All Forum Posts by: Russell Roberts

I just locked in (last week) on SFR investment property in TN, 30yr fixed, 0 points, 80%LTV, @ 5.0%. I borrowed from same lender in early Dec (locked in Nov) for 4.75% My credit history is excellent. In both instances, I had other lenders that were offering .25% higher. Hope that comparison is helpful in evaluating your lending offers.

Personally, if I was investing long distance, the ONLY way I would do so is via turnkey provider. In Memphis, I visited Mid South Home Buyers, Memphis Turnkey and Memphis Investment Properties this year. All three businesses made overall good impression with me.  MSHB has a long investor waiting list, which that alone is probably a good sign.  I spent the most time getting to know Memphis Investment Properties and they have good inventory available, so I ended up purchasing 2 from them this month.  It will take some time for me to give an experienced review, but I'm optimistic about the investment along with the people behind their business.   

Turnkey is for me because I don't want real estate investing to detract much time from other important commitments in life. That also means that I'll often pay close to full market price for the convenience of passive real estate opportunities. 

For what it's worth:  Nov 2017, I purchased 2 Memphis TN properties from a TK provider that I currently feel pretty good about.  Prop A appraised for $1,900 above sale price and Property B $3000 above sale price. These were approx $120K properties. Rent to value at slightly > 1. We ended up splitting difference in sale and appraised price. Smart or not? Time will tell, but I am long-term investor.

Below is a recent communications excerpt from a different, long established, TK provider, also in Memphis, that I'm considering investing with.    Opinions welcomed.

  --------- Excerpts ----------

"As accomplished real estate investors, you guys understand that real estate markets are ever-changing, with the optimum change being to grow in value. Memphis has been experiencing exactly that, with recent rapid growth in the price points for all local investment properties. The result is that it's becoming very rare that we're the highest bidder on properties available in the market, causing a significant slow down in the properties we're able to offer you.."

"There is only one way to arrest the slide: since values have increased, we have to start paying more for houses, just like the rest of the market. This is easy to do while still offering our same awesome cash flows, rehabs, and top-notch property management. Cap rates will be unaffected. "

"Over the next 12 months, until new comps are established and appraisals can catch up with the new values, we anticipate financed investors can expect to see 1-3.5k appraisal gaps about 50% of the time. We expect properties to appraise right around sales price, with a few thousand dollar swing in either direction."

"We began making offers with our new price points last week. 100% of the properties that we'll be offering moving forward will have around a 50/50 chance of a small appraisal gap. Our prices will have to be firm, and we'll only be able to enter into financed contracts with investors that are ok with paying the listed price of the home."