Lease purchase in Memphis.

[RonMurcia]

In April this year I bought a property in Mempis from a UK based company called Axis on a lease purchase scheme. The purchase went through smoothly and all was completed without a hitch. I would like to point out here that Axis were always very helpfull and I have no complaints about them. A few months went by and all seemed to be going fine. I then get an email from the management agent in Memphis to say that the tenant was in arrears but not to worry. Six weeks later I am told that the tenant had left the month previous and no one had bothered to tell me. This is where the problems really started. Emails to the management company not being replied to, calls not returned etc. Alarm bells started going off. I would very much like to hear from any other investors in this Memphis lease purchase scheme to get their experience.

 

[Dave_Velasco]

Hmm I have not gone into Memphis before but had you tried telling the locals? Maybe you should have seek help from someone who is your friend first and then they might give you someone who is better and not just a hoax.

 

[Jakebrake]

Memphis Bulk package

I bought a bulk package from Axis at the start of this year and its all been very disapointing.
Like you said Axis seem to be trying to sort things out with the management people in Memphis but they are a complete mess, they never answer calls or emails.
I have not recieved any income from the propertys to date even though Axis advertise this deal as 20% garanteed return. I too would like to hear from anyone else who is having the same problems.
If things don,t improve very soon i will be flying out to the US to get a grip of what is going on.

 

[Drew Drew]

Jakebrake - I recommend you fly out ASAP to inspect what's going on. Not sure how many homes you bought in your package, but where there's smoke - there's usually fire.

Management is ALWAYS the key ingredient in the investment property mix. Even if you get the deal of the century on the perfect property, poor management can ruin it.

It never ceases to amaze me how many foreign investor in the Detroit market, deal with unlicensed property management companies.

Remember - a fool and his money are soon parted!

 

[beechfield]

Hi I've just joined and am finding this a really interesting forum so far!

I'm glad I found this thread actually as I have recently been considering the bulk package in Memphis myself, and am trying to plan a trip to visit the area and look at some of the property (I am not keen on buying anything without getting a feel for what I'm getting).

I'm obviously concerned now to hear of two people who bought recently who aren't happy with their purchases, I'd really be interested to hear more if you wouldn't mind sharing further information about your experiences so far?

 

[Drew Drew]

We're assisting an investor from France that bought two properties in Detroit. They appear to be in the better parts of the city, but the company they were bought from is giving the investor the run-around on transferring control. We can't even get inside the properties which are vacant!

Furthermore, when we sent the investor our management application form, we found out the investor doesn't have a U.S. LLC and didn't know if their properties were insured. The company they were bought through claims the properties are insured through Lloyd's of London, but has not provided proof to date.

Just another example of what foreigners investing in the U.S. need to be aware of and cautious about.

 

[AlbertL]

I am also interested in Memphis, according to reports Memphis is a good option to invest and having better return with minimum risk.

 

[owendale]

I am also interested in Memphis, according to reports Memphis is a good option to invest and having better return with minimum risk.

Hi Albert
just a quick word of caution those reports , ignore them... If you believe them all you will be investing in everything. My advice is to spend time in any area your interested in and talk to people who live there 24/7. Statistics and reports are seldom wrote by anyone that has any real experience of the area. I have paid the price , well overpaid if you must know and I put it down to me being too trusting and not following simple advice and asking questions. Remember to invest well you must know as much about the area as the realtor that is trying to sell you a property in that area.. I spend time and research before I decide.. I have visited Detroit , rochester Syracuse ,buffalo and most of Florida from key wet right up The 95 and 75 . I was really impressed by Rochester but Detroit was not my favourite place. Anyway take you time as property investments are not for most of the time get rich quick schemes and the mor you learn then the more potential there is to earn...

 

[NOJ]

The figures on Memphis look good, but it takes a lot of time to get Axis, and in particular the management company in Memphis, to do anything. I have had one payment for three months rent having purchased properties 10 months ago. The US management company is disorganised - but Axis are in the process of changing them so hopefully it will get better. I would recommend waiting until someone posts something positive - certainly I wont be buying any more until I have all the money I am due in my bank. The positive is that the properties are in my name, so unless prices crash I shouldn't lose too much...

 

[owendale]

UK based companies that sell USA property ... WARNING and FREE advice..

armchair investors , simply get off your arse for a better deal..

1. All or at least the large majority of UK based companies are unlicensed and un regulated and add to any USA investment property costs.
2. The UK based company that claims to protect UK people from bad deals , told me that they can not control their members from listing property without any details I.e a basic property address!! amazing. Yet the British property shows and mags love them.. AVOID. Anyone that will not be open and honest about property location Simple.
3. For USA property use a licensed and regulated people , but make sure they are not selling the property for a client . You decide what area etc .
4. Choose only after months of research , do not believe hype and bull**** there is not one property mag in the world that can give as much information as actually visiting a place and visiting library's gov records tax records and chamber of commerce ALL the info is rarely shared , you have to easily find it for yourself.

Opps time to do more work ... More from us next time..

 

[Veronica]

Owendale I agree 100% about UK based companies selling overseas properties.
The vast majority of people who have found themselves with huge problems with properties in Cyprus bought off plan through UK based IFAs who only cared about thier commission. They sold people vastly overpriced apartments misleading people into believing they were buying in Coral Bay when in reality the properties were in horrible locations miles from the sea with views of either a tip or next to an industrial estate.

Buyers please do your homework no matter which country you intend to buy in. Don't believe a word these IFAs tell you without checking it out thoroughly. Failure to do your own due diligence will in all probability end up with a distaster.

 

[clarkd384]

I am also interested in Memphis, according to reports Memphis is a good option to invest and having better return with minimum risk.

Good to hear! Can you please give me a brief about the Market of Memphis, so that I can take a decision.
Thanks!

 

[Ryan M]

Hi Albert
just a quick word of caution those reports , ignore them... If you believe them all you will be investing in everything. My advice is to spend time in any area your interested in and talk to people who live there 24/7. Statistics and reports are seldom wrote by anyone that has any real experience of the area. I have paid the price , well overpaid if you must know and I put it down to me being too trusting and not following simple advice and asking questions. Remember to invest well you must know as much about the area as the realtor that is trying to sell you a property in that area.. I spend time and research before I decide.. I have visited Detroit , rochester Syracuse ,buffalo and most of Florida from key wet right up The 95 and 75 . I was really impressed by Rochester but Detroit was not my favourite place. Anyway take you time as property investments are not for most of the time get rich quick schemes and the mor you learn then the more potential there is to earn...

Can't agree more with you.Before one invests make sure you have down your own investigations and do not rely on the sweet words of the marketers.Remember when the deal is too good, there is a high chance it is not true.

 

[NOJ]

Update after another 8 months have passed since my earlier post. I would recommend not buying in Memphis - and not buying from Axis. I have now ditched the second management company that Axis appointed. I have no tenants in my five properties. I know of 56 investors who purchased 202 properties in Memphis over the past couple of years and based on figures provided the average net yield is a negative 1.7%. I believe Rod Thomas of Axis has lied to me, and I know of people who are selling their properties at a loss because they can no longer afford to continue paying for properties that are being vandalised due to not having any tenants. Average occupancy looks to be 18% across all these properties. And all this when I have a signed guaranteed 20% yield, as sold to me by Axis. I would sue but I know Axis have no money so it would only cost me more money.

 

[AlbertL]

Update after another 8 months have passed since my earlier post. I would recommend not buying in Memphis - and not buying from Axis. I have now ditched the second management company that Axis appointed. I have no tenants in my five properties. I know of 56 investors who purchased 202 properties in Memphis over the past couple of years and based on figures provided the average net yield is a negative 1.7%. I believe Rod Thomas of Axis has lied to me, and I know of people who are selling their properties at a loss because they can no longer afford to continue paying for properties that are being vandalised due to not having any tenants. Average occupancy looks to be 18% across all these properties. And all this when I have a signed guaranteed 20% yield, as sold to me by Axis. I would sue but I know Axis have no money so it would only cost me more money.

Yes Memphis market is not growing as we expected and most of the investors are in loss and trying to sell their Memphis property. Current scenario is quite confusing property buying rate is low comparison to other cities but there is no guarantee about it will increase to sell in future or will be same that's why investment in Memphis properties is not good for now.

 

[owendale]

Yes Memphis market is not growing as we expected and most of the investors are in loss and trying to sell their Memphis property. Current scenario is quite confusing property buying rate is low comparison to other cities but there is no guarantee about it will increase to sell in future or will be same that's why investment in Memphis properties is not good for now.

TIPS TO BEAT THE BRITISH LIERS ... Please ALL copy and spread...
1. The British so called USA property experts list a fantastic HA. HA. Deal ..
2. They offer to introduce you to their ????? Agents. In the USA ..
3. You go over with the details ..BUT no property address there is a reason for that...
4. When their so called agents starts to show you the place , get clever and beat these so called UK experts..
5. See if the agent will make a deal with you and not the UK based introducer.. If they say no WALK AWAY say NO DEAL.. But get the property address.. That's the KEY..
6. Go into any other real estate office and armed with the address guess what .. You will do what your UK expert has done make a deal ... If you can find the actual listing agent so much the better . But UK experts know this and most of the time they go direct to the listing agent...
WOW this bit of information could save 1000s of people lots of money... PLEASE Every share it spread this like wildfire and lets kick out the CRAP from UK overseas deal makers in the USA...
7. Oh and if you can get to a good listing agent they want the best deal for the seller . And that's why so many UK deals overpay and get ripped off that pay top dollar and the many layer of fees and little white lies only add to the final costs..