30 Oct 2013
Buy Memphis Now is a full service real estate investment firm that helps investors purchase turnkey rental properties. Designed for the investor who is located outside of the state or country, the company purchases and renovates a property and then makes it available to rent out or for sale to investors.
Company: Buy Memphis Now
Founder: Curt Davis
Location: Memphis, TN
How is your organization different from others doing property solutions to investors?
Buy Memphis Now is a smaller company which allows us to offer similar homes to investors that larger companies are also offering up, but at a much lower price as our overhead cost is much lower.
What type of properties does your company help buyers purchase?
The properties we purchase are in working-class neighborhoods in the price range of $50,000 – $100,000. Most of the homes available have 3 bedrooms with brick exterior and covered parking. These homes are perfect for investors as they provide great cashflow and the price point to rent ratio gives a good return.
Where has your company purchased property?
We only operate in Memphis, TN and most of the homes we purchase to sell are located in the southern region of Memphis.
Why is this location a good investment choice for investors?
This is where a large portion of the workforce is located. Distribution centers, the airport, FedEx, trucking companies and warehouse work are all located in this area. We find that most people like to live within 10-15 minutes of work.
Where are your investors located?
Most of our investors are from California or the Pacific North West. We also work with overseas investors Australian, New Zealand and Singapore investors.
How many properties does your company help purchase each month?
As a company, we purchase about 10-15 homes per month and sell 8-10 on average.
What are the typical updates and renovations you do to the property?
The things we look closely at are the roof, hot water tank, furnace and air condition unit because they are some of the most expensive items if they need to be replaced and we typically put in ceramic tile in the kitchens and bathrooms.
We also have a standard carpet style and color combination for painting if these renovations are needed and make sure the home has similar light fixtures.We provide all the normal property details along with what was repaired to the home to prospective investors.
We help investors identify the properties that meet their criteria.
Do you recommend investors see the property before buying or do your clients typically buy sight unseen?
8 out of 10 investors will purchase the home before they come to visit. We do not recommend one way or the other, it really comes down to does the investor feels comfortable enough to purchase based on phone conversations and pictures of the property.
Can you share a couple of examples of typical investments you have available to investors?
One example is a property with a $64,900.00 sale price with $800.00 in rent, $333.00 monthly cash flow after expenses with 22% ROI. These figures assume an investor is purchasing using conventional financing with a 20% down payment.
Another is a property that was listed with a $79,900.00 sale price with $900.00 in rent, $330.00 monthly cashflow with a 19% ROI.
How does the purchasing process work?
We help investors identify the properties that meet their criteria whether it be cashflow or max purchase price based on their ability for down payment funds. Once we help them select the home, we then have them sign the purchase contract and put down the required earnest money deposit.
Next, we have them get approved for financing with our preferred lender. While they are going through financing, we help the investor arrange for a home and termite inspection.
After, we then get the investor set up with the property management company. Once this is complete, the home closes and they become the proud new owner of a great cash flowing turnkey investment property.
How can investors avoid paying too much for the property?
As a licensed realtors, we are able to provide my clients with actual sales comps for other homes in the area that are similar to the one they are considering. Investors can also contact a local appraiser and pay a fee for comp info.
Not sure what turnkey property is? Read our article The profits and pitfalls of buying turnkey property to learn more!