All Forum Posts by: Wei Jie Yang

Doing more analysis on some of the deals that Memphis Invest sent. Their Price to rent ratio for their property is .74 to .77 for all their properties across the board. MTP is .99 assuming all their rent projections are correct. 

It might seem like a slam dunk for MTP at this point, but I am still seriously considering Memphis Invest due to their reputation and just the areas they operate in. All areas I've seen so far has been in A maybe B+ class areas (barring properties in Memphis oddly enough.)

I've seen @Chris Clothier state recently that their property are priced at .8 to .9 Price to rent ratios. Anyone know if that's still the case and I might just be getting a batch of expensive properties or has Memphis Invest just increased prices across the board (which I assume might be due to their expansion?)

Yeah completely scratch out what I said about MTP's renovations. It seems that MTP give live updates for their renovation, so the list of renovations that seemed minor and small was actually an incomplete version. I received their full version today and it's very extensive as well.

@Account Closed MI stands for Memphis Invest.

Actually scrap what I said about renovation. Since I've only seen a whopping 4 deals from MI and quite a bit of deals from Memphis turnkey Properties (since they post old proformas on their website) I shouldn't generalize so quickly. 

Other MTP properties has had the same extensive rehabs as MI properties.The three current deals from MTP doesn't seem to have  as an extensive rehab  process as Memphis Invest, but other deals definitely does.

Spoke with both @Alex Criag's Memphis Turnkey Properties and Memphis invest and got access to their current deals. Here are my comments and comparisons:

Memphis invest: 

Talked to their portfolio advisors today and she sent me 4 deals to look at. One is in Texas, two in Memphis, and one in Arknsas. I'm currently analyzing two of their Memphis deals. 

Both properties are located in the 38115 which seems to be a mixed area from all the information I can find on biggerpockets and google. Crime seems to be on the higher side for this Zip as compared to the rest of Memphis.  One property seems to be in a higher crime area and the other one is in a lower crime area (according to Realtor.com anyway). 

Both properties are on the expensive end of the scale for their block. Using Realtor.com to look at Comps, there is a difference of 20K-30K in terms of pricing. But again, they are estimates and old sales data, so I take those with a grain of salt. But still MI is definitely on the high end in terms of pricing, which was expected anyway.

In terms of  what was provided by rehab scope, MI seems to do much more extensive rehabbing than Memphis Turnkey Properties, which I guess justifies the higher price.  MI seems to gut the whole place and redoes everything top to bottom. Memphis Turnkey Properties does not.

Also a general question. It seems the two Memphis properties are both listed on the public MLS. Meaning, I can find both properties listed on redfin, zillow, trulia etc. Is that normal? Does that mean I'm going to be competing with everyone else in the public for these properties? Why have only the two Memphis homes their but not the Arkansas or Texas Property?

Memphis Turnkey Properties - 

Talk to Dave Dickton yesterday and I've been enlisted in their deals list. Their deals so far consists of two Little rock properties and one Memphis. Going by Memphis only, the area their property is located is in 38128, which seems to be in a good area. The property itself is in a low crime area (according to realtor.com), and the price is very comparable to the surrounding houses. The difference seems to be is 0-5K according to Realtor.com.

One thing to note though, is that the insurance estimates are almost twice as high for Memphis Turnkey Properties   as opposed to Memphis Invest estimated numbers. I would imagine the difference is that MI has their own Insurance underwriting department.

I'll be honest, Memphis Turnkey Properties  seems to have deals at first glance, but like I stated earlier, MI rehab is MUCH more through than Memphis Turnkey Properties. I'm still on the fence about who to choose for my first property. I will probably skip MI's current Memphis deals and keep looking though. Can anyone comment on the quality of rehab that both company does? And the quality of their PM?

Any comments? Criticisms of my thinking process? Please tell me if I am missing anything, or if I should analyze anything else.

@Axel Meierhoefer I get your point but it seems to me if there is a rental market, then there should be tons of turnkey providers. The difficulty would be to see if any of them can provide what they market they can provide. After reading tons and tons of threads around here about the downsides of turnkey, PM and renovations seems to make or break a turnkey/OOS provider. That's my thinking anyway.

As far as market movement goes, are you talking about a Peter Schiff/perma-bear scenario where we have a falling market but rising rates as well? That might happen ( I doubt it) but I do not think it will be as long lasting or as catastrophic as those guys suggest.  I've traded enough derivatives to believe in Random walk far more then any analysis by experts when it comes to future market  directions.

Hi guys, I'm a new investor trying to find the  and am trying to find the right turnkey company to work  with. 

I think the most important thing about finding the right turnkey company is finding a great property management team and worry about the area later. I came with a list (with commentary):

Memphis Invest - The golden standard. Property might be a tad more expensive but if turnover and repairs are minimal then I'm fine with that. Another plus is that they are in five markets going to seven. They also seem to have thrown out their requirement of buying two houses initially with them as well, which works great for me. I did the initial consultation with them and got preapproved by two of their lenders already but haven't pulled the trigger for part 2 since I wanted to research other companies first. Currently my top pick. Can anyone share their experience with them and help me decide which market I should invest in with them?

Smartlands(Ohio) - Interested in the Cleavland Market. The only "full" turnkey company I know of in the Cleavland area. Had an initial consultation with them where they promised to send me a list of their approved vendors as well as any current deals they have open for me to look at. It's been almost two weeks and I haven't heard back from them. I tried emailing the rep I talked to a few times and no response. I'll just chalk it up to me giving them too long a time frame for my purchase(I told them 3-6 months at the time. Now I've made up my mind to 1-3 months though) during my initial phone call more then anything else, as there customer service reputation on these forums seems to be pretty stellar.

Holton Wise(Ohio) - The whole reason I am interested in the Cleavland market thanks to @Jameswise blog and his youtube videos. Holton-Wise does not seem to be a "Full" turnkey company however. They seem more like a realtor with a PM and renovation arm. They seem more like a company I want to work with for my third or fourth deal, not my first or second. 

JWB (Florida) - Great reputation, sample of properties given is by far the more expensive out of any companies I've seen. Cash flow seems really poor. Expenses seem really high. It seems that the only real play is Appreciation for these Florida houses? Or maybe just an alternative to investing in Treasury/Fixed income interest rate products if an investor is paying for everything in cash. Am I missing anything?

Spartan Investment(Alabama) - Their biggerpocket presence seems good. Alot of people on this forums  vouched for @Clayton mobley and Spartan invest which makes me feel great about possibly investing with them. I just have two issues with them. The issue I have is it seems that Birmingham in general seems to be declining. Population is decreasing and has been for DECADES.  Also there is a recent thread about several Spartan investor not being able to evict their tenants due to "sheriff backlog". I believe one guy has had this issue since June and it still hasn't been resolved yet. That being said, that sounds more like an area issue rather than a Spartan Invest issue, but still, it's in the area that Spartan invest are in. Anyone has any local knowledge of the Birmingham area know where the Sheriff department has such a terrible backlog of evictions as of late?

Turnkey Investment Properties(Memphis and Little Rock) - @Alex Criag seems to come highly recommended on this Biggerpockets. I've even seen @Chris Clothier recommended his him on several occasions! @Alex Criag's company seems to work in a rougher part of Memphis than Memphis invest. Does anyone have any experience working with him and his team? I know some of their investors had weird experiences. Was that due to the area that @Alex Criag invest in being rougher  or was it more bad luck more than anything?

Buy memphis Now! - Comes highly recommended again by the BP forums. From what I can gather either uses @Chris Clothier PM company or @Alex Criags. Seems to be in the same neighborhood as @alex Criag as well. Any benefit of using @Curt Davis over @Alex Criag or vice versa? Well, other than wanting to invest in multifamilies and in Little rock that @alex Criag offers?

Can anyone throw in their suggestions, experiences, and critiques on my though process?

Hi guys, brand new guy to this forum and rei in general. I live in NYC and I am evaluating who/what company I should purchase cashflowing properties OOS. I have been speaking/researching various turnkey companies but what really caught my eye was the Ohio market. Mainly @JamesWise videos. The price for a multifamily in a A and B(grading according to @Jameswise) class neighborhood on these properties seems remarkably better than anywhere else I looked so far. There are a few things that concern me that I hope someone here can shed some light on.

1) How is Holton-Wise's PM company? From what I gathered from some of Biggerpocket's posts, it's that they are notoriously hard to get into communications with. Have they improved in that area? 

2) I've also seen complaints by at least one poster about Holton Wise not being able to fill a vacancy for 7+ month, though from what I gathered during that forum argument this was possibly due to the building being located in a C-/D class neighborhood. Is this a consistent Holton-Wise problem? Can anyone talk about their experiences in regards to vacancy's in detail? 

3) How accurate is @JamesWise Cleavland Neighborhood guide? Is it reliable? Is what he says in his various videos reliable?

4) Can anyone comment on their rehab work? Are they decent? Are they timely? 

Thanks for all your help in advance.