Do people ever learn? (Memphis market observation).

[Dean Letfus]

So brief background. I started investing in the USA around 08.  Ended up in Memphis and with the help of a great mentor really got going in that city.   It quickly became obvious that many parts of Memphis were terrible and likely to not re-gentrify. In fact more than that it was obvious that what us New Zealanders would call "white flight", meant that many areas that were either quite good or just OK were going to turn bad soon enough.

So location is super critical here in Memphis. More so than many other cities I believe.

Roll forward to late 2017 up till today.  My inbox is filled daily with deals from pretty much every wholesaler I can find operating in Memphis and these days there are a ton of them.

99% of the deals on offer are in such bad areas you wouldn't drive down the street let alone own a rental there. And these deals seem to be selling, often to out of state investors, as fast as the emails get sent out.

How can so many investors be lining up to lose money when you only have to visit somewhere like this forum to know of the issues?

And I mean serious money. I know of an investment group from down under that is currently losing a fortune having to bail out of hundreds of terrible houses in awful areas.

So I'm posting this just as a discussion point so that people may find it when they search.  The fastest way to grow a small fortune in real estate is to start with a large fortune and then invest in Memphis without expert local advice :-).

[Jay Hinrichs]

Originally posted by @Dean Letfus:

So brief background. I started investing in the USA around 08.  Ended up in Memphis and with the help of a great mentor really got going in that city.   It quickly became obvious that many parts of Memphis were terrible and likely to not re-gentrify. In fact more than that it was obvious that what us New Zealanders would call "white flight", meant that many areas that were either quite good or just OK were going to turn bad soon enough.

So location is super critical here in Memphis. More so than many other cities I believe.

Roll forward to late 2017 up till today.  My inbox is filled daily with deals from pretty much every wholesaler I can find operating in Memphis and these days there are a ton of them.

99% of the deals on offer are in such bad areas you wouldn't drive down the street let alone own a rental there. And these deals seem to be selling, often to out of state investors, as fast as the emails get sent out.

How can so many investors be lining up to lose money when you only have to visit somewhere like this forum to know of the issues?

And I mean serious money. I know of an investment group from down under that is currently losing a fortune having to bail out of hundreds of terrible houses in awful areas.

So I'm posting this just as a discussion point so that people may find it when they search.  The fastest way to grow a small fortune in real estate is to start with a large fortune and then invest in Memphis without expert local advice :-).

the absolute classic and truth in this thought process was the [post  2 or 3 weeks ago titled.

"  0 to 15 units in 12 months"

come to find out west coast person decided it was a good idea to leverage their personal residence and buy D class 400.00 a door rentals in this market.. and I don't care what market any market this is darn near financial suicide.. Now what I find very interesting and to your point is.. there were over 200 post congratulating this person and basically saying cant wait to do the same thing.. that was just incredible to me..