All Forum Posts by: Cherie Ganesh

I know a couple of very good multi family brokers and will reach out to them tomorrow.  I don't know who they recommend as property managers for such assets but do know they have experience working with folks buying less than 100 unit properties all the way up to major apartment properties. I thinl you shpuld be working with a broker to look for properties and prepare marjet analyses fir you and the hsve a goid management company to handke acquired assets. I look forward to hearing from you so I can put you in touch with them.

i'll invite you to my network so we can properly communicate via private messages.

Tristan, did you get the names of recent landlords in your application. The eviction shown should show a date so you could see if he listed any info around that time. Then try calling LL for positive or negative comments on tenant. Usually if they aren't the current LL they are more willing to indicate info on bad tenants. As mentioned you could search court records if you have date of eviction and copy of drivers license that should show full legal name. 

I would probably bite the bullet and either get something downtown or midtown. You'll need to patiently look to find the right opportunity. Since you're new in Memphis I highly recommend you driving around a lot at night and picture yourself as a tourist looking for things to do at night. I wouldn't do Cooper-Young myself. I think I'd be looking between Peabody and North Parkway and west of East Parkway.   That pocket has lots of restaurants, nightlife and close enough to downtown nightlife, etc to take a quick shared ride. That area could also be of great interest to people who may have family in one of the midtown hospitals and want somewhere other than a hotel to stay in. Also all of the sports activities downtown should generate potential AirBNB lodgers. Be sure to research recent local ordinances and permit requirements for an AirBNB.   

I live in Berclair area and don't see what would draw a visitor to an AirBNB in this area. We do a lot of AirBNBs around the world and we always want to be in the heart of historical section or where there are lots of things to do. We typically don't rent a car so usually walk a lot or take cabs or shared transportation.  We're seniors so carefully research new areas where we've never been to understand which location we want to rent an AirBNB based on our lifestyle and things we enjoy doing.

If the house has hardwood flooring, I would have it professionally refinished with polyurethane topcoat, ceramic tile in kitchen and bath, formica counter tops, painted cabinets if current cabinets are in good condition but if in really bad shape it can be better to tear them out and go with pre-painted white cabinets. In bathroom we use free standing sinks with a pre-finished cabinet above the toilet, new toilet and matching fixtures in bath/shower and sink. If tub is in good condition, just clean it up but if damaged check out getting it refinished. It's hard to know how much to do but the newer everything looks, the better in most cases.  In Memphis, hardwood floors are a real desired amenity but if renovating a house with no crawl space or no existing hardwood flooring, I'd probably go the route of either vinyl planks or laminated wood floors. It's pretty easy to get tile work done in Memphis at a very good price so we do tile in kitchens and baths since it holds up so much better and we can get it for the same or less than installed vinyl plank floors.  

You can see some good pictures of recently renovated mid-range priced houses that have been sold but not yet closed if you check out any of the residential listing platforms to see what the finished product might look like.  You should see some in 38122 ($80-100k), 38018 ($100K and up). Houses in decent areas that are under $150,000 are selling within days of going on the market.  

MS has a state income tax so when considering investments there you'll need to build some state income tax that will need to be paid on any taxable MS income. The good thing is that it's easy to file your taxes as a non-resident either using tax software that extracts MS income and expenses. As a TN resident with commercial real estate investments in MS, I have found the reporting and paying electronically  easy using Turbo Tax. 

DeSoto County has been growing for at least the last 20 years with the county now having many large employers that has reduced the amount of commuting into Memphis, major retail and a good road system with access to north/south I-55, US HWY 78 (I-22) connecting Memphis and Birmingham and the recently completed I-269 which is the new interstate that creates a bypass around Shelby County and opens up a tremendous amount of developable land for industrial/distribution and future residential.

First go to the state website and find the addresses of meth lab houses.  I start there since can be  a very expensive  undertaking. Then check to see if it is on a tax sale list or on the unsold tax lien property list kept by the county or the county land bank. 

You can also find documents on the Shelby County recorders site regarding any loans that were taken out.  If all looks clean exceot for unpaid taxes, then it becomes a search for possible heirs who may exist and have inheritance rights. It's basically a jigsaw puzzle that you find a piece at a time. 

You have to either go this route, find heirs and get quit claims or other documents signed by them so you can get title or find out when it will be scheduled for a tax sale and be ready to bid. You may find that someone purchased it at a tax sale and is in the redemption period. If you win the bid at a tax sale you then go through a waiting period that allows relatives or anyone else who has a legal claim to the property to come forward and pay the taxes plus interest to you or not do anything and let property go to you and you get a special deed. 

There are quarterly or every 6 months tax lien sales. Typically about 45 days or so before the sale there is a workshop you can attend to understand the process and register on the website where tax sale properties are posted.  

Good luck and I hope you find a solution and will share it with us.

Just saw your post. I highly suggest you invest in taking the 101 Financial analysis course through the CCIM Institute. I know that Florida has a very active CCIM chapter tgat has groups set up in the major market areas. You will get some good analysis tools and knowledge in that course and may show you the value of going through their certification program. As a Life Member I will say beyond a doubt that I can attribute a lot of success in commercial real estate to those courses.  Check out www.ccim.org for course schedules and there is a place where you can get info on joining a local group or just going to some of their meetings.  You may even find a mentor there to speed up your learning curve.  Good luck.

If you're most interested in multi-family check out some basic classes offered by IREM (Institute of RE Management). You'll learn a lot about the operational side of owning/managing multi family investments. For a great way to learn how to do financial analysis check out CCIM.org and their Intro and 101 financial analysis class. Neither institute's classes are cheap but your learning curve accelerate very quickly. I am a life Member of CCIM and my career was built on the coursework I took plus experience obtained using the tools. Take a look. 

Sumesh

As a new commercial investor you best source of financing will typically be a lender you have had residential mortgages with but if they don't do commercial loans get a referral from them to a local bank that does small commercial loans. Such loans typically require a minimum 20% down and term of loan is relative to the term of the lease with 5-10 years typically. Amortization periods can vary from 10 yrs to 25 yrs based on your credit and the credit of the tenant. Interest rates are typically a little higher than residential mortgages but upfront fees can be nominal. Such loans can usually be rolled over for another term but interest rate will be tagged to market at that time. Find a reputable commercial broker in your market to represent you and help guide you through your first commercial investment.

Does the owner have any right of redemption?  You have a lien on the property but no deed from the taxing authority so it doesn't appear you own the property yet. If no deed I doubt you have any rights to do anything to the property. I'm no attorney but as a lienholder I believe your only right is to receive interest on the amount of taxes from owner if owner redeems the property by paying all taxes due. Each taxing authority has different state and local laws relative to collection of taxes from owners and there can be seal different time frames for redemption depending on how long taxes have been unpaid.  Check with the taxing authority through which you bought the tax lien.