Memphis Real Estate Investing

Memphis Real Estate Picks Up for Homebuying Season

Welcome to the peak home buying season of the year! The first quarter of 2015 was sluggish in many real estate markets, Memphis included. The cold temperatures combined with lingering recession struggles and aftereffects of the market crash meant that things were slow to take off.  But now, it looks like Memphis real estate is in for an upturn.  One big reason...real estate investing!  As more and more are turning to renting a property rather than buying, the opportunity for real estate investors continues to grow.

Don’t get us wrong, the market wasn’t bad in the first quarter — homes were selling and home building was on the rise in Shelby County. There just wasn’t significant growth during the difficult months of February and March. By the same token, there wasn’t a decline in growth, either, which has lead to much optimism for the second quarter among real estate professionals.

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Topics: Memphis Invest, Memphis, real estate market

The Truth About Turnkey Real Estate

This may be one of the most important articles on real estate you read this week, so pay close attention.  Those words are not just hype either.  This is an important topic for my family and our company.  We have seen many investors get hurt by purchasing Turnkey properties from unscrupulous companies.  However, we have seen even more investors get hurt by purchasing from inexperienced companies who use marketing gimmicks to sell their properties.  

Turnkey investing continues to be a very hot topic in real estate circles today and more and more investors are asking questions and wanting to get started.  You may be one of them.

On a daily basis there could be from half a dozen to two dozen conversations involving turnkey real estate on real estate forum sites and it seems like they are increasing in frequency. Those conversations may involve questions from new investors to advertisements of opportunities, but almost all of them get comments from investors who hate the concept. Some are uninformed opinions, and others are comments from experience, but all seem to point to two clear conclusions:

  1. There is no definition of what turnkey real estate really means.
  2. The worst investment you can make is a cheap $40,000 turnkey property!

Read this article carefully, and pay close attention to the end. If you are thinking about buying turnkey investments, there are many great opportunities all around the country.  However, it is clear there there are many more opportunities that are not good deals.

The intention of this article is not to get investors to purchase from our company.   If we are good fit for an investor, then that will take place in due time.  The intention is to help educate investors on how to avoid the biggest issues facing them today with Turnkey properties.  There are too many small companies, either intentionally or unintentionally, preying on investors needs and failing to provide them with proper investments.

Investors have to be patient, honest and smart with their decisions if they are going to make turnkey real estate investing work.  Investors themselves are often the biggest obstacle to making turnkey portfolios work, and I give a few ideas at the end regarding which investors this concept works for best!  

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Topics: Memphis Invest, turnkey real estate

3 Things for Investors to Consider About Current Mortgage Rates

Some people like to consider what some of the worst-sounding words in the English language are. While many would say moist is the most cringe-worthy word in our language, we’ve got to say that mortgage is right up there with it. The sound of the word is one thing, but the connotations that comes with it are another.

No homeowner or investor likes the word mortgage. As burdensome as it can be, however, it’s not something that real estate investors should neglect. Paying attention to mortgage rates can offer prime opportunities for investors to make the most out of their properties — both with potential purchases and existing rental properties.

While financing for an investment property can be quite different for investors, the mortgage rates still matter. If not for investors personally, they do affect the state of the market around us, which can affect buying and renting trends.

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Topics: mortgage loans, mortgage interest rates, mortgage financing

Real Estate Investors & the Trend of Mobile Payments

Real estate investors and property managers are all familiar with the frustration of tenants who never seem to pay their rent on time, which can throw your positive cash flow out-of-whack. Even when tenants pay the rent in full over the course of a month (making payments each week), the use of technology like mobile and online payments can add a sense of security for an owner.  Knowing that it is easy for your tenants to pay can reduce the stress of having to stay on top of those payments through the month.

With modern technology, it just doesn’t make sense for owners not to take advantage of the growing online and mobile payment avenue.

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Topics: property management

Rental Properties, Pet Policies and You

There are a great many animal lovers in the world, but most rental properties aren’t known for their pet-friendly policies. Some tenants even view rental properties that allow pets with some distaste because of high pet deposits. 

What stance should real estate investors take when it comes to pet policies? Whether or not you intend to allow pets, you should have a pet policy, period. Even tenants who don’t have pets need to sign one and know what your rules are regarding animals on the property or in the building. The property manager can take care of any day-to-day questions or issues regarding the policy.

If you choose to allow pets in your rental properties, have firm boundaries in place. Any and all pets must be approved and photographed by the landlord. How do you know if a pet should be approved? Ask the right questions.

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Topics: rental properties, pet policies

Renting as Baby Boomers: What Investors Need to Know

For most people, saying “renter” will bring up a particular image. Twenty-somethings, singles, young families — people who, essentially, can’t afford to buy their own home yet. While they, along with college students, make up a significant portion of renters, they are far from the only ones.

In fact, there’s quite the number of Baby Boomers turning to renting in their sunset years. Enough that real estate investors would do well to investigate. Marketing with Baby Boomers in mind in the right places may just give your investments a boost.

Attracting tenants is an ever-present goal, but when you plan your strategy around attracting certain demographics (not, however, by discriminating or breaking any Fair Housing laws), it’s good to get inside their heads to learn what they value and want in a home.

So, let’s answer the big question:

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Topics: investing in real estate

Houston Real Estate Strong Despite Low Oil Prices

As we all know, Houston has been making real estate headlines for quite some time now. Space City took a softer blow during the recession and, consequently, has been experiencing a thriving real estate market (comparatively speaking). Most analysts saw Houston as top dog in 2015 as the local economy continued to grow along with housing demands.

The Houston real estate market wasn’t without its problems and complications of course (which market doesn’t?), but all seemed smooth sailing…

Until oil prices took a dive earlier this year.

With the oil industry contributing to much of Houston’s economic well being, people began to fear what the plummet would mean for Houston’s economy and, as a result — its real estate market.

Would the energy crash bring down one of the best markets in the country?

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Topics: houston real estate, Houston Invest

Real Estate Investment | One of Many Financial Strategies for Retirement

Using Real Estate Investment In Your Strategy

It's safe to say that most real estate investors are in the business to make money and many are actually planning for an event.  That requires planning and saving for that special something. In many cases, that something is retirement.

Investing in real estate is one of the best, proven ways to generate positive cash flow for retirement — whether saving up in tandem with a career or looking for passive income well into your Golden Years.

Either way, investors looking to fund their retirement would do well to not only devote time and attention to their investment plans — but retirement plans as well.

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Topics: real estate investment, Retirement planning

3 Reasons You Need a Good Property Manager on Your Side

There are many, many reasons for real estate investors to rely on a good property manager. It’s no secret that property management is a difficult job. Any owner who has taken on landlord responsibilities themselves can vouch for that!

The reason investors ought to seek a property manager (or property management company) go beyond simple convenience. Having a top-notch manager can be the single biggest factor in the success of your investments.  On the flip side of that statement...having a poor property manager can be the end of your successful investment.

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Topics: property manager

Recent Trends for Memphis Real Estate And The City | Both Are Hot!

RealtyTrac recently featured Tennessee in their latest newsletter and even published an article from Memphis Invest.  The newsletter is full of fantastic information and is linked at the bottom of the article.  In the meantime, here is our article with some fantastic updates on Memphis real estate.

Positive things are happening in Memphis. In the wake of the recession and housing bubble, plenty of people found themselves in difficult, sometimes life-changing situations. Homeowners found themselves underwater and in foreclosure. Neighbors disappeared one-by-one. Real estate agents and builders left their professions while families watched the value of their long-term investment drop further and further. 

We did mention positive things, right? Well, 2015 is shaping up to be the year for the Memphis real estate market. In 2014 things started to pick up, bringing much-needed good news to the industry and setting the groundwork for the best year in quite some time.  Companies like the one my family started here in Memphis 11 years ago, Memphis Invest GP, have been purchasing, renovating and managing properties for investors from around the country and essentially propping up the housing market in mid-sized cities like Memphis.  Jobs and positive economic news would come back and we knew it was only a matter of time before housing would follow.

Now, Memphis is preparing for a big 2015 and more investors are taking note of the positive vibe flowing through the river city.

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Topics: Memphis real estate