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Updated almost 6 years ago on . Most recent reply

User Stats

155
Posts
151
Votes
Jonathan McGee
  • Rental Property Investor
  • Memphis, TN
151
Votes |
155
Posts

Real Estate Gold Rush?

Jonathan McGee
  • Rental Property Investor
  • Memphis, TN
Posted

Since the last quarter of 2018 up until now, I've noticed a "gold rush" type investor boom going on in Memphis. I primarily wholesale to TK and OOS so I'm on the front lines of this rush and while it has boosted business, it has also made the investment market extremely competitive. Normally I am able to lock in a fairly reasonable offer with a seller, but then somehow someone comes in and puts in an offer almost 85% of retail on a property that clearly needs a full remodel, which makes no sense on the numbers. From my contacts, I'm seeing the TK end products slowly rising in prices but they are clearly still moving even though the returns are diminishing.

Is this going on in other midwest markets as well? Has the industry seen this type of investment boom before, or is this a product of the internet, turn key providers, wholesaling and guru's top ten cities?

I'll continue to ride the wave, as I consistently run into investors who are cashing out of the game and selling off, but this is becoming a feeding frenzy.

Most Popular Reply

User Stats

4,766
Posts
1,368
Votes
Tom Ott
  • Equity Raiser and Turnkey Provider
  • Cleveland, OH
1,368
Votes |
4,766
Posts
Tom Ott
  • Equity Raiser and Turnkey Provider
  • Cleveland, OH
Replied
Originally posted by @Jonathan McGee:

Since the last quarter of 2018 up until now, I've noticed a "gold rush" type investor boom going on in Memphis. I primarily wholesale to TK and OOS so I'm on the front lines of this rush and while it has boosted business, it has also made the investment market extremely competitive. Normally I am able to lock in a fairly reasonable offer with a seller, but then somehow someone comes in and puts in an offer almost 85% of retail on a property that clearly needs a full remodel, which makes no sense on the numbers. From my contacts, I'm seeing the TK end products slowly rising in prices but they are clearly still moving even though the returns are diminishing.

Is this going on in other midwest markets as well? Has the industry seen this type of investment boom before, or is this a product of the internet, turn key providers, wholesaling and guru's top ten cities?

I'll continue to ride the wave, as I consistently run into investors who are cashing out of the game and selling off, but this is becoming a feeding frenzy.

 I think that is part of the reason many investors are moving away from Memphis and looking into more untapped Midwestern cities like Cleveland or Detroit. 

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