Property Management


Buy Memphis Now
30 Oct 2013

Buy Memphis Now

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.

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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.

Buy Memphis Now

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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!


Pinnacle Investment Properties
02 Oct 2013

Pinnacle Investment Properties

Pinnacle Investment Properties helps both domestic and international investors create passive income and wealth through ownership of turnkey rental properties in stable, high yield markets.

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Company: Pinnacle Investment Properties
Owner: Michael D’Arrigo
Location: San Jose, CA

What type of properties does your company help buyers purchase?
We help investors purchase single-family, 1-4 unit turnkey homes that have been fully renovated and under professional property management.

Why are these good investment options for investors?
These are good investment options for investors that are looking for higher yields that they can currently get on CD’s stocks and bonds. Most properties have an 8-12% ROI for a cash purchase and 20-25% for a financed purchase.

Where has your company purchased property?
We offer turnkey properties in the Indianapolis, Kansas City and Atlanta markets.

Why are these locations a good choice for investors?
We believe that these markets complement each other well and allow us to serve all of our investors’ objectives. Indianapolis and Kansas City are well suited for investors that are looking for stability with strong cashflow and high ROI.

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Both markets offer some of the lowest prices in the U.S. with the best price-to-rent ratios available. Atlanta is best suited for investors that are willing to trade a lower ROI for higher appreciation potential.

How is your organization different from others providing property solutions to investors?
One of the big differences between Pinnacle Investment Properties and some of our competitors is that we are very selective in which markets we operate in.

We’ve chosen to focus on a smaller number of markets so that we can be experts in each market we operate in.

By focusing on fewer markets, we know the areas intimately down to the neighborhood and street level so we can recommend investment properties in the best areas. We also offer post-sale support to our investors if and when problems come up.

Where are your investors located?
We have investors both domestically and internationally including the U.S., Australia, Canada and Israel. Domestic investors are typically from high housing cost cities such as Los Angeles.

Can you share an example of a typical investment you have available to investors?
One example is a single-family house in Indianapolis, Indiana. It is a $52K house with a monthly income of $765 at a 11.44% cap rate, and 43.58% total return on the investment.

What are the typical renovations you do to a property?
All properties have undergone a complete renovation which includes paint, new flooring, upgrading of electrical and plumbing when appropriate, replacement of furnace, AC, water heater and roof if it is near end of useful life. Kitchen cabinets and counters may also be replaced if they are in particularly poor condition.

Do you recommend investors see the property before buying or do clients typically buy sight unseen?
We always recommend that investors get a property inspection. A lot of our investors buy sight unseen, but many will tour the city and become familiar with the neighborhoods so they know the area when we present a property.

What information do you supply to your investors?
We provide investors with a full demographic profile of the city, a scope of work for the renovation that was done on the home and the lease and rental history on the tenant.

How does the purchasing process work when an investor wants to purchase a property from your organization?
All transactions are handled through a licensed title company and the funds are wired to the title company. The investor will also receive a full warranty deed and title insurance policy.

How can investors avoid paying too much for the property?
We provide a pro forma cash flow and ROI projection for each property that shows the projected profit and return on every property. We can also provide property comps (comparable sale prices) upon request.

Not sure what turnkey property is? Read our article The profits and pitfalls of buying turnkey property to learn more!


Norada Real Estate Investments
13 Sep 2013

Norada Real Estate Investments

Norada Real Estate Investments is a premier real estate investment firm that help investors purchase turnkey investment property in growth markets throughout the United States. They provide investors with quality, new and refurbished cashflow investment properties that are tenant occupied and under professional property management.

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Norada Logo

Company: Norada Real Estate
President & Founder: Marco Santarelli
Location: In over 13 markets throughout the U.S.

What type of properties does your company help investors purchase?
We help investors purchase single-family homes, duplexes and fourplexes. All of the properties are either new or in like-new condition and come with a full one-year rent guarantee.

Why are these good investment options for investors?
The properties we help purchase are good investments because they are all cash flow positive with very desirable cap rates and rent-to-value ratios.

How is your organization different from others providing property solutions to investors?
We have been a premier provider of turnkey properties since 2004, and are one of the few providers that offer properties nationwide. We are also area agnostic – which means we are not “married” to any specific market and are the only provider to offer a one-year rent guarantee with all our properties.

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Most importantly, we take a consultative approach with our clients making sure their goals are in line with the real estate portfolio we help them build.

We are not “married” to any specific market.

Where are your investors located?
Our investors are located worldwide, but most of them are located within the U.S.

Hows many properties does your company help purchase each month?
Depending on the time of year, we can help investors with up to 20 properties per month.

Can you share an example of a typical investment you have available to investors?
One example is our duplex property in North Gladstone, Indianapolis. It is $59K and is leased at $1K per month. This provides the investor with over $700 per month (net operating income) and a 14.6% capitalization rate (cap rate).

You can find more investment properties on our website.

What information do you supply to your investors?
We have an ample amount of information listed on our website and also provide scope-of-work detail with our rehabbers/partners and property managers for each property.

What are the typical updates and renovations you do to the property?
Renovations typically include the cosmetics and consumables (flooring, paint, light fixtures, switches, cabinets, appliances, etc.), as well as the mechanicals where necessary (roof, water heater, HVAC, electrical, plumbing, faucets, toilets, etc.).

We have an ample amount of information listed.

Do you recommend investors see the property before buying or do your clients typically buy sight unseen?
We encourage a third-party home inspection be done and that the investor visit the market and take a tour if they can. However, only about 5% of investors visit the market or property before making a purchase. This is largely because of the amount of information that can be sent back and forth over the internet.

How does the purchasing process work when an investor wants to purchase a property from your organization?
Once an investor decides to purchase a property, the investor will pay their escrow deposit and both the investor and title holder will sign a contract. It’s also recommended that the investor have a third-party home inspection post-contract to make sure there are no major issues to be aware of or repaired.

After signing the contract, it’s also a good idea for the investor to speak with the property manager to better understand their services, the tenant, the neighborhood, and ask any other questions they may have. Prior to the closing date, the investor will also want to place a new insurance policy on the property.

A few days prior to the closing date, the investor will review and sign a list of closing documents before mailing it back to the Title Company. During this time, the investor will also sign a new ‘Management Agreement’ with the property manager to authorize them to manage the property on the investor’s behalf.

How can investors avoid paying too much for the property?
We make sure investors are not paying more than fair market value. Historically, our turnkey properties have been priced between 5% to 15% of market value.

Not sure what turnkey property is? Read our article The profits and pitfalls of buying turnkey property to learn more!


Venture Real Estate
04 Sep 2013

Venture Real Estate

Venture Real Estate is a full service real estate company that specializes in the Boston Metro area market. They are located in the heart of Allston Village in western Boston, giving them easy access to Downtown, Cambridge, Brookline and the suburbs. Venture Real Estate sells, manages and rents property.

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Company: Venture Real Estate Group
Managing Partner: Sean McConarty
Location: Allston Village in western Boston, MA

What type of properties does your company help investors purchase?
When selling a property, the obvious focus is on the buyer’s personal investment criteria. Investors, in my experience, are looking for a combination of long-term growth in property appreciation and short-term gains with cash flow. Our focus is on underutilized property in top appreciation locations.

Why are these good investment options for investors?
This allows us to buy properties and within a year have a significant cash flow on a monthly basis while gaining value on a yearly basis. This allows a buyer to expand their real estate portfolio using both their cash on hand as well as leverage, at a rate significantly faster than other types of investments.

Where has your company purchased property?
We purchase in established rental areas where tenancy is predictable, rather than in areas where we see over speculation and it largely depends on 1 or 2 years of high rental prices to justify sale prices.

Why are these locations good investment choices for investors?
An area that is “trendy” but does not have the indicators of long-term home values, such as jobs, school systems, and transportation, are not areas we are interested in. This helps our investors, since we are not chasing the next big thing. We use growth models to ensure significant gains over 3, 5, and 10-year periods while avoiding a bubble in a specific market.

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Our focus is on underutilized property in top appreciation locations.

Where are your investors located?
Our investors are everywhere, from local plumbers and construction company owners, to international investors who only touch base a few times a year. We are able to tailor our involvement to their involvement according to their location.

What information do you supply to your investors?
Supplying investors with information is one of the aspects that set us apart. Whether it is rent potential, city politics, or developments projected in the area, we want our investors to be extremely knowledgeable in the area they are investing.

Do you recommend investors see the property before buying or do your clients typically buy sight unseen?
I always recommend investors see the property, but many times with the speed of the market, investors that have worked with us for a while will buy sight unseen.

Can you share a couple of examples of typical investments you have available to investors?
As we change our search per investor, the investments tend to differ.

  • Case 1 was an investor who was just starting to build their portfolio. They wanted as little invested and as much cash flow as possible. In the past 12 months we helped them purchase two buildings in Waltham, MA. The first was a three family house for $342K with $12,000 in renovations and a monthly income of $4,300. The second was a three family house for $472K with $25K in renovations and a $5,700 monthly income. The renovations on these projects were minimal things like new paint, cabinets, and appliances.
  • Case 2 was a more established investor who was looking for renovation projects. Last year he purchased a four family house in Allston near Boston University for $1.460M and will renovate the 4 units this fall for $75,000 a unit. This will increase the rent from $9,600 a month to $15,000 a month on the pre-leased units. These renovations will not only increase revenue but lower costs as the utilities will be separated, making them the responsibility of the tenant. The same investor purchased an 8 unit building in Kenmore Square for $3.400M and simply by changing the marketing of the buildings, he was able to increase the rent from $15,600 to $29,800. Buildings on this street of Kenmore Square have realized an appreciation of over 50% in the last 6 years.

We want our investors to be extremely knowledgeable.

How many properties does your company help purchase each month?
We sell about 3 to 5 investment properties per month.

How does the purchasing process work when an investor wants to purchase a property from your organization?
The first step to helping an investor is for us to discuss, in the clearest of terms, what their goals are. Once we are able to establish that, we can begin to discuss options, usually in that same conversation. When we are sure we are on the same page, we begin to immediately look for the right property to match the buyer. If it is an out of town buyer, a proxy of some sort is a good idea as good investments tend to be very time sensitive.

As soon as we find a property we negotiate the terms of purchase, enter into an agreement, and set up a closing for the property. On the day of the closing, we will do a walk through, alert tenants of a change of ownership, and plan any renovations. For most investors, that’s the end of the process. They begin to collect rents and we communicate as needed about the property. Usually within a few months things are going well enough and we start the process again.

How is your organization different from others doing property solutions to investors?
The major difference between our property solutions and those of other companies is that we handle every aspect in-house and keep costs as low as possible. While many companies will outsource the rental side or the property management side, we are able to do all aspects within the Venture Real Estate Group. This means that we can see the potential rents because our office managed properties in these areas, and we know what renovations to do because we know what works.

When purchasing a property, knowing the 3 to 5 year expectations accurately can completely change the feasibility of an investment. Many companies forget that lowering costs, not at the expense of quality, is another way to raise revenue.

We are able to tailor our involvement to their involvement.

What are the typical updates and renovations you do to the property?
Kitchens and baths are the two aspects that set apartments apart. Once those are removed from the equation, there are really only walls and floors, which though important, are easy to adjust. In specific instances, changing layouts can also add significantly to the unit, but we always need to weigh the cost vs benefit for those types of changes.

How can investors avoid paying too much for the property?
Avoiding high costs, especially when starting a portfolio, is extremely important as it can stunt or even cripple your growth. You must feel comfortable buying and renting the property as is while also knowing how to increase the value of the property. Buying a house that has amazing rents is great, but it usually means that the seller knows the rents are high and unsustainable.

Instead, purchase a home where the rents are lower than the market or where potential adjustments will make large gains. If it’s a good investment as is, but has additional upside, that’s always better than buying at the top of the market and hoping the ceiling goes higher.

Not sure what turnkey property is? Read our article The profits and pitfalls of buying turnkey property to learn more!


4 Tips to avoiding commercial lease issues
02 Sep 2013

4 Tips to avoiding commercial lease issues

This is the second part discussing the pitfalls of standard leases. The first part dealt with residential leases, and this part will discuss commercial leases. As an attorney and summary process mediator handling evictions, I have been witness to commercial lease issues. Many of these disputes can be avoided by following four easy tips.

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1. Clear business names

The first part of any lease is the names of the parties involved. As most landlords want a personal guarantee, this means the correct names of the commercial tenants are needed. Before writing the lease, ask for a copy of the prospective tenants’ drivers’ licenses along with current home addresses, cellphone numbers and email addresses.

If the tenants have formed a business entity, then you should also ask for a certificate of incorporation. This is either free from the state or requires a small fee to be paid by the tenant.

This verifies that the people who are signing the lease are who they say they are.

2. Fast money

Hopefully, the commercial tenancy is a wonderful experience with a long-lasting tenant who has a successful business. However, what happens if the tenant is unable to pay. Most standard leases state something like, “when the tenancy is completed, then the landlord can be reimbursed.” What does that mean?

Let’s say that you have a 5 year lease with ABC Corp. Two years into the lease, ABC Corp stops paying you. You want the remaining money due on the lease-right? Well, you have to wait until the lease expires, which is another 3 years to be able to collect your rent.

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To fix that issue you near an acceleration clause that in effect says that when the contract is breached due to nonpayment, then the whole lease becomes due immediately. No waiting.

3. Additionally

Even in the standard lease there is a section titled INSURANCE where it is the tenant’s responsibility to get insurance. The landlord fills in the amount they require. First, there needs to be follow up. An insurance binder or proof of insurance needs to be held by the landlord, however, even better is for the landlord to be named as an Additional Insured.

When a landlord is named as Additional Insured, the landlord will be contacted when there is a change in the policy and if the tenant stops paying the insurance. Therefore if there is a loss, then there are no surprises. The landlord knows who the insurance company is and can make a claim.

Also, in regards to insurance, make sure your tenants are getting the right kind of insurance. For example, if there are storefront windows, then glass coverage should be a requirement.

4. Utilize the business

It is amazing how few landlords know anything about the businesses that are using their spaces. It should not be a surprise what the tenants do in the space you have rented to them. You should be a customer of their businesses and recommend them when you can. For example, if you rent to a restaurant, then be a patron of that restaurant. You should also pay full price. Why? They pay you full rent, and you want their business to be a successful. (Though I am fine with free dessert.)

There is also a marketing opportunity you may be missing by not promoting a business that you rent to. Many commercial landlords have websites, and on these websites my suggestion is that you add logos of the businesses that rent from you. (You need the tenants to send you the logos and give permission.) What a great way for you to get attention to your commercial property, while helping your tenant succeed!

These four tips will help you have a business relationship with your tenants along with decreasing your issues.

This article was originally published by Cynthia Pasciuto of True North Business Consulting. She is a Massachusetts attorney, insurance adviser, and mediator and has published two books at Amazon, “The Business Guidebook for Health & Wellness Professionals” and “The Business Guidebook for Contractors.”


Wholesale Deals: ATL Cash Deals
23 Aug 2013

Wholesale Deals: ATL Cash Deals

ATL Cash Deals is Atlanta’s premier real estate investment firm, providing their clients with wholesale and turnkey property with double-digit returns. The majority of their inventory comes from private off-market sources. ATL Cash Deals works with cash investors that are seeking great service, great deals, and great returns.

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Company: ATL Cash Deals
Owner: Jeremy Crutchfield
Geographical Location: Atlanta, Georgia
Years of experience: 11
Number of properties sold through wholesaling: 300+

How did you get started in the wholesaling business?
I was a finance major at the University of Georgia and I was headed down the Wall Street route to become an options trader. I graduated in the year 2000 just as the “Dot Com” bubble had burst so I started exploring other options that fit my interests and skill sets. I landed a job with a wholesaling company in Atlanta.

Jeremy Crutchfield

Jeremy Crutchfield

How do you find properties to wholesale?
I was appointed to Acquisitions Manager shortly after I started wholesaling and back then I learned to locate deals through a lot of different guerrilla marketing methods:

  • Bandit signs
  • Yellow letters
  • Driving through target areas and looking for signs of distress
  • Networking with other wholesalers and investors
  • Researching property records at the county courthouses

Some of those methods are a lot easier now with improvements in technology and a lot of it can be accomplished online.

How would you recommend those who are just starting, find properties to wholesale?
My recommendation is to get out there and start marketing if you have time and/or money to do so. It’s all about testing, tracking, and finding out what does work and what doesn’t. You need to keep trying new tactics though because what works today won’t necessarily tomorrow.

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Some of those methods are a lot easier now with improvements in technology and a lot of it can be accomplished online.

What was wholesaling like when you first started?

Ten years ago, we were operating a turnkey operation where we would sell he house to an investor who would get a hard money loan to both acquire the property and cover the renovation costs. Once our company completed the renovations the investor would refinance out of the expensive hard money into usually an interest-only loan at somewhere around 6%-8%.

The rents would usually cover the debt service, taxes, and insurance slightly, but at that time, the investor would usually be looking to hold the property not so much for cash flow, but for appreciation potential sometime in the future.

How does this differ from wholesaling today?
Some of the exact same houses we turned over 10 years ago are going for less than half of what we paid, yet the rents now are pretty much the same or higher than they were back then. With the lack of financing for these properties, it makes it a strictly cash business which is way better all around.

No one is sitting around waiting on the lender who has the tendency to kill these deals for the slightest whim or reason. These properties are more affordable than ever, going for less than the cost of construction. The result is an outstanding deal for the investor who has enough cash to make the purchase.

What kind of investors do you typically work with?
Since interest rates are at historical lows, my typical buyer now isn’t necessarily even the traditional “real estate investor.” They’re working professionals who have $50K to $500K in their retirement account, CD or money market account etc.

They’re sick of getting 1% a year on their money. Or maybe they’ve been gambling with it long enough in the stock market and want a much more secure investment that actually performs well so they can sleep at night.

What kind of properties do you recommend to real estate investors today?
Purchasing a rental property is hands down the best of both worlds in this market. The investor is parking their money into a tangible asset that will continue to pay them at rates that far exceed anything out there at this time in the form of rental income.

I don’t include future prices in our projections since no one has a crystal ball.

Then there is the possibility that maybe, just maybe, the house will be worth more than what they bought it for when they want or need to sell in the future. But that’s just icing on the cake for the investor and is more speculative.

I don’t include future prices in our projections since no one has a crystal ball. What I do know is what the property costs today, including any renovations to get it rent ready, taxes, insurances, and management fees.

Since I know what the property rental income is, it’s very easy to calculate the ACTUAL return on investment which, when compared to other alternatives, makes rental properties the safest real estate investment today.

What is the best way for an investor to minimize the risk of losing money when purchasing wholesale properties?
Investors need to be first and foremost, located in the right areas of the U.S. for wholesaling real estate, which can be VERY difficult since everyone now knows real estate is where their money should be. This is especially true here in Atlanta. Then the properties need to be purchased in the right areas, at the right prices, renovated cost-effectively, and have tenants screened and placed.

All of that is next to impossible for the inexperienced, out-of-area investor to achieve on their own. They need a full time, local expert that knows the local market with off market connections, experience, and marketing channels. That’s where ATL Cash Deals comes in.

Not sure what wholesaling real estate is? Read our article The ins and outs of wholesaling to learn more!



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