Where to buy in Memphis

[Jamie Doman]

Hi Bigger Pockets Community,

Quick question to through out there. I am starting to wholesale in the Memphis area and would love to hear peoples thoughts on where to buy in Memphis. I am also looking at other states but Memphis  is where I'm looking currently.

Where are good areas to buy in Memphis and where are the ares to avoid? Any info would be great thanks as I am in Australia currently. 

As always thanks in advance!

Jamie

[Alex Craig]

@Jamie Doman  little advice; there are very few wholesalers that are any good.  The good ones have off market deals that they obtain through their own marketing.  Most wholesalers build their list, then they all market the same deal that they do not have contracts.  For example, good wholesaler A will find a off market deal for $35,000.  He will market to his core group of buyers for $40,000.  Second rate wholesaler B will intercept wholesaler's A deal and try to mark it up to $45,000.  Just this week I had someone do that and I was able to find out who had the original contract and talk directly to the buyer.

Another piece of advice, all local buyers know every single auction site, foreclosure site, reo site, MLS deal, homepath, homesteps, hud store, etc. If you are going to win a bid, the local pro's may let you make 1k on the assignment, but likely you will have a tough time selling it b/c if it is a good deal, it is likely we made an offer on it too. Whether we want to pay more then our highest and best depends on what we have in our current pipeline.

I can name 20 local wholesalers off the top of my head and there are probably another 50 to 100 local wholesalers trying to learn the business, many of which are already on Bigger Pockets too (which I have seen the same home marketed at 2 different prices by 2 different people on this site alone).  My point is, you will have to be better then all of these local people, more savy and have some sort of marketing technique to beat all of them out.  

To me, the best wholesalers have these qualities:

• Control of the deal (meaning, they have the contract)
• If occupied, have a firm date when the resident is moving
• Great pictures and pictures of all the items that need repair
• Condition of roof
• HVAC age
• Accurate scope of work 
• Accurate renovation cost (most wholesalers fail at this and nothing is more frustrating when you see a deal where the #'s work based on a 8k rehab, then you get to the house and you see 8k in rehab before you walk in the door, that becomes a total waste of my time
• Not as important b/c I know the market inside and out, but accurate rent range
• If tenant is in place, lease and lease ledger
• Easy access to house
• true wholesale pricing, not pricing based off the best 3 retail comps in the area
• Confirmation from the title company that the title is clear
• Off market deals 

If you can do that, you will win in this business.  Most wholesalers only achieve a few of these points.

What you want from a buyer is 1 thing.  Able to close quick.  You can ask around and find out who those people are very quickly.  People like myself, @Curt Davis and a hand full of others on here have a 100% close rate once we commit to the deal.

Good luck, please send me some good deals that allow for a win-win-win (you win, I win and my clients win).