Where are the flips taking place in Memphis?

Question

About to relocate to Memphis for a job, and I'm looking to do some fix and flips in the area and surrounding markets. What areas are experiencing the greatest appreciation. From the research I've done so far on at least the Memphis market, it looks like a lot of fix and flips are sold off to turnkey investors. Any information you can share about getting started in the Memphis market would be greatly appreciated. Also any wholesalers that you may know of, I'd love to get in contact with them and take a look at their stuff. Looking forward to the feedback.

Account Closed · Answer

Thanks for the feedback guys, and I look forward to seeing you guys at City and State coffee in the future. If you were to focus on one zip code here for finding off market deals through direct mail, etc. where would you focus on and why. Also any good wholesalers in the Memphis area who move a lot of product, I'd love their contact information.@Elizabeth Wilson@Daniel Weaver

Ray Lai · Answer

Account ClosedAre you sure you'll get a good answer asking other people what zipcodes they are sending their DM too? Because if they are a good wholesaler, they already have campaigns going there and you're sending mail to the same addresses. If they are newbie wholesaler, then their advice is bad.Better to D4D in some B/C areas from Memphis and put together your own list and avoid areas heavily saturated with DM already.

Daniel Weaver · Answer

Account Closed - I've not used wholesalers. My two properties have been FSBO, and one of those was an off-market connection through a co-worker. I've made offers on MLS properties, and will be making an offer today on another MLS property, but have not yet had success in getting any of my offers accepted on these listed properties. As Elizabeth mentioned, the RE market is hot right now.I can't tell you which zip codes are best, especially since neighborhoods in Memphis can change drastically within a single zip code. I focus on parts of 38111, 38117 and 38134 - and prefer properties that have ARV of $90k-$150k for my buy-and-hold strategy. Then again, as buy-and-hold, I don't need many deals - just own two houses currently and looking for my third - so I can be quite selective. I can afford to wait for the right one.Once you have a chance to drive around, I'd suggest looking around parts of Mid-town, Cooper-Young, Harbortown or East Memphis if you are looking for upper-middle class types of properties. These areas are probably not going to fit neatly into a zip code, but you should get a feel for the neighborhoods pretty quickly by driving the streets and comparing what you are seeing to the rental and sale prices on zillow.

Elizabeth Wilson · Answer

Account Closed - welcome to Memphis! You've chosen one of the hottest markets to fix/flip in. Not saying there still aren't deals but definitely tougher and more players. Join us for Coffee with Investirs every weds at 7:30am at City and State Coffee on Broad. Great way to start networking and learning more about this fantastic market!See ya soon!e

Daniel Weaver · Answer

@Elizabeth Wilson has flipping experience, while I am just a buy-and-hold guy for now, but as a lifelong Memphian, I would point out that Memphis is not known for appreciation. There may be a little, but I think most of the flippers here have to focus on getting deal flow set up to find properties for under market value. If you get a great buy, and add value through repairs or remodeling then you may be able to make a flip work, but don't count on any unforced appreciation.Also, look up Memphis Investors Group - monthly general real estate meetings and other meetups throughout the month. May help you make contacts here! Welcome to Memphis!

Account Closed · Answer

@Alex Hugo Appreciate the feedback. I've done some market research on the area, and it's certainly a little different than from what I've seen in Atlanta. It's going to take some time to learn the market, but like you said there are always niches to play in. I'm planning on showing up to city and state coffee next Wednesday so maybe ill see you there.

Sean Tagge · Answer

Welcome to bigger pockets Account Closed Memphis is a great city to invest in. I would love to meet up with you I am at Coffee with Investors every wednesday 7:30-8:30 am at City and State coffee 2625 Broad Ave, Memphis, TN 38112Would love to network with you or anyone else. Click here to check out the weekly absolutely pure networking event

Alex Hugo · Answer

Account Closed Welcome to Memphis. You are not wrong in thinking that turnkey companies are a big player in a lot of mid-level fix and flip opportunities. Hedge funds are also big buyers. That doesn't mean you can't get good deals though, it just means you have to be a little more clever. The turnkey companies and hedge funds do a lot of deals, but most of them have pretty specific criteria. And there is a lot of stuff that they won't touch because it may take a little more time or money from a local investor that has more flexibility. As for wholesalers, the group that meets at city and state is legit (feel free to pm me and I can connect you if you like) Also there are plenty of CDCs in blighted neighborhoods that can get really good financing and other grant money to some local investors. Memphis Investors group is good too. They have events almost every week.

Hadar Orkibi · Answer

Hey @Daniel Weaver and Account Closed, It looks like that most flips in Memphis are TK transactions.I been monitoring 38117 and 38104 for awhile now and nothing major with add value opportunity popped out to me for a while. for BRRRR. If you come across anything there please feel free to PM me.