Memphis Investment Insights: New Builds and Turnkey Rentals

Posted Wednesday, October 4th, 2023
Real Estate Investment Podcast - 5 O'Clock Somewhere
Real Estate Investment Podcast - 5 O'Clock Somewhere
Memphis Investment Insights: New Builds and Turnkey Rentals
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The real estate team unveils a treasure trove of off-market inventory that promises exciting investment opportunities in Memphis, TN. With decades of experience, their collaboration with seasoned builders offers new construction projects in various city areas, focusing on rejuvenating blighted homes and vacant lots into lucrative 1,400 square foot, 4/2 new builds for rentals. Additional builders are actively crafting turnkey properties and rehabilitated homes with attractive returns. Amidst Memphis’ nuanced real estate landscape, a standout property in the vibrant Soulsville neighborhood emerges, ripe for Airbnb or traditional rentals. The team’s extensive investment network ensures a continuous stream of exclusive off-market listings, making this a prime moment for savvy investors.

Brett
0:00:41 – Hey, welcome back to another episode of It’s Five O’Clock Somewhere, a real estate podcast. We’re just a couple of guys that like to talk about real estate investment, we’re pretty damn good at it. Sorry, our wanker producer is counting the people in the room. I said a couple and there’s four. We’re just four guys who like to talk about real estate. We’re licensed agents and that’s all we do is deal with investors around the world and across the country and buying and selling real estate, mainly in Memphis. We are sponsored by Title Assurance and Escrow, one of our title companies that does all of our closings. They are Chris and April, 901-737-3332. If you have any questions about escrow or closing or you’re looking for a title company. Also the Stamps Real Estate Company Investment Division, which is us, is also a sponsor of this show. Oh, by the way, we’re not experts. We actually know what we’re talking about.

Matt
0:01:28 – And there it is.

Brett
0:01:29 – I’m going to use that tagline. I keep forgetting. So today we’re going to talk about our inventory. We’ve talked a lot about in previous podcasts about the markets, the investment strategies, the tips for investing. So I thought today we’d take a few minutes to just talk about our off-market inventory that us as a team have. And some of it’s kind of appealing. Jeff and I met with a builder, what, a couple weeks ago?

Jeff
0:01:52 – I’m working with a builder that has about 40 years’ experience that’s interested in going through different areas in the city, buying up blighted homes and empty lots and just constructing four to 13 1400 square foot new builds He’s so as rentals. He’s so excited about it. He’s he’s already having floor plans drawn up He’s hired a superintendent. This guy’s on board. We just need to find him lots

Brett
0:02:15 – Yeah, so the good news is I’ve got two builders that are currently under construction on brand new homes I’ve got another builder who is buying and rehabbing. When I talk about rehab, so in the instance I just found out from Terry Brown, he’s got one on Fraser Boulevard. He’s giving a one-year builder warranty with the rehabbed house. So I just got that in my inventory. I’m going to send that out to you guys today. Tom is buying and rehabbing houses inside and out, top to bottom, renting them out, Section 8 MHA and selling them at the 1% are better. So any investor looking for turnkey properties. I’ve got one in particular. What was the one I sent you? Do you remember? Which one?

Matt
0:02:59 – The Kerwin one?

Brett
0:03:00 – Kerwin. Yeah. So I’ve got some other homes that need work. They need a little bit of work to them with tenants in place. I’ve got homes that are vacant and brand new. I’ve got homes that are vacant and completely rehabbed. I’ve got homes that are completely rehabbed and rented. So pretty much we’ve got everything. And these are all off market. I have none of these listed openly. I send them out to the guys on the team and we try to move those to our investor list that we have around the world and sell them. But the one in particular I want to talk about is David. I’ll just use his first name. He’s a builder, his partner’s an architect, and they’re building these really cool looking little 4-2s. And they’re building them in 38111 and 38109 Whitehaven. And these homes are granite countertops, stained concrete floors, wrapped vinyl eaves and overhangs, cement board siding, like they’re pretty much indestructible and tenant-proof. And these homes are selling for around $170, $175 a pop and they’re renting with MHA for $1895 to $1995 a month, depending on the zip code, obviously. Whitehaven and East Memphis, they’ll get that. If they go into Frazier, they’ll probably be around $1795 a month, maybe 1695. So if you’re interested in investing into real estate with something that will grow, something that will have over the 1% mark, something that doesn’t need any maintenance and doesn’t need any repairs, then give us a call, 901-692-7401. Get in touch with Jeff because he’s got a builder that’s about to start doing those. Jeff?

Jeff
0:04:22 – 901-570-0654.

Brett
0:04:23 – Wheeler, do you have any inventory right now?

Matt
0:04:26 – I just got the one on Stafford. I can’t keep any inventory.

Brett
0:04:29 – Well, talk about it. Talk about it.

Brett
0:04:31 – Not keeping inventory is a good thing.

Matt
0:04:33 – Yeah, I mean, it’s just the one on Stafford. It needs a little bit of work. I’ve dropped the price down. The market’s kind of shifted away towards the fixer-up kind of a thing, but the seller’s completely motivated. They want to get out of it really, really fast.

Brett
0:04:44 – What do they want for it?

Matt
0:05:35 – Right now, it’s listed at $54. Yeah, 54. It currently needs probably about 25 to 30 put into it, which is not that bad. But the numbers on this property are phenomenal. I mean, I think the lowest per month is about $1,200. So even at all in about 89, you’re looking, what, 1, 2, 2, 2% almost? I mean, it’s pretty good. It’s on the Stax Museum walking trail that they have. If you ever come to Memphis and you visit the Stax Museum to see where they do all the There’s a walking tour that kind of walks around the historical area in the immediate area of the Stax Museum and the house is actually on that tour. So it’s a pretty cool little location. It’s in the area called Soulsville. That’s 38106 area code and it’s kind of like being revived. There’s a lot of revitalization in that area.

Brett
0:05:36 – When you look at the pictures, there are some areas that are kind of scary and other areas that are fantastic. It’s really a- Every investor I talk to, a new investor especially, is like, listen, you can’t just go to a zip code. Correct. Everything here is street by street, block by block.

Matt
0:05:54 – That’s really all of Memphis. Memphis is like that. And that’s why we go out there personally and make the scene on some of these properties and take pictures of the surrounding areas and we give you our professional opinion on

Brett
0:05:56 – Yep. We’re looking for homes that are recently remodeled or maybe there’s a construction dumpster in the front yard showing that that street’s actually got some progress going on. Right.

Richard
0:06:03 – Do you think that this would be a good opportunity for Airbnb?

Matt
0:06:09 – It’s a great opportunity for Airbnb. I mean the location of it is just south of downtown. You also have Royal Studios which is right around the corner. It’s another recording studio. You got Stax Museum right there. It’s right next to the interstate and you can literally be anywhere in Memphis in about 25 to 30 minutes. It’s a pretty good location. It’s a little rough but like I said it’s starting to invest in there so the rents are only going to go up. I mean right now even at the the bottom the rent rates are like I said about 1,200 bucks and it’s only going to go up from there because in the area I’ve seen rents up to over like $1,500 a month. So just a little bit of money put into this property. I know it’s not ideal right now because the current market and how it’s the investment market has shifted to more turnkey. This is still an excellent property and we have contractors that do great work for us and so that’s nothing that you have to worry about as far as being an investor if you wanted to purchase this property at a great price and we get the thing flipped around for you and push it off into either Section 8 or like you said, Airbnb, great opportunity for that as well.

Brett
0:07:05 – Yeah, alright. Well, that’s what we have currently on the off-market. We get off-market stuff all the time. I think it’s because of the vast investment network that we’ve got and that we’ve built, the investors we have worldwide and nationwide that actually buy in Memphis, buy and sell in Memphis. So if you’re interested in any of that stuff, just give us a call and go to our website, MyMemphisInvestmentProperties.com. You can see a nice picture of all of us on there. Our personal cell numbers are on there. And just give us a call. Appreciate you listening.

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