All Forum Posts by: Jason Arms

@Noah Dexter Leslie Memphis Investors Group is a great group, they have lots of information and you’ll learn all you need to start in wholesale.

I would say if your wanting to be a successful real estate investor I would focus on the 2 things you need 1) finding a motivated seller of a home

And 2) making an offer that benefits both parties, make more offers (even low or no money down offers) and someone will say yes,

The speed at which you can do both of these determines your success.

[Solicitation Removed by Moderators]

Thanks for taking your first step!

Jason Arms

@Lora Keller

Congratulations!!! That’s exciting! Where in TN? In Memphis both sides use Attourney’s

And closing costs would depended on the Attourney’s fee’s most of the time it can be between 500 and 1.5% of the transaction, it would also depend on what the contract says, as sometime that is negotiable for the buyer to pay all closing costs for an as is purchase, to net the seller the most.

Hopefully that helps happy to have a discussion.

@Alex Beis depends on your risk tolerance, and your long term plan. Lots of area in Memphis have started to come around and values have really climbed. Others may be still affordable but would you want to live there? The best thing I can say is go get familiar with all the areas in memphis, and then go at night. Ofcourse we could get together and chat because I’m always looking to network with others. Good luck!

@Pete M.

Hey Pete, I’m local and have houses in Frasyer, it is street by street on areas, I will say how big or small the apartment is will make a difference too. The rents are lower just because i find most would rather stay in a single family vs an apartment. But depending on the per unit price might be a good buy.

Management is going to be the most important factor and who manages it. They will make or break your bank.

I’m curious if it’s still on the market or was it an off market deal?

I’d love to help if you would like, best of luck.

I’m curious what my BP fam would say about how I can either make this more attractive to a private lender, or is this pretty attractive and I just haven’t found the right type of lender?

I have a good friend that I have sold 3 houses to, he owns a construction company and does great work, is expensive but hey he can get it. He wants to buy a commercial building about 3 mins from his house so he can also have his assistant run his business as well as make it a used tire shop. He also does a lot with buying and selling cars so it could double as a small car lot too. He has an verbal agreement (I know it’s not written) to buy the place at 150-160,000 he has 25,000 for a down and about 30,000 to make the building ideal for his purpose. Small fix up, paint cosmetics, build a front office space, up grade some exterior features, signage and shop equipment.

I personally want to help him and am willing to put in 25,000 myself, and in order to complete the purchase he would need to borrow 100,000. So I thought let’s do a wrap mortgage.

He is asking for no payments for the first 3 months, so he can spend money on the building and make it ready for his use. His payments would be very low.

He has an excellent payment history with me for the past 14 months- paid better than agreed and paid the loan off early. It was supposed to be 46 months but ended up being 14 months.

He also has agreed (if needed) to put these two additional (different) properties up as collateral, seeing as their rent would pay the entire note payment.

Here is a quick breakdown

Investment from an mystery investor 100,000 +

20 year am, 6% balloon in 5 years

Investment from me 25,000

Investment from Him 25,000-35,000 (depending on purchase price of the building)

Additional 30,000 Spend from Him into the commercial building-

No payments for Him for first 3 months-

Balloon Payment from him OR refi on the 5 year term ( Flexible but is in our benefit to have interest accruing)

So it would be refinanced or paid off at or before 5 years. My caluations on the interest of the note would be a better cashflow then most local rental properties with no expenses, tenants or toilets. :)

Additional Collateral if needed - Plug your thoughts on values for each property but, shouldn't be below thses #'s

Rental property 1 (paid off) - 60,000 Rented 850 mo Ford is a 4 bedroom 2 bath-

Rental property 2 - 50,000 Rented 750 mo 2 bedroom

Shop- 150,000 + 30,000(value add)

Total Collateral- 260,000 + (30,000 Value add)

Our Loan to Him would be 125,000

And I would make This loan in an IRA so I can build my retirement account up,

So again is this pretty attractive and I just haven’t found the right type of lender?

Thanks

@Jackson Long

Hey it sounds like I should make you an offer on all your memphis properties, if your interested in getting your returns with not having to worry about all the details of owning property. You might want to consider being a lender.

I have worked for several PM companies in Memphis and I understand your ownership frustrations. From a pm perspective if everyone did what they said they would do, and were credible then you wouldn’t need a pm to begin with.

I would be happy to A) help strategize with you to create a pm company with a business model that is efficient and effective at making a profit as well as doing the best for its owner.

Or B) refer a couple of management companies depending on your area of ownership

Hope this has been helpful, I welcome your feedback

@Alex Wong Refferals are hard to do with contractors because they need constant supervision, and direction. I would be happy to help manage the rehab process for you depending on the type of rehab you want to do, feel free to reach out if you would like to chat more about it

@Timothy Lewis

@Craig Dieterich

I would agree! With Timothy, Great list by the way, I own in most of the areas that you have on the list of area to avoid but I am also local, I also have a house in an ira with a partner too!

I would suggest a visit for sure because your comfortable factor may be different, if your looking to set it and forget it then say in the more expensive areas.

Feel free to reach out if you would like some things off market, I’d be happy to share!

@Nick Gerli

Love it!!

@Cameron Montgomery

I know a lot about memphis, seems like we have a lot of people coming here from out of town. Demand has drove our market up up and up! Inventory is low, and rental market is strong right now. With inventory being so low you may over pay at the moment unless you just happen to find a awesome deal,

We have A, B, C and D and F classes of houses / multi fam, be careful some companies here will fix something up really nice and sell it for too much. I’m happy to help give some feedback if you find something to look at.

Management is going to be your biggest point of failure, a good company is worth it a bad company will make you wish you never bought out of state.

On a more Positive note, lots of investors buy entire portfolio is out here, and have made a lot of money cash flow and equity wise. I’m not sure if the pricing will continue but, I’m betting that it will turn soon, we shall see??