Morris Invest Case Study 2.0

[Tyler Jahnke]

Hello BiggerPockets!

I stumbled upon the Morris Invest Case Study by @Ian E. and am now inspired to document my current investment with the company. This is kind of a long post, but I hope you stay with me. Clayton Morris (founder of Morris Invest) has an amazing front facing impression with his valuable podcast (I listen to it everyday) and the multiple interviews he's had with reputable sources (BiggerPockets, EOFire). That's how I got hooked on the buy and hold model his company sells.

Even with all that exposure, and the fact that he's a TV host, it was hard to find and really dig into the details of his company online and there's not a lot of specific content on Morris on BiggerPockets. So here's what transpired:

November 12 - Had a scheduled call with Morris Invest. Thoughts: first, I thought I'd actually be on the phone with Clayton, but it was with Larry, who is an Acquisitions Manager. He gladly answered the 20+ questions I had as if he was reading a script. I get it, he gets the same questions all the time from new investors. Very friendly and easy to talk to. We ended up talking about a couple properties at the end of the 30 minute call and he said he'd email over additional details.

Couple days pass and no email from Larry regarding properties.

November 16 - I assumed I'd get an email from him within 24 hours maybe even 48 but nothing came through so I gave him a call. He explains he sent an email the same day we spoke. I check my SPAM folder, and sure enough it's sitting there. Can't blame this on Morris Invest, feel a little embarrassed, and assess the properties. One of the properties catches my eye:

Acquisition: $24,000 + Rehab: $15,000

Rent: $600

I do my research - LOTS of Google Street View, research on Zip Code, crime stats, Zillow for home value and comp values (I know, not the best) tax numbers. At this point I'm VERY interested and have cash ready.

November 18 - Another Call with Larry for additional questions on the specific property. I ask about everything from Inspection Reports, rehab details (I have specifics for what I want in a rehab), potential scope of work, etc. His general answer was: he'll have my answers by November 22.

November 22 - I follow up with Larry via email as he said I'd have final answers to my questions today.

November 23 - I receive an email from Larry stating the property I'm interested was SOLD over the weekend. He attaches another property in the email for me to look at. I am not interested as it sits directly next to a bar. He states I need to put a property under contract as soon as possible if interested otherwise it'll get picked up quickly.

Obviously, this was not the best example of communication, and set me a little off. I began to question investing with Morris Invest.

November 30 - I receive an email from Larry checking in saying he hasn't forgotten about me. He has some properties becoming available soon. I appreciate this communication and am glad he checked in.

December 5 - I get a property from Larry that catches my eye! $37,000 acquisition + $9,000 in renovations. Should rent at $750/month. I get introduced to Nicole, Operations Manager, I ask to put it under contract, but don't sign just yet.

December 5-7 - I send a couple emails to Nicole regarding the Purchase Agreement, but don't get any answers. I get them answered by asking a colleague who owns his own Realty company. I send another email to Nicole as I need my name revised and cc Larry on the email in for hopes of a prompt response.

December 8 - I sign the Purchase Agreement. Introduced to Danny for Insurance (answer three questions he sent via email) and Daniel for Title work (also answer 3 of his questions via email).

December 12 - I finalize Insurance on the property.

December 13 - Check in with Daniel as I didn't get any updates on closing or next steps after answering his initial questions on 12/8.

December 14 - I receive closing documents, wire instructions, and title work. Need some time to read over everything before signing.

December 15 - Nicole said I'd receive the Scope of Work before closing, but didn't yet, so I check in with her and get it.

December 16 - I send over closing documents, wire money.

December 22 (TODAY!) - I receive the final closing package from Title company with all signed documents. They're saying I should get the Owner's Title Insurance Policy and Deed via email in a couple weeks.

I also am now officially in the rehab phase. Nicole reached out with the Scope of Work and wire instructions. I pay 50% of rehab cost to start construction, 25% in 3 weeks, and the last 25% at completion of renovations. I responded back with numerous questions regarding the Scope as I really want to know where my money is going. I have not wired anything yet. The scope had a number of typos and unreadable line items. Hoping I get a response soon!

I'll keep you all updated!

[Will Zena]

This is a great thread for beginners to follow the ups and downs of a real estate investors journey that most can see themselves going through. When I started reading this I was seriously considering buying from Morris Invest for my first property.  I happily went in a different direction and at this point I am closing on my 2nd property very soon while the search for a 3rd has begun. 

I look forward to more updates from Tyler and if any other Morris Invest customers find this thread I hope they share something with us also.

[Chris Clothier]

Originally posted by @Tyler Jahnke:

WOW BP...it's been a solid 3 months since I last updated you all on my crazy, insane, twisty-turny investing story with Morris Invest.

Where did I leave off? Oh yeah:

-My Morris Invest property was FOUND vacant without any notification from Morris Invest.

-I hired a new property management company (@Todd Burton and IPM THANK YOU!)

-I re-keyed all doors and secured the garage of my Morris Invest property

Next steps were to assess repairs needed and decide if I should:

-Repair and Rent

-Repair and Sell

-Sell "As-Is"

Well, considering my renovation quote came out to $16,000+ on an asset I did not foresee positive long-term returns with...I DECIDED TO SELL. And I SOLD it a few months ago.

At the SAME TIME I was selling this property, I also purchased and closed on My Second Property. This one was NOT purchased through Morris Invest. I found it on my own through the help of an agent I met in Indy last year. The original asking price was over $100K, but I got it for $86K. It’s only a 2 Bed/1 Bath, but it’s 1,450 square feet with a laundry room (which could be turned into a 3rd bedroom), has a bonus sunroom, and 2-car garage. Structurally it’s in very good shape. The roof and gutters are only a year and a half old. The siding is all brick. Water heater 3 years old. Electrical and plumbing all updated within the last 4 years. It's currently renting for $995 to two married Med School students with good income and good credit scores.

The biggest point here: NEVER WORK WITH MORRIS INVEST. And, through learning and living through this real-life course in investing, I'm so much better prepared for the future. This second property is in a MUCH improved neighborhood, which draws in a better class of tenant, it's professionally managed by a trusted company, and it's structurally sound with recent major improvements.

WHAT'S NEXT??

If you know me, I'm not stopping. I just got an influx of cash from selling my Morris Invest property (remember, I bought it all cash), so now I'm looking for My Third Property. I'll have an update for you in the next month...but the Indy market has been HOT....I just lost out on 4 offers...

Lastly, I'm hoping you found my writing over the past year and a half VALUABLE. Or at least the on-going conversations and topics that were brought up.

Happy Investing All! Wow...it's been quite the ride so far...and I'm not getting off this roller-coaster anytime soon :)

-Tyler

 Tyler,

You are reinforcing for every reader that there is a way to invest out of state actively and there is a way to use a Turnkey provider.  Quick, slick sales techniques and marketing gimmicks may look good, but you cannot gloss over the fact that there are no short cuts to having a quality, passive investment.  Renovation work still has to be done - if you do it today or tomorrow or sometime in the future, it still has to be done. Properties still have to be managed properly and who you do business with and their professionalism matters!  Do they have a team or is it all just camera angles and slick editing.

Your  story is a great one and a lot of us who have followed your story are positive you are going to be a great investor.

[Jay Hinrichs]

Originally posted by @Chris Clothier:

Originally posted by @Tyler Jahnke:

WOW BP...it's been a solid 3 months since I last updated you all on my crazy, insane, twisty-turny investing story with Morris Invest.

Where did I leave off? Oh yeah:

-My Morris Invest property was FOUND vacant without any notification from Morris Invest.

-I hired a new property management company (@Todd Burton and IPM THANK YOU!)

-I re-keyed all doors and secured the garage of my Morris Invest property

Next steps were to assess repairs needed and decide if I should:

-Repair and Rent

-Repair and Sell

-Sell "As-Is"

Well, considering my renovation quote came out to $16,000+ on an asset I did not foresee positive long-term returns with...I DECIDED TO SELL. And I SOLD it a few months ago.

At the SAME TIME I was selling this property, I also purchased and closed on My Second Property. This one was NOT purchased through Morris Invest. I found it on my own through the help of an agent I met in Indy last year. The original asking price was over $100K, but I got it for $86K. It’s only a 2 Bed/1 Bath, but it’s 1,450 square feet with a laundry room (which could be turned into a 3rd bedroom), has a bonus sunroom, and 2-car garage. Structurally it’s in very good shape. The roof and gutters are only a year and a half old. The siding is all brick. Water heater 3 years old. Electrical and plumbing all updated within the last 4 years. It's currently renting for $995 to two married Med School students with good income and good credit scores.

The biggest point here: NEVER WORK WITH MORRIS INVEST. And, through learning and living through this real-life course in investing, I'm so much better prepared for the future. This second property is in a MUCH improved neighborhood, which draws in a better class of tenant, it's professionally managed by a trusted company, and it's structurally sound with recent major improvements.

WHAT'S NEXT??

If you know me, I'm not stopping. I just got an influx of cash from selling my Morris Invest property (remember, I bought it all cash), so now I'm looking for My Third Property. I'll have an update for you in the next month...but the Indy market has been HOT....I just lost out on 4 offers...

Lastly, I'm hoping you found my writing over the past year and a half VALUABLE. Or at least the on-going conversations and topics that were brought up.

Happy Investing All! Wow...it's been quite the ride so far...and I'm not getting off this roller-coaster anytime soon :)

-Tyler

 Tyler,

You are reinforcing for every reader that there is a way to invest out of state actively and there is a way to use a Turnkey provider.  Quick, slick sales techniques and marketing gimmicks may look good, but you cannot gloss over the fact that there are no short cuts to having a quality, passive investment.  Renovation work still has to be done - if you do it today or tomorrow or sometime in the future, it still has to be done. Properties still have to be managed properly and who you do business with and their professionalism matters!  Do they have a team or is it all just camera angles and slick editing.

Your  story is a great one and a lot of us who have followed your story are positive you are going to be a great investor.

Chris what I found interesting was that Morris presentations were really not slick.. but were very basic and its obvious they hit a chord with so many folks.. that they blindly trusted this guy.. many of the posts said they trusted him because he had been on TV as a broadcaster and so he had to much lose .. and he would never do anything to jeopardize his reputation.  put that together with price point and ton of marketing etc.  And you have the aftermath.. 

[Matt K.]

his videos are shot on a iphone walking around the hood... with headphones on lol

[Chris Clothier]

@Jay Hinrichs and @Matt K. - 

Not sure which videos you guys are talking about, but his youtube channel is filled with very carefully scripted videos shot in front of a green screen that have been edited with over-lays and pop-ups.  He is not saying anything new, but is excellent at delivery which is why he is still putting out videos that are still getting 5,000+ views.  

He is a marketing expert and unfortunately, Tyler's story and advice will not have anywhere near the reach that his videos will, so for a while he will win the PR battle and continue to be in business.  It will take criminal legal action or very heavy civil penalties to stop what he is doing, which is marketing dreams and selling crap.

What is really interesting is that he recently posted a video from a "satisfied investor" saying how happy he is with his renovations.  The video is lit up with comments and so far they have not taken them down.  That video is loaded with negative comments and questions directly to him with no response, but they also have not taken them down.  We'll see what happens.

[Jay Hinrichs]

Originally posted by @Chris Clothier:

@Jay Hinrichs and @Matt K. - 

Not sure which videos you guys are talking about, but his youtube channel is filled with very carefully scripted videos that have been edited with over-lays and pop-ups.  He is not saying anything new, but is excellent at delivery which is why he is still putting out videos that are still getting 5,000+ views.  

He is a marketing expert and unfortunately, Tyler's story and advice will not have anywhere near the reach that his videos will, so for a while he will win the PR battle and continue to be in business.  It will take criminal legal action or very heavy civil penalties to stop what he is doing, which is marketing dreams and selling crap.

yes definition of a DREAM MERCHANT with no experience or credibility other than being on TV to back him up.. !! SAD  

[Matt K.]

I present exhibit a

https://www.youtube.com/watch?v=W7rC2Dl3gs4

[Matt K.]

the actual one I wanted to link I don't think is up anymore.. it was when he was showing off the "new construction" which as of late might not be so good for him (it never got done).

[Will Zena]

Also he is well advised legally. He has Umbrella corps and LLCs intertwined that would probably cause some headaches if anyone seeks legal action. He is well protected I'm sure. Companies owned by Garrett Sutton and Tom Wheelwright are his hired advisors.

[Jay Hinrichs]

Originally posted by @Will Zena:

Also he is well advised legally. He has Umbrella corps and LLCs intertwined that would probably cause some headaches if anyone seeks legal action. He is well protected I'm sure. Companies owned by Garrett Sutton and Tom Wheelwright are his hired advisors.

well Criminal behavior cuts through all of that  feds could care less about asset protection.. you can keep your assets while you spend time in the big house..  

[Tyler Jahnke]

Hey @Chris Clothier!

To your point, I still definitely believe investing out of state is a viable option. But as you said, it takes a quality renovation team, quality property management, and quality business partners. You have to properly vet and perform thorough due diligence (which I didn't do a couple years ago when I first jumped in). That was my biggest mistake. But I've learned a ton from this experience and believe it or not, wouldn't trade it for anything. I'm much better prepared for the future.

Thanks again Chris! One of my best friends has a couple houses from Memphis Invest and I know you and your company are top notch.

-Tyler

[Chris Clothier]

Originally posted by @Tyler Jahnke:

Hey @Chris Clothier!

To your point, I still definitely believe investing out of state is a viable option. But as you said, it takes a quality renovation team, quality property management, and quality business partners. You have to properly vet and perform thorough due diligence (which I didn't do a couple years ago when I first jumped in). That was my biggest mistake. But I've learned a ton from this experience and believe it or not, wouldn't trade it for anything. I'm much better prepared for the future.

Thanks again Chris! One of my best friends has a couple houses from Memphis Invest and I know you and your company are top notch.

-Tyler

You're going to be just fine and I have a feeling your portfolio is going to lead you directly to your expectations! And again, thanks for sharing your story so openly.

Chris ~

[David Fitch]

Originally posted by @Jay Hinrichs:

Originally posted by @Jason Howell:

Originally posted by @Tyler Jahnke:

WOW BP...it's been a solid 3 months since I last updated you all on my crazy, insane, twisty-turny investing story with Morris Invest.

Where did I leave off? Oh yeah:

-My Morris Invest property was FOUND vacant without any notification from Morris Invest.

-I hired a new property management company (@Todd Burton and IPM THANK YOU!)

-I re-keyed all doors and secured the garage of my Morris Invest property

Next steps were to assess repairs needed and decide if I should:

-Repair and Rent

-Repair and Sell

-Sell "As-Is"

Well, considering my renovation quote came out to $16,000+ on an asset I did not foresee positive long-term returns with...I DECIDED TO SELL. And I SOLD it a few months ago.

At the SAME TIME I was selling this property, I also purchased and closed on My Second Property. This one was NOT purchased through Morris Invest. I found it on my own through the help of an agent I met in Indy last year. The original asking price was over $100K, but I got it for $86K. It’s only a 2 Bed/1 Bath, but it’s 1,450 square feet with a laundry room (which could be turned into a 3rd bedroom), has a bonus sunroom, and 2-car garage. Structurally it’s in very good shape. The roof and gutters are only a year and a half old. The siding is all brick. Water heater 3 years old. Electrical and plumbing all updated within the last 4 years. It's currently renting for $995 to two married Med School students with good income and good credit scores.

The biggest point here: NEVER WORK WITH MORRIS INVEST. And, through learning and living through this real-life course in investing, I'm so much better prepared for the future. This second property is in a MUCH improved neighborhood, which draws in a better class of tenant, it's professionally managed by a trusted company, and it's structurally sound with recent major improvements.

WHAT'S NEXT??

If you know me, I'm not stopping. I just got an influx of cash from selling my Morris Invest property (remember, I bought it all cash), so now I'm looking for My Third Property. I'll have an update for you in the next month...but the Indy market has been HOT....I just lost out on 4 offers...

Lastly, I'm hoping you found my writing over the past year and a half VALUABLE. Or at least the on-going conversations and topics that were brought up.

Happy Investing All! Wow...it's been quite the ride so far...and I'm not getting off this roller-coaster anytime soon :)

-Tyler

I know its probably easier said than experienced first hand, but everything happens for a reason. You've shown other investors the value of keeping your head high, persisting, evaluating your OPTIONS, and picking the one that sets you up for success as you move from a bad situation to a better one. Especially choosing the option to get OUT instead of showing how you can turn it around... in the end, that obviously was the right direction.

All the while, you learned valuable lessons that you will carry with you on all of your investment opportunities going forward, many of those hard learned through experience and those stick with you even more than those you read about. And your willingness to share the journey with everyone here has literally LITERALLY saved people thousands of dollars along the way. Bravo, and looking forward to your continued journey here. I really hope you'll continue to keep us updated. After all of this, we are invested in your journey too! Cheers. If you ever wanna talk Indianapolis REI, hit me up. :)

Keep in mind though in all fairness in the beginning every month Tyler would pop on and say he got his check on time and for the full amount there were other folks that invested based on that.. no matter what others of us were saying at the time.. it goes both ways. Tyler is very LUCKY .. some of these other folks dumped 300 to 500k into this stuff IE their lifesavings and or their entire 401k.. those are the sad cases... I suspect tyler got a 20k education or so.. and down the road he goes..  

I'm not sure it's fair to lay that at Tyler's feet. He seemed pretty transparent about both the ups, and downs - the first post is replete with red flags that he ignored, as then did the theoretical others that lost their life savings as a result of his subsequent posts (which, maybe happened, maybe not). 

The net result is, I think, still positive for the community when real, unbiased investors (even naive new ones) post truthfully about their experiences. The reality in this line of investing, as with any other, is that human beings are greedy and dumb, and a percentage will always put themselves in a position to lose everything even for the slightest glimmer of a chance to get rich. It's a spectrum - some will lose it all in one shot; some will simply give in to the greed a little bit, but not enough to be unrecoverable; some are completely unemotional and analytical about every angle, every decision, and don't really make mistakes. 

If someone read this thread and plowed half a million bucks into a bunch of houses with one provider, without doing any more analysis, just because Tyler popped into this thread once a month to claim victory on his rent check, I'd call that an inevitable sucker and his/her money being parted. Sad? Sure. Inevitable, here or elsewhere? Yes. So, I don't think Tyler needs to carry that on his back. He paid a fair price for his lesson; others are accountable for their own actions.   

[Dan Nixon]

@Jay Hinrichs

that they blindly trusted this guy.. many of the posts said they trusted him because he had been on TV as a broadcaster and so he had to much lose .. and he would never do anything to jeopardize his reputation.undefined

I don't think I could have put it in words any better than myself.  You add that his presence on other established and respected tech podcasts. His wife's involvement and her demur gave off an air of authenticity. It was a well put together package. Lucky for me I was just cautious enough and then came across this and other threads on PB.  A great service to the community that you all are doing here. 

[Mark Whitted]

@RijmD We looked at SmartLand in Cleveland on the same trip! Nice stuff. A little too nice for our plans though. We were looking for Solid C+ to B- properties. They are more of a B+. They do a very nice rehab. 

Missy has all of her operations in house. We talked to the whole management team. The woman in charge of property management is a BULLDOG who will take no crap. They were also doing some newbuilds. These were into the A class range and wouldn't quite hit 1%, but they were nice. Of course with those there would be no cap-ex for q long time and very low repairs (assuming good tenant screening.) The market seemed good. They are right in the middle between P&G in Cincinnati and Wright Patterson AFB in Dayton. Not a lot of industry now; people don't work there, but they live there.

Good luck!  

[Jeffrey C.]

Be careful to work with Morris Invest. I am the victim of them. Read "Story with Morris Invest" on BP please. Make your own judgement if you want to work with them. By the way, Tyler helped me to find IPM, IPM and their owner Todd and Derek helped me a lot.

[Patrick Shawn Faherty]

Originally posted by @Jeffrey C.:

Be careful to work with Morris Invest. I am the victim of them. Read "Story with Morris Invest" on BP please. Make your own judgement if you want to work with them. By the way, Tyler helped me to find IPM, IPM and their owner Todd and Derek helped me a lot.

What/who is IPM? Thanks.

[Colin Zhu]

They are a PM company. 

http://www.ipmleasing.com/

[Tyler Jahnke]

Welp BP,

I've got another update for you. I'm still paying for this Morris Invest property....

OK, it's not that bad actually. I just paid off my last utility bill. Nothing crazy.

But, I do have another update for you...technically it has nothing to do with this particular Morris Invest property, but it's still 100% related. Let me tell you all about it...

****SPOILER ALERT for anyone just joining this thread. You might want to go back and read the previous 29 pages before reading on****

So, if you recall, I SOLD this Morris Invest property in May of 2018. Because I bought the property all cash, literally had 100% equity in it, and SURPRISINGLY didn't sell for a loss...I got a nice injection of cash back to me. What'd I do with that cash?

I bought My Third Property (remember, I already bought My Second Property a few months ago).

@Jay Hinrichs - you'll be happy. It's in a B/A neighborhood. Oh, and great finally meeting you a couple weeks ago!

So anyways, at the end of the day, I traded this C-Class falling apart property for a downpayment on a B/A Class Duplex that will bring in $1,700 a month. It's in a neighborhood of absolutely no crime whatsoever. Schools are 9/10. One unit is already occupied and I'm working to get the other unit rented ASAP. Looking at my numbers right now...and it's at a 7.5 cap rate and 8.45% cash on cash. In a great neighborhood.

So, there you have it. As always, only time will tell if this latest property turns out to be a good investment, but I feel so much more confident in it's long-term stability.

Let me know if you have any questions. Love you all. Happy Friday!

-Tyler

[Lionel Li]

Originally posted by @Tyler Jahnke:

Welp BP,

I've got another update for you. I'm still paying for this Morris Invest property....

OK, it's not that bad actually. I just paid off my last utility bill. Nothing crazy.

But, I do have another update for you...technically it has nothing to do with this particular Morris Invest property, but it's still 100% related. Let me tell you all about it...

****SPOILER ALERT for anyone just joining this thread. You might want to go back and read the previous 29 pages before reading on****

So, if you recall, I SOLD this Morris Invest property in May of 2018. Because I bought the property all cash, literally had 100% equity in it, and SURPRISINGLY didn't sell for a loss...I got a nice injection of cash back to me. What'd I do with that cash?

I bought My Third Property (remember, I already bought My Second Property a few months ago).

@Jay Hinrichs - you'll be happy. It's in a B/A neighborhood. Oh, and great finally meeting you a couple weeks ago!

So anyways, at the end of the day, I traded this C-Class falling apart property for a downpayment on a B/A Class Duplex that will bring in $1,700 a month. It's in a neighborhood of absolutely no crime whatsoever. Schools are 9/10. One unit is already occupied and I'm working to get the other unit rented ASAP. Looking at my numbers right now...and it's at a 7.5 cap rate and 8.45% cash on cash. In a great neighborhood.

So, there you have it. As always, only time will tell if this latest property turns out to be a good investment, but I feel so much more confident in it's long-term stability.

Let me know if you have any questions. Love you all. Happy Friday!

-Tyler

 Awesome news!!! Guess the deal did work out after all, congrats! 

[Jay Hinrichs]

Originally posted by @Tyler Jahnke:

Welp BP,

I've got another update for you. I'm still paying for this Morris Invest property....

OK, it's not that bad actually. I just paid off my last utility bill. Nothing crazy.

But, I do have another update for you...technically it has nothing to do with this particular Morris Invest property, but it's still 100% related. Let me tell you all about it...

****SPOILER ALERT for anyone just joining this thread. You might want to go back and read the previous 29 pages before reading on****

So, if you recall, I SOLD this Morris Invest property in May of 2018. Because I bought the property all cash, literally had 100% equity in it, and SURPRISINGLY didn't sell for a loss...I got a nice injection of cash back to me. What'd I do with that cash?

I bought My Third Property (remember, I already bought My Second Property a few months ago).

@Jay Hinrichs - you'll be happy. It's in a B/A neighborhood. Oh, and great finally meeting you a couple weeks ago!

So anyways, at the end of the day, I traded this C-Class falling apart property for a downpayment on a B/A Class Duplex that will bring in $1,700 a month. It's in a neighborhood of absolutely no crime whatsoever. Schools are 9/10. One unit is already occupied and I'm working to get the other unit rented ASAP. Looking at my numbers right now...and it's at a 7.5 cap rate and 8.45% cash on cash. In a great neighborhood.

So, there you have it. As always, only time will tell if this latest property turns out to be a good investment, but I feel so much more confident in it's long-term stability.

Let me know if you have any questions. Love you all. Happy Friday!

-Tyler

You will be much happier I am sure moving up in asset class.. @Lance Robinson and I had this conversation a few years back and it worked out for him in Indy..  and very nice to meet you as well In SF..  

[Will Zena]

That's great to hear @Tyler Jahnke! Was it a turn key property?

[Tyler Jahnke]

Hahaha @Will Zena no more turnkey for me!

I’m not interested in buying a property that’s basically a flip. I will buy value add from here on out so I can have some built in equity and good cash flow.

[Lance Robinson]

Originally posted by @Jay Hinrichs:

Originally posted by @Tyler Jahnke:

Welp BP,

I've got another update for you. I'm still paying for this Morris Invest property....

OK, it's not that bad actually. I just paid off my last utility bill. Nothing crazy.

But, I do have another update for you...technically it has nothing to do with this particular Morris Invest property, but it's still 100% related. Let me tell you all about it...

****SPOILER ALERT for anyone just joining this thread. You might want to go back and read the previous 29 pages before reading on****

So, if you recall, I SOLD this Morris Invest property in May of 2018. Because I bought the property all cash, literally had 100% equity in it, and SURPRISINGLY didn't sell for a loss...I got a nice injection of cash back to me. What'd I do with that cash?

I bought My Third Property (remember, I already bought My Second Property a few months ago).

@Jay Hinrichs - you'll be happy. It's in a B/A neighborhood. Oh, and great finally meeting you a couple weeks ago!

So anyways, at the end of the day, I traded this C-Class falling apart property for a downpayment on a B/A Class Duplex that will bring in $1,700 a month. It's in a neighborhood of absolutely no crime whatsoever. Schools are 9/10. One unit is already occupied and I'm working to get the other unit rented ASAP. Looking at my numbers right now...and it's at a 7.5 cap rate and 8.45% cash on cash. In a great neighborhood.

So, there you have it. As always, only time will tell if this latest property turns out to be a good investment, but I feel so much more confident in it's long-term stability.

Let me know if you have any questions. Love you all. Happy Friday!

-Tyler

You will be much happier I am sure moving up in asset class.. @Lance Robinson and I had this conversation a few years back and it worked out for him in Indy..  and very nice to meet you as well In SF..  

 Jay has been mentoring me for years. After coming up with a quantifiable system for this, I've used this to scale past Turnkey and into other non-turnkey properties as a system of profitability. Up front numbers are just so difficult to get the full story. Time shows better numbers of course...

[Diane G.]

@Tyler Jahnke - thanks for the interesting read....Just curious...

I know you have been getting steady monthly rent check for a while... What caused you to suddenly find it vacant?  Thank you