All Forum Posts by: Jonathan McGee

@Mark S.

Do you mind me asking what zip code it is located in? I'd be looking at appreciation as well to form a potential exit strategy.

As AJ stated, depending on what part of Memphis you are in, you may be paying both Shelby County taxes and Memphis City taxes. Other parts only pay Shelby County taxes which may be why you are paying less on your other property, or the tax assessment is much lower than the appraisal.

Seems like a pretty standard deal to me. Of course you could probably find a cheaper property renting for the same amount, but you'd be finding these deals directly from another investor or a wholesaler such as myself. If you are comfortable with your provider and PM, than this sounds like it would a suitable fit for yourself. 

If you know the previous investor paid 72,000 I would be trying to negotiate to buy at the same price if not lower unless the property has appreciated. I'd be accounting for wear and tear in those two years unless it has been re-inspected and any wear has been resolved.

Originally posted by @Ryan Woods:

Please email me the financials at [email protected]

 Sent information Ryan!

@Lewis Anderson @Isaac S. Sent to email!

Originally posted by @Lewis Anderson:

Can you give me the financials at [email protected]

Sent to your email Lewis!

Contract -

Ready for assignment! Don't miss out on this exceptional cash flowing property in the hot zip code area of Memphis in 38117!

This off-market property is located at 4495 E. Mallory Ave. Memphis, TN 38117. It is currently occupied at 900/mo + a 35/mo pet fee. Lease ends 04/30/2018 but tenant may be willing to sign a new lease. Managed by a reputable property management company locally in Memphis at 10% monthly.

This 4/2 2200 sq ft. brick split level property features tiled floors, wood deck on top level, garage and fenced yard. Located in a great neighborhood!

With a retail value estimated at 105k and 13% ROI at the asking price, you can't go wrong with adding this one to your portfolio!

Contact Jonathan at [email protected] for more information!

Will require $1,000 EMD upon assignment.

@Darrell Anderson   Welcome to BiggerPockets! Glad to hear you are interested in real estate investing here in the mid-south! I also come from an IT background myself having come from being a Systems Administrator for a distribution company. 

You can definitely find a TON of information here on BP and should be able to find answers for any questions you have as well as resources like contracts and agreements. You can also research about lead generation and marketing if you are looking to start off by wholesaling. 

If you have any questions, feel free to PM me! I'm local here in Memphis as well.

Wish you the best in your success!

@Cesar Lara Welcome to BP fellow Memphian! Glad to hear you are starting in the world of real estate investing! You are definitely benefiting from living in this highly sought after market! Once you get things rolling, you'll eventually realize you are living in a gold mine. Granted, because of this, there are a lot of "miners" here so you'll have to be creative and consistent. 

   For starters, I would focus my efforts primarily on 3/2 and up brick houses in C/B areas to wholesale. You'll gain much more traction in moving these deals vs. smaller properties (and get you in the door with buyers). To me, driving for dollars and leaving flyers is the easiest way to find potential investment deals. While lists and records are efficient, driving around town is the only way you'll find U-Hauls parked out front! It is also the only method of finding those recently vacant rental properties that the owner might be willing to sell while it is vacant. 

Wish you the best in your success! Feel free to reach out to me if you'd like to chat more!

@Bryston Wisekal Sounds like you've been talking with local residents as opposed to local investors in your suggested markets! 

With most markets in the midwest and south, you're going to deal with snow/ice in the winter months. Oklahoma City not as much, but you are trading it off for tornado valley. 

Since I am from Memphis, I may be biased but the market here is strong and you normally can find turnkey properties in your price range that are renting from 900-1200/mo. Between all the distribution companies, shipping hubs and growth here, the rental market looks to stay strong for years to come. 

Good luck with your ventures!

@Mariusz Bojarczuk I wouldn't get entirely discouraged by the recommendations that 30-70k investments are a bad deal. Regardless of the popular opinion, there will always be a market for properties in this price range. Of course, your major turn key companies normally only deal with 3/2 1200 sq ft and up properties in A, B and high C class areas. Although, the fact remains that there will be readily available properties that are 3/1 or 3/1.5 in C class areas that many lower income tenants choose to reside in. 

From a wholesaling aspect, I've seen many successful properties sold between 30-45k that were performing well at 650-700/mo and were fully renovated. You run the risk of dealing with a different type of tenant as opposed to one that is paying 900-1200/mo, but the vacancy risks are similar in my opinion. In fact, I'd be almost confident to say that vacancy risks are less with 650-750/mo rent rates as, to me, there is a larger pool of people looking for rentals in this range. In the midwest and my primary market of Memphis especially, there tends to be a range of residents that choose to live a lower income lifestyle and don't mind living in a C class area if the rent is only 700/mo. Excellent property management is your key factor with these types of investments. 

If you choose to invest in this price range, I would recommend to do extensive homework on the property, the street, the block and the zip code. Compare the rental rates on the same street and vacancies. 

You could also consider working with a local wholesaler or investor friendly agent that can link you to another investor that is unloading their properties or retiring from the business. You can find solid deals in this manner and you can always turn it over to an experienced property management.

Wish you the best in your real estate adventures!

Aaron Vargas Welcome to the world of real estate investing! As far as preforeclosures on Zillow, they are indeed just “data dumps” from public records. As stated previously, you need to double check the foreclosure information and make sure the auction date hasn’t passed as Zillow doesn’t seem to update the status. I’ve wholesaled a few preforeclosures for buyers. You would simply need to get in contact with the homeowner either by mail, phone or in person. Gauge their situation and whether or not they are interested in selling or if they are actively trying to get reinstated and keep their home. You could offer incentives like paying off their mortgage and giving them $10-20,000 over the payoff at closing. If they are interested, have them sign a Purchase Agreement and request that they contact the trustee handling their foreclosure case. They need to request from the attorney a total payoff statement, reinstatement amount and an authorization form so that your chosen title company can speak to the trustee on the homeowner’s behalf. Once you have the total payoff amount (including late fees and taxes) than this is the required amount for you to purchase the home plus whatever you offered over (you can adjust the price on the agreement if necessary, I had to do this with an owner who was enraged that she wasn’t getting as much as she thought). From there, it’s a simple closing process! Many great deals are found this way. Just make sure to check the title for any additional liens or second mortgages. Good luck!