Memphis Real Estate Investing

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Real Estate Investing 101: How You Can Buy Investment Property

By Chris Clothier on Mon, Feb 27, 2012

In today's economy, many people feel uncertain about how to invest their money. If they have a little extra money, they hate to leave it sitting around in a low-yield savings account, but they feel wary of the volatility of the stock market and many other investment options. If you are one of these investors, you may wish to consider real estate investment and rental properties for sale as a portion of your portfolio. According to a recent Christian Science Monitor article, "after five years of weak property markets, real estate is starting to look a bit more enticing for investors."

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Investment Property Management | Advantages of Scale in Technology

By Chris Clothier on Sat, Feb 18, 2012

Why Use Remote Property Management? There are many reasons but the biggest may be the advent of technology that can help an investor know the exact status of their property from 5,000 miles away.  Generally speaking, technology takes many forms. Technology, like water, fills whatever container it finds itself in. Recently, technology has been placed in a new container known as remote property management. Remote property management is the use of technology, specifically the web and mobile devices, to track and manage investment property regardless of its geographic location.  Over the years, Premier Property Management of Memphis has been implementing technology to help not only investors but also tenants, contractors and field agents to stay connected with up-to-date an up-to-the-minute information.

Remote Property Management Defined

The basics are approachable to even the most ardent technophobes. Remote property management is a set of tools that allows you to perform landlord-like functions from anywhere. It allows an investor in Florida to manage property in Memphis, TN. Remote property management can be a combination of accounting, document management, maintenance tracking, etc. but available securely on laptops, desktops, and mobile devices. The information is always at your fingertips whether you're in the office, on the beach, or relaxing with a good book in the park. The technology has been around in large commercial markets for years but has only recently transcended to the investment property market. As a result, trying to implement such a system as an individual could be difficult and expensive.  That is an advantge a company like Premier Property Management has when it comes to implementation.  Managing 1,020+ single-family homes gives Premier the leverage to put large scale and often expensive platforms in place that provide great access for remote investors.

Advantages of Remote Property Management

As I stated, the use of technology has been a tremendous asset for Premier Property Management and its implementation has been a fantastic benefit to the clients of Memphis Invest. This is possible because of the economy of scale (the exact same principle that makes buying multiple discount investment properties profitable!). Where it would be potentially unprofitable for an investor that owned 5 or 6 properties to implement such a system, a property investment company with dozens or even hundreds of clients owning multiple properties each has an advantage. This is why remote property management is important; Memphis Invest makes these services available to its clients who wouldn't otherwise have access to this technology. Additionally, it expands the concept of remote property management beyond the technology. This additional power comes from the fact that the software not only allows you to interact with the landlord-like features, but also interact with your property investment company more closely. It expands the scope by allowing investors the confidence to expand beyond their home geographic areas. Currently, Memphis Invest uses this technology to offer, manage, and maintain properties on their client's behalf in a nationwide scope while keeping the client involved in the process. As the technology matures within this new container the possibilities may very well be limitless. But today, remote property management offers a significant advantage over the competition and increases efficiency while decreasing overall cost of ownership.
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Real Estate Investment Properties: A Market Alternative

By Chris Clothier on Sat, Feb 4, 2012

Recognizing market shifts

Imagine if there was a market shift in the technology sector that caused all technology stocks to temporarily drop. However, looking at the role technology plays in our modern lives, one could be confident that the prices would soon rebound. The situation just described is an example of undervaluation; or discounted property. It is analogous to the current state of the real estate property market in the United State.

Using Leverage in Property Investment

One of the most underestimated principles in property investment is that of leverage. A brilliantly simple way of understanding leverage was put forth by Eugene F. Brigham in Fundamentals of Financial Management (1995): "In finance, leverage is a general term for any technique to multiply gains and losses." This applies to Property Investment via the fixed asset nature of property. Lazymanandmoney.comcites one example of how this can be accomplished: "If one were to lock in the gains of real estate at year 8 (around $125K), the person could use the gains to buy three more $200K homes, getting more and more leverage." This is a very simple, yet effective approach to gaining leverage using real estate as a fixed asset.

Transparency in Real Estate vs. the Stock Market

One common observation in the last few years has been one that takes issue with transparency. Until recently, the commonly held knowledge was that stock investments were more transparent than other investment opportunities. There were several reasons for this belief: finance professionals such as traders were closely following the company practices, independent audits by accounting firms verified corporate claims, and the whole market is federally regulated. Once these protections were skirted by WorldCom, Tyco and Enron, transparency began to be examined more closely. Investment properties began to be seen as a stronger investment within the context of transparency. CNN Moneyput it this way: "Real estate, on the other hand, is tangible. You can check the basement, consult a termite inspector and make sure that nobody is building a pig farm next door....You can verify the property taxes, the cost of utilities and everything else about the property."

Turnkey Property Investment

Lastly is the question of ease of investment. There are companies everywhere willing and capable of helping investors choose, purchase, and manage their stock investments. A widely held misconception is that there aren't investment property companies offering similar services. Memphis Invest provides a variety of such services. Memphis Invest assists investors in identifying and acquiring undervalued properties, leveraging existing properties and holdings, and will ensure all the knowable factors are available to the investor in a clear, concise way. Image credit: Bubbels   

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