All Forum Posts by: Jonathan McGee

@Ryan Holland this is a similar business model that many out of state investors achieve using a “boots on the ground” team. 

   I’m actually doing this myself in Memphis for another investor where I located the deal, received a wholesale fee and now acting as a Project Manager on the rehab with my contractor. 

  My main concern is how this company is able to achieve this in multiple markets, with multiple projects going on with multiple investors. Seems like a lot to handle.

   Sounds like a good concept but seems like even if they have the manpower to handle multi-projects, then there would be less attention to detail. 

Hey @Cesar Lara! Glad to hear you are ready to take the dive into investing, especially in our popular Memphis market!

   As you may or may not know, Memphis is not exactly heavy on the smaller multi-family units. They are scattered throughout the city and not exactly centralized. One of the other issues is that in Memphis, you can own one side of a duplex, and someone else can own the other side which makes it that much harder to find a multi unit where you can buy the entire property and house hack it. I could see this posing a problem for your marketing tactics as you would be reaching out to the owner of one unit and having to equally contact the owner of the other unit. 

   Your best bet would be targeting investors who own the entire property that is most likely renting out both or all units. Work a deal to purchase all units using a mortgage loan and work with the investor to vacate one of the units while keeping the tenant (or tenants) in the other unit. You could utilize a successful wholesaler or investor friendly agent that has connections to investors with these types of properties. 

   If you'd like to chat, please feel free to message me or reach out!

Wish you the best in your success!

@Jason Howell networking in your target market would be your key to success! Pulling together a solid and trusted team would be your first step. This would consist of a seasoned wholesaler or investor friendly agent, general contractor, inspector, property management, local mortgage broker and possibly a marketer or property scout. Find a deeply discounted off-market property via your wholesaler, agent or marketer, have your licensed inspector crawl through the property and supply you a report with photos, pay your contractor for a line item rehab estimate, then reach out to your property manager for potential rent rates, history of vacancies in the area and their overall opinion for a long term hold on the property.

I'd suggest sticking to B/C+ areas as buying into A class areas can easily exceed your budget and may or may not net the returns your expected. You can gradually move into the higher class suburb type areas once you've become thoroughly familiar with the market and which parts of the A class areas are worth jumping on deals. You'd also want to make sure you find a local bank branch with a mortgage broker that offers up to 80% LTV with no minimum (several lenders only lend up to 75-80% if the value is $75k or higher, anything below they only lend up to 50%).

   As stated previously by @Dean Harris several investors have seen a lot of success utilizing the BRRRR method in Memphis since you can still buy discounted off-market properties here in B/C areas, run a minimal rehab and then cash out at 80-110% of the cash you put in.

Welcome back @Ron Ripley! I may be biased since I am located here, but Memphis is definitely a profitable market and you can still find deals at 70% or less below retail. As stated previously, there are a few reputable turnkey companies here in Memphis as well as a handful of successful wholesalers and investor friendly realtors. Feel free to give me a shout if you have any questions or looking for tips!

Wish you the best on your road to retirement!

Hey @Clifton Frazier welcome to BiggerPockets! Several investors I work with from California speak the same words as you! Although you can net some bigger rewards in SoCal, you can also build a small portfolio generating $3-5k monthly in mid-west areas far cheaper. 

    The general consensus is that investing with a turnkey company from out of state is far by the safest bet when starting out as it takes time, trust and risk when building your own team on the ground. Of course, being able to locate your own deals, rehab and re-finance on your own will get your returns flowing in at half the cost all in.
     I'm local here in Memphis, if you need any tips or suggestions, please feel free to reach out!

Wish you the best on your ventures!

Welcome aboard @Maxwell Pickens sounds like you've got the right mindset and on track to success!

I've heard of several investors starting out on the same route of house hacking or living in a quad or duplex on an FHA loan for a year then progressing from there! Good standing with a bank can take you a long way in this business!

Wish you the best in your real estate journey!

SOLD

Contract Assignment - 

Don't miss out on this opportunity for a CASH COW in Memphis! This 3/2 1400 sq ft. brick home w/ garage is situated in the upscale Scenic Hills area of 38128. Purchased from a long term homeowner last year, this nicely kept property has been renovated to be rent ready and now currently rolls in 995/mo with a 2 year leased tenant! This home has great curb appeal and a spacious yard! Features a screened in porch, fire place, storage shed, tiled shower, security door and more! Managed by a highly reputable property management company in Memphis. With an estimated retail value of $85,000 and a 12% ROI at the asking price, you can't help but add this rental to your portfolio! Whether you are a seasoned investor or just starting out, this is not one to pass up on!

Contact Jonathan at 9015008077 or at [email protected] for financials or more information!

Contract Assignment -

Don't miss out on this excellent opportunity for this cash flowing property in Memphis! This 3/2 1300 sq ft. brick home w/ carport is situated in the highly sought after Whitehaven area of 38109. Purchased as a turnkey property last year, this newly remodeled home has a paying tenant at 875/mo with a current lease in place until 10/2018. Managed by a highly reputable property management company in Memphis at 9% monthly. With an estimated retail value of $80,000 and a 12% ROI at the asking price, you can't go wrong with adding this rental to your portfolio whether you are a seasoned investor or just getting started!

Contact Jonathan at 9015008077 or at [email protected] for financial details or more information!

Good price point for that zip code from a turnkey provider assuming it is a 3/2. I would imagine you are paying less than retail.