All Forum Posts by: Tom J.

Alright BP, here is what 200+ burned Morris Invest investors need:  a strong recommendation from true experience for an Indianapolis PM company that can actually manage properties in a turnkey fashion...causing the out-of-state investor less stress instead of more!

To add to the confusion, another reply from Oceanpointe after 200+ investors got the above letter!!!

Latest debacle from Morris Invest and their recommended PM company Oceanpointe...if people don’t sign with them, ‘rents will be returned to tenant’. Really???

I want to notify everyone and anyone that is currently looking at and considering a purchase of a property from Morris Invest. It is a scam.  Don’t fall for the trap of the high returns. There is potentially a class action lawsuit in the works. There is no way to know which potential clients he may be reaching with his online YouTube videos but this post is just meant to be a warning to any potential investors. Find another company!  You have been warned.  I, along with over 200 other investors, have invested and essentially not seen the return promised or presented.  It is a SCAM.  This post is meant to be a warning to save potential investors from the trouble that we all have gone through.

I totally agree with you and I do use leverage for other larger properties that I've purchased. It just so happens that with these guys, they don't deal with people that need financing...which in this case, if things had worked out the way they were supposed to, I would've been getting like a 14 or 15% unlevered return.  I have thought about taking out the equity with a heloc but not really thinking that would be a good idea since this whole thing hasn't panned out the way that it was advertised. 

These are low cost properties...relative speaking. So there isn't escrow and all. U pay the cost and rehab up front and then they rent it out after rehab is complete. Purchased for around $50k. Rent is supposed to be $700 per month. 10% PM fee on gross rent. Tax and insurance is around $600-800 per year. Expected ROI, net of all expenses is supposed to be ~$7000 per year on a $50000 property so ~14-15% is the expected cash return (not accounting for vacancy). That is the attraction because that is the UNLEVERAGED return. Leverage would amplify that return but they don't deal with anyone that needs a loan to purchase so that's something to be aware of if you consider going with them.

Unfortunately no promising update...I contacted the PM company few more times (by phone and email).  Someone got back to me and said that they are still working on it and gave pretty much no details.  The property is not fully cash flowing yet.  Not sure how this is going to turn out long term.  There are multiple TK companies out there.  If you are considering investing and decide on this one, just realize what you are getting into.  Perhaps they are growing too fast to be able to handle the demand or they are just figuring things out as they go.  Either way, not a great situation for someone wanting true "turnkey" investing.

I purchased a home with Morris Invest over 3 months ago.  Rehab was delayed, which is fine as I understand that can happen.  Then now that it is done, they are working on getting it rented.  That part still hasn't happened.

I would echo some of the points made by others on this thread.  The #1, #2, and #3 problem with this organization is that the communication is probably the worst I have ever come across from what is supposed to be a "turnkey" real estate company (and I have worked with 2 others in other markets to purchase investment property).  It literally takes 6-10 emails and/or at least 4 calls to get anything done with this group.  Even when you email Clayton a question, half the time he doesn't respond and requires a repeat email.  I understand he may be busy, but this company, at least in my experience, treats you like they are doing you a favor by giving you a deal on a property...so if they don't get back to you, just deal with it because once you buy from them as an out-of-state investor, you sort of need them to follow through on this promise of the high returns.  Also, in my limited conversations with them, there have been a couple of times where they offer you a deal, and then they say "we usually offer this deal to our VIP clients."  I'm not sure what that means, but I assume that would mean the people that buy 10 fixer-upper houses from them at a time or something.  Sure makes me, the guy who bought one, feel like I'm not important in their book of business at all.  Also, if they have VIP clients and non-VIP clients, do the save the best deals for the VIP's and leave everything else to the rest?  Just makes you wonder.

I sincerely hope I have a chance to update this review in the next couple months with more positive feedback, but at this point, the experience has been so poor and the communication has been so unbelievably poor that I would rather opt for a lower return in a different market with a different 'turnkey' real estate provider than work with these guys again.

To end on a positive note, they do have a lot of good information on their youtube videos that is worth a look as a lot of this info can be applied to real estate investing in general.

I purchased a home with Morris Invest over 3 months ago. Rehab was delayed, which is fine as I understand that can happen. Then now that it is done, they are working on getting it rented. That part still hasn't happened.

I would echo some of the points made by others on this thread and others. The #1, #2, and #3 problem with this organization is that the communication is probably the worst I have ever come across from what is supposed to be a "turnkey" real estate company (and I have worked with 2 others in other markets to purchase investment property). It literally takes 6-10 emails and/or at least 4 calls to get anything done with this group. Even when you email Clayton a question, half the time he doesn't respond and requires a repeat email. I understand he may be busy, but this company, at least in my experience, treats you like they are doing you a favor by giving you a deal on a property...so if they don't get back to you, just deal with it because once you buy from them as an out-of-state investor, you sort of need them to follow through on this promise of the high returns. Also, in my limited conversations with them, there have been a couple of times where they offer you a deal, and then they say "we usually offer this deal to our VIP clients." I'm not sure what that means, but I assume that would mean the people that buy 10 fixer-upper houses from them at a time or something. Sure makes me, the guy who bought one, feel like I'm not important in their book of business at all. Also, if they have VIP clients and non-VIP clients, do the save the best deals (better neighborhoods, better returns, etc.) for the VIP's and leave everything else to the rest? Just makes me wonder.

I sincerely hope I have a chance to update this review in the next couple months with more positive feedback, but at this point, the experience has been so poor and the communication has been so unbelievably poor that I would rather opt for a lower return in a different market with a different 'turnkey' real estate provider than work with these guys again.

To end on a positive note, they do have a lot of good information on their youtube videos that is worth a look as a lot of this info can be applied to real estate investing in general.