Memphis Turnkey Out Of State investor Nightmare experience

64 Replies

As an out of state investor I chose Buy Memphis Now company over others for my first turnkey rental property purchase and I am now repenting my decision. They sold to me a property that are having break-ins from Day 1! Apparently a squatter seems to claim the property by breaking in from the very first day, they are very well aware of this situation before they sold it to me as I have photos showing that similar break-ins happened to this even before me buying this property! I also had to lose my tenant because of these break-ins. If the break-ins started happening after a year or so of my purchase I can understand but these started happening even before I purchased the property and as an Out Of State investor I trusted them but they hid this information from me and sold this property. As an out of state investor I expect them as a turnkey provider to at least take hold of the current situation and secure the property and make sure that the property is break-in free and then hand over it to me as I was not aware of all these issues while buying the property! However they chose not to answer my emails now after the latest break in!

Please let me know any suggestions as how to proceed in this situation as I am stuck with my first Out Of State Turnkey purchase with the mortgage burden each month with no tenants and on top of it had to deal with these break-in expenses! I am not sure how to stop these break-ins as I am out of state! All my savings are gone because of this and I am stuck!!

Wow, That is unfortunate.

In my opinion it is the owners responsibility, not the company that sold you the home - a year after the fact - 

However, if there is a history of break-ins in that area that they knew about and didn't disclose, that may help you. When did you get the pictures of rthe prior break in?

In that state, do they need to complete a questionnaire with pertinent info? Are they managing the property for you?

Break-ins happen...It doesn't seem like it would be an issue with the property itself- like plumbing  or roof issues, but the surrounding area. 

Interestingly enough, we looked in Memphis to purchase about 5 years ago, and the agent stated that they remove the AC units during vacancies because they get stolen regularly. I researched the crime rates for the suburb and decided the risk was not worth it.

Maybe convince Buy memphis now to buy back your property.  Best of luck. 

If not, get the proeprty manager to get it rerented asap, change locks, get better locks, etc. 

@Christine Kankowski, thank you for your quick response! I bought this property just in this year June from the company, sorry if I didn’t make this clear. If it is one year after the fact then I agree but this is not the case here. Yes I do have pictures of the prior break-in before my purchase. They gave it to their partner company for Property Management.

Hey, I personally know the guys over at Buy Memphis Now and they are good guys, I am not sure what has happened in this deal but I would love to help you out if I can. I think you need to focus on getting this property to perform. If there have been multiple break ins, in my experience it is likely the same person. What we have done in this situation is asked the neighbors to call the police if they see someone at the property. If the house is vacant then it is likely a squatter living in the house. W e just had this happen to us and when the neighbor saw the squatter they called the police. Squatter was arrested and no problems fixing and cleaning damage and then renting the house a week later. What's the address of your property?

I've known Craig and Curt for many years they don't sell bad homes you may just be unlucky. What is the address or street name then we can advise but you may just have to get a decent PM on to sorting things out for you.

@Venkat S.

Take a trip to memphis right now and do what needs to be done to claim your property back. There are lot of people on BP who can help you navigate this nightmare. Dont procrastinate on this 

@Venkat S. break ins can be an unfortunate part of the game sometimes.  The key is keeping it occupied.  You might want to offer significantly discounted rent compared to market, so the home does not go vacant during winter ensuring more breakins.  Good luck.

@Stephen Akindona , @Dean Letfus this property is located on Innsbrook Dr, 38115 Zip.

Ok here are the series of events that happened to me…

  • Purchased home from Buy Memphis Now, Break-in history was there even before my purchase but I was not aware of it.
  • Communication has been decent with Buy Memphis Now until break-in happened.
  • CB Properties the PM company found my first tenant after 2 months.
  • First Break-in after I purchased happened.
  • Tenant walked out complaining HVAC was not ready and break-in happened.
  • Buy Memphis Now helped me with my own expenses around $200 to fix the Break-in by securing couple of windows with Bars.
  • Now Second Break-in after my purchase happened.
  • Now Buy Memphis Now stopped communicating with me and stopped answering my emails, this is the reason I had to discuss these in the open forums.
  • Now PM company CB Properties is charging me $633 to properly secure this property which should have been done in the first place as I have purchased this as a turnkey from Buy Memphis Now.

@AJ Singh Thanks will definitely consider doing this!

@Laksh Nandrajog Thanks, Yes PM company is trying to find one now.

Putting up bars on the windows and doors is not standard I don't think in most turn key.. if you need bars and such you may have a bigger problem of buying on a street that is turning for the worse.. it happens.. at this point just be thankful everything was not stolen.. IE condenser  all your copper etc.. .. with vacant houses if your getting squatters this is a common occurrence.. they rip anything out they can to pawn or take to metal recycler or sell your stolen condenser on craigs list.. ..  with this home it might be best to pay the extra money for vandalism insurance as well. and if that happens have insurance cover it then sell it.

The area is OK @Venkat S. it certainly isn't a slum.  You need better management however. Sadly vacant homes in Memphis even in decent areas can be trashed. It should have been fully secured from day 1.  Message me if you want a PM referral.

@Venkat S. I want to make it clear that my Turnkey company had nothing to do with this.  Although you did not name my company in your post, the title of your post says "Memphis Turnkey."

I do own the management (CB Properties) and Buy Memphis outsources some of their management to us. When your tenant moved in, the AC was not ready, but that could have been fixed in a matter of a few hours. Your tenant was spooked because of the break in, which sometimes happens.  We have been sending a individual by your house while vacant, but outside of him staying their 24/7, again, hard to prevent.  As for the $633, it sounds like when you say "Now the PM company is charging me....." that we are gouging you for some unnecessary expense or that we were negligent in some way. The bars on the window were per your request. We provided the quote and uploaded the vendors invoice (which you will see on your statement when the bill post this week) and per your PM agreement, added the maintenance charge on your rental statement. You can't get any more transparent then that. I just want the BP audience to clearly understand that. It can be frustrating to read someone post negative things about a company when they are leaving out the entire story.

I asked my staff and they said you have been appreciative and I am confident our communication has been excellent as that is one of our core values we focus on and routinely get told we do well.  I am kind of surprised you did not have one nice thing to say about us considering the amount of time Andrew and Cristina have spent with you, the numerous times my agents have shown your home, the routine updates you get and my outside staff driving by your home randomly visiting your home.

@Dean Letfus with all due respect, you have no idea what you are talking about. We have done everything we can for Venkat.  Please have all your facts in line before making such a statement. Are you sour because I did not agree with you when you said Trump was "one of the best American President's ever." 

What would you have different? Please share that with me.

Thanks @Dean Letfus , I did not even know this post existed until you mentioned me. 

We did sell Venkat a property on Innsbrook in SE Memphis. We do a lot of business in and around this area and statistically have had a good experience.  The home received close to a $35,000 rehab, everything was basically new. We even agreed to do additional tree work to the tune of $4,000 just to make the place even nicer looking from the front.

We turned the home over to property management who then started marketing the home. We probably gave it to them a little early but we were just trying to get the home out there to make it visible.

The management company did secure a tenant and right before they moved in the break in happened. The tenants backed out bc of this issue. We were not aware the HVAC system had anything to do with it. Like we told the buyer, we normally do not install the new AC unit and cage until the tenant moves in to prevent it from being stolen.

The tenants decided to not move in so the home went back on the rental market. The same person broke in again from a window in the back of the home. We helped to coordinate and get security bars put on the back side of the home. This person now decides to break in from the driveway. Whomever is breaking in is not destroying the home but getting inside and smoking weed, probably hanging out.

We truly do understand this is a headache for the investor. This is something for us that rarely happens but sadly every once in a great moon it does happen. 

During the buying process we even gave the owner the ability to back out if he was not happy.

The things that are happening are out of our control.  We sold him a really nice house with a great renovation.

Craig and myself have communicated with the buyer a lot and the management company has as well.  You have Craig's cell number and the office number also. You can call him anytime you like.









@Alex Craig I never criticized PM company in my post. When I said PM company is charging me I meant that I am being charged for something which should have not happed in first place. I am sorry if I had not make these clear, I purchased my turnkey property from Buy Memphis Now and CB is my property management company. I agree CB has been trying hard to get things sorted out for me in these tough times. I was so busy tryING TO seTTLE things on my end that I forgot to appreciate CB properties (but I never criticIzed CB) especially Andrew and Cristina as they have been more than helpful. Thanks CB Properties!

@Curt Davis @Venkat S.

I mis-spoke.  There was not a AC issue, the AC was not installed and this was communicated to the tenant, which is exact words According to Andrew, "that's cool, I understand."  As you know, that is not unusual to wait until the tenant moves in before setting an AC unit.  Because a lot of tenants will sign a lease on a Friday, then move in on a Saturday, we had the work order entered for install.  The tenant used that as an excuse as an additional excuse not to move in and request their money back.

I guess @Dean Letfus has all the answers to 100% insure a vacant home never gets broken into, which is actually rare even though we have all said "it is not unusual." 

To Curt defense, that home is located in a good area, plenty of owner occupant comps in that neighborhood.  Also, I would not say a squatter is there, but some punk kid who has nothing better to do.

@Venkat S. Thank you. I take things more personal that I should simply because I feel a owner's business is a extension of the owner itself.  I am lucky to have a staff that actually care's about what they do and the outcome of our clients properties.

and then their is goober Dean saying you need better management. He has never used us and has never asked one question about how we operate.  

For what its worth, I have 2 properties bought and managed by @alexcraig and CB Properties. I'm happy to say in 3 years my experience has been nothing short of superior. 

@Alex Craig , hey I didn't know you were the PM.  Clearly you're having a bad day by attacking me for no reason. I forgive you though :-).  From the OP's info it appeared the management was in place from the supplier so therefore the place should have been well locked up and caged etc.  so I assumed the OP had not gone with Curts recommended management.

You Americans think everything is political the thought would never cross my mind.

I don't recall you being called CB properties is that a new name?

@Curt Davis I deliberately referenced you so you would see it. I know you guys do a good job.

The increase in the trend of break ins is alarming. As soon as a for rent sign goes in the yard it's an open inventation.  Especially if it's a known turnkey company that has a reputation for exceptional rehabs with new everything. These properties are generally in good areas because reputable turkeys won't buy in war zones. I've had two break ins and luckily for me they were the day before close of escrow. I would like to send out a challenge to property managers to come up with a technological solution for securing the properties utilizing massive improvements in home automation.  Nest, Arlo and alarm.com all are in this game. For a monthly fee PM's can facilitate this. It's about the increasing the risk factor to thieves and making your property less of a target.

Matt, we started something very simple a year ago and that is fake cameras. Outside of Venkat's property, I would say in 1+ years, I can count on one hand the # of break in's in "B" class areas.

Originally posted by @Matt Eklund :

The increase in the trend of break ins is alarming. As soon as a for rent sign goes in the yard it's an open inventation.  Especially if it's a known turnkey company that has a reputation for exceptional rehabs with new everything. These properties are generally in good areas because reputable turkeys won't buy in war zones. I've had two break ins and luckily for me they were the day before close of escrow. I would like to send out a challenge to property managers to come up with a technological solution for securing the properties utilizing massive improvements in home automation.  Nest, Arlo and alarm.com all are in this game. For a monthly fee PM's can facilitate this. It's about the increasing the risk factor to thieves and making your property less of a target.

I am on a vendor trip in another state large turn key operator  800 units plus in management selling 20 a month.. i sat through there managers meeting and this meeting the topic was exactly what your talking about.

summation of the meeting was that they needed to use house sitters.. As the only real means of keeping folks out.. it was their opinions that 90% of the break ins are the direct neighbors.. or contractors coming back at night.. this was an on going issue when i started funding turn keys in 2002 with other vendors.. they cut down the thefts by having a retired police officer roving to their rehabs during the day checking IDs and writing names down of all the workers coming and going that really stopped a lot of this.. But as stated above the random kid doing this the Only way is to really have house sitters was their conclusion.

Originally posted by @Venkat S. :

As an out of state investor I chose Buy Memphis Now company over others for my first turnkey rental property purchase and I am now repenting my decision. They sold to me a property that are having break-ins from Day 1! Apparently a squatter seems to claim the property by breaking in from the very first day, they are very well aware of this situation before they sold it to me as I have photos showing that similar break-ins happened to this even before me buying this property! I also had to lose my tenant because of these break-ins. If the break-ins started happening after a year or so of my purchase I can understand but these started happening even before I purchased the property and as an Out Of State investor I trusted them but they hid this information from me and sold this property. As an out of state investor I expect them as a turnkey provider to at least take hold of the current situation and secure the property and make sure that the property is break-in free and then hand over it to me as I was not aware of all these issues while buying the property! However they chose not to answer my emails now after the latest break in!

Please let me know any suggestions as how to proceed in this situation as I am stuck with my first Out Of State Turnkey purchase with the mortgage burden each month with no tenants and on top of it had to deal with these break-in expenses! I am not sure how to stop these break-ins as I am out of state! All my savings are gone because of this and I am stuck!!

 Wow, I'm sorry to hear that! This does not sound like TRUE Turnkey at all! It sounds like they were selling a rough home in a rough area and just calling it a Turnkey. It should have had a tenant in place at closing, not a squatter. 

I have learned that the management company has had a tenant in this home now for about a week which is a very positive thing and renting it out for more then was originally stated to the new owner.  

@Tom Ott   It is actually a super nice home that received about a $35,000 renovation, rents for $995, is a decent class B neighborhood. If you have been in real estate for any length of time you will understand that at times, even in decent areas things can go wrong. What happened in this case had nothing to do with the quality of home, area or the management company. Sometimes things happen outside of anyone's control.  Regarding what is defined as Turnkey, everyone has differing opinions of what that looks like.