All Forum Posts by: Mark Whitted

This whole story is so sad for my wife and me. Clayton is the reason we am now real estate investors. I heard him on Leo Laport’s TWIT podcast in March 2017 and started listing to Clayton’s podcast nearly every waking moment. After listening to “episode 0” of the podcast my wife said, “That sounds great. We should do that.” 

Memorial Day week 2017 we took a road trip through the Midwest; first stop: Indianapolis to tour Clayton’s operation. Only timing kept us from investing. 

Just before that trip, I invested my self directed IRA into a note with another TK provider, American Wealth Builders, backed by four of their properties being rehabbed in Cleveland. (We saw the houses on our Memorial Day tour.) So all of our capital was tied up for 12 months. (You can read about that experience elsewhere on BP.)

Jump ahead a year and we closed on on 8/17/2018 on our first physical investment, an A/B class duplex in Rockwall, TX for a house hack. We are in the process of moving into the newly renovated vacant side and have signed the 5 year month to month tenants in the other side to a new 2 year lease with built in rent increases to bring them up to market. When they leave, we will update their side and hopefully cash out refinance and go do it (house hack) again. We have found a probable supply of at least 5-7 duplexes in the area and could possibly purchase another one or two in the next 6 months, possibly by the end of the year. 

So we still have Clayton Morris to thank for starting our real estate career. But we are disappointed in how his business has turned out. 

Jesse,

These notes work great in an IRA. They're generally short term; 12 months. But there's usually another one to roll into right away.

Good luck!

Mark

I brought this up at a seminar the other night and a very knowledgeable person who is very involved with TREC told me that since it "NOT AUTHORIZED", if you use it and have any issues, you can't go back to them. If they REALLY didn't want you to use it then it would be "PROHIBITED". That made sense to me.  

Update:

Our note matured on July 1, 2018. They have sold one of the four houses and we should have $25k back in the IRA today or tomorrow. We have extended the note for $75k through 10/31/2018. They are supposed to be trying to sell the other three houses ASAP so we can get our money back and move on. No problems with AWB. It's just we would like to move to smaller ($30-50k) shorter term (3-6 month) investments with local partners. We will be converting the IRA from a traditional to a Roth first so we're not paying taxes on the income... ever. :) We would like to have the funds ASAP, but it's hard to complain when you have $750/month coming in like clockwork.

On a further note, we will be withdrawing the $25k return, plus some, for the down payment on a duplex where we will house hack. This will be our first physical real estate investment!

@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!  

@RijmD If you get a chance, make a quick side trip out I-70 to Middletown, OH (between Dayton and Cincinnati) and talk to Missy McCall and Myra Hargrove at retirewithrealestate.biz. My wife and I went out a year ago and met their team. We were impressed. Our capital has been tied up with a note out of my IRA so we haven't bought anything from anybody yet, but Missy is high on our list of prospects. I have a contact with our local Dallas REIA that DOES have property with them and he says great things too.

For me personally it's sad what has happened to Clayton since it was his appearance on a tech podcast which led me to his podcast and got us involved in real estate investing. I probably wouldn't be writing this or know anything about REI if not for Clayton.

Good luck!

@Patrick Shawn Faherty Could you please share with the group?

You need to stop trying to find her/him and just go after the title company. Let THEM deal with trying to get THEIR money back from this slimeball. THEY have been negligent. THEY have insurance to cover this. (Of course they probably won't have the insurance after this deal!)

My wife and I met with Missy and her team back in May. We would highly recommend them for TK investing. We have not invested with them... yet. But when we receive the payoff for the note that we are currently invested in (sometime between now and May 2018) Missy will be at the top of our list!

It sounds like Matterport. https://matterport.com I don’t know much about them. Seem to be pricey. I’ve been wanting to look into it more.