Building a Turnkey Real Estate Empire in Memphis, TN with Terry Kerr and Matthew VanHorn
Turnkey investing is a powerful path for people who want to build wealth without drowning in the daily grind of renovations and tenant issues. But the road to success in real estate is not easy. It takes grit, smart systems, and a clear focus on long-term results. When it is done right, though, it can change your life.
I recently had the pleasure of sitting down with Terry Kerr and Matthew VanHorn, the powerhouse duo behind Mid South Home Buyers, on my podcast. These guys have built one of the strongest turnkey real estate investment operations in the country. On that episode, they shared their story, the hard-earned lessons, and the systems that keep their machine running.
How Mid South Home Buyers Got Started and Grew
Terry’s story begins with a simple fixer-upper. He wanted to keep his own living expenses low, so he bought a rough house and fixed it up himself. But once he stepped into that first project, he fell in love with turning a beat-up home into something beautiful.
The real turning point came when a grade-school friend told him he would rather buy a finished rental from Terry than fix one up himself. That friend was tired, stretched thin, and wanted a simple solution. Terry realized he wasn’t alone. Investors wanted a fully done-for-you rental that they didn’t have to manage.
That spark became Mid South Home Buyers. Twenty-five years later, they have bought, renovated, sold, and now manage close to 6,000 homes across Memphis and Little Rock.
What Makes Their Turnkey Model Work
Their model is simple to understand, but tough to duplicate. They focus on buying distressed properties and bringing them back to life. They take houses that most people run from and turn them into places people are proud to live in.
They handle every part of the process, such as:
- Property purchase
- Renovations
- Resident placement
- Long-term property management
Most investors come to them because they want to sit back and collect cash flow without dealing with late-night calls or repair headaches. Terry and Matthew make that possible.
Investors usually buy rehabbed homes in the $100,000 to $200,000 range. Their new-construction homes run from $198,000 to about $250,000. These price points hit the sweet spot for steady rent and strong tenant demand.
Systems, Scale, and Team Culture
Terry and Matthew use standardized materials in every home. Two massive 30,000-square-foot warehouses let them buy everything in bulk, from ceiling fans to kitchen cabinets. That cuts costs, speeds up repairs, and keeps every home on the same level of quality.
They also work with the same subcontractors over and over. Their crews know the houses well. They know the expectations. This saves time, money, and stress.
The Assembly-Line Approach
At this scale, systems matter. They treat each home like it is moving through an assembly line. The house comes in rough, moves through rehab, gets leased, and then gets handed off to management.
This structure works because they have the people to support it. They have 110 W2 employees and a support team in the Philippines who handle accounting, applications, billing, and other important tasks.
Their team stays because they care about each other. They lift each other up. That kind of culture doesn’t happen by accident.
Long-Term Tenant Retention and Investor Returns
Terry and Matthew understand that tenant longevity is the real engine of cash flow better than anyone. Their residents stay an average of four years, and more than 1,000 residents have been with them for over five years.
Rents tell a story, too. Back in 2012, their typical rent was about $675. Today, that same home rents for more than $1,000. Inflation, strong demand, and careful renovation all help their investors build real wealth over time.
A fresh, well-renovated home draws the right residents. When people are happy, they stay. When they stay, your returns go up!
Challenges and the Path Forward
Their biggest challenge today is inventory. Investor demand is strong, and good homes are tough to find. That is why they started building new construction. They are buying land, developing subdivisions, and creating new rental homes from the ground up.
For anyone who wants to build a similar business, Terry offers clear advice:
- Make sure every subcontractor carries insurance.
- Set up the right entities
- Protect your estate.
He has learned these lessons the hard way, and he wants others to avoid those mistakes.
Final Advice for New Investors or Turnkey Operators
Terry shared some straight talk for anyone who wants to get into this business. The first step is simple: join your local real estate investment (REI) club. Get around people who think the way you do.
Start small. Pick one cash-flow-friendly area. Build your network of subcontractors. Do not try to reinvent the wheel. And, hire people who care.
Moreover, we need to keep learning. So, read books, find mentors, and listen to real estate podcasts. Surround yourself with the right minds and the right energy.
Want to hear my entire conversation with Terry and Matthew? Listen to our podcast episode!
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Terry and Matthew delivered a masterclass on scaling a turnkey business. They showed how strong systems, the right team, and steady service can create long-term success for both residents and investors.
If you enjoyed their insights, tune in to The Whole Enchilada of Real Estate Investing. I bring on investment rock stars to share real lessons you can use right away.
And, if you want expert guidance, tools, and proven strategies to grow your real estate investment business, connect with me. I am here to help you move faster and smarter!
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Marigona Gllarevaa – Jan 01, 1970