Archive

Archive for March, 2010

A different perspective on why now is the time to invest in Memphis, Tennessee real estate

It’s not often that I let Marq out of his office and on an even more rare occasion that I let him write a blog!  But, I thought what the heck, he makes some good points and is actually writing in complete sentences.  I am actually kidding around here.  Marq is very intelligent and has helped hundreds of Memphis invest clients with building their Memphis investment property portfolios.  I trust him implicitly to take care of all of our clients and I think this blog post is a great illustration of how far he has come!

Enjoy – Chris

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Brett and Chris were giving me a hard time the other day as we sat in a restaurant over the fact that a few gray hairs have popped up on both sides of my temples. My reaction, of course, was to point out to Chris that if he would quit sending out emails to our entire mailing list with typos in the headline, maybe my hairline would still be all the same color. You can say things like that to your boss when you also consider him a good friend.

The more I thought about it, though, the truth is that over the last three years I have earned a few of those gray hairs.  Having worked in every division of our company at some point and currently serving as the Director of Sales, I realized that the experience that I have accumulated in my tenure here at Memphis Invest is really helping me explain to our clients why there has never been a better time to invest in cash flow investment property.

The main reason I think now is the perfect time to buy is the quality of the properties at the various price points.  A $45,000 home on our website is miles ahead of a property at the same price in 2007 in terms of quality and the amount of rent that the property will command. That $45,000 house bought 3 years ago was probably bringing in $550-650, and creating a nice return for its investor.  Today there are several houses in our inventory at the same price point bringing in as much as $800 per month in rent.  Now those are some serious cash flow and cash on cash return numbers, aren’t they?

And it’s not just the numbers.  It’s the quality and size of the house, and the attributes of the neighborhood that are going to command the rent. Following my example of a $45,000 house, it’s safe it to say that a home purchased at this price point today is going to probably be a 3 bedroom house in a solid, working class neighborhood near good public schools.  It’s going to be a bigger, nicer, and in a better location than house brought at this price point 3 years ago.

When you’re on our website this week checking out the available properties, keep in mind that this isn’t going to last forever.  Brett told me last week that he is seeing some prices slowly creep up in some areas, and there’s no one more willing to help you pick out your next property than David and I.

My goal is to buy 5 more properties before Christmas. I’m going to hit my goal.  Will you?

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Categories: Tips & Advice

Real Estate Investors are using Cash to purchase discount properties – Even in Memphis!

About 8 months ago, the owners of MemphisInvest.com recognized a trend taking place in the investment real estate market and moved to capitalize as soon as possible.  That trend has bore out over time to be a new marketplace, a new investor that wasn’t taking part in the real estate buying frenzy of 2008 and 2009.    We even developed a whole new strategy and business model to help us take advantage of that trend.

Cash Buyers

Real estate investors today have a different look, feel and strategy than real estate investors of just a couple of short years ago.  Here in Memphis, Tennessee, real estate investors are flocking to companies like MemphisInvest.com that offer true comprehensive servicing – turn key real estate investing if you will – and they are paying cash.

MemphisInvest.com took a hold of this trend last fall and began to make sure our services and, more importantly, our customer service was geared to offer these investors every advantage they were seeking with investment properties here in Memphis.  As a company, we made sure that we were reaching out to these investors and tailoring our properties and services to their needs.

The USA Today newspaper ran an article on Monday March 22nd highlighting this trend around the nation and validating the moves that MemphisInvest.com made in 2009 to stay in front of the ever-changing investment real estate market.  You can read the entire article here.

Those adjustments are what have kept MemphisInvest.com as the top investment property services provider in the area and possible the country!  We led Shelby County again in February as the largest non-bank home-seller and we plan on leading that category again in March.

Chris

Categories: Investment News

6362 Macon – A great investment property in Memphis, TN.


Memphis continues to be one of the hottest markets in the U.S. for real estate investors to take advantage of the continued foreclosure problems.  Foreclosures in Memphis continue to hold steady at unusually high levels and the pricing for real estate investors to purchase the properties continues to fall.

MemphisInvest.com offers complete turn-key services for real estate investors from around the country and specializes in working with investors located outside the state of Tennessee.  For information regarding how you can get started investing in Memphis real estate today, you can contact MemphisInvest.com at 1-877-773-9998.

Categories: Investment Properties

The ebb & flow of the real estate market is the only thing that can reduce foreclosures

I am a big believer in keeping yourself up to date with the latest news from the real estate world.  I have been reading the DSNews everyday and I have begun to link to articles form the site and even re-print when I think they are news worthy to real estate investing in Memphis.  This article definitely defines one reason we are having so much trouble getting a housing recovery to take hold and gain traction.

DSNews.com
Brittany Dunn

In an effort to develop a clear view of the real estate market, Homes & Land, a Tallahassee, Florida-based provider of real estate media and marketing, recently asked thousands of real estate agents for their opinions about their local real estate market and published the results in its Market Pulse Survey Report.

When asked if the Home Affordable Modification Program “has reduced the rate of foreclosures in your market,” only 10 percent of respondents said yes. Of those remaining, 65 percent responded no, and 25 percent were unsure.

“Unfortunately, the data on the program to date and the responses from our survey show that HAMP has done little to help,” said Eric Adair, business development analyst for Homes & Land. “Clearly respondents to our survey don’t believe this program is helping to reduce foreclosures.”

Despite the low enthusiasm about HAMP, overall optimism seems to be improving, with most agents reporting an increase in homebuyer interest. Regional responses in states with the highest foreclosure rates showed even higher buyer interest—Arizona, at 71 percent; California, at 64 percent; and Florida, at 67 percent—than the national average of 58 percent.

However, Home & Land said the increase appears to be coming in the form of distressed sales. Only 14 percent of agents reported that the majority of their sales over the last 12 months came from distressed sales, but reports of distressed sales were much higher in Arizona, at 38 percent; California, at 35 percent; and Florida, at 26 percent.

The survey also found that 41 percent of respondents believe real estate prices in their market have bottomed out. However, 36 percent don’t believe prices have hit their lowest, and 23 percent were not sure. In addition, 47 percent of agents said only 0 percent to 10 percent of their clients have purchases a home using the homebuyer tax credit in the last three months.

“Almost 5800 Realtors and agents across the United States participated in the Market Pulse Survey,” Adair said. “We will continue ‘taking the pulse’ of as many local markets as we can throughout 2010 to better identify trends and regional market conditions.”

Categories: Investment News

All signs point toward a continued good period for buying Memphis investment real estate

DSNews writer, Carrie Bay published an article today citing Barclays’ bank analysts pointing toward a continued drop in pricing around the country, but a slowing of the foreclosure process and eventual bottoming of pricing.

This is a trend we have been seeing in Memphis foreclosures as the number filings slows and inventory reduces.  The number of properties in Memphis in pre-foreclosure notice status and behind on payments continues to remain high, but is expected to level off and be reduced over time.

The article also points out that any increase in sales will probably match a decrease in sales price until the excess inventory of discount properties is reduced.  This matches another trend in Memphis investing as the recent rise in home sales has also been met with a decline in average sales price.

If you have read earlier blogs by me, you know that there is some concern of a “shadow inventory” hanging over the country.  The analysts at Barclays point out that any failure to contain future foreclosures or slides into foreclosure of modified loans could dramatically alter the recovery process and prolong a deflated pricing situation.

For long-term investors whose properties are being paid off by the positive rental income, this is music to our ears.  A continued downward trend in pricing means an ample supply of discount priced real estate to purchase, rehab, rent and manage with a turn-key real estate company.  The more property investors are able to purchase today at discount pricing, the quicker the supply dries up and the quicker those properties are rehabilitated and put back into the housing system as rental property.

Here is a link to Carrie Bay’s complete article.

I will keep you updated on any future articles that tie into the housing situation here in Memphis, TN.

Chris

Categories: Investment News