Memphis real estate had a very good third quarter with many of the traditional real estate numbers trending in the right direction, but they are not telling the whole story. Housing starts were up, foreclosure actions were down, sales prices actually inched up and the federal lending rates continued to hang near historic lows. But investment purchases continue to be a HUGE part of the equation in Memphis real estate and continue to be a big reason why the numbers of properties sold have been consistent.
Memphis Invest has been the leader in the Memphis investment property market for some time and this year has continued to be the largest non-government seller of property in West Tennessee. With only Fannie Mae and HUD selling more homes in West Tennessee, that trend does not look to end any time soon for several reasons.
1. Stability. Memphis Invest as a company has segmented the business and structured a company that is scalable while being extremely efficient and able to maintain tight quality controls. (Doesn't sound like a typical real estate company huh!)
2. Changes in Fundamentals. Memphis Invest made a clear decision to focus on nicer properties in better neighborhoods and to do everything possible to reduce, if not eliminate altogether, deferred maintenance. Today , our price points are on average $10,000 higher than most other companies in Memphis with the exception of Investor Nation who has always focused on nicer neighborhoods.
3. Dedication to Service. A big reason for our growth has come directly from our existing clients. Many of whom have been building portfolios of cash flow properties for the past 2-3 years. Those clients tell the story of the service and attention to detail they receive even better than we can!
4. Market Conditions. We have known for a while that there was a large shadow inventory here in Memphis and that local and national banks were going to have to take action soon. Not all of these properties are in areas that MemphisInvest.com wants to invest, but some are!
With that being said, here are the current sales numbers through 3 quarters for the five top turn-key companies in Memphis:
Memphis Invest - 218 properties sold Jan-Sept.
MIP - 167
MCF - 82
IN - 45
RCP - 40
* as reported by Chandler Reports
By the end of the fourth quarter Memphis Invest should surpass 300 investment properties purchased in 2011 and the other 4 companies should combine for an additional incredible number of investment properties. Again, not all of those properties are in areas that Memphis Invest would recommend to an investor. However, that is a fantastic number of investment properties purchased and one of the main reasons why the real estate market in Memphis continues to show signs of improvements in total sales.