Category Archives: Memphis Invest

Memphis Invest Court Case Update – Misleading or an attempt to cover up fraud

Interesting updates from the court house.

The day before the Clothiers of Memphis Invest (MI) were to be deposed, they filed for a voluntary dismissal to keep from handing over information.  Memphis Invest then  mislead and tried to whitewash their voluntary dismissal as a victory rather what this filing was for.

Find the attached documents:

Memphis Invest Voluntary dismissal and  Personal Investor Magazine recent filings

Personal Investors then refiled a motion to strike language and their lawyers declaration showing ; a capitulation in an attempt to cover up the truth.

Voluntary Dismissal Without Prejudice[2]

MI v Waite Motion to Strike

MI v Waite – Strike – Memphis Exhibits A-G


From email sent by Andrew Waite – Personal Investor Magazine




Kent Clothiers House Foreclosed On!

Sold at auction today.  It is reported as being held in one of the Clothier’s name (Kent Jr.)   A contact in the FHA said they are aware of this transaction.  $65K purchase in 2006, $99K in 2006 and sold at Auction as a result of foreclosure 2/28/2013.


485 Eastern Drive Memphis TN 38122


And these people are investment education experts?

Why Memphis Invest Is Under The Microscope By Feds

You may find this public information of interest especially pages 65 & 73:

2012 University of Memphis study

These are facts compiled from public record and shared by government agencies that have be cheated of taxes or fees.

This is not going to go away.  There are a number of different agencies that will want their fees or taxes and can simply lien the investor property to ensure payment.

Its going to get ugly.

Are Feds investigating Memphis Invest and they lose conventional lending capacity?

It has been reported that Memphis Invest has just lost much of their conventional lending capacity for investors.  All cash investors are not affected.

It is reported that Prime Mortgage was uncomfortable with a perceived conflict of interest between a sales and property management company being under one roof.

Guild Mortgage has dropped them because of reported Fannie repurchase orders on many loans originated from Memphis Invest clients.  They have apparently been ignoring Fannie trust deed restrictions and it has finally caught up with them.  Apparently there are more inflammatory issues under investigation around acquisition, assignment, transfer and appraisal irregularities.

This gives Federal housing agencies heartburn.  They have easily sanctioned other entities for these sorts of violations

No matter how good and ethical a vendor may think they are, an undeniable problem is the loan buy backs or repurchase orders to a conventional lender. This is bad message to any lender underwriting staff and contrary to and bank reserve management methodology.

The lender loses lending capacity and reserves as they now become portfolio loans for a lending business designed around a secondary market sell-through model.  This can mean huge revenue and margin loses.

Investors are under the gun also.

Apparently up to 60 loans in were process when Guild turned off the loan tap.  We ask what happens to the investors, investor deposits, houses in inventory, renovations, carrying costs, etc., while they replace conventional lending capacity?

Memphis Invest will need significant resources to carry them over this fundamental recalibration of their business as they move from leveraged investor sales to cash buyers. An alternative may be to try and convince investors mezzanine or hard money interest rates are acceptable on top of already modest net yields.

Beware Of Companies That Sell Turn Key Real Estate Rental Properties

Every day, real estate investors receive offers that just sound too good to be true.  In the past, these offers came through e-mail, telephone and trade shows.  As with all scammers, they have one goal — to separate you from your money!

One of the “opportunities”  that I am seeing is under the guise of  “turn-key rental property” sales.  These companies sales pitch is that they take care of everything for you.  They find the deal, buy the house, fix it up, get the renter in place and then manage the property for you.  All you have to do is collect the check!

Be careful. Remember the old adage, “if it looks to good to be true, it probably is”

The most abusive are the folks in Tennessee who work with real estate information gurus.  They pay a commission to these real estate gurus at $4,000 per house sold to their students at seminars.

I can imagine that if I make a call to ask them to explain their pro forma, they will have their lawyer threaten me with litigation. (What else is new?)

 Here is what they do: 

 Here is what they should do:

Plus the rent!  They use an inflated rental fee – $150 over normal and their lease up fee is one whole month, NOT the $516 used in the calculation. 

This in fact reduces the NOI by another $2,316 to a total of $4,327 to a true net return of just 4.87%. or a 44% misstatement of the number presented in their proposal/pro forma.

They either do not understand generally accepted real estate accounting principles or they are consciously bending the rules. This is plain misrepresentation.

What’s worse in my book, is that this company runs a Mastermind group to teach other turn-key real estate companies how to promote to investors so they can also rip people off!

Buyer Beware!

Guest Author – Andrew Waite
Personal Investor  Magazine