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Has anyone done recent business w/ Morris Invest or SDIRA Wealth?
Hi BP community! Has anyone done recent business (2020 or 2021) with Morris Invest or SDIRA Wealth? When I asked them about the fraud/lawsuits they said that was Clayton Morris' old partnership with a different company and now they only refer to SDIRA Wealth which only sells new construction homes that are usually pre-leased to buyers (currently they are building in Lubbock, TX). I also have been speaking or will speak with Roofstock, Home Union, Rent to Retirement, and Marshall Reddick. If anyone has any advice or tips that would be great, I'm new to real estate investing and live in an expensive area, and wanted to invest out of state. Thank you!
Quote from @Jesse Beach:
@Jay Hinrichs I agree on the pricing, honestly this could be me listening to much to the property mgt team saying what they thought they should get, maybe time to make a bigger cut. There is still plenty of room above how much the mortgage is.
Honesty and trust are important and it seems you're not getting that. Fire this management company and get one that will tell you the truth (even if it's a painful truth).
Quote from @Jesse Beach:
Hello All,
I was just trying to get some other opinions to see if anyone else is dealing with what I'm dealing with.
I bought one of the Duplexes in Lubbock. I was able to travel down and see the property just before closing. Basically completed just needed some clean up from construction, so to be expected. Closing was pushed off until January as they said they were backed up.
I was originally told I would have tenants in place before closing and I missed my commercial loan was partially based on this. So when I was getting closing to signing on the loan it cost me %.5 extra in interest because the property wasn't occupied. This was back in about August. So basically there was no way that it could have been occupied as it didn't finish until late December(closed Jan22).
Moving on from there I closed in early January. I keep getting the run around and saying oh it's just the slow months and things will be picking up soon. It is now May 6th as I post today. No tenants, I check up about every week, they say maybe a showing or so, but no tenants. City Wide property mgt is who I deal with and honestly when I ask for real numbers and updates I get a lot of BS run around sales talk speech. In my opinion the way they sell these I should have had tenants by December, so I'm going on about 6 months depending on how you start with no tenants in either side.
I can't remember the exact amount of Duplexes on the street when I drove down but they say there about 8 to 9 units unoccupied. Supposedly I'm on top of the priority list. We'll see...
Is anyone else dealing with these same issues and or hearing other things?My other concern is they are supposed to be building another round of these and they can't fill the ones on my street. This is my first property so of course it's harder to keep my head in the game with %100 vacancy. I planned for it financially, but it's a headache for sure.
Hello All,
I am on the same boat as you i closed on my first property with MI on march 22, up to this day 7/14/22 is not yet rented. PM is giving the same run around crap, that my property is on of the last 3 to be rented and so on. My property is a single family home 4bed 2 bath. I dont think i will do business with MI and to be honest I am thinking of selling the property or do a 1031, property appraised like 7k after closing but the way it was sold to me that a tenant with be in place before closing was all BS. That was the sales pitch that looked attracted to me and here I am 3 months after closing and no tenant, even the numbers looked good, my ROI was going to be decent, but looking at the new tax assessment next year my numbers are going to change a lot, leaving with very little cash flow. As a new investor with your 1st property its not a great experience, its really frustrating but my cpa its telling my to hold it and not sell it, but i dont know how long can i hold this vacant property.
@Jesse Beach I tagged the wrong person instead of you
#1 All Forums Contributor
- Investor
- Virginia
OK, are people actually still investing in those companies? While I am not involved - i have read the accusations and whether or not if they are true, that would scare me enough to stay far far away from anything they are associated with.
If at this point anyone does business with Clayton Morris they deserve to be ripped off.
#3 Managing Your Property Contributor
Quote from @Johan Soto:
Hello All,
I am on the same boat as you i closed on my first property with MI on march 22, up to this day 7/14/22 is not yet rented. PM is giving the same run around crap, that my property is on of the last 3 to be rented and so on. My property is a single family home 4bed 2 bath. I dont think i will do business with MI and to be honest I am thinking of selling the property or do a 1031, property appraised like 7k after closing but the way it was sold to me that a tenant with be in place before closing was all BS. That was the sales pitch that looked attracted to me and here I am 3 months after closing and no tenant, even the numbers looked good, my ROI was going to be decent, but looking at the new tax assessment next year my numbers are going to change a lot, leaving with very little cash flow. As a new investor with your 1st property its not a great experience, its really frustrating but my cpa its telling my to hold it and not sell it, but i dont know how long can i hold this vacant property.
Have you seen the property-ie actually walked it? I'd do that and I'd fire the PM and hire a reputable one. It is your property, take charge of it and get it rented or sell it.
@Theresa Harris thanks for your advise, I appriciated
@Patrick Bavaro I’d love to hear more about R2R. I’m looking for a turnkey investment out of state and Florida seems appealing to me. Will you be doing more business with them? What else can you share about them?
I have experience with multiple turnkey providers including some of you mentioned. Rent To Retirement has the best reputation out of all of them.
When it comes to trusting someone with my hard-earned money: transparency and educativeness are the traits I look for.
We can connect and I can share my experiences.
Quote from @Sandra Rocha:
@Patrick Bavaro I’d love to hear more about R2R. I’m looking for a turnkey investment out of state and Florida seems appealing to me. Will you be doing more business with them? What else can you share about them?
Quote from @Matt Moreland:
@Jesse Beach sorry to hear that you have had such a rough go of it on your first property. In my experience these brand new rentals don't get the rents anticipated by out-of-state buyers. Renters see that the whole neighborhood is available for rent and they push to see who will give them the best deal (or which agent will cut them a deal).
@Jay Hinrichs said it exactly right. Every month of lost rent while holding out for a few extra dollars only puts you behind in the long run. I would recommend dropping the rent to get it occupied, and only raising rents slightly while occupied and making more significant jumps to get closer to market rate when a tenant has to relocate and cannot renew.
Jesse, we've got quite a few new and newer duplexes in Lubbock and have not had any issues getting multiple qualified apps per vacant unit within a few days of listing it. The demand here far exceeds the supply so there is no reason why your property should not have been leased months ago. Feel free to shoot me a message and we can talk through what has and hasn't worked for us in the Lubbock market and come up with a strategy to get it rented so you can stop eating those holding costs every month.
Cheers!
Matt
@Matt Moreland, I have one property in this area which not perform well, would you find me a good PM or find a good strategy to get rid of the property in Lubbock please?
Quote from @Sharry W.:
Quote from @Matt Moreland:
@Jesse Beach sorry to hear that you have had such a rough go of it on your first property. In my experience these brand new rentals don't get the rents anticipated by out-of-state buyers. Renters see that the whole neighborhood is available for rent and they push to see who will give them the best deal (or which agent will cut them a deal).
@Jay Hinrichs said it exactly right. Every month of lost rent while holding out for a few extra dollars only puts you behind in the long run. I would recommend dropping the rent to get it occupied, and only raising rents slightly while occupied and making more significant jumps to get closer to market rate when a tenant has to relocate and cannot renew.
Jesse, we've got quite a few new and newer duplexes in Lubbock and have not had any issues getting multiple qualified apps per vacant unit within a few days of listing it. The demand here far exceeds the supply so there is no reason why your property should not have been leased months ago. Feel free to shoot me a message and we can talk through what has and hasn't worked for us in the Lubbock market and come up with a strategy to get it rented so you can stop eating those holding costs every month.
Cheers!
Matt@Matt Moreland, I have one property in this area which not perform well, would you find me a good PM or find a good strategy to get rid of the property in Lubbock please?
Hi, Sharry! Just messaged you.
Quote from @Jim K.:
I suggest you don't think about getting into business with Clayton Morris until he moves back from Portugal and makes restitution to the victims of the Ponzi scheme he was involved in. The only defense he has offered against the charge of being thoroughly corrupt is that he is unfathomably ignorant about the residential real estate business.
Is Morris presence in Portugal thwarting the New Jersey lawsuits?
#2 Investor Mindset Contributor
- Handyman
- Pittsburgh, PA
Quote from @Eugene Weixel:
Is Morris presence in Portugal thwarting the New Jersey lawsuits?
That seems to be the main reason he left. It's really hard to enforce the outcomes of US civil lawsuits in the EU.
@James Wise, a long-term BiggerPockets user, was sued for $7.2M by Clayton Morris for reporting on Morris on his YouTube channel. He's the right guy to talk to about this.
The channel is called HoltonWiseTV. You would want to start with searching on YouTube for: "Clayton Morris Loses $7 Million Lawsuit"
#2 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
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#2 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
Quote from @Eugene Weixel:
Is Morris presence in Portugal thwarting the New Jersey lawsuits?
does a bear go potty in the woods ?? of course he may have been a clueless dude in Indy and other markets and to me the money he was making just blinded him and his wife.. the move to Portugal was strategic to the extreme. I suspect most if not all civil litigation will just die on the vine.. And he just keeps pumping out his U tube and the US guys who allow him to sell their properties you have to question them as well.. So its no major mystery that these are not performing as advertised..
Quote from @Jim K.:
Quote from @Eugene Weixel:
Is Morris presence in Portugal thwarting the New Jersey lawsuits?
That seems to be the main reason he left. It's really hard to enforce the outcomes of US civil lawsuits in the EU.
@James Wise, a long-term BiggerPockets user, was sued for $7.2M by Clayton Morris for reporting on Morris on his YouTube channel. He's the right guy to talk to about this.
The channel is called HoltonWiseTV. You would want to start with searching on YouTube for: "Clayton Morris Loses $7 Million Lawsuit"
He didn't realize that @James Wise had his ish together and got a big wake up call. The level of detail and info that James had was off the charts. The investing world was better because of James.
#2 Investor Mindset Contributor
- Handyman
- Pittsburgh, PA
Quote from @Tchaka Owen:
Quote from @Jim K.:
Quote from @Eugene Weixel:
Is Morris presence in Portugal thwarting the New Jersey lawsuits?
That seems to be the main reason he left. It's really hard to enforce the outcomes of US civil lawsuits in the EU.
@James Wise, a long-term BiggerPockets user, was sued for $7.2M by Clayton Morris for reporting on Morris on his YouTube channel. He's the right guy to talk to about this.
The channel is called HoltonWiseTV. You would want to start with searching on YouTube for: "Clayton Morris Loses $7 Million Lawsuit"
He didn't realize that @James Wise had his ish together and got a big wake up call. The level of detail and info that James had was off the charts. The investing world was better because of James.
Does anyone know what happened to Bert Whalen, the sleaze that was CEO of OceanPointe Investments and Morris's partner in the Ponzi scheme? He was supposed to be sentenced last year.