How to Maximize a Visit to an Out of State Market - Memphis

Question

Hey All,

I'll be visiting Memphis, TN for the first time next week, for the purpose of conducting further due diligence on my first investment rental property that I have in escrow at the moment.

I'll be riding around with the seller of the property, who has agreed to take me on a tour of different sub-markets within the greater Memphis area (for future investments), as well as a tour of the property itself.

I would like to make the most out of this trip, so I'd like to ask if anyone has any recommendations on how to make the most of this trip, i.e. questions to ask, markets to visit, people to meet, checklist at my subject property, and overall what I should be doing on this trip. Any input is valued and appreciated!

Thank you,

Ryan Zomorodi

Ryan Zomorodi · Answer

Hey @Douglas Skipworth,

My trip to Memphis was phenomenal, thanks for following up! Well worth the time and cost to get to know the market, team, and property that I've been working with. There's only so much one can grasp from virtual research, images, phone calls, etc. so to experience first-hand was very insightful. Spent the day picking the brain of the seller and team that I'm working with, so that alone was valuable.

I would recommend that any out of state investors make a trip out, to meet the team and get a feel for the area. Would have loved to stay longer and meet all the BP members in the Memphis area, there's always next time. Definitely will reach out on my next trip!

Thanks again for your warm energy.

-Ryan Zomorodi

Ryan Zomorodi · Answer

@Alex Craig Awesome to hear! From what I've heard, it seems like a solid area to invest, considering the steady rental demand and quality of tenants, among other factors. Thanks for sharing!

@Douglas Skipworth Fantastic, thanks for the warm welcome to Memphis. Will be in touch to coordinate something while I'm in town.

Thanks All,

Ryan Zomorodi

Ryan Zomorodi · Answer

Thanks @George Chang, @David Hutson, and @Alex Craig for all the great tips!

@Douglas Skipworth Yes this trip is mainly for the property in Oakland, as well as checking out the area for future investments! I'm staying in hotel not far from the airport, and have all day 10/19 riding around with the seller. Going to tour different markets, check out different types of houses and get a feel for the area. My first time in the state, so excited to see a different part of the country. I would love to meet with you and chat at some point, although it is unclear how much I'll be able to conquer in one day, and I'm somewhat tied to the seller in this instance.

What part of town are you located in? Would be great to work something out.

George Chang · Answer

Hey @Ryan Zomorodi - I had done the exact same thing when buying 3 properties in Memphis (and looking to go down again!).  Since I'm from New York, I had to maximize my time to really see the area.  Here's what I've done:

• I booked appointments with a few agents, brokers, etc.  This really got us going in the right direction because you get a good feel for the areas you'll be investing in.  You'll see what areas you'll want to keep on investing in and where you'd rather stay away from.
• I talked to a few property managers prior to my visit and made appointments with them.  This is critical because, as an out of state investor, you won't be actively managing the day-to-day activities.  These guys will be your eyes and ears.  Also, ask if you can see some of the properties they manage (maybe just on the outside?) and see if you like what they've done.  This would be like a 2nd tour of the area, after your ride with the seller.

I'd also eat in various parts of town because these everyday places (restaurants, shopping malls, grocery stores) are also where your tenants will be eating/shopping, so you get a good feel for the convenience of the area.  This would further guide you when you decide to buy another property in the area.

Good luck and enjoy Memphis!  Keep us updated on how it goes :)

George Chang · Answer

Awesome to hear that this is working out for others as well!  I'll actually be doing the same for a closer out-of-state property search, so I'll look through this thread again and do everything all over again.  Well worth the effort though!

Douglas Skipworth · Answer

@Ryan Zomorodi.

Thanks for the update.

Glad to hear that you enjoyed your time here and that it was productive.

Best of luck to you!

Douglas Skipworth · Answer

Hey, @Ryan Zomorodi.

How was your trip?  What did you think of our great city?

Sorry we couldn't hook up.  Let's definitely coordinate better next time you're in town.

All the best,

Douglas Skipworth · Answer

Sounds great!  Thanks, @Ryan Zomorodi.

I'll send you a private message and we can try to coordinate something while you're here.

All the best,

Alex Craig · Answer

@Ryan Zomorodi  I have sold a few deals in Oakland and manage a few in the area.  We have had great success in this area and renting fast.

Alex Craig · Answer

One thing I would advise is renting a car and spending your last day driving back through the area for a second glance and driving up and down several streets.  If you see neighbors, stop and talk to them.  If you have time, then it would be good to meet with the closing attorney, but certainly not critical.  That can easily be done over the phone and I would not waste valuable time in the market talking about HUD contracts, wiring funds, etc.  Your lender (if you are using financing) will help you with that.  That part of it is really cut and dry.  The main thing you want to do is meet the people you will be working with and see the areas you think you are interested and make sure the area meets your expectation.

Also, and I stress this---HAVE FUN!!! This is going to be a very nice week weather wise; go to Beale St, eat at Blue City Cafe, meet the locals.  Check out Overton Square and Cooper Young in Midtown (38104).  This is a good blog to bookmark.

http://ilovememphisblog.com/

How to Maximize a Visit to an Out of State Market - Memphis

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