Memphis Real Estate Investing

Investment Options
Real Estate Investment Options in Memphis, Tennessee
Working with many real estate investors has its perks, we have the opportunity of seeing many different real estate investing strategies of real estate investors from all over the United States. Here is what most real estate investors are doing right now.

1. Buy and Hold for Cash Flow - This is the number one strategy hands down being used by real estate investors buying investment property in Memphis. This comes in 2 forms.
   1. Invest in Property that is already rented - Some real estate investors prefer to buy homes that are already rented. This is one way to take advantage of the Memphis market. You typically are buying a home closer to market value because the risk has been minimized for you by the investor that originally bought the property and rented it out. However you get a property that typically has been through the major repair period and has a proven tenant in the home right now. You can expect to pay 75-95% of market value depending on a number factors including, location, amount of cash flow, appraisal, ability to retail, etc.
   2. Invest in Property in "As-Is" Condition - This strategy has a higher risk but typically a higher reward. We sell more properties this way than any other way. By having the team approach in place, your risk is minimized as much as possible, but you are still buying an investment property that has been sitting vacant in most cases and may be prone to theft. Typically the purchase are anywhere from 40-75% of market value. Again this number is determined by the laws of supply and demand. Just like in everything else, you get what you pay for. The lower the purchase price, the worse the condition, neighborhood, vacancy rate, etc.
2. Buy to retail (fix and flip) - This particular strategy is for experienced investors that have a higher risk threshold, larger reserves and can weather the time that it takes a property to sell on the market. The Memphis retail real estate market is down from last year's record sales year, but is near the annual average. Because of this it is important to note that even in a good retail residential home sale year in Memphis, the time on the market is still significantly slower than an average year in a coastal market. Essentially if you think you are going to buy a house, renovate, and resell it in 30 days or less, you may want to reconsider. Out of 100 deals we do in this category we only select about 5 homes that we feel meet the qualifications to resell based on neighborhood, experience of the investor, purchase price, etc.
3. Buy from us and resell to another investor - Our goal is to leave the lion's share of the profit for the end investor. By doing so, we allow plenty of room for an investor to profit regardless of strategy. Also this encourages repeat business. We've seen real estate investors take this strategy and take 2 distinct routes.
   1. Buy in "as-is" condition and sell in "as-is" condition - Some real estate investors work with other investing groups in other areas and here in Memphis. By purchasing the home at our deep discount, the ability to resell the property for a profit exists. Some investors use this is as their strategy and we still lend them our support team and vendors to use and ensure their real estate investor is taken care of.
   2. Buy in "as-is" condition, renovate and resell rented - We've had some buyers recently that take advantage of the deep discounts in our property before renovation, take on the risk of renting it and the sell it to another real estate investor.
4. Commercial Real Estate Investing - Real estate investors with more experience and capital often purchase commercial real estate property from us. This includes, office, industrial, retail, and multi-family properties.
5. Development Opportunities - Additionally we often find development opportunities in the Memphis real estate market. These include condo conversion opportunities, land tracts, and other creative opportunities. We assist in building the vision, and you provide the capital. See our consulting page for more info.