All Forum Posts by: Wei Jie Yang

@Axel Meierhoefer I'm actually also working with Ashley!  What's the 200% rule? 

I actually asked to see all the markets they have. My first property was bought in Little Rock. With the numbers I've seen currently with Memphis Invest, I will probably be sticking to the Memphis and Little Rock market. Those markets occasionally have better rent to value ratios and still cash flow. Can't say that about Oklahoma City or the Texas properties. I actually saw their proforma for the one St. Louis property they sold, it had an AMAZING Rent to value ratio (For Memphis Invest's properties anyway) in comparison to everything I saw prior.

Repairs were done yesterday! Memphis Invest has been great so far. Pretty much all good except for these two VERY minor things:

1)  No real listings for new properties. They rely on their sales people/portfolio managers to send profroma's to you.  No mass spread sheet or online listings. I guess it's a good sales tactic but it comes with a few obvious downsides when it comes to knowing your options. 

2) Apparently they distribute their ACH/Checks by some sort of name order. Since my name is Wei Jie Yang, I will always be getting my check on the 3rd week of the month or later.

Other than that, great experience so far. 

Old thread but I am bumping it as I am in talks with them as well.

@David Hutson I will definitely keep in contact ! You and your posts have helped me out substantially!

@Jeff Mills @Dan Butler and @Dean Harris call it a BRRR program on their radio show/podcast. That's the only reason I am referring it that way. I'm more interested in finding out

1)How effective they are in finding these distressed properties that fits the investors criteria?

2) How accurate is their scope of work and estimated costs? Has any client dealt with overages of a substantial amount? 

3) What is the quality of their rehab work? How timely are they?

4) Is their ARV calculations accurate (I'm assuming they give one) provided a client does all the recommended rehab?

Yeah, I realize the refinance part is up to me, but that's the case with all providers that offer similar programs. I would think a reputable PM company that has a construction crew to work with to get a BRRR done than separate Agent/PM/Contractor.

@David Hutson it seems like you have experience with every Memphis provider out there! 

In regards to Crestcore's services:

1) You found the house, so I guess you didn't can't comment on how @Dean Harris and teams service as agents are?

2) I'm assuming since you said you earned a little equity you meant you refinanced? Or do you mean just mean the appraised value now is higher than purchase+reno?

3) I have heard them call their service a BRRR strategy on their radio show. But I beleive the goal is more of a Turnkey discount model. I know you're not the one to ask but can you comment what the actual goal of the program is? Is their goal for the investor, to find a distressed property and to have the ARV be enough for the refinance to cover all expenses (like what a "ideal" BRRR is in my mind) or is it to have the ARV after the cash out refinance be better than a typical house an investor would buy from a turnkey player.

Thanks again @David Hutson You do not know how much of a help in deciding alot of things your posts have been to me.

Hi guys, I closed with Memphis invest just a few weeks ago and am now looking at my options for OOS property #2 & #3.  While I was doing my research I came across Crestcore. They offers a alternative to the turnkey model In that they are a traditional Realtor who has their own construction and Property Management crew. They would look for distressed and off market properties based on the investors criteria, provide a scope of work, renovate the property to the investors liking, and then PM it if you so choose. They call this their Turnkey Alternative program.  I have encountered several companies that has a similar model and am wondering if any investor has ever used Crestcore or a company like Crestcore to successfully BRRR OOS? Or to at least used them as an alternative to the traditional Turnkey Method? I beleive thegoal of the Crestcore program is more to get a discounted property vs a traditional turnkey  rather than a "true" BRRR where you get all your money out + possibly a profit.

I have listened to Crestcore's Radio show/podcast and @Dean Harris and @Dan butler seems to be very knowledgeable, reputable and ethical. I have heard over the forums that Crestcore's PM arm is very effective at managing lower income areas similar to Terry Kerr or Derrick Criag's companies. What I haven't seen is any case study or any investor giving a detailed account on the internet about going thru their Turnkey-Alt program. Has anyone tried it? Care to share any insights?

Now before anyone gets started, yes I understand the risk of this model. I would incur all the front end risk.

@Oleg Shalumov Ha, Yeah, I guess the 1% rule should apply to multi family like it does to single family. Sorry for the silly question

@Account Closed No, though I do own a Duplex in Queens. I was just thinking in general. My current goal is more the mid west/South markets.

Question about buying Multifamily properties. Is there a general rule of thumb in regards to breakeven points when it comes to small multifamilies (Duplex-Quadplex)?  Something like I a Quadplex is only a good deal if 50% occupancy gives me a breakeven operating number. Or avoid Quadplexes if I can't make a profit unless it's 100% occupied. 

Do such guidelines and rule of thumb exists?

Closed yesterday. Memphis Invest are still doing post close repairs, but they agreed to repair everything that was wrong on the inspection report. Tenants are set to move in on the 21st. Overall, no issues with Memphis Invest at all, and they've been great!

Current plan is to buy investment property 2 and 3 this year as well. Not sure if I am going to use Memphis Invest again for #2 and #3. It will depend on the property and deal that I see from them. While Memphis Invest's properties are expensive relative to the rent, their Pro-Forma numbers are very accurate. Hopefully I can say that about the others I am thinking about working with.

The current short list for #2 and possibly #3:

1) Memphis Invest

2) Memphis/Littlerock Turnkey

3) Midsouth Homebuyers

4) Norada - I know these guys are marketers but they've opened my eyes to new markets and possibilities (like pre-construction stuff which I have just started researching on)

5) Possibly a BPer. Not sure.

Inspection report also came out today. 

1)Issues with water damage in the crawl space, 

2)dryer vent is disconnected in the crawl space. 

3)A section of the Metal trim on a garage door seems to be missing as well.  There is also some damage to the Vinyl Siding

4)An outlet cover is missing in the kitchen

5) two door hinges are loose. 

It seems like the only major issue is the water damage. Otherwise these things should be easily fixable.