All Forum Posts by: Alex Craig

Curt, consider yourself lucky. When you started buying, the reality of the junker property had set in and you bought some good ones, to which we manage. Your tenant on LB brought in $2,925 today to secure the home.

BTW, we have a good app for your clients property. Should be occupied in 2 weeks.

Terry I am sure you do and that is great. I unfortunately own a few homes in these areas that I bought in 2007 when I was green to the industry and now I am stuck with these homes for another 23 years. We sold a few of these homes too and we manage a few of these homes--it did not take long to understand the nightmare these homes can be. In my opinion, they don't work--and I just think it is a sucker sell and buy. We just pulled out of 38118 after JP's murder in October. After that, I looked on the facebook page of the individuals now in jail for his murder and realized just how much gang activity is in 38118. A cop friend of mine in the OCU (Organized Crime Unit) told me 38118/Parkway Village is out of control and that the Hoover Street Cripps have taken over.. I can't tell you how many pics and videos I saw of Gang Members fighting and flashing signs around Scottsdale, Perkins, Nora Lee, etc. It was sickening.

Anyways--if you believe in the model and you are making it work, then that is great. We will just have to disagree that those homes are good investments. I will be at MIG tomorrow and if you see me at the bar, I will buy you a beer.

Maybe it was on Randolph or Ajanders, or maybe I am thinking of someone else, but the listing below is in line with the "15 mins from the trolley tracks."

We are trying to put transparency to this industry--so many individuals from overseas are getting ripped off, which ultimately hurts investors doing it the right way. Take for instance your listing below on 1365 Eloise. You mention that this house is 4 miles away from Peabody Place. That sounds good, but it is misleading. That mall has been vacant for years and the proximity of Eloise to downtown is irreverent. Surely you know that.

http://memphisinvestmenthouses.com/property/owner-financing-available-roi-25-29/

The only individuals who should be investing in areas like this are people who truly understand the risk. I have only seen one other individual who is able to make D and F class properties work. To write a marketing paragraph like this is simply to mislead that the location of that house has an upside.

I have a handful of investors who used to want that low income, high risk property -high perceived ROI. (I actually don't even source these properties anymore b/c I can't help them succeed in these areas; it is not what I am good at.). I made sure they truly understood the risk and I share with them the story of a property we managed that got completely gutted twice in a month and ended up with a chopped up car in the backyard. Again, transparency. The only people that buy these junker properties are overseas investors who truly have no clue about the Memphis market.

I would not worry so much about my comments; if you honestly believe that selling those low end homes is a good investment, then you can defend that to your clients. But what Dean is accusing you of is criminal. I would worry about that. But if you want to talk about, I will be at MIG tomorrow.

I am just reading this. All I can say is WOW! Dean, do you know if he has really skipped town? I only met Terry a couple of times, but knew he was ripping people off when I read one of his marketing paragraphs for a home he was selling. If I recall, the house was on Par St in Frasyer. His marketing paragraph said something to the effect "Great home 15 minutes from the Trolley Tracks of Downtown Memphis near great jobs." LOL, no one in that area is working downtown, much less taking the trolly.

Sadly, this is not the first time I have seen this happen. We had a investor reach out to us last year after Marvin Fisher and Axis Properties took everyone's money last year.

@markferguson Have you tried going to local banks to get more loans? Local banks here in Memphis have been really good lately at offering in house commercial loans. Terms are 10 and 15 year mortgages, 5.5 to 5.75%. I think the 15 year's have a rate adjustment at either 5 or 10 years. Some local banks here are even lending to out of state investors who have 10 or more loans.

Mark -- that is great. I have told many investors that is the way to go. I think a good strategy is to pay several off, then use the equity in those houses to buy more houses...then pay those off too.

Personally, I use my 30 year loans to cover the little cash flow I get on my 10 year mortgages and 15 year mortgages.

There are a lot of gurus who preach "create the lifestyle you want" by adding cash flow leveraged real estate to your income or even worse, quit your job and replace with leverages loans. In my opinion, that is dangerous.

Just curious, what is everyone paying for R-22 freon and 410A freon by the pound? It came to my attention today that 25lbs of 410A freon only cost $99. I am paying $25 a pound.

It appears I would not be able to utilize the SD401k b/c I have several employees in my business.

Thanks for the feedback.

I thought when I left my company (which was a while back), that I had to roll over the 401(k) into a IRA. Are you saying I can roll over my old company managed 401(k) into a self directed 401(k)?