Tag : Financing

11 years, 2 months ago 2

The rehab on 4979 Sequoia is finished and it turned out great.  See for yourself:


11 years, 4 months ago 0

Here is the latest on what’s happening at 4979 Sequoia.  Everything is starting to take shape.


11 years, 4 months ago 0
Posted in: News

Ten real estate articles of interest for the week of 3/15/10 – 3/21/10 with a focus on the interests of Memphis Real Estate Investors.

1.  Leaders say Google Fiber Network could transform Memphis:  How awesome would this be?  As a real estate investor, you would think this may lead to more jobs or maybe Memphis would be a more desirable place for businesses to locate here.

2.  Help for homeowners hurts credit score:  Housing counselors say it’s unfair that participating in a loan modification can hurt your credit score, but I think it is fair and logical that it would weaken your score.

3.  Memphis, most other metro areas are suffering through jobless recovery:  More statistics on what seems to be a jobless recovery as well as an interesting comparison to the 1981 recession.

4.  Study: Millionaires few in Tennessee:  No real surprise.  But it’s also a reason why we have very affordable housing here compared to other parts of the country AND why many millionaires in other states choose to invest in Memphis.

5.  Delta’s Cincinnati hub takes another hit, Memphis International well positioned for future growth:  Most of you already know how important the Memphis airport is to our local economy.  Delta  Airlines likes our airport too.

6.  Memphis 42nd of 43 on Green Cities Index:  Sad indeed, but surely there is a huge opportunity here for companies who can get “green”.  The only question is whether Memphians are ready?

7.  Study: Memphis ranks near the bottom for young adults:  Wow.  I didn’t think it was this bad.  On the flipside, this may help to explain why so many people in Memphis must rent instead of buy.  This, of course, creates opportunity for those looking to invest in cash flow rental properties in Memphis.

8.  Mortgage Rates Still Below 5 Percent:  Keep an eye on this as a key Fed program comes to an end on March 31st.

9.  Check this out:  According to projections from Money Magazine, Memphis is the only major city in Tennessee expected to see an increase in real estate values this year. 

10.  Property Transfers: March 21, 2010:  Real estate transfers of $100,000 or more as shown in the records of the Shelby County Register’s Office.

11 years, 4 months ago 0
Posted in: News

Ten real estate articles of interest for the week of 3/1/10 – 3/7/10 with a focus on the interests of Memphis Real Estate Investors.

1.  Foreclosure puts auctioneer John Roebuck on block – After auctioning so many properties over the years, the headquarters of Roebuck Auctions is scheduled for foreclosure sale.  Crazy times, huh?

2.  Tennessee unemployment rate was 10.7 percent in January – It’s unchanged from December but still higher than the national average of 9.7%.  Click here to see how the same statistics can sound a lot worse.

3.  Memphis foreclosure rate rose in January – Very short article with some interesting statistics.  There is no doubt more foreclosures are on the way.  The real question is what impact will it have on the market?  Have prices stabilized or will the foreclosures continue driving down prices?  For real estate investors, it certainly means we will continue to see opportunities in the near future.

4.  SurveyMemphis: Local optimism sees increase – With as tough a business climate as we are in, it is encouraging to see the increasing optimism of local Memphis business leaders.

5.  Ever wonder what the Stimulus Money is being used for in Memphis? – The Memphis Business Journal has compiled the answer.  Follow the link to see all the requests and awarded contracts.

6.  California investor buys Frayser apartment complex – For those of you who don’t know, Memphis is a very attractive rental real estate market for out-of-state buyers.

7.  The Adversity Index – How did we do?  You gotta check out this interactive map.  It seems Memphis, as well as the state of Tennessee is on the road to recovery, though half the country is still in recession.

8.  Memphis ranks high in corporate recruiting – Site Selection magazine listed Memphis as No. 9 for new or expanded corporate facilities.

9.  Memphis developer Rusty Hyneman, partner are ordered to pay bank $2M – This one is worth reading for the comments alone.  Ouch!

10.  Property Transfers – Real estate transfers of $100,000 or more as shown in the records of the Shelby County Register’s Office.

Our website: www.LuckyAProperties.com

11 years, 5 months ago 2
Posted in: News

Ten real estate articles of interest for the week of 2/22/10 – 2/28/10 with a focus on the interests of Memphis Real Estate Investors.

1.  Looney Ricks Kiss files for Chapter 11 – The famed Memphis architectural firm is trying to navigate through tough times.  They’ve had a hand in designing many Memphis landmarks.

2.  Looking Ahead: Wharton gives Rotarians glimpse of future – Most people dislike politics, especially local politics, but when the mayor speaks about future plans and projects, real estate investors should pay attention.

3.  Freddie Mac losses mount, warns of foreclosures – CEO Haldeman warns of a “potential large wave of foreclosures” still to come.  The article also talks of the desire for new legislation so this doesn’t occur again, but it sounds like 2011 is the earliest hope of it getting done.

4.  Commercial real estate raises red flags for bankers – Dire warnings from some corners of the financial industry are predicting a wave of small bank failures as more than $1 trillion of commercial real estate debt matures in the coming years.

5.  Memphis College of Art buys South Main building – A short round-up of commercial projects going on in Memphis.

6.  Commission to limit adult businesses – If this passes, it will be a sad day for a few of our readers.

7.  Memphis named No. 1 for real estate steals – Thats right.  According to U.S. News & World Report, Memphis was No. 1 on the list with a price-to-income ratio that’s below its 15-year average at just 1.17.

8.  Memphis ranks No. 351 in national wealth study – Nothing to be proud of here, but when you see article #7 above, you begin to realize why so many investors from around the world love to buy cash flow rental properties in Memphis, TN.

9.  Existing home sales drop – The numbers were down month-over-month but up year-over-year.  I tend to focus more on year-over-year.  On a month to month basis, there are too many silly variables that can affect the numbers, such as the amount of snow fall.  The impact of this tends to be mitigated when looking at longer term numbers.

10.  Property Transfers: 2/28/10 – Real estate transfers of $100,000 or more as shown in the records of the Shelby County Register’s Office.

Our website: www.luckyaproperties.com

11 years, 5 months ago 0

We started the rehab process on 4979 Sequoia today.  This will be a fantastic property in Memphis, TN for one lucky owner-occupant.  We marketed the property in as-is condition for a short period of time and had A Lot of interest, especially from first time homebuyers looking to take advantage of the $8,000 take credit.  The size of the rehab seemed to intimidate most potential buyers as the property does need a full makeover.  Below is one new video along with two older ones discussing the property.  This is a great time to buy a house in Memphis, but act fast because the tax credit is set to expire at the end of April…and because this will be an awesome place to call home!




11 years, 5 months ago 0
Posted in: Uncategorized

Ten real estate articles of interest for the week of 2/15/10 – 2/21/10 with a focus on the interests of Memphis Real Estate Investors.

1.  U of M Area Residents Work to Salvage 38111 – The article says that some neighborhoods in this area of Memphis don’t want certain types of real estate investors but it doesn’t really say what they are doing to attract the type they do desire.

2.  Mid-South rebound on track, but job creation lags, St. Louis Fed CEO says – The recovery, while real, “is still on the output side rather than the worker side.”  That may be the best and easiest way to understand what is happening right now.  Sounds like the job picture in Memphis is better than the rest of Tennessee but uncomfortable levels of unemployment will be with us for a few more years.  For Memphis real estate investors, this is important because jobs have a huge impact on housing.

3.  Fewer people falling behind on home loans – This is the first time in almost three years this has happened.  *Huge caveat*  This decline is only for the three month period ending in December.  This is by no means a trend or a sign that things are truly getting better as the article implies.  But is this article even true?  Take a look at this: Mortgage Delinquencies Tick Higher in Q4.

4.  Revitalizing Main Street – Officials pump money, resources into Downtown’s heart – I’ll be the first to admit that I almost never go downtown, but a strong,vibrant downtown is a good thing for Memphis.

5.  Nike files loan on Winchester facility – It’s always great news when a large employer shows continued faith in Memphis.  Nike recently moved to a new facility in the north part of town, but instead of leaving the facility they were in, they found another use for it.

6.  Questions abound for commercial real estate’s future – The pain currently being felt by commercial property owners is gaining more and more attention…and the Memphis commercial real estate market is no different.  Some good info in this article.

7.  Exchange Building up for auction – As noted above, commercial real estate is ill right now.  Anyone want to buy this Memphis landmark?

8.  Trulia: Memphis home price reduction level still above 30% – The title makes you think it’s talking about falling home values, but really it’s saying 31% of the properties listed for sale in the Memphis market have had at least one price reduction on the list price.  Can’t say I’m surprised.  We get so many calls everyday from sellers with wildly unrealistic expectations of the value of their home.

9.  A Subtle Improvement: Realtor rosters highlight industry dip, but all not lost – A staggering number of Memphis real estate agents have been lost to the downturn.  Separate the wheat from the chaff as they say.

10.  Property Transfers: Feb. 21, 2010 – Property transfers for the week in which the transfer value was over $100,000.

Our website: Lucky A Properties

11 years, 5 months ago 0
Posted in: News

Ten real estate articles of interest for the week of 2/8/10 – 2/14/10.

1. No More Seller Financing? – HUD is attempting to institute some rules that may prohibit investors from selling property they own and offering seller financing or LLCs and corporations from offering seller financing without licensing.

2. Where’s Housing Headed?  Follow Rents – Awesome article that describes the relationship between rent and the value of homes with some interesting statistics.

3. Stabilizing Home Sales Hit Bump in January – After several months of good reports, sales in the Memphis area were frozen under all the snow we got.

4. Citi Offers Alternative to Foreclosure – “This is a deed in lieu on steroids.”  Citi will test it in six states.  Tennessee is not included in the test.  This is not a program to help you keep your home but is designed to help the lender take back the home in a less painful way than a foreclosure.  I don’t know if it will be successful but it is good to see new ideas.

5. Survey: Jobs, Housing are Biggest Local Concerns – Though housing is the #2 concern in Memphis as well as nationally, it seems we are much more concerned about it than the rest of the country.

6. Tennessee Foreclosure Rate Ranks #26 – It’s a short article with an interesting prediction of where foreclosures might be headed over the next few months.

7. Small Grocery & Deli Looking to Locate Downtown – I grew up only minutes away from food, groceries & shopping.  This is the type of stuff that is missing downtown, in my opinion.

8. UT Predicts Two More Years of Unemployment Above 10% – Economists have been wrong before.  Lets hope they are wrong on this.  Some good info at the end of this article.

9. Fuss Scares Off Overton Square Grocery – I am still blown away that all the parties involved in this fiasco cannot compromise so that everyone benefits. 

10. Memphis Area Property Transfers – 2/14/10 – Real estate transfers of $100,000 or more as shown in the records of the Shelby County Register’s Office.

Happy Valentine’s Day from Lucky A Properties!

11 years, 5 months ago 0
Posted in: Taxes

It’s that time of year – Tax Time.  Nobody likes it but if you stick your head in the sand like an ostrich, then you could be missing out on a wonderful tax break, or loophole, depending on where you stand.  For those who invest in real estate in Tennessee, you must learn about the FONCE.  Its something we at Lucky A Properties have taken advantage of and you should to. 

FONCE is the acronym for Family Owned Non-Corporate Entities.  As the name implies, you don’t qualify for this as an individual, you must create an entity.  For most investors, it will probably be an LLC.  In order to qualify for the FONCE exemption, the entity must meet two criteria:

  1. At least 95% of the entity’s ownership must be held by family members, and
  2. Substantially all (66.67%) of the activity of the entity is either the production of passive investment income or the combination of the production of passive investment income and farming.

So why should you care?  Simple, your entity would be exempt from paying Franchise & Excise taxes.  The current Tennessee tax rates are as follows:

  • Franchise Tax – 0.25% of the greater of net worth or real and tangible property in Tennessee.  The minimum tax is $100.
  • Excise Tax – 6.5% of Tennessee taxable income.

It’s not that complicated.  If you own rental properties in Memphis or anywhere else in Tennessee:

  1. Create an entity such as an LLC.
  2. The properties should be titled in the name of the entity.
  3. File the paperwork for the FONCE exemption.
  4. Save on taxes!

Please be advised, I am not an accountant nor am I an attorney.  This may not be for everyone so consult your trusted advisors.  They may just tell you to FONCE yourself.

11 years, 6 months ago 0

We’ve got another fantastic Memphis investment property available in the wonderful East Memphis 38117 zip code.  Situated off N. Mendenhall between Walnut Grove and Sam Cooper, this house is the perfect retail flip opportunity.  The house 1,172 square feet, sits on .17 acres and has three bedrooms, one bathroom and a carport.


There are multiple rehab possibilities with this property.  Updating the house along with a master bathroom addition may allow you to sell the home in the $170,000 – $180,000 range.  For reference, the house next door, 4975 Sequoia, sold in September for $183,000.  If you choose to leave the property as a 3/1, then you may want to reference 5003 Sequoia which has the same floor plan as our house and sold in August for $148,000.


The house has had the same owner since the 1960’s and needs updating.  Hardwood floors need sanding & refinishing.  The property lacks central air and the windows are original.  Kitchen & bathroom updates are needed.  Interior & exterior painting is needed.  Minor plumbing repairs and a new water heater may be necessary.  Some siding work may be necessary in the rear of the property.  The property has been inspected and the report is available upon request.

The location of the property is fantastic and it sits in one of the most sought after school districts in the city – White Station Elementary, Middle & High School.  Plus St. Agnes and St. Dominic schools are only minutes away.      

If you are looking to invest in Memphis real estate, you have the opportunity to purchase a property to rehab & resell in one of the best neighborhoods in town.  Act fast and your end buyer can take advantage of the $8,000 tax credit for first time homebuyers. 

Not a Memphis real estate investor?  That’s ok!  Some lenders may allow you to finance the rehab costs along with the purchase price and you may qualify for the tax credit.

Contact Information


  • Price: $109,000
  • Annual Taxes: $2,276
  • Zillow: $136,500
  • Tax Assessed Value: $126,300
  • Rehab for 3/1: $15,000-$35,000
  • Rehab for 3/2: $45,000-$65,000
  • Estimated ARV for 3/1: $135,000-$150,000
  • Estimated ARV for 3/2: $165,000-$185,000

Property Location

  • 4979 Sequoia Rd.
  • Memphis, TN 38117
  • Map



  • Single Family Home
  • Bedrooms: 3
  • Bathrooms: 1
  • Carport
  • Year Built: 1952
  • Square Footage: 1,172