INVESTOR SPOTLIGHT
MEMPHIS INVESTMENT PROPERTIES
Hard-surface flooring, marble countertops, and modern cabinetry and design make this kitchen attractive to both rental owners and tenants thanks to a combination of maintenance prevention and updated design.
AFTER
The Memphis Investment Properties (MIP) team.
BEFORE
Investor Spotlight: Memphis Investment Properties
TRM Where in the Memphis area do you invest?
TRM What makes your market unique?
MIP We look at a number of factors when we decide where to invest. The most important thing is to own property where people want to live! Areas that are desirable due to proximity to local employers like FedEx, Nike, and St. Jude Children’s Hospital, for example, tend to be in demand and stable. A few specific neighborhoods include: • HICKORY HILL , which is just east of the world’s largest air cargo hub (FedEx). Tenants definitely want to live here, but they demand quality, modern renovations that are updated, clean, and safe. • WHITEHAVEN , a community just west of the airport, is known as the home of Elvis Presley. Probably more relevant to investors today, this neighborhood is only 15 minutes from St. Jude’s, which recently announced it will invest $9 billion into the local community to help Memphis transform its downtown and Medical District. We closely track these municipal trends and adjust our investment strategies accordingly. • CORDOVA , which contains major shopping centers, busi- nesses, and apartments, is one of the fastest-growing neigh- borhoods in Memphis with more than 1,226 businesses and 19,400 employees working in the area. • MILLINGTON is located near the Memphis Naval Air Sta- tion, which handles all of the human resource tasks for the entire Navy. This means that a lot of tenants in this area get monthly stipends for rent.
MIP Memphis has a history of stable home prices and strong rental demand thanks to strong blue-collar jobs that create an ongoing need for workforce housing. It is also a logistics hub, meaning that it is the center of a lot of compa- nies’ shipping operations. In fact, Memphis is known as “America’s Aerotropolis” thanks to the convergence of runway, river, rail and roads in the city. Our western border is the Mississippi River, which gives us access to two major inland ports, while I-40 runs coast-to-coast directly through Memphis and I-55 runs north-to-south directly through Memphis. Most recent on the roadway side of things, I-69, also known as the NAFTA superhighway, runs from Can- ada to Mexico – again directly through Memphis! We also have five of the seven types of class I railroads. MIP We experience our “proudest moment” every time an investor succeeds in achieving the dream of passive income from rental properties that exceeds their living expenses. It is our great pride to enable investors to be able to be truly financially independent. We are proud to provide a path to financial freedom for the individual investor and also to generational wealth that can be passed on to future generations. • TRM What is your proudest moment in real estate?
TURNKEY REAL ESTATE & NEW CONSTRUCTION ARE THE BEST FIT FOR MEMPHIS REAL ESTATE.
by Carole VanSickle Ellis
emphis Investment Properties (MIP) has been actively investing in the Memphis, Tennessee, real estate market for nearly four decades. The company offers complete turnkey real estate investing services, meaning that real estate investors who wish to own rental real estate in their portfolios but do not have the time or inclination to oversee the purchase, leasing, and management of those properties can turn the entire process over to MIP professionals. It also means that MIP itself has, of neces- sity, established a clear-cut system for local market analysis that enables the team to identify undervalued but stable neighbor- hoods in which to make investments on behalf of their clients. Think Realty Magazine sat down with several members of the MIP team, including investment broker James Wachob, dispo- sitions manager Mark Hart, and vice president of operations Sean Tagge, to break down the company’s current take on the local market and how they reached their conclusions. M
the most consistent returns in today’s Memphis market. In today’s competitive market, the key to generating successful returns from the start is keeping those mainte- nance requests to a minimum, since
JAMES WACHOB PARTNER, MIP
that is where your costs will add up fast. We recommend installing several “maintenance preventers” in your rental properties, such as hard-surface flooring, new roofs, new HVAC, and new plumbing. Factor the costs of these updates into your budget when you purchase a rental property, and you will find that they pay for themselves in prevented maintenance quickly! We also have a big demand these days from our renters for new construction homes. Of course, new construction also tends to offer low future maintenance and they are more energy-efficient. We are seeing very good comparisons between rents in our area and the average price of homes, both new construction and existing, in our area. Even with our practice of bringing all our rental properties up to 2018 standards (see image at right), buying turnkey properties in Memphis is still a great approach for investors looking for passive cash flow.
TRM What is your favorite real estate investing strategy for Memphis right now?
MIP will host its annual Live Event, which includes a chartered tour of the market’s hottest rental areas guided by MIP’s team of turnkey rental experts, May 18 & 19, 2018. The MIP teammay be reached at www.ThinkMemphisRealEstate.com.
MIP Turnkey properties and new construction properties offer
86 | think realty magazine :: april 2018
thinkrealty . com | 87
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