All Forum Posts by: Sean Tagge

Hello @Eva Neikirk

I am sorry to hear about your sister I hope her condition improves. 

I am glad there are people like you reaching out on BP and hopefully I can help you out a bit. 

Here are my two go to guys. 

You will probably get around a 70-75% LTV 4-5% fixed 30 year am. with yea around $4k closing costs. sounds a little better that what you have been offered.

Greg Iverson Branch Manager Delmar Mortgage NMLS# 30998

Aaron Chapman Security National Mortgage, Inc.

Being local in Memphis. On the note of local banks/credit unions they tend to shy away from lending to out of state investors (if you are one) and their rates and terms would sound like the ones you were quoted already. Your best bet would be with one of these national conventional lenders I have referred above that lend to turnkey buyers they know the investment real estate system etc. Feel free to reach out with any other questions you have. 

Best of luck

Hello @Nate Morris, We just closed on a 124 unit in that southern area by the airport and also own several others in Memphis. We self manage and have value-add repositioned all of them. I'd be happy to connect with you. 

@Angelo Wong looks like you are on the right path and got 3 good options. 

Or Option #2 

Do a cash out refinance to get your desired liquidity. Might be good to hold I still think this area will be appreciating if your property is on the North side of Billy Morris Parkway which I assume with the list price you have, thats a great area and will most likely go up in value. 

best of luck @Angelo Wong

My advice: I would take it off the market for a day or two then re-list for $209,000 you fixed it up fresh, have it vacant, ready to sell, give it a chance to sell to a retail buyer, this is the hot time of the season now until September everyone is out looking to buy. The retail/homeowner market is sizzling hot right now houses going in less than a week. From the limited details you gave about the area 38125 I bet it will sell for $199-209. 

Hey guys I thought I would share this news article about some anti eviction protestors in Memphis. We weighed in our opinion and were quoted in the article. Over COVID in we waived the tenant late fees, tried to communicate with all tenants to work things out with them. We worked out payments plans and directed them where to file for unemployment etc.

Heres the article it gives several sides of the story on evictions from the tenants, attorneys, judges and landlords perspectives. 

https://dailymemphian.com/section/business/article/14873/general-sessions-civil-court-evictions-covid-19-coronavirus

Here is a quote from someone against the friendly landlord laws. 

"“It’s really hard as an attorney to let these people down. … The laws are against them. Tennessee is very landlord-friendly… . Basically, if you don’t pay your rent that’s just the end-all be-all. You get evicted.”

Asked for an example of how the laws are skewed against tenants, Bane responded that the law makes it much easier to evict a tenant for being late on rent than to hold a landlord accountable for maintaining and repairing a residence."

In my opinion I think laws are pretty fair if you agree to something and you dont stick to it the other party does not have to stick to their agreement. 

Would love to hear other peoples thoughts. 

Hey Lorraine, 

#1 consult with a local RE attorney in your area for this, but in general and from my previous experience here is what I would be asking: 

When did you get this under contract? When did you submit earnest money deposit? 

It would depend on the contingencies in your contract with the seller. Did you have an inspection period? When did it end? Did you cancel the deal before or after that inspection period? 

Did you have a financing contingency? That can be in place until closing so was your reason for backing out due to lenders not lending through COVID or even unsatisfactory rate and terms and be a reason to back out of financing contingencies. 

Additionally. Did the seller stick to all of their terms in the purchase and sale agreement like providing all tenant lease agreements, rent rolls and balance sheets in a timely manner etc? 

I guess those are the first questions I would ask to determine if the seller can keep the earnest money or have to return it. 

Ultimately if both of you cannot come to a decision this will go to court and a judge will decide. I would make sure to collect all things you've said in writing including emails and texts. 

Thanks @Shafi Noss

Hey @AJ Shepard thanks man ya I am excited to take the journey! 

So we plan on completing the renovations in 18-24 months with the rate limiting step being the current tenants on leases whenever their leases expire to get them out of the units, repair them and rent them higher. By the end of 24 months we plan to cycle out all the un-renovated/lower rented units and have them all at $725/mo+ rent. 

Ya so the current debt is a 3 year bridge loan upon stabilization of the property and a few months of good financials we plan to refinance at year 2-3. We plan to get a long term Fannie Freddie loan from a region lender here. On our other projects we refinanced we got a 30 year, 3-4% fixed rate, 70-75% LTV, with some stair stepped prepayment penalties and were able to cash out 30-40% of our initial capital invested.

After refinance we plan to hold onto the asset for another 3 -10 years and sell depending on market conditions. 

Hey guys just giving you some quick stats on May 2020 Memphis RE Market Update

• Shelby County Sales fell 21% in May
• 1,628 sales in 2019 YTD
• 1,294 sales in 2020 YTD
• Average sale price = $185,733 in May 2019
• Average sale price = $194,619 in May 2020 this gives us a 5% YoY YTD Appreciation

From our property management side where we manage 2900 doors here in Memphis. 
Our collections rate lagging 1-2% behind pre-COVID averages (avg pre COVID collection rate 97%) not as bad as we thought it would be.
Eviction courthouses have re-opened and at increased capacity we are getting non-paying tenants out of the houses.We only have ½ months of available properties for rent (53) lowest on record. High demand for rentals especially 4 bed houses. Lots of tenants are renewing leases instead of moving thus decreasing supply. 

Below is a chart from Costar - Memphis industrial space inventory is growing the fastest rate per % of inventory. 

Ya man we are in Memphis and see more and more jobs and people moving over here. 

Memphis has seen a 4-5% appreciation over the past 3 years due to these reasons. 

Very landlord friendly and the courts are back open and at increased capacity to handle all the backed up cases.

Just from the past month you take on 4 bedrooms is spot on we have had tenants asking for 4 beds than ever before. We just cannot find any 4 beds for them to rent.