Memphis invest. Is this company to good to be true?

Question

Has anybody heard of this company or had any experience with them? I assume that since BP is sending out there info with links that they must support them and what they do.  I am a total newbie investor and am just in the educational stage but I am committed to getting invested once I feel my education is sufficient.  I do have capital to use if I choose to from a Denver area home sale which I cleared $125k and also a 401k sitting at approximately 200k. From  what I’ve seen it appears to be one of those “ to good to be true” type things.   I would like to get into the real estate game and from what I’ve seen from there website and videos is that they offer rehabbed properties with instant cash flow provided the standard 20% down.  They only operate in several select areas.   If anyone has insight on this it would be greatly appreciated.   I live in the Chicago area and to me, it seems the market is to high for a beginner.

Ali Boone · Answer

You're really not asking if MemphisInvest is too good to be true, you're asking if turnkey rental properties are too good to be true. The answer is: no. Mostly because they aren't perfect. And they do still require your head to be in the game. The big downside to them is the lack of ability to force appreciation, and they are priced around market value rather than below market value.

Most of my portfolio is turnkeys, and I think they're great. I don't think they are for everyone--I think if someone has the interest, time and skills to do it on their own, they should. Otherwise, turnkeys can be great.

Stephen Akindona · Answer

@Dan Constantine, Memphis Invest is the cadillac of the turn key investment space. They have been around a long time and have serviced a ton of investors. They have a ton on reputation and brand awareness at risk so it is in their best interest to service you well! Will they be perfect, no but you can trust that a company their size and with their reputation will deliver. You would be in great hands with Memphis Invest!

There are alternatives to consider as their are several turnkey operations in Memphis. The best advice I could give is get on the phone with multiple companies, talk to each and get a gut feeling about who you will be working with. Maybe fly down to Memphis and meet the team and see their operations. There are a few scammers here but after talking to a few you will easily be able to determine who the real players are! Let me know if I can help in anyway as I am local to the Memphis market!

Caleb Heimsoth · Answer

@Dan Constantine they’re the best, reputation wise turnkey provider.  So that’s the good news.  The bad news is you pay a premium for that, and at this point in the cycle I think that could be an issue, down the road.

Rehab is top notch, customer service is great.  I’d recommend visiting them in memphis!!

Axel Meierhoefer · Answer

@Dan Constantine I am not sure that your question really relates to your intention to build a portfolio, as you seem to want. In my view that aspect is best answered by asking about financing options. You could look at the new "all in one" loan from Ridge lending, as I am, and you will probably see that your ability to get money out to buy your next property or finance it with another All in One is pretty amazing. Naturally, it all depends on your initial downpayment versus rental income and other factors, for which you should run the BP calculator but you can basically have your tenants pay you the downpayment for your next property and you can benefit from appreciation over time as well.

I agree that turnkey does not have the bigger leverage, but done with the right company, i.e. Memphis Invest, one of the most important aspects (in my view) will be solved: Getting a well-renovated property with long term tenants under great management.

Maybe you want to explore a little further or have a conversation about your options. Message me and let me know if you like to have a call.

Dan Constantine · Answer

Thanks everyone for the input! Seems like it may not be the way to go for me as there is not a viable way to get back your initial investment in the short term to put into a second property.  Hard to build a portfolio if you need to constantly save up for the next down payment.

John P. · Answer

Investing in real estate is NOT “a to good to be true type thing.” A lot of people lose money and some lose a lot of money. A lot of people make some money. I would say the only people who make a ton of money work at it. These people often deny it but it’s a part time or even a full time job. Real estate investing is not passive investing like putting your 401k into mutual funds is. Do more research before jumping in.

Dan Constantine · Answer

Anyone have anything on this?

Dan Constantine · Answer

I should add that Jessica from BP sent out an email link for a book by this company.   The properties offered include property management.

Memphis invest. Is this company to good to be true?

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