 2013 any more :-) 

Best of success to you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here