REI Nation (Memphis Invest) Case Study - Yukon (OKC), OK

[Dan T.]

Well, my first thread is and continues to be a success. I made it with the intention of educating prospective buyers on REI Nation/Memphis Invest. I am not affiliated with this company in any way - I wish i was so the numbers looked a bit better than they do. That said, i figured there HAD to be investors out there in my boat - they make their living in their industry and have busy private lives (i have 2 kids, 2 year and 9 months so free time isn't a thing for me). I wanted to invest in real estate and honestly, do as little as possible once i qualified the investment.

I looked at BRRRR for years and never pulled the trigger - I've managed remodels on my primary residence WITH ME LOCAL to the job being done in Southern California where there's no shortage of great contractors and felt the ease of the strategy was grossly overstated. The "allure" of the turnkey model hooked me. It's a dangerous bite as Mr. Clothier said it best, everyone uses the term "turnkey" but there's no actual standard to which those using the term adhere. After TONS of research, i hooked up with REI Nation in my first property in Bartlett, TN. That experience can be tracked here:

https://www.biggerpockets.com/forums/311-buying-selling-real-estate/topics/803291-rei-nation-memphis-invest-case-study-barltett-memphis-tn?page=1

I could not believe the amount of colleague requests and posts i received from like minded individuals. Many are eaten alive by real estate professionals or long-time, seasoned investors on these forums for considering the TK model. Everyone invests differently based on their goals and available time. Hell, maybe not available time but time they're willing to devote. I am posting for these people as i now realize how many are out there and and love that I'm helping people that were in exactly my shoes 1 year ago.

Amidst all this "COVID" craziness came another deal that fit my criteria from my Rep at REI - I analyzed it and put it under contract. This property is in Yukon, OK.

Purchase Price: $145,000

Rent: $1,200, 2 year Contract - Tenant in place as of May 1st.

Vacancy - 4% - $48/m

Insurance - $1,025/y

Mgmt - 10% - $120/m

Maintenance and Repairs - 4% - $48/m\

I will be putting 25% down, 4.25% interest rate and anticipate $281/m in Net cash flow factoring in the above. I will have this populated in an account with a $5,000 base balance (CAPEX contingency fund, if you will) and will decide what to do with the cash flow at each year end. I have deployed the same strategy on my first property in Bartlett, as well.

I'm all ears to any questions/critiques! I am happy to post REAL numbers, scope of work with which REI Nation Provided me with before/after pictures, etc. on request.

Happy Investing!

[Chris Boselli]

Hi Dan, always great to hear success stories of other investors utilizing different strategies. I personally use the BRRRR and fix&flip strategies in Memphis from out of state (I am from Boston), but that is only my strategy and it works for me. I like having more of an active role in my projects and while yes this can allow for greater returns, it comes at a different cost in terms of time spent hands-on in these deals and the additional knowledge/experience you need to acquire. It's not for everybody and some people like yourself simply don't have the time necessary to build a team, properly vet each deal, manage the projects, etc. Bottom line is you are still building your portfolio and taking another step toward financial independence with each new passive income stream you generate. Don't listen to the outside noise, and good luck on your next deal!