Memphis House Flipping Guys



If you are looking for lucrative real estate investment opportunities, one place you must look is in the Memphis market. One of the best investment models you want to explore has been developed and is active with a couple of guys known as The House Guys. Johnpaul Moses and James Alston hunt down tremendous discount values in the Memphis area and offer them at wholesale prices to other investors.

Memphis House Guys

These two men grew up in Memphis and have been friends since shortly completing high school. They work together as real estate investors in many ways but their primary business model is:

  • Performing market research.
  • Searching out properties with serious potential (mostly distressed, REO, corporate owned, and absentee owners).
  • Acquiring properties by getting them under contract between them and the seller at a great price.
  • Assigning those contracts to other buyers for a fee that they receive at closing.

The deals these men find are typically 30 to 50 percent below retail. Even after collecting their fee, these wholesalers offer tremendous investment deals in the hot Memphis market.

Memphis Offers Great Investment Opportunities

According to Johnpaul Moses and James Alston, house flipping tends to be more profitable in economically distressed areas. Memphis meets that criteria because the unemployment rate remains well above the national average. What makes Memphis unique is that while home prices remain relatively low, property flipping values have increased about 11 percent, year on year.

The House Guys say there is enough spread between wholesale prices and the end flip for a 51% profit. Houses are being bought for about $69,524. The flipped price is about $105,176. This brings in a profit of $35,652. The numbers are low enough and lucrative enough that many investors are doing all cash deals. Still, there are even better deals to be made.

Great Wholesale Examples

One recently offered deal was offered wholesale for $9,900. Yes, it needed one major repair in the form of a broken roof beam that was estimated to cost $30,000. Still, an investor would be in the repaired property for $39,990. This is an almost 1,500 square foot home with 3 bedrooms and 1 bath on a large lot. If you’re in the rental business, it is also tenant occupied. Rent Zestimate®: $844/month.

How about a 2 bedroom, 1 bath needing only cosmetic repairs for only $24,000 with a rent Zestimate of $650 a month. Or a 3 bedroom 1 bath needing a little more in cosmetic repairs (minor fire damage) going for $25,000 with a rent estimate of $750 per month. Another that is going for $29,900 is in a neighborhood where comparable sales are running in the $50,000 to $70,000 range. Some minor repairs are needed that are estimated between $5,000 and $10,000.

These are only a few of the deals offered by the Memphis House Flipping Guys. Some have a slightly higher purchase price but the return on investment is just as good. Whether you are an investor looking to flip houses or to rent houses, Memphis is a market you need to be looking at seriously.

Please leave a comment if this article was helpful or if you have a question.

PhotoAuthor bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for nine years. He also draws upon 30 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest. In the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.

Comments

  1. I’m glad to see that other wholesalers use absentee owner leads as part of their business plan. My husband and I are trying to get into wholesaling in our area and it seems like it’s difficult to land that first deal. I really appreciate this article because I like seeing how others have found success in this business.

    • Brian Kline says:

      Veronica,
      Thanks for the comment. Please feel free to share your investing esperiences.

      Brian Kline