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Mid South Turnkey Homes. Should I invest with this Memphis turnkey?
Hi Guys,
I was connected to this company through Jason Hartman, and have spoken with them and trying to do my due diligence (also contacting local realtors and other similar companies including http://midsouthhomebuyers.com/
Just want to be sure that these guys are reputable. midsouthturnkey.com
Is it worth it to purchase and rehab homes in Memphis still? I am looking at 3/1 or 3/2 priced around $40-70k with rehab 35K with rents at $1100/average a month. I buy the home with agreement that they rehab it, and retain the extra 20% ARV after rehab
Please let me know if youre familiar with Kenny Shaw and MidSouth TurnKey
Thank you!
#2 House Hacking Contributor
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#2 House Hacking Contributor
- Flipper/Rehabber
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I don't know anything about these companies
But you won't "cashflow day 1"
Maybe on paper - but not in the real world
Set expectations accordingly
@Nida Kazmi - The most accurate answer is... they're all good until they're not. All of the partners I've onboarded over decades start out great, only a small number will go the distance. Here's a POSSIBLE, or even common, view of how it goes:
1) Launch: They gush about how appreciative they are that we revolutionized their business and life. Awesome gratitude - off to a good start!
2) They get busy dealing with all the mundane day-to-day stresses and business responsibilities at which time quality, responsiveness and service may, or may not, suffer.
3) Sometimes... This is the kiss of death shows up. They become arrogant (opposite of gratitude) because business is great so they get greedy, and complacent, too. One of my favorite quotes from Napoleon... "The most dangerous moment comes with victory."
This is why clients need to stay in touch with us and monitor the tides in these human affairs.
Thanks @Jason Hartman !
I can certainly see those scenarios playing out as they have many times in my experience.
As long the company is not a scam upfront, I am willing to play the game one by one property with them as they too scale and I can monitor progress. Will stay in touch.
Quote from @Jason Hartman:
@Nida Kazmi - The most accurate answer is... they're all good until they're not. All of the partners I've onboarded over decades start out great, only a small number will go the distance. Here's a POSSIBLE, or even common, view of how it goes:
1) Launch: They gush about how appreciative they are that we revolutionized their business and life. Awesome gratitude - off to a good start!
2) They get busy dealing with all the mundane day-to-day stresses and business responsibilities at which time quality, responsiveness and service may, or may not, suffer.
3) Sometimes... This is the kiss of death shows up. They become arrogant (opposite of gratitude) because business is great so they get greedy, and complacent, too. One of my favorite quotes from Napoleon... "The most dangerous moment comes with victory."
This is why clients need to stay in touch with us and monitor the tides in these human affairs.
Sounds good 👍
Hi Nida, Mid South Home Buyers is legit. I’ve purchased a property from them and visited their facility in Memphis. They have great people, communicate well, and seem to do a good job on rehabs. So far I’m happy with them. There is a bit of a premium when buying turnkey homes but I would buy from them again in the future. Although I will likely try finding a better price using a local realtor for my next property once I’m ready. I’ve never heard of mid south turnkey though. Good luck.
Hi Nida
I am very spectacle that the purchase prices you mention are anywhere but war zones.
Most worth considering will start at $100K with rehab necessary.
Please beware
Best Mike
Quote from @Chris Ross:
Hi Nida, Mid South Home Buyers is legit. I’ve purchased a property from them and visited their facility in Memphis. They have great people, communicate well, and seem to do a good job on rehabs. So far I’m happy with them. There is a bit of a premium when buying turnkey homes but I would buy from them again in the future. Although I will likely try finding a better price using a local realtor for my next property once I’m ready. I’ve never heard of mid south turnkey though. Good luck.
Chris Mid South Turnkey is a different company than Mid South Home Buyers.
I was speaking to Ashley Smith from Mid South Turnkey Homes today. Very nice lady. They say that they focus on the BRRR method, they handle the rehab (usually 90 days) and manage the properties. They find homes in C to be neighborhoods and rent to section 8 renters. They don't charge a management fee as long as you buy a home from them every year. They charge 8% if you don't.
She made it very clear that they are not Mid South Home Buyers. And unlike MSHB they don't have a 6 month waiting list.
I am trying to look them up and I don't see any reviews on line and nothing with the BBB.
Anyone else have any luck finding info on them?
Quote from @Alex Cables:
I was speaking to Ashley Smith from Mid South Turnkey Homes today. Very nice lady. They say that they focus on the BRRR method, they handle the rehab (usually 90 days) and manage the properties. They find homes in C to be neighborhoods and rent to section 8 renters. They don't charge a management fee as long as you buy a home from them every year. They charge 8% if you don't.
She made it very clear that they are not Mid South Home Buyers. And unlike MSHB they don't have a 6 month waiting list.I am trying to look them up and I don't see any reviews on line and nothing with the BBB.
Anyone else have any luck finding info on them?
I had my lawyer look into them (as much as possible) and review their contracts. Suggest you do the same (even if they are two page documents). Jason Hartman and team referred me and is currently happy with them so I would say they're a safe bet. I also spoke to Kenny Shaw, who heads Mid South Turnkey Homes. He was very open and amenable to any changes I may propose to their contracts (pending their own counsel review).
I would NOT invest in the following TN zip codes: 38106, 38126 and 38114. A Lot of turnkeys are going to these undesirable spots and its highly possible you'll end up with more liability with turnover rehab requirements. @Douglas Skipworth and Dean Harris of Crestcore have a great podcast and a video outlining all the zip codes in TN as well. And for that matter, Dean puts out a great list of SFH, connect with them and you'll get the emails.
Midsouth Home Buyers BBB -
https://www.bbb.org/us/tn/memphis/profile/real-estate-servic...
Quote from @Rogelio M.:
Midsouth Home Buyers BBB -
https://www.bbb.org/us/tn/memphis/profile/real-estate-servic...
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just curious, did you buy something or are you going to?
Quote from @Nicholas L.:
just curious, did you buy something or are you going to?
going to, There isn't much available through Mid South Turnkey Homes immediately except for undesirable zips.
Quote from @Nida Kazmi:
Quote from @Rogelio M.:
Midsouth Home Buyers BBB -
https://www.bbb.org/us/tn/memphis/profile/real-estate-servic...
You mentioned MidSouth Home Buyers in your original post .... I made the post for those that might be interested in MidSouth Home Buyers.
There are properties available on MLS too if you are going the " turnkey " route. There is enough posts on the form about the pros and cons of buying turnkey.
Find a realtor and check the desirable zipcodes. Maybe some listings might interest you.
Another resource is Memphis Investors Group. They have a Free zoom call every friday at 10am Memphis time. Zoom link details on their website.
Quote from @Rogelio M.:
Quote from @Nida Kazmi:
Quote from @Rogelio M.:
Midsouth Home Buyers BBB -
https://www.bbb.org/us/tn/memphis/profile/real-estate-servic...
You mentioned MidSouth Home Buyers in your original post .... I made the post for those that might be interested in MidSouth Home Buyers.
Charming.
Quote from @AJ Singh:
There are properties available on MLS too if you are going the " turnkey " route. There is enough posts on the form about the pros and cons of buying turnkey.
Find a realtor and check the desirable zipcodes. Maybe some listings might interest you.
Another resource is Memphis Investors Group. They have a Free zoom call every friday at 10am Memphis time. Zoom link details on their website.
Thank you, very helpful!
Quote from @Nida Kazmi:
Quote from @Nicholas L.:
just curious, did you buy something or are you going to?
going to, There isn't much available through Mid South Turnkey Homes immediately except for undesirable zips.
I am an agent here in Memphis that works with savvy investors. I would be glad to get on a call if you are looking for some boots on the ground here
-
Real Estate Agent
#2 House Hacking Contributor
- Flipper/Rehabber
- Pittsburgh
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#2 House Hacking Contributor
- Flipper/Rehabber
- Pittsburgh
are you looking to add to your portfolio, or are you looking for your very first investment?
and are you located in Dallas?
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
If you are going to buy $75,000 houses in Memphis, you need to go visit them in person.
I don't know anything about these companies, but when it sounds way too good to be true, it normally is.
While it sounds really good they don't charge a monthly PM fee, they're making money somewhere. Nobody works for FREE. Nobody. Probably they make it up in upcharges on maintenance repairs, or they will keep all your application fees, processing fees, tenant charges,pet fees and charges or make ready or something somewhere. Maybe there is a breakup fee as well. Read that PM contract very carefully.
When you go to Memphis, walk not only the property you're interested in, but several of the vacant rentals you choose. Don't let them choose for you.
Just inspect what you expect....Also I would talk to housing office in Memphis to get a feel of how many people are on the Section 8 waitlist, what kind of rents they pay, what zip codes are they targeting, see if they have any stats about how long tenants stay and average rent.
While a lot of people try to look at google street view to get an idea of the neighborhood, there is no substitute for visiting in person.
I've used a turnkey company in Memphis where I bought two and I also nearly bought with Midsouth as well, but decided not to. They key is to realize their pro forma numbers is perfect case scenario. I think its a decent way to get your portfolio started. Would be happy to connect and share about my experience with turnkey companies in Memphis.
@joseph Interested in your recommendations. We're always looking to add inventory and providers to our network.
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#4 Classifieds Contributor
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Quote from @Nida Kazmi:
Quote from @Alex Cables:
I was speaking to Ashley Smith from Mid South Turnkey Homes today. Very nice lady. They say that they focus on the BRRR method, they handle the rehab (usually 90 days) and manage the properties. They find homes in C to be neighborhoods and rent to section 8 renters. They don't charge a management fee as long as you buy a home from them every year. They charge 8% if you don't.
She made it very clear that they are not Mid South Home Buyers. And unlike MSHB they don't have a 6 month waiting list.
I am trying to look them up and I don't see any reviews on line and nothing with the BBB.
Anyone else have any luck finding info on them?
I had my lawyer look into them (as much as possible) and review their contracts. Suggest you do the same (even if they are two page documents). Jason Hartman and team referred me and is currently happy with them so I would say they're a safe bet. I also spoke to Kenny Shaw, who heads Mid South Turnkey Homes. He was very open and amenable to any changes I may propose to their contracts (pending their own counsel review).
I would NOT invest in the following TN zip codes: 38106, 38126 and 38114. A Lot of turnkeys are going to these undesirable spots and its highly possible you'll end up with more liability with turnover rehab requirements. @Douglas Skipworth and Dean Harris of Crestcore have a great podcast and a video outlining all the zip codes in TN as well. And for that matter, Dean puts out a great list of SFH, connect with them and you'll get the emails.
Thank you @Nida Kazmi
Im happy to share my podcast info where I break down every Memphis investment zip code with anyone. I own a large portfolio of single family properties and all of my info I give out comes from my personal investing expierence.
Talk soon!
Quote from @Joseph Bui:
I've used a turnkey company in Memphis where I bought two and I also nearly bought with Midsouth as well, but decided not to. They key is to realize their pro forma numbers is perfect case scenario. I think its a decent way to get your portfolio started. Would be happy to connect and share about my experience with turnkey companies in Memphis.
messaged you!
Quote from @Nicholas L.:
are you looking to add to your portfolio, or are you looking for your very first investment?
and are you located in Dallas?
I am dm'ing you