Heading into a new year is always a great time to take stock of where you are and start preparing for any changes or adjustments you need to make. It's also a great time to educate yourself and real estate investors are not immune to continuing education!
One of the great things about working with real estate investors from around the country is they all have their own reference points - their own backgrounds thata influence the way they think about real estate investing. Often, those reference points and backgrounds have to do with their own families investing, their friends or neighbors investing and even their own education about real estate investing. So it is interesting to note that many investors may have ideas about how to invest, but many have no idea why.
"There is a huge void when it comes to standards for both ethics and quality in an industry like Turn-Key real estate and with our experience, we thought it was appropriate for a company like ours to lead the way in trying to develop those standards with our peers," says Chris Clothier, the middle son and co-owner of Memphis Invest, GP. While Masterminds are common in today's business world, the Clothier's believe this will be a first for their industry. With the Mastermind devoted solely to improving the business practices and standards of quality and service within the industry, those participating are expected to hold each other accountable and see quick changes within their businesses.
The Clothier family invited close to two dozen companies to apply for a seat at the table on April 28th and 29th in Memphis and whittled the first meeting down to 10 quality companies from those applications. They expect the group to expand to 15 companies by the second meeting in July. With companies traveling from California, Arizona, Indiana, Kansas, Texas, Alabama and Florida for the first meeting and companies from Pennsylvania, Louisiana, New York and Missouri already committed to the July meeting, this group is proving to be a solid mix and great representation of multiple investment markets.
"We wanted to get a good cross-section of the industry but also made it clear that there are no secrets when you participate in a Mastermind like this," says Clothier. "Everyone had to be on board with opening up to the group about their business and be prepared to offer advice and criticism as well as be open to receiving advice and criticism."
The Clothier's named their Mastermind 'REI Edge' and picked that name with a purpose in mind. After participating in the Mastermind, all of the companies will have an edge on other providers in their cities due to offering a higher level of service and quality. MemphisInvest.com has proven that concentrating on quality and service will lead to sustainable growth and higher satisfaction among your clients.
"This is not about learning to make more money or sell more houses - it's about learning to provide great customer service and the highest quality of work so your clients build portfolios with you for years to come. That's how you build a sustainable business that remains profitable"!
When: April 28th & 29th
9:00AM - 7:00 PM
Where: East Memphis Hilton
Who: Turn-Key Real Estate Providers
For more information on http://www.MemphisInvest.com or the REI Edge Mastermind group, you can contact Ashley at 1-901-751-7191 or Chris at 1-901-212-9647.
Memphis Invest, GP is the largest privately owned home seller in Memphis, Tennessee and the second largest home seller behind only Fannie Mae and Housing and Urban Development. On pace to renovate over $18 million dollars of Memphis real estate in 2011, Memphis Invest, GP provides real estate investors with a passive alternative to investing by handling all the details with a Turn-Key investment program.
Mortgage interest rates continue to rise on almost a weekly basis, according to information released by Freddie Mac. The average rate on a 30-year fixed mortgage jumped to 5.05 percent last week. That is the highest the rate has been in over three years and is the 6th straight week that the rate has gone up.After seven months of declines that put the benchmark 30-year rate at a half-century low last year, the rise in rates has driven down demand for financing and is leading mroe and more investors to seek alternative forms of mortgages. The Mortgage Bankers Association ( MBA) reports on an almost weekly basis that the demand for morgages continues to set new lows each week.
With analysts warning about continued hike in rates, any stall in home purchases will have a chilling effect on an already fragile housing market. What these trends are allowing for though is a huge increase in cash investors entering the market and driving bargain prices even lower.
Freddie Mac’s study, which is based on data gathered from about 125 lenders across the country, tracks rises in rates across the board. Every loan porduct, not just the 30 year mortgage showed increases.
Each week, Bankrate surveys a panel of mortgage experts for their predictions of which way rates are headed over the next seven days. In a landslide, 80 percent of the panelists are calling for continued increases in mortgage rates. Just 13 percent forecast a decline in mortgage rates, and 7 percent expect no change over the next weeks.
With economic predictions like these, I would say it is definitely time to use your alloted number of mortgages for real estate investing while the money is still cheap. As long as the property produces a strong cash flow, get the best rate and term you can while rates are still at these historic lows because many economists also say these rates will most likely not be seen again for a very long time!
Swedish appliance maker Electrolux announced a deal this week with Memphis City and Shelby County leaders to build a 700,000 square foot manufacturing facility in Memphis that will be fully operational by 2012. The new facility will employ 1,200 workers and it's suppliers and offshoot companies will add an addtional 2,000 jobs to the Memphis area. For Memphis real estate investors, news like this is music to our ears.
I talk to real estate investors every single week who are interested in investing in Memphis real estate with MemphisInvest.com for a lot of different reasons. Some of the most interesting investors I talk to though, are those who are highly diversified in other markets. They own stock portfolios or invest in Bonds and Mutual Funds. They have spent years with financial planners preparing for a day that now seems in jeopardy: Retirement! Most of these investors are turning to a tool that their "advisors" failed to teach them about - Self Directed Retirement Accounts. With the right real estate investments at all time values, the focus to investing in real estate with your retirement account could not have come at a better time.
I spent some time in Colorado in the early 2000's and was pretty active in the real estate market at the time. One of the comments that we regularly heard was that "there is no more land being manufactured". Being land locked by the mountains, real estate was at a premium and investing was considered to be a sound long term investment.
Having talked to hundreds of investors each year at Memphis Invest, I have stopped being surprised by the different reasons investors list for purchasing investment property. Often times, the criteria that investors use to determine a"good deal" are as varied as the colors in a box of crayons. As a seasoned investor, I can tell you with atuthority, that if I had to choose one measure for an investment deal it would be its cash on cash return.
Buying Discount properties in Memphis, Tennessee or any other city for that matter can be a tricky propostion. Being a new investor makes it even tougher. Memphis Invest has spent a lot of time building relationships with clients but we have not always done a good enough job of putting out educational talks and material. After selling over 800 homes in the last 5 years and investing in over 100 oursleves, you would think we might know a thing or two about the pitfalls of real estate investing.