Originally posted by @Percy Matsunaga:
Recently, I came across a website which advertises a turn key investment in Little Rock AK.
The company is called Memphis Invest and they claim to do everything for you with a + cash flow and manage your property.
? - Does anyone have any comments on this company? How credible is this companies turn key investments?
Percy -
I've done a few with them - they do a great job on rehabs and they do a great job on the property management side, which is what you're really looking for. Appraisals and valuations seem to be what get the most noise, but they've always stood by their guaranteed variance in the appraisals. Sometimes they come in low, sometimes they come in high, but what appraisers don't take into account is that all the deferred maintenance is done up front. An appraiser won't take into account that the roof, water heater, hvac, garage door, flooring, etc are all new versus used per se. It might not matter for most buyers that they are appraising for, but it should matter to a turnkey buyer, as those are the major items that will be the source of headaches in the future for a landlord. The difference often ends up being that the deferred maintenance is done up front so you have a fresh start.
Keep in mind the biggest piece of what you're buying is the property management side of what they do, and how they manage the tenants, vacancy, maintenance, etc. It's way more than just collecting rent and sending it over to you as the owner. I'd recommend chatting with them to go over how systematized everything is from their rehab to their property management. I opted to visit in person and see their operations and properties early on in my investment with them, and I came away thoroughly impressed. There's a reason they are considered the gold standard in this space.
FWIW, throughout the pandemic, I haven't had a single tenant miss their rent. Communication has been great (between me and them, and from what I can tell from them and the tenants).
Shoot me a message if you have any questions!
Ditto. Everything you said Jer. I have 7 properties with them, with one who has been a little slow, but their collection efforts have been excellent, a lot better than mine would’ve been! I highly recommend them. As far as the price of the house goes, consider the value of the overall investment, not just the sales price versus the appraisal, especially if you’re buying for long term.
