Memphis Investment Properties
Memphis Investment Properties targets single-family homes in desirable areas of Memphis, Tenn.,
to help investors grow their portfolios.
By Janice Hoppe-Spiers, Knighthouse Media
The housing marketing in Memphis, Tenn., is an investor’s dream. In addition to making Forbes’ best markets for real estate investment 2019, 43 percent of residents are renters and inventory is high. With more than 38 years of experience in the Memphis real estate market, Memphis Investment Properties offers local and foreign real estate investors compete turnkey service to grow and diversify their investment portfolio.
“We have investors from all over the county and the world investing in Memphis because it’s a hot rental market,” COO Sean Tagge says. “Investors come to Memphis because we have great returns; low purchase price and high rents. We have properties that are fully renovated and ready to be rented. The investor turns the key and it’s ready to go. We do a lot of flips, but also new builds. Our homes are built to sell to an investor with the purpose of renting it and that sets us apart uniquely. Most homebuilders are building to sell to homeowners and our niche is building to rent.”
Jim Reedy and his wife, Debi, founded Memphis Investment Properties as a sister company to Reedy & Company Realtors, one of the city’s largest full-service property management companies with 2,400 units. Because investors purchase from thousands of miles away and won’t be able to locate a property, renovate it and manage it, Reedy’s companies truly offer a total solution for investors. Reedy & Company serves its owners by managing the property, collecting rent checks and handling all repairs needed.
Memphis Investment Properties starts by acquiring distressed properties in specific areas that qualified tenants are asking to live in. The company performs a full renovation by adding several “maintenance preventers” like hard-surface flooring, new roofs, new HVAC, updated plumbing and more. After more than 6,000 renovations, Memphis Investment Properties prides itself on providing the highest-quality rental properties in Memphis.
Once the renovations are completed, investors are able to acquire its properties and let Memphis Investment Properties do the rest. “We have more than 30 years of experience being in Memphis,” Tagge says. “Jim Reedy has extensive experience and treats every property as if they are his own. We know what to look for in the market and have learned through our own mistakes over the years. In our properties, we want stable renters who want to live there, the types of repairs needed to reduce maintenance calls and damages in the future to keep repairs to a minimum.”
As market experts, Memphis Investment Properties says Memphis is transforming into a highly desirable location for millennials. “Midtown and downtown Memphis is regentrifying and coming alive,” Tagge says. “The city offers stable, blue-collar jobs. FedEx is a major employer here with its main distribution hub located here. It is the second-largest air cargo hub in the world with tens of thousands of packages shipped out daily. They are expanding and investing $1 billion into Memphis to expand their operations.”
St. Jude Children’s Research Hospital is also located in Memphis and expanding $9 billion into facilities and residential areas nearby. “They employ world-renowned doctors and nurses supporting its mission,” Tagge notes. “Nike also operates a three-million-square-foot distribution warehouse, supplying stable jobs to the local community.”
Memphis is also one of the lowest costs of living cities in the United States, which attracts transplants from all over the country. “Memphis has been a high renter percentage market,” Tagge says. “People like to rent, which is why it’s on the rise and home prices are on the rise with a 5 percent appreciation, which is very high for Memphis and a sign of growth. Lots of jobs are coming here, employers are expanding and it’s a fun place to live.”
Memphis Investment Properties identified a gap in the starter home arena and builds single-family homes in the 1,300- to 1,600-square-foot range. It targets subdivisions where 80 percent of the homes are already built and owned by homeowners and buying the leftover lots from the builder to build five to 20 homes that are going to be rentals.
“We aren’t oversaturating the neighborhood with rentals and only building what the subdivision can support,” Tagge explains. “Investors have a nice new homeowner community that they can keep as a rental investment or sell. We have done this in three areas of town and continue to focus on this method.”
In May, Memphis is home to the “World Championship Barbecue Cooking Contest” at which time Memphis Investment Properties invites potential investors to experience the festival and tour its properties. “We hosted 80 investors from all over the world last year, told them about our company and rented a tour bus to show them our new builds and rental properties,” Tagge says. “It’s a fun time.”
In addition to single-family homes, Reedy has bought more than 400 multifamily units over the past year as this segment of the market is also exploding. Reedy & Company continues to establish its reputation as a high-quality property management firm by purchasing these multifamily buildings that were poorly managed and transforming them into nice places to live.
Memphis Investment Properties in 2017 bought and sold 235 properties. In 2018, it sold 245 and its goal this year is 335 properties. “That makes us the third-largest seller of homes in all of Memphis,” Tagge says. “The future is to keep doing it and adjust to the market. We are feeling good and bullish this year. Memphis has a lot of good things going for it and investors are looking for good returns, and Memphis is where their returns are being met.”