All Forum Posts by: Jamie Parker

After couple years of wholesaling deals to developers and investors, I thought I was in a good place as it relates to knowing what to do in the event I decided to take down a deal myself. When I say "myself" I mean hiring out the work. Find a builder, a GC and He would take it from there. Wrong,...kinda. After speaking with lenders, just a hand full, I realize there is a gaping hole in what I am attempting to do here in Memphis.

If I were to partner with a builder how can this scenario be structured? I have the land and the plans. How do I partner with a builder. Why am I partnering with a builder? After speaking with Lender, their requirement is experience doing Ground Up construction. Obviously, I do not have that experience so what benefit is it to a builder to work them in with the Lender as a partner?

Reason I am digging into this question is because making it known that my plan was to hire a builder, that scenario wouldnt suffice in the situation. Any thoughts on the matter?

0 Votes

Memphis, Tennessee

Quote from @Mario Am:

Hey guys!

I am under contract for 3 properties, however there is one thing about it, one of them, its located in South Memphis zip 38109 (Mallory area).

I know I know I live in Memphis, I know that the area is bad, however I am feeling that the market it pushing investors towards the hoods of memphis because it is getting expensive (even Frayser is getting crazy expensive which I find crazy), I did a few visits in that specific neighborhood and I honestly didn't feel it was really really bad as the rest of South Memphis, I am really not worried about tenants paying on time in my rentals because I always focus on Section8.

Was wondering what are peoples insight in regards to investing in those areas with section8 tenants? Would love to hear someone experienced enough with section8 in the bad hoods to give some opinion?

TIA

Memphis can be a street by street city. While most of the investors I have spoken with have advised against 38106/26/114. I havent heard the same about 38109. Section8 helps getting the most rent, If you the tenant does not destroy the property. You are in good shape.

1 Vote

Memphis, Tennessee

Quote from @Chris Ross:

Hello, I'm going to be closing on my first SFR investment property soon via an all cash deal. After closing I'd like to do a delayed finance to use the cash for a second property. The property is in Memphis TN. I am open to any lender recommendations from those that have done the same. My thoughts are to wait until the May timeframe since I believe rates will drop a bit by then and I'll still be within the 6 month threshold for a delayed finance transaction. Is there a difference between a delayed finance or a cash out refi? They are ultimately the same thing but I know that many lenders require seasoning. Would I be better off waiting until the 6 month mark or later to do the refi? Is there a difference in rates or process? I don't have my second property picked out yet but will work with a turnkey provider once I have the funds. Any recommendations are appreciated. Thanks

There a some lenders that offer require minimal or no season for the Memphis market.

0 Votes

Memphis, Tennessee

Quote from @Stacy McGee:

Hello everyone. I recently purchased a two unit duplex about a month ago and I’m looking to connect with as many people as possible in real estate investing, property management and the making of a landlord. Please don’t be a stranger and kindly follow back! :)

Hello Stacy,

Congrats on your purchase, Will you use property managers any? What drove you towards purchasing duplexes?

0 Votes

Memphis, Tennessee

@Corey Logan

for the Memphis market, Checkout Memphis Investors Group https://www.memphisinvestorsgroup.com/

1 Vote

Memphis, Tennessee

Quote from @Corey Logan:

Hello everyone! I’m looking to scale up my portfolio this year by 1031 exchanging or plain selling my single unit portfolio for a multifamily 10+ units. I’m looking for brokers who are interested in building a long term relationships!

Hello Corey,

I am not a broker, simply put, have some experience analyzing deals. Congrats on your success so far in real estate investing. 1031 exchanging into single families from San Deigo could get you a really nice property here in GrindCity lol. There are some nice properties with various brokers in the +1m$ range and also some under 1m$ multi-families on Zillow and the like. If you are interested in moving your entire portfolio, would you peel off (tax purposes) or dump everything?

Depending on what class (A, B, C) of property you are looking to build a portfolio with the price may lower but not by much. There are a couple of "elite" property management companies in Memphis.

Multifamily: I scan the market quarterly to keep an "eye" on things. there was a 22 unit in a desirable location for +2m and a 64 unit for +6m. As you get into under 20 the financing, from what i can see, probably will more straight forward buy situation. I dont know much about property management im not holding anything yet again there are some really good companies here.

i hope I haven't said to much and have provided value.

0 Votes

Memphis, Tennessee

Quote from @Casey Adams:

Hello!

Rehab ($25-$30k) on my first BRRRR is coming to a close (Purchased mid January) and I am now hunting down financing. I paid cash for the property and am looking for an 80% LTV cash out refinance. I got a quote stating that they could give me an LTV that would cover the purchase price of the house + closing costs ($86k), which is roughly 66% LTV.

The ARV of the townhome should be roughly $130k. So here's my question:

Is it normal to take a pre 90 day LTV to recoup the purchase cost, wait the seasoning period, and refinance the rest of the cash out at a later date?

Or is it better to wait out the seasoning period with your loan balance (I used a HELOC so no hard money lenders or balloon payments) and just refi out in 6 months?

Also if any lenders in the Memphis area have advice it would be appreciated! Thank you ahead of time for any advice!

The first lender I spoke to essentially said 12 months seasoning is all they offer, which would be really unfortunate for my time frame on getting into another property. Is that a standard thing or just simply what one lender might offer? The other two I reached out to did not return my calls as of yet.

Thank you!

Casey

There are some lenders that require no seasoning, Locally. They are here in memphis. If you want I can refer you. I am surprised that they have not reached out in this thread. Maybe they cannot see every post. PM me and I can point you towards a couple of options for Refi with minimal seasoning.

1 Vote

Memphis, Tennessee

Quote from @Walter Jones:

I've done well in Memphis also. You give up some of the boom (and bust) that you get in some of the other areas, but there's a solid economy and a strong healthcare system. Good balance of strong cash flow and appreciation. 19 doors and counting.......

@Jamie Parker are you a member of the Memphis Investors Group? https://www.memphisinvestorsgroup.com/

Not yet. Wasn't sure of the Official Memphis Investor group. Now that I know, Will be signing up soon.

1 Vote

Quote from @Alfred Dublin:

Hey I’m in the Augusta/North Augusta area and as I’m driving around it seems like new construction sfh, multi family, neighborhoods and more. It’s like everyday I see a new project starting.
What do this make you’re actively investing? (I’m not) house hackers, flippers and landlords. Are these good sites to see or threatening?

I remember growing up in memphis and going to the military. While overseas thinking "i dont want to invest in Memphis". Move back the states and stationed in Nashville. The biggest real estate boom I have ever seen in my life. As the prices got higher and higher cities like huntsville and chattanooga became the topic of discussion for buy and hold investors and flippers. I was working birmingham myself for an investor and I just didnt understand it. Fast Forward, I bought a property in Memphis last year and some how I get it. All it takes is a hand full of comps, new businesses, reasonable "average days on market" and an influx of population due to jobs and bam!! In these conditions an investor called it "the path of growth". I have seen it first hand. In 5 years its a whole new area, and if you get in early its better than bitcoin.

5 Votes

Quote from @Eric Andrekopoulos:

Hey BP Fam,

I currently have a local investor looking to exit his rental business within the next 5 years because he's older in age. So he wants to sell all of his properties. A vast majority of them have 100% equity which is a beautiful gate to seller finance which I feel will be the most profitable. He mentioned he just "doesn't want to do it" and would rather just get the cash from selling them. Now he does have children he wants to pass wealth to (cash) and not his business. Other than explaining how his children will continue to receive the payments after his passing what can I do to get him on the positive side of creative finance? I also explained to him the tax benefits of it which was another one of his worries.

Well, What kinda property is he looking to move? Is he looking to sell as a portfolio? or just move them as they go?

0 Votes

All Forum Posts by: Jamie Parker

Jamie Parker has started 32 posts and replied 218 times.

Post: Partnering with a builder vs Hiring a Builder; What do I Do?

Post: Section8 in North and South Memphis?

Post: Delayed Financing/cash out refi lenders for Memphis SFR

Post: Landlord & Property Manager

Post: Seeking Brokers, Investors, Mentors

Post: Building my dream team

Post: Refinance Struggles/Question on my first BRRRR

Post: Wondering what a person with a investor mindset sees

Post: Wondering what a person with a investor mindset sees

Post: Investor Off loading portfolio but doesn't want to seller finance.