All Forum Posts by: Tim Ryan

@Jay Hinrichs and others who asked about the outcome of significant legal matters, Mr. Immell was acquitted on the charges related to the GO-Zone tax incentive, and below is a quote and then link to an article for awareness.  

Note for some on this thread, an indictment is just a notice that there is a belief a crime was committed.  Would never preclude anyone from continuing their business. . . but any due diligence as an investor and seeing indictment(s) would/should make you run away in my opinion.

"Mr. Immel, a partner in Hanover Companies, introduced investors from across the country to investment properties along the Gulf Coast. The government alleged that Mr. Immel conspired with a closing agent and title attorney to conceal Hanover's role in the transactions, in part through the creation of two different HUD-1 settlement statements, only one of which was provided to the mortgage lenders who financed the investors' purchases of properties from developers." 

 (https://www.prnewswire.com/news-releases/brett-imm...)

@Andy Chen Stay away. If you need me to do some video or pics of the area you just mentioned, what I would show you is for every habitable home in the area, there are two or three vacant or boarded up homes. Far too many of those find themselves in the Detroit Landbank. Enough of these threads on here also speak of the tenants in these areas and the pro tenant laws of Wayne County, plus lack of consistent city services should steer you clear. If you are looking this side of town, go a little further east down Mack Avenue and look in an area called Harper Woods, south of I-94. Borders Grosse Pointe Woods and you get city services and Grosse Pointe schools.

I

@Diane G. anyone who has been on this thread as long as many of us have and following along knows where the money has likely been coming from.  Question you should be asking is how long does @Tyler Jahnke think that the property has been vacant?  Stated another way, did he ever have confirmation from those in the BP community who looked at his property that anyone other than his squatter was ever living in his unit?

No surprise on my end seeing these notifications / updates today.  In my 9 to 5 job where I work with the Attorney General's office here in Michigan daily and someone who helped prosecute a low-income housing developer in California back in 2010 (which was when I got into real estate investing), knew back in December when the Attorney General in Indiana got involved with Ocean Pointe, this was all bad bad BAD news and would only get worse, which it did. 

I remember I said "Oh my" out loud and shook my head side-to-side when Tyler said he was continuing forward with Ocean Pointe based on a conversation with Clayton who said everything was all good.  Jumped firmly onto the @Jay Hinrichs good luck band-wagon with that decision.  Side note and a little tip for everyone. . . should strongly consider getting everything is all good comments in writing/email, as well as a copy of any licenses you are shown in writing/email if they ever happen to you.

Best of continued luck Tyler and glad to see you are using this as a learning tool.  Hopefully one where you don't suffer a financial loss when all is said and done.  I'm sure there are plenty of readers of this thread who haven't commented who appreciate your learning on their behalf so they didn't have to commit the capital you did tohave this experience. 

Originally posted by @Account Closed:

^ this dude just spent 30 minutes writing a review for a company that he never hired. 

@Tyler Jahnke and @Andrew Buchanan's review of Morris Invest is probably the most valuable, considering they actually USED Morris Invest, purchased properties from them, and went thru the rehab process, etc. 

@Nicholas M.'s review of Morris Invest is like reviewing Pizza Hut based on the phone call to order, and then saying they're awesome at pizza..... you need to wait for the delivery and actually TASTE the pizza before you can review. 

Freakin lawyers...always wasting our time. 

At least we aren't being charged by the minute for the information/thoughts shared!  Solid analogy on Pizza Hut.  Long-time follower of this thread - been ignoring the, in my opinion, useless posts recently - but just wanted to comment that I appreciate the addition of more real-world experiences of folks (Andrew Buchanan) that get back to the initial focus of this thread.  Anyone with verifiable and actual experiences beyond the initial screening and the most important step of putting capital to use is a much welcomed addition.

Tyler, sorry this has turned into everyone sharing their stories of success and this has gotten away from the original intent of your post and follow up.  Some folks, IMO and admittedly, contradict themselves a little (see: it can't be done, guy is a sham followed by I know people that make it work) but love to bloviate and tell everyone how good they are doing in different classes of properties.  I like Jeff Schechter's post above.  Good counter argument to all the negativity and speaks more directly to the Indy market and what is currently happening there.

Pretty sure the plan has been drawn out on how you can potentially make this work and given you are still in the phase where you haven't even started rehabbing, looking forward to seeing how that progresses and then the steps that come after as you continue the "Morris Invest Case Study 2.0" as originally intended.

Agree with all of the above.  That's how the game is played and if someone spends 10 hours reading through this website and listens to a few podcasts on here, they'd get there as well having no experience when they started.

Though I agree, I will say that if buy and hold is your niche, is there perhaps a possibility that this property can cash flow for the next 5 - 7 years at a decent CoC %? (keyword: possibility)

Even with limited options to exit, can't that be of value to this type of investor and you can try and mitigate the checklist of reasons why these properties fail with a strong PM?  I know it's a basic response and history might state otherwise in most cases, but not all.

For your lipstick on a pig comment, that is something I'd be very curious about and know folks have some questions on the rehab work being quoted. Curious since Clayton emphasizes his up-front investment on the properties keeps CapEx limited and could be a contradiction here.

Originally posted by @Jay Hinrichs:

@Tim Ryan  your dreaming dude.. if you think inner city ghetto properties change that quick

what has changed is Bates Hendrix  and fountain square were I have 20 plus projects going.

the hood is the hood.. these homes are in the hood."

my deals in bates and fountain I pay 70 to 100k for.. then remodel.. I just did one on Broad way that I sold for 525k.. which is big money for Indy.

sorry .. you can paint it however you like but this is a train wreck and those that are going to get run over are the CA buyers who know know better.

Think you are contradicting yourself or didn't fully comprehend my comment.  I noted that there are economic development plans in the Indianapolis area where some of these properties may be located.  Not saying Tyler's is, especially since I don't know where his propery is located, but you confirmed with your comment there are areas that can change.  Where we don't disagree is that inner city ghetto properties don't change quickly if at all; however, I'd argue there are some fringe areas that can experience some positive change.  Not sure your area where you purchased and sold for at $525k meets any parameters of being in the hood so can't compare that to Tyler's property.  Though unfortunately for him, think you and I would agree he doesn't have the same options for exiting the property.

I am still thankful that this journey is being documented as I haven't seen it discussed at length elsewhere for Morris Invest as the other thread never got there and the details and daily/weekly updates are fun to track (especially since it's not my money).   

Originally posted by @Jay Hinrichs:

@Aaron B.  so Morris invest tells their clients they rent to doctors and nurses and other profesionals do you see this area as an Area a doctor would rent in ?????

Let me know if I can help you there I fund quick flip deals..happy to help

As someone who knows the Indianpolis area having my degrees from Indiana University, plenty of friends living in the area and spending time there often, I'd imagine the doctors and nurses comment comes from the proximity to Riley's Children Hosptial.  Just across the river where I'd imagine some of these properties are located (there are other areas within the loop of 465) are areas that you (Jay) consistenly discuss.  There are some great economic development plans for some of these areas and Indy is on the better end for being a landlord so still very curious how Tyler's experience plays out over this calendar year and appreciate the detail we are getting with these posts.

Agree with above comment.  Have been an observer following this thread since it opened and hope the dialog continues over the remainder of 2017 with updates from Tyler.