All Forum Posts by: Jordan Ray
Jordan Ray has started 31 posts and replied 461 times.
Post: Rental Insurance Referrals
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Ali MirRasekhian:
Hello,
I just went under contract on a duplex in Memphis and had reached out to my agent with State Farm (who already insures my other rental, our primary residence and auto) who sent me a quote then called me an hour later to say that they are unable to insure this property due to a no-pay claim on our primary residence back in August of 2022.
Needless to say I was pretty upset with my agents incompetence at sending me a quote before doing his due diligence and now need to find another company/broker to work with and potentially move everything from State Farm.
Does anyone have any good insurance broker recommendations they can send over?
Thanks!
Wow! That's not a situation I have ever experienced. By chance, do you have any ties to the military and can get USAA? That's who I use. Otherwise, you could try the other big ones: Progressive, All State, Farm Bureau, etc.
Post: Property in Memphis
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Justin Dalton:
@Jordan Ray Good Afternoon Jordon.
yes , absolutely would love to connect and see what opportunities may open. Thank you.
Awesome! I will DM you my calendar link.
Post: Property in Memphis
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Justin Dalton:
Good morning , Everyone
Hope your week this far has been productive and bright.
Looking over some property in Memphis Tn (out of state investment). And was wondering if anyone had insight on that current market ?
Be another investor or perhaps a savy realtor/investor that would like to perhaps partner for the market.
thanks and have a Blessed Day.
Hey Justin, welcome to the Memphis market!
I work with a ton of out-of-state investors, and Memphis definitely has some solid opportunities—but it really comes down to knowing the specific neighborhoods. You can find a great cash-flowing property on one street, and just a block over it's a completely different story.
If you're looking for boots on the ground or someone who knows how to navigate the local market from an investor’s lens, I’d be happy to chat. I’m an investor myself and also help other buyers and sellers here all the time.
Let me know if you want to connect, run a deal by me, or just pick my brain.
Wishing you solid deals and smooth closings! Talk soon!
Post: Memphis Market....what are your thoughts?
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Christopher Ramirez Babinski:
Quote from @Jordan Ray:
Quote from @Christopher Ramirez Babinski:
Hello everyone!
I'm genuinely curious, has anyone found any success in the Memphis, TN area for specifically BRRRR-ing? I'm curious because the market that I'm used to is investing 220k on a run down home and refi the house for 350-400k. Memphis is really outside of my experience with homes between 20-50k.
What are the thoughts of people who are familiar with this area? Do I avoid or start investing?
Thanks!
Hey! I’m active in the Memphis market and have personally done BRRRRs here, so I can give you a boots-on-the-ground perspective.
Yes—Memphis absolutely works for BRRRR, but it's a very different game than what you're describing. You're not going to see those same high price spreads like 220k → 400k, but what you will find is strong cash-on-cash returns and low entry costs, especially in the $50k–$115k acquisition range.
The key here is understanding hyper-local pockets. Some zip codes (like 38127, 38109, 38116, 38118, 38122, 38111 etc.) are investor-heavy, but you need to vet contractors closely and know your resale/refi values down to the street.
A typical play here might be:
-
Purchase: $80k
-
Rehab: $40k
-
All in: $125k
-
ARV: $190k–$210k
-
Rents: $1500–$1750 (Section 8)
-
Cash flow ~ $250–450/mo
It’s 100% doable. That said, if you’re trying to build a portfolio with velocity, Memphis is a top-tier city to scale quickly. Happy to share more if you’re seriously considering it. Good luck!
Jordan! This is EXACTLY what I was hoping to see! This is GREAT news!!!
Thank you for sharing this! If you don't mind, I would love to connect with you and talk to you more about this market. I'm so interested in it, because it's so different than where I live (Seattle area). Thank you for taking the time to reach out!
Absolutely! I will dm you my calendar link now. Talk soon!
Post: Memphis Market....what are your thoughts?
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Christopher Ramirez Babinski:
Hello everyone!
I'm genuinely curious, has anyone found any success in the Memphis, TN area for specifically BRRRR-ing? I'm curious because the market that I'm used to is investing 220k on a run down home and refi the house for 350-400k. Memphis is really outside of my experience with homes between 20-50k.
What are the thoughts of people who are familiar with this area? Do I avoid or start investing?
Thanks!
Hey! I’m active in the Memphis market and have personally done BRRRRs here, so I can give you a boots-on-the-ground perspective.
Yes—Memphis absolutely works for BRRRR, but it's a very different game than what you're describing. You're not going to see those same high price spreads like 220k → 400k, but what you will find is strong cash-on-cash returns and low entry costs, especially in the $50k–$115k acquisition range.
The key here is understanding hyper-local pockets. Some zip codes (like 38127, 38109, 38116, 38118, 38122, 38111 etc.) are investor-heavy, but you need to vet contractors closely and know your resale/refi values down to the street.
A typical play here might be:
-
Purchase: $80k
-
Rehab: $40k
-
All in: $125k
-
ARV: $190k–$210k
-
Rents: $1500–$1750 (Section 8)
-
Cash flow ~ $250–450/mo
It’s 100% doable. That said, if you’re trying to build a portfolio with velocity, Memphis is a top-tier city to scale quickly. Happy to share more if you’re seriously considering it. Good luck!
Post: Need advice on sell or keep 6 unit proprty
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Drew Sygit:
Quote from @Jordan Ray:
Quote from @Drew Sygit:
@Jordan Ray interesting that your knee-jerk reaction is advising to fire the PMC - w/o knowing anything else!
Well, my comparable advice is to sue the agent that sold this property to @Sandy Sandy!
How do you like them apples?
I will give you credit for the rest of your advice:)
@Sandy Sandy I'm actually going to bring some logic to this and take an educated guess your property is Class C or D.
Why? Let's list the telltale signs from what you posted:
1) Tenants either leave or don't pay rent on time
2) There's a decent amount of damage when they leave
3) Takes time to find new tenants
4) Lots of maintenance
If true, your first challenge is aligning your expectations with the property you bought!
Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.
In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%. See the chart from Fair Isaac Company (FICO) below:
|
FICO Score |
Pct of Population |
Default Probability |
|
800 or more |
13.00% |
1.00% |
|
750-799 |
27.00% |
1.00% |
|
700-749 |
18.00% |
4.40% |
|
650-699 |
15.00% |
8.90% |
|
600-649 |
12.00% |
15.80% |
|
550-599 |
8.00% |
22.50% |
|
500-549 |
5.00% |
28.40% |
|
Less than 499 |
2.00% |
41.00% |
Your 2nd challenge: you're probably hiring the wrong type of PMCs! Most PMCs, including all the national franchises, are set up to only handle Class A & B neighborhoods/properties/tenants.
So, you're going to want to alter your method of searching & screening for PMCs. You'll want to find one that is just a local company and ask for proof they are setup to handle Class C & D neighborhoods/properties/tenants.
Read on for some copy & paste advice about this:
Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.
Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.
Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.
To avoid going through the same poor experience, keep reading.
Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
I read over what she said about 5 more times to make sure I wasn't missing something that the agent should have done to avoid this and the only thing I can think of was that maybe they should have spent more time in due diligence but the reality is that repairs come up and if her management is only allowing band-aid repairs instead of suggesting to strategically repair the culprit... then she will continue to have issues. Also, after 16 months it has nothing more to do with the agent that far down the road. A good property manager would have gotten this mess cleaned up before it happened. Again, meant what I said. Fire that property manager. I've represented tons of sellers with the same story about their property managers neglect and lazy approach to management and in some cases even was money laundering. They reached out to sell, re-pivot, re-invest. Best way to do it unless she has multiple 6 unit properties to carry the weight of this one until it stabilizes.
Appreciate your professional response!
I could make the case that the "investor-friendly" agent that sold them this property was really only, "commission-friendly" and could be sued for failure to execute their fiduciary dutoes properly.
Why didn't the agent educate them better on the Class of neighborhood/property/tenant they were selling to them?
Please let me know how even the BEST PMC is going to get Class A results from a Class C/D rental?
FYI: this is all just a theoretical exercise to prove a point that "firing the PMC" won't solve an unsolveable problem with the property:)
I get it, at the end of the day you can point fingers at anybody.
Post: Need advice on sell or keep 6 unit proprty
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Drew Sygit:
@Jordan Ray interesting that your knee-jerk reaction is advising to fire the PMC - w/o knowing anything else!
Well, my comparable advice is to sue the agent that sold this property to @Sandy Sandy!
How do you like them apples?
I will give you credit for the rest of your advice:)
@Sandy Sandy I'm actually going to bring some logic to this and take an educated guess your property is Class C or D.
Why? Let's list the telltale signs from what you posted:
1) Tenants either leave or don't pay rent on time
2) There's a decent amount of damage when they leave
3) Takes time to find new tenants
4) Lots of maintenance
If true, your first challenge is aligning your expectations with the property you bought!
Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.
In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%. See the chart from Fair Isaac Company (FICO) below:
|
FICO Score |
Pct of Population |
Default Probability |
|
800 or more |
13.00% |
1.00% |
|
750-799 |
27.00% |
1.00% |
|
700-749 |
18.00% |
4.40% |
|
650-699 |
15.00% |
8.90% |
|
600-649 |
12.00% |
15.80% |
|
550-599 |
8.00% |
22.50% |
|
500-549 |
5.00% |
28.40% |
|
Less than 499 |
2.00% |
41.00% |
Your 2nd challenge: you're probably hiring the wrong type of PMCs! Most PMCs, including all the national franchises, are set up to only handle Class A & B neighborhoods/properties/tenants.
So, you're going to want to alter your method of searching & screening for PMCs. You'll want to find one that is just a local company and ask for proof they are setup to handle Class C & D neighborhoods/properties/tenants.
Read on for some copy & paste advice about this:
Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.
Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.
Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.
To avoid going through the same poor experience, keep reading.
Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
I read over what she said about 5 more times to make sure I wasn't missing something that the agent should have done to avoid this and the only thing I can think of was that maybe they should have spent more time in due diligence but the reality is that repairs come up and if her management is only allowing band-aid repairs instead of suggesting to strategically repair the culprit... then she will continue to have issues. Also, after 16 months it has nothing more to do with the agent that far down the road. A good property manager would have gotten this mess cleaned up before it happened. Again, meant what I said. Fire that property manager. I've represented tons of sellers with the same story about their property managers neglect and lazy approach to management and in some cases even was money laundering. They reached out to sell, re-pivot, re-invest. Best way to do it unless she has multiple 6 unit properties to carry the weight of this one until it stabilizes.
Post: Should I purchase a non cash flowing duplex?
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Antuan C.:
Hello,
I have been thinking on buying a duplex in putting 5% down, it will be cash flowing -$300-$400/month (negative)
Right now prices are thru the roof and I found a nice duplex for significantly lower than the rest of the market and even so it doesn’t cashflow with the amount of downpayment im giving.
I have been thinking on using the cashflow from the other one to cover it while I wait for interests to come down and refinance.
Even if I didn’t have the other duplex, I could cover the cost out of pocket.
For context, all the other duplexes in the area are going for at least $100k more.
I appreciate your input.
You’re clearly thinking long-term, and I respect that. Negative cash flow isn't always a dealbreaker if you’ve got reserves, strong upside, and a plan to refi—but it’s still a risk, especially with rates staying sticky. One thing I’d suggest: if you’re open to putting your money to better use, look at markets like Memphis. You can still find duplexes and small multis here that actually cash flow, and rents stay strong because of our steady working-class tenant base. I’ve helped out-of-state investors pick up cash-flowing deals in neighborhoods where appreciation is modest but rent demand is consistent. Might be worth comparing real cash-on-cash returns instead of buying negative equity just because it’s "below market." Sometimes a cheaper market with cleaner numbers beats gambling on rate drops.
Post: how to submit offer
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Gp G.:
Hi,
I liked one deals on zillow. How to submit offer myself. Please advise
If the property is listed on Zillow and represented by an agent, you'll need to submit your offer through them or have a licensed real estate agent do it for you. Most sellers won’t accept offers directly from buyers without representation, especially if it’s on-market. If you’re not working with an agent, consider finding one who’s investor-friendly—they can help structure the offer, run comps, and handle all the paperwork. If it’s a For Sale By Owner (FSBO) and you’re comfortable writing contracts, you could use a standard purchase agreement form for your state, but I’d still recommend having a pro review it. A sloppy offer can cost you the deal or expose you to risk. Bottom line—having a good agent can help you move fast and negotiate smarter. Let me know if your property is in Tennessee or Mississippi!
Post: Best way to evict
- Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Brittany Kelly:
We have tenants whose lease expired 5/31 who won’t leave and haven’t paid rent. Best and quickest way to evict?
That’s a straight-up holdover situation with non-payment, so you’ve got grounds to move fast. First step: serve them a Notice to Quit or Pay immediately—make sure it's compliant with your state and local laws (some require 3, 7, or even 14 days). After that window, file for eviction in court without delay. Don’t try to negotiate or make verbal demands—it’ll only drag things out. Also, double-check that your lease doesn’t have any language that shifts the process (like automatic month-to-month renewal clauses). If you want speed and minimal mistakes, hire an eviction attorney or a professional service that handles filings and court appearances—they’ll keep it tight and legal. Time is money here, especially with no rent coming in.