Matt Motil Cleveland Private Money

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Matt Motil Cleveland Private Money

Kyle Collette
Investor · Columbus, OH · Member since 2016 · 112 posts · 79 votes

Hi all, has anyone else here loaned money to Matt Motil in Cleveland? We have a note coming due on May 1, but haven’t received April payment and have not heard from him in a probably 2 months. Just seeing if anyone has another way to get in contact with him. Thanks

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
5y
Originally posted by @James Wise:
Originally posted by @Kayla V.:

I also lent money to Matt back in February of 2020. He was paying until February of 2021, but that's when he went dark. He won't respond to any of my messages. 

He sent out a mass email with all investors bcc'd at the end of March that claimed he was going to start selling properties to service the debt, which made me hold on getting a lawyer involved. But I haven't heard anything yet and this thread is making me think it may be time. 

 Sorry to hear about that Kayla. In a situation such as yours, the smartest move is to lawyer asap. You want to get in there and try to recoup as much of your damages as possible as soon as you possibly can. 

In the majority of fraud or Ponzi Scheme cases the common theme seems to be that the money is mostly gone, and whatever is left runs out before a large portion of the victims are made whole.

Sounds like the majority are first position mortgage holders.. this is super simple find an attorney that specializes in mortgage foreclosures and file. there is a federal law that went in post GFC that requires lenders to give a 90 day notice before they can file and I think it pertains to any loans on any 1 to 4 unit properties  the assets that Dodd Frank was designed to regulate. 

once the 90 days is up you file your foreclosure  in OHIO its a mortgage state so it cost more  money than a Deed Of Trust with power of sale state.  and takes at least a year . In the meantime the borrower will just rip the rents if Any.. Now if you read your mortgage small print you might have Assignment of rents clause  ( when i was lending I put that into all my security docs).  Then some tenants you can bluff and will send you the rent and you credit towards your interest payments.. others wont they are afraid of being evicted.  other wise you have to have a judge give an order ( again money) so most folks don't go that route. 

But for sure have an agent that is local do a drive by snap some pictures and give you a price assessment to see where your at.  Market in Cleveland is pretty robust but if this guy is just going to Ghost you your probably a good year or more away from getting your collateral back 

If its abandoned as the lender you have the right to secure it.. I have even moved tenants in myself  LOL.. kind of a grey area there but Hey its me against that them. 

I just took back 10 props in Cleveland and was there last week.. 3 have issues the others i can sell and recoup no problem. but I don't loan I own them so no foreclosure necessary.. I personally would never do a loan in a mortgage state ONLY deed of trust state with quick foreclosure time lines.   

People are paying some good money right now and some hedge funds as well. I just sold one of my OREO in Jackson MS.. 1 year ago as a vacant house needed full rehab I might have gotten 25k from a local for it.. just went into contract last week with a hedge fund for 71k NET to me they pay all costs and back tax's.. so something is in the water.  I think Cleveland might be in the same situation to some degree.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @James Wise:
    Originally posted by @Jay Hinrichs:
    Originally posted by @James Wise:
    Originally posted by @Kayla V.:

    I also lent money to Matt back in February of 2020. He was paying until February of 2021, but that's when he went dark. He won't respond to any of my messages. 

    He sent out a mass email with all investors bcc'd at the end of March that claimed he was going to start selling properties to service the debt, which made me hold on getting a lawyer involved. But I haven't heard anything yet and this thread is making me think it may be time. 

     Sorry to hear about that Kayla. In a situation such as yours, the smartest move is to lawyer asap. You want to get in there and try to recoup as much of your damages as possible as soon as you possibly can. 

    In the majority of fraud or Ponzi Scheme cases the common theme seems to be that the money is mostly gone, and whatever is left runs out before a large portion of the victims are made whole.

    JIm,  you know this guy  Dr. Motil has a pretty impressive resume' I can see where folks would lend to him  .. I wonder if you had a little robbing peter to pay Paul going on and the eviction moratorium and non payment of rent upset the apple cart.. JUST  spitting in the wind on that one. 

    One thing is for sure certain Ghosting lenders/ investors is about the worse thing you can do as a sponsor even if your communications are bad news.. You need to communicate .. 

    Looks to me like we've got a case similar to that of Clayton Morris......All sizzle, no steak.

    well his profile looks like he is a major player in Cleveland it would be odd that your paths have not crossed. 

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    1Reply
  • Robin Hines
    Investor · Orlando, FL · Member since 2016 · 44 posts · 85 votes
    5y

    You are not alone! I just posted this:

    https://www.biggerpockets.com/...

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Jay Hinrichs:
    Originally posted by @James Wise:
    Originally posted by @Jay Hinrichs:
    Originally posted by @James Wise:
    Originally posted by @Kayla V.:

    I also lent money to Matt back in February of 2020. He was paying until February of 2021, but that's when he went dark. He won't respond to any of my messages. 

    He sent out a mass email with all investors bcc'd at the end of March that claimed he was going to start selling properties to service the debt, which made me hold on getting a lawyer involved. But I haven't heard anything yet and this thread is making me think it may be time. 

     Sorry to hear about that Kayla. In a situation such as yours, the smartest move is to lawyer asap. You want to get in there and try to recoup as much of your damages as possible as soon as you possibly can. 

    In the majority of fraud or Ponzi Scheme cases the common theme seems to be that the money is mostly gone, and whatever is left runs out before a large portion of the victims are made whole.

    JIm,  you know this guy  Dr. Motil has a pretty impressive resume' I can see where folks would lend to him  .. I wonder if you had a little robbing peter to pay Paul going on and the eviction moratorium and non payment of rent upset the apple cart.. JUST  spitting in the wind on that one. 

    One thing is for sure certain Ghosting lenders/ investors is about the worse thing you can do as a sponsor even if your communications are bad news.. You need to communicate .. 

    Looks to me like we've got a case similar to that of Clayton Morris......All sizzle, no steak.

    well his profile looks like he is a major player in Cleveland it would be odd that your paths have not crossed. 

    Major player is not anything I would consider to be an accurate description of him. I know who he is though. He's floundered around as an agent at several brokerages in Cleveland over the last few years, ours included for a few months back in 2015 or 2016. Luckily for us, he was out the door as fast as he walked through it.

    3Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @James Wise:
    Originally posted by @Jay Hinrichs:
    Originally posted by @James Wise:
    Originally posted by @Jay Hinrichs:
    Originally posted by @James Wise:
    Originally posted by @Kayla V.:

    I also lent money to Matt back in February of 2020. He was paying until February of 2021, but that's when he went dark. He won't respond to any of my messages. 

    He sent out a mass email with all investors bcc'd at the end of March that claimed he was going to start selling properties to service the debt, which made me hold on getting a lawyer involved. But I haven't heard anything yet and this thread is making me think it may be time. 

     Sorry to hear about that Kayla. In a situation such as yours, the smartest move is to lawyer asap. You want to get in there and try to recoup as much of your damages as possible as soon as you possibly can. 

    In the majority of fraud or Ponzi Scheme cases the common theme seems to be that the money is mostly gone, and whatever is left runs out before a large portion of the victims are made whole.

    JIm,  you know this guy  Dr. Motil has a pretty impressive resume' I can see where folks would lend to him  .. I wonder if you had a little robbing peter to pay Paul going on and the eviction moratorium and non payment of rent upset the apple cart.. JUST  spitting in the wind on that one. 

    One thing is for sure certain Ghosting lenders/ investors is about the worse thing you can do as a sponsor even if your communications are bad news.. You need to communicate .. 

    Looks to me like we've got a case similar to that of Clayton Morris......All sizzle, no steak.

    well his profile looks like he is a major player in Cleveland it would be odd that your paths have not crossed. 

    Major player is not anything I would consider to be an accurate description of him. I know who he is though. He's floundered around as an agent at several brokerages in Cleveland over the last few years, ours included for a few months back in 2015 or 2016. Luckily for us, he was out the door as fast as he walked through it.

    See post above if the attorney for this other poster is correct this is straight out fraud and criminal.. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Jay Hinrichs:
    Originally posted by @James Wise:
    Originally posted by @Jay Hinrichs:
    Originally posted by @James Wise:
    Originally posted by @Jay Hinrichs:
    Originally posted by @James Wise:
    Originally posted by @Kayla V.:

    I also lent money to Matt back in February of 2020. He was paying until February of 2021, but that's when he went dark. He won't respond to any of my messages. 

    He sent out a mass email with all investors bcc'd at the end of March that claimed he was going to start selling properties to service the debt, which made me hold on getting a lawyer involved. But I haven't heard anything yet and this thread is making me think it may be time. 

     Sorry to hear about that Kayla. In a situation such as yours, the smartest move is to lawyer asap. You want to get in there and try to recoup as much of your damages as possible as soon as you possibly can. 

    In the majority of fraud or Ponzi Scheme cases the common theme seems to be that the money is mostly gone, and whatever is left runs out before a large portion of the victims are made whole.

    JIm,  you know this guy  Dr. Motil has a pretty impressive resume' I can see where folks would lend to him  .. I wonder if you had a little robbing peter to pay Paul going on and the eviction moratorium and non payment of rent upset the apple cart.. JUST  spitting in the wind on that one. 

    One thing is for sure certain Ghosting lenders/ investors is about the worse thing you can do as a sponsor even if your communications are bad news.. You need to communicate .. 

    Looks to me like we've got a case similar to that of Clayton Morris......All sizzle, no steak.

    well his profile looks like he is a major player in Cleveland it would be odd that your paths have not crossed. 

    Major player is not anything I would consider to be an accurate description of him. I know who he is though. He's floundered around as an agent at several brokerages in Cleveland over the last few years, ours included for a few months back in 2015 or 2016. Luckily for us, he was out the door as fast as he walked through it.

    See post above if the attorney for this other poster is correct this is straight out fraud and criminal.. 

    It's going to be interesting how it all plays out, that's for sure.

    0Reply
  • Will Gates
    Rental Property Investor · Maryville, TN · Member since 2018 · 80 posts · 53 votes
    5y

    I, too, have a note that was due April 2021 and the last interest payment received was from February 2021. Communication from Matt has been horrific

    0Reply
  • Michael Hickey
    Rental Property Investor · Wake Forest, NC · Member since 2014 · 57 posts · 5 votes
    5y

    @Kyle Collette  Do you guys mind sharing the contact info for your attorney?  Unfortunately, I'm adding myself to the list of swindled.

    1Reply
  • Kyle Collette
    OP
    Investor · Columbus, OH · Member since 2016 · 112 posts · 79 votes
    5y

    @Michael Hickey DM me your email. There is a ton more going on than you know.. sorry to hear that

    0Reply
  • Daniel Flores
    New to Real Estate · Cleveland · Member since 2020 · 1 post · 0 votes
    5y

    For any info on lawyers please DM me. Thanks in advance. Happened to me too. 

    0Reply
  • Troy MalonePro Member
    Investor · Portland, OR · Member since 2016 · 3 posts · 0 votes
    5y

    Hey, this happened to me as well. I’m just seeing these posts. Would love some attorney recommendations?
    If anyone has any additional information please DM me. 

    0Reply
  • Zachary Burkons
    Member since 2021 · 8 posts · 5 votes
    3y

    Charged by SEC today.  See link.

    https://www.dropbox.com/scl/fi/sb2k8xm0i108uwko50v6r/SEC-com... 

    1Reply
  • Scott S.
    Tacoma, WA · Member since 2014 · 77 posts · 92 votes
    3y

    It's concerning that Bigger Pockets admins continue to leave all of Matt Motil's classified ads here on BP where he was fishing for victims for his Ponzi Scheme.
    https://www.biggerpockets.com/posts/user/mattmotil 

    https://www.sec.gov/news/press-release/2023-196

    1Reply
  • Zachary Burkons
    Member since 2021 · 8 posts · 5 votes
    2y

    indictment of motil was 8/12/24. Cannot figure how to post it to this site.

    1Reply
  • Zachary Burkons
    Member since 2021 · 8 posts · 5 votes
    2y

    I was in attendance yesterday at Court.  Motil pleaded guilty to securities fraud and wire fraud.  He is looking at 4-9 years in federal plus an undetermined restitution.  In addition he still faces charges from SEC.  None of these fines are discharagable in Bankruptcy.

    2Reply
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