Does anyone know about investing in Memphis Tennessee? I have heard that a local outfit there is offering 50% finance, no questions asked on all property purchases. Most houses are going to investors there for around the $40k mark.
Ian
http://www.theblockblog.com
Free Property Info, Tools & Resources for Investors with a Sense of Humoursapphire101 wrote:Does anyone know about investing in Memphis Tennessee? I have heard that a local outfit there is offering 50% finance, no questions asked on all property purchases. Most houses are going to investors there for around the $40k mark.Ian
http://www.theblockblog.com
Free Property Info, Tools & Resources for Investors with a Sense of HumourSapphire,
I can’t help but be a bit suspicious of that finance offer. Surely they are a Hard Money Lender, charging outrageous interest. And if, so, they’re hardly the only ones with that sort of offer. And 50% doesn’t sound so special. Might be OK if you’re after a quick flip, but for a buy-and-hold strategy….Are these 40K properties you’re looking at REO’s from listing agents, or flipped from other investors/agents/turnkey companies?
Ian,
Check out the latest Australian Property Investor Magazine. There's an interesting article about an Australian guy who's done quite a bit of investing in Memphis over the past 6 months and is about to head over there for a longer stint.
remeUsually what happens in these cases with guaranteed financing is that the seller is able to purchase the property “all in” for 20K locally. He then sells it to an investor (usually foreign) so with the 50% down payment, he recovers his initial outlay (20K) and your monthly payments are his profits. I don’t mean to say that is always how it works, and it may still be cash flow positive for you (if he rolls the finance over 10 years) but I’d always make sure to research the price first – just my 2 cents.
Hi Sapphire
i would be interested to hear more about the Mephis finance, I tried to get on your site this morning to send you a message but it was not available any longer.
Can you please pm me the details of who to contact about this, I would like to know terms, interest rates and which properties I can purchase this way.
Thanks
I always resort back to the old saying, “If it is too good to be true, it probably is.”
Always ask for previous clients testomonials and do your own background checks.
Of course they do 50% – fantastic way to make their profit and earn interest on it.
I am constantly stunned at how easy it seems to be to overcharge people who ‘have’ to buy a ‘bargain’.
Absolutely they pay $25 – 30k and then ‘sell’ it for $60k with 50% finance… If you do want to overpay 100% at least understand you are!
Amazing, absolutely amazing that people can justify this overpaying lunacy to themselves….
Hi Sapphire
We have had many client purchase in Memphis who are so happy with the properties they have purchased.
We also have finance available there.
From experience I can let you know that Memphis is a large rental property market. The renters like to be near their employment, so look for properties that google close to the Nike factory, Fed Ex or the hospital hubs.
All I can say is Great Place, Great People. Good luck with your buying
RickHy,
Just sent you a PM. I gather you bought in Kansas?
TH
Hi TH ,
Yeah, all going well settles tomorrow or day after at worst.
Memphis looked good as well . We were originally looking at doing 3 in KC and doing 70% LVR
finance but that all went pear shaped banks wanting to know the color of your jocks ect.
We were offered 50% LVR in Memphis and that would have gone through easily but the cash flow
wasnt there with that set up. In the end we bought 1 in KC for cash. If it goes well look at more in the futureWell I’m just going to say that US Prime Property was a great website for me to buy property off. As newbie to the real estate business they have heaps of info on their website. But thats just my 2 cents.
Hey 1eyeopen,
What was your experience with US prime property, I am thinking about meeting them to discuss purchasing property,
thanks Adam
I haven't been to Memphis yet and don't know the market, but will be there to check one outfit out very soon. What I do know is that the finance is through private lending (hard money) at 10% or just under. Option given is to pay cash and take the bigger return or leverage with the finance offer and possibly buy more. Both with the view of using the following 18 mths to obtain a credit score to refinance the property at around 80%. Asset + credit card use + income. Then pull the initial investment and/ or pay off the private lender. Seemed like an ok alternative if for the short term and a means to an end.
By the way thanks for all your input. Much appreciated. Will contact Mr Loans USA too. Thanks for the heads up on Nike, FedEx and hospitals.
Also I agree about the mark up on these properties, but after visiting the USA five times in the last 3 years, I can see why investors here would agree to pay those prices. It seems to be the compromise you are comfortable with when you cannot physically get there yourself to buy them cheaper. The other factor it seems is the security of a good turnkey operation from rehab, to management etc. It is difficult enough when you are there in person and doing deals, so these alternatives, if they are up to scratch, I can now see, to be viable for Aussie and Kiwi investors.
Believe everyone when they tell you though, these properties sell 'initially' very cheaply. My last purchase in the states was a pub with 2 apts for $13,600.
To 'USA' – try the site again
Ian
http://www.theblockblog.com
Free Property Info, Tools & Resources for Investors with a Sense of Humoursapphire101 wrote:I haven't been to Memphis yet and don't know the market, but will be there to check one outfit out very soon. What I do know is that the finance is through private lending (hard money) at 10% or just under. Option given is to pay cash and take the bigger return or leverage with the finance offer and possibly buy more. Both with the view of using the following 18 mths to obtain a credit score to refinance the property at around 80%. Asset + credit card use + income. Then pull the initial investment and/ or pay off the private lender. Seemed like an ok alternative if for the short term and a means to an end.By the way thanks for all your input. Much appreciated. Will contact Mr Loans USA too. Thanks for the heads up on Nike, FedEx and hospitals.
Also I agree about the mark up on these properties, but after visiting the USA five times in the last 3 years, I can see why investors here would agree to pay those prices. It seems to be the compromise you are comfortable with when you cannot physically get there yourself to buy them cheaper. The other factor it seems is the security of a good turnkey operation from rehab, to management etc. It is difficult enough when you are there in person and doing deals, so these alternatives, if they are up to scratch, I can now see, to be viable for Aussie and Kiwi investors.
Believe everyone when they tell you though, these properties sell 'initially' very cheaply. My last purchase in the states was a pub with 2 apts for $13,600.
To 'USA' – try the site again
Ian
http://www.theblockblog.com
Free Property Info, Tools & Resources for Investors with a Sense of HumourHi Ian,
I like the idea of using the credit card to build a credit rating, but I keep hearing reports from people who are unsuccessful in getting one without a SSN (an ITIN won’t cut it with the application). Even impossible for a store credit card, yet alone a bank.
Have you heard of any success stories with this?
Cheers, Mark
Hi,
Can you “buy” a house in the US with a credit card? It’s a stupid question, I know, so please don’t thump me.
If I have cash stowed away for a purchase but prefer to use a credit card to get the “55 days interest free period” and then pay it off on due date, that would be great right?
US of A based people, please reply.
Angel
Angel,
To answer your question – no, unfortunately you can’t use a credit card to buy the home.
The way a closing happens, the title company (takes care of the closing etc) will require you to send funds in by wire (a check won’t work either if it’s above 10K) so there is really no good way of doing it by card unfortunately.
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