All Forum Posts by: Jonathan McGee

Hey @Danielle Wolter! 

As previously stated, it is definitely worth a quick trip to the area you are looking into. It is a great way to shake hands with the people you are potentially looking to work with, check out some of their work and get a feel for the city. I've met quite a few people that have come into Memphis and it is a great way to start a working relationship!

Other things you can do from afar that I suggest is studying the recent comps of the zip codes or neighborhoods you are looking into. My suggestion is that if you are seeing "turnkey sales" in an area, then it should be a safe bet for you to invest there as well. Homeowner sales are a different ball game unless you are looking for areas to flip in. I would also look into the properties that are for rent in that area, and how long they have available for rent. For example, if you are seeing several properties that have been available for rent for several weeks, then you would expect your rental would be in the same position. If you are looking at a rental on Zillow and it has several views in a matter of days, it must be a popular rental area.

I'd be happy to help out with a few zip code suggestions for Memphis! Memphis also has other popular suburb cities that are great for rentals as well as North Mississippi, definitely a broad market here!

Best of luck!

Don't miss out on this one!

This one is located on a popular street at:

3418 Egypt Central Rd.

Memphis, TN 38128

This is a 3/1 1000 sq ft. brick home w/ carport built in 1972 in overall good condition. Estimated retail value after remodel: $69,000 Estimated rental rate: $760/mo
Priced to move at; $39,000 or best offer. Great buy and hold! Buy in at less than $40,000 and refinance at $50,000 or more! Our estimated turnkey remodel is less than $15,000! Hire our contracting team, Pyramid City Construction, with a discount and 1 year warranty! Home is owner occupied, please feel free to reply to schedule an inspection! Recent Comps: 4185 Hobson Rd. - Sold $104,900 on 3/1/19 4261 Windermere Rd. - Sold $64,900 on 3/20/19

4272 Old Allen Rd. - Sold $45,080 on 4/17/19

Contact Jonathan at [email protected] or by phone to 901-290-7827!

Great news for investors and flippers in the Memphis market!

Pyramid City Invest, LLC has now partnered with our long term contracting company to offer our construction services in the greater Memphis and surrounding areas! Not only are we offering real estate wholesale deals, but we are offering to remodel as well!

Our partnership, Pyramid City Construction, is offering discounted rates for BiggerPockets investors. 

Our licensed and insured contractors cover roofing, flooring, electrical, HVAC, construction and remodeling.

We are even offering a 1 year warranty on our remodel work if you purchase a deal from Pyramid City Invest, LLC and allow us to remodel the property!

For more information, feel free to send a message or email at [email protected].

Contact by phone at: 901-586-4589

@Pete Harper

I normally use the county's register of deeds or similar public records website. Memphis has the Shelby County Register of Deeds site where mortgages, liens, judgements etc are shown.

Trulia's crime map is a fairly good way to locate war zones. As stated previously, checking the school district grading is a good way to measure an area as well.

@Tanner Stell I'm from Memphis and as a fellow investor, I probably would pass on this house unless you can get it for $20k. The particular zip code is not great, however I've seen people have success here. The rent rate is about $700/mo maximum, although you could Section 8 it for more. I see that it is being used a boarding house. I wouldn't hold my breathe on that as guaranteed income, especially in this market. Unless it is being professionally managed and there are individual rental agreements on each person, you'll be getting lucky receiving payments.

The other issues are the foundation as it appears it has a basement and also a retaining wall, so you're looking at some potential work in the future.

It's up to you, but I'd keep my eyes open and continue looking. Feel free to reach out if you'd like to chat.

Good luck on your venture and glad you are looking into my hometown!

@Chris Hutchens Glad to hear you are looking into investing into my home city! You can find some really great deals for returns in Memphis, it's a bit competitive so you just have to get creative. Are you looking to buy fixed up with tenant or buying, remodeling and then placing a tenant?

Here are a few zip codes I'd recommend: 38122, 38125,38128, 38133, 38134, 38135, 38115, 38116, 38117, 38118, 38119, some of 38109. These are areas where you can still buy in under $100k and usually still expect rents at $800/mo and up with low vacancies.

Feel free to reach out if you'd like to chat!

Good luck on your ventures!

Since the last quarter of 2018 up until now, I've noticed a "gold rush" type investor boom going on in Memphis. I primarily wholesale to TK and OOS so I'm on the front lines of this rush and while it has boosted business, it has also made the investment market extremely competitive. Normally I am able to lock in a fairly reasonable offer with a seller, but then somehow someone comes in and puts in an offer almost 85% of retail on a property that clearly needs a full remodel, which makes no sense on the numbers. From my contacts, I'm seeing the TK end products slowly rising in prices but they are clearly still moving even though the returns are diminishing.

Is this going on in other midwest markets as well? Has the industry seen this type of investment boom before, or is this a product of the internet, turn key providers, wholesaling and guru's top ten cities?

I'll continue to ride the wave, as I consistently run into investors who are cashing out of the game and selling off, but this is becoming a feeding frenzy.

Hey Jonathan!

I would submit the bid at $70k and see what happens. Worst case scenario, you don't win the auction. $6-$8k seems like a pretty small repair estimate when simply looking online. There are a lot of surprises that can pop up during a remodel and it's safe to give yourself at least a $15k minimum on your numbers.

HUD auctions are a competitive game. There's also Title seasoning, so you'll have to keep that in mind.

I work with a handful of out of state investors who are primarily using the BRRRR method in Memphis.

Your best options for this method are buying wholesale deals or making 60-70% offers on the MLS til you get a bite. The Memphis market is going thru an investor boom right now, so it is slim pickings here. You'll have to think outside the box and get creative to make these deals happen, but you still can!

Good luck on your ventures!

@Edward C. Glad to hear you are doing your research before diving in head first!

I've had great success working with out of state investors such as yourself utilizing the BRRRR method here in Memphis. Of course, you could just buy utilizing a loan with a down payment but in my opinion, if you have the cash to purchase up front, you have more leverage with the bank on the back end.

You could sink $15k into a down payment because the bank is only offering a certain amount on the loan towards your purchase and still have a hefty LTV. By purchasing a discounted property with cash and performing a light remodel, you are borrowing against your asset and with the right lender, you can get back 95% of your cash.

I know a lot of people get nervous about having a remodel going on miles away, but if you find a reputable local investment company that can get it done in house, it can be an easy process. If you go this route, just try to focus on deals that aren't needing over $20,000 to get in retail condition. 

Good luck with your venture!