5 Years with REI Nation: Convenience Over Cash Flow

[Chris Lin]

Background

I started my journey with REI Nation (formerly Memphis Invest) in 2019. At the time, I already owned a few properties. While they generated some cash flow, I found the effort required to manage them wasn't worth the return. I wanted a truly hands-off, white-glove experience and, after extensive research, REI Nation seemed to be a reputable choice based on investor feedback.

Fast forward to today—I now own multiple properties with them, and here’s my candid review.

The Good

1. Crisis Management:
• My first property with REI Nation came just before the infamous three-year rollercoaster. When the pandemic hit and landlords across the country feared the worst (cue the "no rent" movement), REI Nation really stepped up. Chris Clothier provided regular video updates, and the property management team sent frequent emails with property-specific details, tenant situations, and proactive solutions. My tenants had late payments, but they were eventually made whole—credit where credit is due.
• Another standout moment was in 2021 when a major winter storm hit the area. Once again, Chris and the team communicated frequently about preparations and damage control. Given how chaotic that period was, their response was reassuring.
2. Truly Hands-Off Experience:
• Their white-glove service does deliver on the “hands off” promise. I’ve gone through purchases, sales, 1031 exchanges, remote inspections, and repairs, all handled smoothly with minimal involvement on my end. That part is as advertised.

The Not-So-Good

1. It’s Expensive—Like, Really Expensive.
• First-month rent is entirely theirs whenever a new lease is signed.
• 15% repair management fee on top of already high maintenance and repair costs.
• No late fee benefit for owners—any late fees go to REI Nation employees as an "incentive" for chasing payments. (I actually laughed when I first learned this.)
• 10% property management fee (With separate charges for new leases, repair management, and rent collection—what exactly does this cover?)
• Selling? Expect to keep paying. If you sell a property while it's under REI management, you still owe them the 10% management fee through the remainder of the lease.
2. The Nightmare Tenant Story (a.k.a. My Expensive Lesson)
   My first rental with REI Nation turned into an absolute money pit. The tenant consistently paid late after pandemic, eventually declared bankruptcy, and leveraged the legal system to drag out the eviction process for nearly a year. Naturally, I assumed REI's "white-glove" service included a strong legal team to handle these situations efficiently. Turns out, not so much. Instead of dedicated legal support, they use some third-party "legal platform" (in the cloud?) to save costs, and responses sometimes took weeks. I was left in limbo, accumulating massive losses the entire time.
   After eviction, things got even better (sarcasm alert).

• Huge repair bill ( as expected )
• Of course the 15% fee for managing those repairs.
• First-month rent for the next lease? Yep, REI took that too.
• Oh, and after the new tenant moved in—surprise! More repair costs because their maintenance team somehow "missed" things during the initial turnover.

At this point, I genuinely started wondering what exactly the 15% management fee was for.

The Bottom Line

Look, I get it—REI Nation is a business, and businesses are here to make a profit. Maybe I was just unlucky, or maybe I was a bit too naive in expecting a truly hands-off investment without realizing how much that convenience would cost. Either way, after five years, I can say I achieved a certain level of passive income—just not the kind that puts cash in my pocket.