Morris Invest Case Study 3.0

[Gregory Washington]

I was inspired by Tyler jahnke to do an honest case study for evertone about my experience with Morris Invest

[Gregory Washington]

My wife and I always enjoyed liked the advice we received from Claytons videos. It was my wife idea to schedule a phone consultation so...

May 10 - We scheduled a phone consultation online. They said they have an available appt on June 13th at 1130am.

June 13 - Waiting patiently by my phone, Larry the acquisitions mgr calls at 11:37am. He explains cost, rehab process, closing. He says the construction would begin right away and that it would take 8-10 weeks. I tell him I like it and he sends me  a property in Indianapolis. I tell him my wife and I need to discuss it further. I get back to him an hour later and he says the property had been sold and that they sell quick. He says he'll send another one.

June 14 - He sends me another property in Jacksonville, To.

It was a very wack photo of the front of the house but we move on it quickly. 

They send the purchase agreement and we sign it.

June 21 - My wife noticed that the purchase agreement did not have any language that included the rehab so she reached out to them. First red flag. 

Nicole from ME responded saying that the rehab is nearly complete but they would include the language anyway.

June 25 - I hired a local via Craigslist to go out to the property and send me pics of the outside. 

The pictures showed that work had indeed begun but there was construction debris everywhere.

June 26 - We officially  closed on the property!

June 27 - We were introduced to Ash who could hook us up with insurance.

Ash responds says that someone already sent info via email and to check my spam.

June 28 - We were introduced to Ericka at Oceanpointe property management.

June 29 - Ericka sent us prop management agreement

June 30 - We want to send docs so we ask if they have dad machine

July 5 - Ericka responds saying they have no fax but if I can take photos of the signed docs that's good enough.

I promptly send them.

July 18 - I get frustrated with lack of communication so I email Nicole.

She responds saying she put a request for an update on the property and will get an answer ASAP

I sent Ericka and Clayton this same email.

Ericka responded and says the property is still in rehab and will be done in 2-3 weeks

July 21 - I receive an audio email from Clayton himself. He says not to worry they are working hard on it and that it's too soon after closing to worry. He says they don't send out toons of updates. He says they don't send out weekly updates and that they only deal with hands off investors.

I'm not satisfied with the response but happy that it was prompt. I decide to just leave them alone and let them do "their job".

Aug 27 - I received notification from Zillow that the property actually sold on July 10th. I thought that was weird since I closed on June 26th.

Aug 30- We start to receive citations and nuisance letters on the property. 

The citation was because the plumber never took a permit out for changing the water heater

The nuisance letter was for the debris and trash left on the property.

We immediately forward them to linzi del Conte

She refers us to the "violations dept" and says she has nothing to do with that. We feel like screaming.  Lol.

Sept 5 - we receive an email from the violations dept saying that this issue will be resolved and that we don't need to do anything. 

Sept 10 - I usually am able to contact Larry no problem by phone but not today. Voicemail twice. 

The same is true with Oceanpointe. Not today. Voicemail thrice!

Sept 24 - As of today there has been no communication since Sept 5 about the voilations.

Here we are 3 months after and we are completely in the dark. Scary!

I plan on contacting them tomorrow. I'll keep you updated!

[Glenn Paulson]

@Gregory Washington thank you for your post. Can I ask the address of your property? While your post gives me pause with MI, I am trying to pinpoint where these properties are in Indy. Thanks much

Glenn 

[Filipe Pereira]

Concerning, to say the least. Good luck my friend! 

[Jay Hinrichs]

AMAZING  on so many levels..  property gone in one hour?  So the next one they offer up you jump on it so you don't lose it.  there is no shortage of rentals in these markets .. not sure what the urgency is here other than sales tactics.. IE classic take away..

I am curious how does someone who comes from a completely different field than real estate become someone you trust so much in something that is a major investment for you.. ???

I hope this works out for you...

PS is the Trout Farm inn still up on running.. My dad started in real estate selling land in those areas back in the 60s and I use to tag along   fond memories.

JLH

@Glenn Paulson  at the price points talked about those are all in the cheapest areas of the city.. as they are the cheapest properties that can be bought.. simple math.. any cheaper and they would be free.

[Gregory Washington]

Originally posted by @Glenn Paulson:

@Gregory Washington thank you for your post. Can I ask the address of your property? While your post gives me pause with MI, I am trying to pinpoint where these properties are in Indy. Thanks much

Glenn 

The property is in Jacksonville, FL

[Gregory Washington]

 @Jay Hinrichs:
Definitely something to think about. I appreciate the feedback.

[Jay Hinrichs]

@Gregory Washington  you may want to talk with JWB in Jacksonville just to get a second opinion.

[Gregory Washington]

@jay

 You know at this point I definitely am considering other options. Even other turn keys... Thanks!

[Chris Carson]

I did a drive by of a proposed Morris property here in Jax and it was in the worst possible area, which says a lot because Jacksonville has a lot of rough neighborhoods. I'm talking like F-. 

[Robert Rayford]

@Gregory Washington , As a Bay Area investor that does flips in Jax this sounds typical of the service industry that's there.  @Chris Carson is correct with the neighborhoods in Jacksonville but it's the numbers that count, correct? I have boots on the ground and can have one of my guys go by and take pics of the activity if you would like. Just shoot me a P.M. 

[Gregory Washington]

Absolutely

[Gregory Washington]

Update:

Sept 25 - I emailed my concerns to MI about the status of the rehab and lack of communication. I also asked about the condition of the property since Hurricane Irma did sweep through.

I received a message from Clayton saying that our property was fine since it was inland a ways.

I also received a message from Nicole saying that someone would call me you discuss the status of my property.

No word as of yet

[Taylor Chiu]

Geez, I was thinking of investing with MI, but this definitely sounds rotten. Thanks for sharing your experience, and good luck!

[Andrey Y.]

For those listening to the Morris Invest podcasts, I will post here what I said in another thread for the benefit of those folks even considering investing in D-class Turnkey.

I knew Clayton Morris was full of hot air when he said (on more than one occasion) that he has Doctors and Nurses live in his Class D/D+ homes in Detroit/Michigan. Right. So a doctor (making $350K+ per year) and a nurse (making $110K per year) RENTS a 3/1 in a bad area, where he purchased for $10K, rehabbed for $10K, and kept (or sold for $45-50K to an investor). If a doctor is renting a borderline war zone house, I don't even want to know what a teacher/carpenter/postal working is renting (a cardboard box?!) haha..

The other thing people don't realize is, he preaches that only cash flow matters, and appreciation is pointless and not important. People don't realize that Clayton/Morris Invest is $20-25K all in on these homes, so he can probably weather high repairs or CapEx costs with a portfolio of 30-50+ homes. The average investor from CA or NY buying one or two of these (for $50K per house) is screwed. Also, it makes sense that Morris would keep the 10% "least bad" homes they buy. No lender will lend on these homes. I sometimes listen to his podcast at work to make me instantly laugh, although sometimes I cringe at the thought that someone actually believes the nonsense said on there.

Just because 'he sounds like a nice guy' or 'she is cute', this is NOT a reason to throw away your hard earned money to this charade. Let's get real.

[Lane Kawaoka]

As an investor who started with turnkeys or of state I still believe that it is the way to get started if you don't have more than 100k of liquidity or can't save 30k a year. A few years ago turnkeys we good but today in this sellers market you are seeing the junk come up to meet our own 1% rent to value mania.

Rule one don't buy cash... get appraisal.
Rule two immerse yourself with other investors and not sales people.

I just got an invoice for 27000 for a bad tenant turnover today. Today was not a good day. I need a beer.

[Jay Hinrichs]

@Andrey Y. as a practicing physician I think I would take your word for were your peers would prefer to live over what Mr. Morris said... way back in the original Morris thread i made the same comment... I about fell out of my chair when he said Doctors and nurses would live in the hood... too funny.. but it goes to the whole Guru power.

someone has a lot of media notoriety and look how they can influence smart people to make very questionable investment.

there are great turnkey options at the top of the asset class not the bottom.. Bottom are only appropriate for locals that live it day in day out.. its a J O B if your going to be successful at that asset class and a tough one at that... 

[Hau N.]

@Andrey Y.  Many physicians don't make $350K/yr unless they are specialist.  Your point bout Morris Invest is still valid though. 

[Vivek Khoche]

@Gregory Washington - Since you were inspired by other post why do you complain now. Same inputs are repeated here that were on the other post. The amount of time you have spent on documenting your case study, 10% of it would have got you to a better position. Problem is fellow investors are giving you free advise and not selling dreams.

Good Luck 

Vivek

[Gregory Washington]

Originally posted by @Vivek Khoche:

@Gregory Washington - Since you were inspired by other post why do you complain now. Same inputs are repeated here that were on the other post. The amount of time you have spent on documenting your case study, 10% of it would have got you to a better position. Problem is fellow investors are giving you free advise and not selling dreams.

Good Luck 

Vivek

I would say I'm m complaining. I'm giving an honest experience of my dealings with MI. If you work for MI and don't like this case study, address the real issues first before complaining about someone else complaining. Lol

[Vivek Khoche]

@Gregory Washington- I work in high tech and do REI on side, I won't spend a minute on company like Morris invest. If you think this is your greatest investment I will say good luck. I feel pain of my friend

@Lane Kawaoka

Vivek

[Gregory Washington]

Originally posted by @Vivek Khoche:

@Gregory Washington- I work in high tech and do REI on side, I won't spend a minute on company like Morris invest. If you think this is your greatest investment I will say good luck. I feel pain of my friend

@Lane Kawaoka

Vivek

 Thank you for your helpful, insightful, and highly intellectual input. It really made a world of difference not only in my life but all of our lives! You should be rewarded with the highest honor

[Gregory Washington]

UPDATE ALERT!!!

10-3-17 - I emailed Bert (the person they would contact me but did not) asking him for a status update. Bert responded 3 hours later saying that he apologize for leaving us hanging but that the rehab is done and they do have a deposit on it and its rented. He said hell send us out our rent check starting next month. 

I replied to him asking for the rehab pics. No word yet 

[Gary L.]

@Gregory Washington, thanks for sharing.

Do you mind telling us how much was the total cost and the price of rent?

[Gregory Washington]

Originally posted by @Gary L.:

@Gregory Washington, thanks for sharing.

Do you mind telling us how much was the total cost and the price of rent?

 Sure. The total all in price was $40500 and the monthly rent is $725/ month

[Allen Scott]

@Gregory Washington, thank you for sharing your experience with Morris Invest.  Reading through this forum post hits close to home.  I'm having the same issues with Morris Invest and their property management company Oceanpointe Investments.  I'm new to investing but never in my business-life have I come across a company that is less responsive to its customers/clients.  Hopefully your situation gets resolved in the near future.