All Forum Posts by: Axel Meierhoefer

@Amanda K. Hi Amanda, I spoke to them a while ago and had a good impression. I also did some research on them regarding what they are doing and all I could find was good/positive.

They recently expanded and you might also want to listen to their podcast. I think that helps to form an impression. Overall, in my experience, I can say that it has always helped me to develop a personal relationship. Spartan offers tours a few times a year and I would recommend doing that.

I ended up going with another provider because I really wanted to invest in Memphis and considered Spartan because they had more affordable price points. The turnkey provider I chose was the one that I had a chance to meet personally and get to know. It might sound old-fashioned. On the other hand, the argument that always resonated with me is this: If you were to buy anything $50K-$100K in value (i.e. a car) would you not at least visit the dealership and get a test drive. A few hundred $$ to visit should be worth it for a long-term relationship unless you hope to get the rare, "one in a lifetime" deal that doubles in value in 2 years and you sell for appreciation profit.

You know your situation best. That's just my 2 cents

Thx @Chris Clothier

@Douglas Skipworth Thanks. I look at all those points too. For me, this posting was mainly to find out more about the area than the viability of the deal.

I have @Chris Clothier checklists and a set form BP and one from a team I work with. Though we have that offer for the address I mentioned I am looking to build a portfolio and mainly like to learn what you responded to. I appreciate your views and hope that getting invested in that area will be a good starting point in Memphis.

Your point about the longer term rents is what several other people indicated and I found that teh schools in the area are pretty good.

I also saw that some of the commercial stuff in the area would benefit from some improvements. On the other hand, if everything is A grade (and I hear you @Chris Clothier on scales), the prices typically are at premium level as well.  

@Chris Clothier Thanks Chris

Yes, it always helps and the property will be renovated before purchase. What I was able to find is that a lot of the properties there are being purchased, renovated and rented. Maybe its early for that particular neighborhood but I feel like being part of the renewal process is not a bad thing.

@Douglas Skipworth

It's a 9% return and cash flows about $250/month from the start

Axel

I am looking to buy a property in Memphis, TN at an intersection of I 40 and I 240. I tried to get an idea what the neighborhood classification is but there are the boundaries of 4 main areas/towns/neighborhoods all meeting close to the interstate intersection and I can't figure out if the place I am looking at is in a good area or not. The address is 5008 Acorn Drive, Memphis

You are welcome @Gordon Lu. You might not find it on Google, so feel free to PM and we can discuss or I can email you something about it.

I am not sure if I understand your plan. If you want to buy a $55K property and you basically have $55k in hand, why not use $5500 (10%) + closing costs and finance via HELOC at 90%. That way you do a normal transaction and probably have $43K in hand after yo are done. AT a 6% interest and 8 year term for your HELOC, you would have to get approximately $850/month in rent. If that is too much to achieve, you could look for a longer term, i.e. 10 years, or 12 years. (That's assuming you want to pay off the HELOC and not just pay interest)

With that model in mind you would be able to do this same deal at the same values 5-6 more times.

To get to your goals as fast as possible you would want to get as much rent as possible and keep your tenants for as long as possible (and make sure you have well renovated properties, which might be hard at a $55k price point)

As you can see, there are many if's and when's, but based on your numbers it would work that way. The biggest deal will be quality of the property ans positive cashflow that allows you to pay down the HELOCS quickly. There is a cascade approach called 3CX that can help you but it takes a call to describe in more detail.

I am still not sure if I understand your description properly.

All the best to you