All Forum Posts by: Michael Williams

@John Moore Memphis Invest is a huge one which Raven may be able to tell you more about then there is Midsouth rentals that are buying up everything in the south.  As you can see by the comments Memphis is on a big upswing. My wife just became a Realtor so we are setting up the business fom two persectives, plus I have video marjeting and digital marketing 

@ Herndon Davis  Thanks, I will. Are you a hard money lender or a private lender?

@david Hutson Yes there is new construction in the Cooper-Young area, Union Ave, and all-around FedEx Forum. These are exciting times. I just need to put together the best strategy for this activity.   

Thanks @Herndon Davis. As a matter of fact, the wife just got here Real Estate license and a friend that we hadn't seen in years showed up with a direct line on a commercial building with an apartment upstairs near downtown. This is the new building trend and an old building like this fell in our lap the day she passed her test. Paying the MAAR fee tomorrow so we can move on it as soon as possible.  

Have a hedge fund lined up already but my moms' area doesn't fit their criteria. 

I recently moved back to Memphis 14 months ago from Atlanta. I was a wholesaler in Atlanta and I'm just now getting back into the game. I did two deals but had over 7 more under contract that fell through for one reason or another. So getting the contract isn't a problem. 

I noticed in Atlanta that hedge Funds were going in buying blocks at a time instead of one house at a time. I also noticed that in certain areas they were buying lots or houses and tearing them down and building New. I am seeing this trend in Memphis within a year of being back. This is really picking up in the downtown and midtown area. 
The housing projects near the FEDEX Forum have ALL been replaced with brand new housing and downtown is busting with Apartment and business combos. 

I was told several years ago that everything 5 miles east of the FedEx forum was slated for renewal and my mom's neighborhood is in that slotted area. She has been getting the "Do You Want To Sale' phone calls. 

I have been asked by several investors to be the boots on the ground for them once they found out I was moving back. Memphis is my hometown.  

One of the trends I noticed was that there where these yellow for rent signs popping up in my mom's neighborhood. These were houses that had belonged to people that I grew up knowing and the parents started passing away. The kids had moved on and didn't want anything to do with the house. So this company was buying 1 or 2 houses per month and renting them out within 2 weeks of the sign being put in the yard. 

Since I was getting back into the game I started checking to see what they were renting the houses for and what the values were. For the last 6years that I've checked my mom's house value and others in this area, the range was $22k-32k. These are basically 2beds 1 bath or 3 beds 1 bath.  The rent in the area ranged from $550-$650. 

All of this time my mom's house was running between $23k-$28k. Now on sites like Redfin, Realtor.com and Zillow have it ranging from $49k-$79K. 

I looked up the sold prices of the homes that were bought by the hedge fund and I noticed that they are ALL ranging from $62-$65k. I'm sure this is how they are manipulating the higher prices in the area. I am also sure that this is the beginning of something similar to what happened in Atlanta years ago. So is this the beginning of the transition? 

If this is the beginning of the trend what strategy would you use if you where in my shoes? I am negotiating a contract on a two-house deal in that area tomorrow. 


   

I'm in Memphis a d my mom stays in a C area. There WERE numerous vacant house in her area and one rental company started buying them and showing them as they were and had tenents linded up before they finished rehabbing them. But that could be due that companies Marketing. I've seen this company rent 10 house in that area along in 6 months. This is a hot market. 

(Title Is Freed & Clear - Have Deed)This is a Handyman special that needs everything.  Good buy, fix, and rent or buy, fix, and live in. Great handyman special. This is in an area of senior citizens that own their properties free and clear, rentals by a major rehabbing company, the Pine Hill Golf course two blocks away, interstate 1 mile away, shopping center 1.5 miles away, and investor activity in the area. Great chance to get your feet wet in the Heating Up Memphis low-cost houses market.

Work was started on this house by a rehabber but he passed away before finishing it, so it is gutted. This is priced to move quickly. This house needs about 10k cosmetic work to make it rent ready.

The comps in this area of Memphis are between $22k-$45k, ARV on this one is roughly $25k. Rent in this area range from $650-$750.

Type in "601 Mallory Memphis" on YouTube to see video

 
Thanks Mary, that does make sense. I will check on this Monday. 

@Jose Linares He has been in the house for over 30 years, he raised his kids there. I don't have the amount he purchased it for but the area has always had high-end Mansion size properties.  And there is plenty of home and commercial development in the area, plus they just built pubs and entertainment spots less than a mile from this property. So the pricing is about to skyrocket. 

The fact that you mentioned the insurance claim could exceed want he paid makes sense. So will the insurance company cut him a check for the estimated cost and allow him to find a reputable company or will they provide a company for the job? 

He also said he is a contractor himself so it would be easy for him to pocket most of the repair money. I told him that the investor that buys it will do the repairs but that may not be in the plan. He can get paid for the roof and for the sale of the house. 

I can't be mad at him.   

I found a seller that lives in a Historic District in a huge house. His kids are grown and gone so it's only him and his wife. He has already purchased a new house and is living in it. This house is free and clear and the ARV is around $390- $450. A tree from his neighbors' yard fell and damaged one side of his roof. He is waiting on the insurance to give him an estimate on the repairs. He says he already had another wholesaler offer him $320,000, of course, I ignored this statement. I will get a better assessment went I go take the tour of the house after the holidays.

He mentioned something about the insurance claim affecting the taxes and that's another reason he wants to wait after the holidays and until he gets the estimate. I can already see from the outside of the house that it will need quite a bit of work on the outside. He said he was a contractor and gave me an estimate of about $60k to renovate. It may need that much on the outside alone. There are houses on this stretch of road that have been renovated and sold for $550k - $800k. 

My questions are: What effect, if any,  will this house residing in a historic district have on doing a wholesale deal? Is there a possible unique reason behind him wanting to get the repair estimate for tax purposes?