Finding deals in Memphis

[Ohad Benjamin]

Hello BP members,

My partners and I are looking to purchase some properties in Memphis. We have a pretty clear idea of the type of properties we are interested in (A small multi-family or a portfolio about 10 units in B class or above areas of Memphis). We know what kind of cash flow we are looking for (we have our calculators handy and can make a decision on a deal quickly).

We are ready to make a move!

The only issue is lead generation. We have been in touch with a couple of realtors and a few turn-key providers. All have been able to generate very few to no leads. Some turn-key providers send out a list of properties (up to 5 properties a week) to their investor pool which get sold within 10 minutes of when they are posted (is the market really that hot?!)

We are eager to make a move and have actually been under contract on a portfolio just as the pandemic started, but the deal fell through.

Would love to hear strategies employed by others on the forum for generating leads in the Memphis market.

[Tommy Adeoye]

Amazon wouldn't come close to BiggerPockets revenue-wise if BP were to charge a dollar each time the golden question "Where do I find deals" were asked. If finding good deals were easy, people would quit their day jobs. 

Finding deals isn't easy, it's simple. This may sound somewhat contradictory . Some of the strategies proposed to me are somewhat time consuming but hey, I am not a full time REI yet. With that being said, here are the strategies that may land you a deal if you have the time or are willing to buy someone's time.

1.) Website - You build a website with SEO and drive traffic to your websites. Everyone is scrolling FB, Instragram and tik-tok a lot these days. There is one deal out of there somewhere . You'd be surprised how many prospects have got relatives or friends who want to get rid of their inherited property and will gladly send them your way for a referral fee. 

They are experts who specializes in website lead generation service. This is all they do, Search them online. 

The above mentioned strategy may not be compatible for what you are trying to achieve , how about strategy #2

2.) Wholesalers - They are tons of wholesalers out there . BPs has the best set of wholesalers and the next best set you find at a REI meet up followed by your local facebook REI group. I get deal alerts daily from my local REI FB group. People often wonder why will someone want to give away a deal? They are number of reasons - Not having finances or time to pursue is a solid one.

Let's say #2 isn't your cup of tea and you are good on the phones then #3 could be a better option

3.) Zillow, Craigslist, Trulia etc - Not many people employ this tactics , requires tons and tons of calls a day , You'd be surprised by how many polite refusal you get and relationships you build. You stand a  chance of running into an investor who maybe trying to get rid of one of his lets say out of state property and has not had the time nor urgency to want to and certainly doesn't want to employ the services of an agent. This investor may not want to get rid of his property now but in the future he will and he has a network of investors like himself he may refer you to. Do not hesitate to ask for a referral. One may probably be thinking at this point, I do not want to be calling and harassing folks over the phone. Well, this is why I will suggest #4

4.) Mailers -  With the right tactics and approach, you may get a response. Ask yourself, if I were to get a random letter in the mail, what would make me open it and read past the first four lines. This should be the basis of your model.

5.) MLS - Not the best but it works. Analyze deals ,figure out exactly what it is you are trying to achieve, then shut of all the noise and make an offer that works for you. This means after analyzing and initial due diligence, if your numbers worked even if you made an higher offer, make the high offer to fend off competition considering the terms and numbers are favorable. Do not expect to score an home run deal(not to say you wont) using MLS, at least not for a while.

There are other deal finding strategies that I may have left out . If your lead generation systems are active and consistent , you'd score a deal that meets your criteria. connect with members on here from TN and they definitely will refer you to a wholesaler who is a superstar . Best of luck.