WARNING: Matt Motil of Cleveland, OH

98 Replies

TL;DR Matt Motil is a fraud. Do not invest with him.

Warning, this is a long post. My purpose here is to save some of you from the experience I now find myself in after providing a short-term loan to Matt Motil of Cleveland, OH. I was on his list to receive emails of lending opportunities. I had listened to this individual’s podcast several times, visited his website, googled him, and searched for him on BP to see if there was any negative information. Not finding anything negative, I decided to pursue this potential opportunity for passive real estate investing. This is the email I responded to:

Good morning, Robert,

Current private lending opportunities.

500k at 15% for 6 months. Portfolio of single and multi-family properties valued around 800k. This can be broken up into chunks but ideally want to keep it together. (6,250/month!)

200k at 12% for 6 months. 9-unit apartment, valued at 300k. (2000/month!)

100k at 12% for 6 months. Single Family. Valued at 180k. (1000/month!)

80k at 15% for 6 months. Single Family. Valued at 120k. (1,000/month!)

65k at 12% for 6 months. Single Family. Valued at 90k. (650/month!)

50k at 15% for 6 months. Single Family. Valued at 85k. (625/month!)

25k at 15% for 6 months. Single Family. Valued at 40k. (312.50/month!)

Investors' capital is secured through promissory note and mortgage deed on the real estate assets.

Our model is to purchase real estate and rehab the units, place tenants, put under management, refinance long-term (why most are only 6 month terms) and then either hold long-term or seller-finance to an investor or tenant. Interest rates on deals are based on the projected performance and adjusted so each deal cashflows appropriately.

Let me know if you have any questions about the deals or the process.

Thanks

Matt

I then scheduled a call with Mr. Motil to discuss this opportunity. I had a delightful call with him. He explained that they use this money to improve property and then sell to another investor or refinance to pay lenders (people like me) back. I asked him, “Have you ever not paid anyone and forced them to take possession of a property.”

“Never,” he responded.

He then said, “What is the first thing you are going to do if this goes bad? You are going to get on online forums and talk about what a bad experience you had with me. That would not be very good business.”

RIGHT! Makes total sense! Look at this guy, he has a podcast, he has written a book, he has an online presence…he has to be legit, right?!? The mistake I made was not contacting a lawyer and doing my due diligence.

So, after being reassured I invested with him on October 30, providing a short-term loan of $80k. Interest payments would be $1,000 for six months, and at the end of the six-month period, I would also receive my principal back. This was my first foray into passive lending; It will also be my last.

I received the first interest payment in December, right on time: so far, so good. However, January’s payment was late so I sent an email as a gentle reminder. I received the following email back:

With the holiday and weekend everything was delayed. You should see it today or tomorrow at the latest. Please let me know when you see it.

Thanks
Matt

OK, understandable. So, I waited several days with nothing. I then sent several additional emails and left a voicemail on his company’s phone. I finally received this response.

I’m incredibly sorry for the communication. I’m sorry for the delay. No excuses but we will be making payment tomorrow. We had to pursue a property manager to get paid this month and I apologize for the delay it’s caused all around.

I’m sorry again for the communication. I know not being able to reach me made you nervous; as expected.

Thanks
Matt

Sent from my iPhone

> On Jan 10, 2021, at 11:43, Robin Hines wrote:>

You have no idea the amount of distress you have caused my family (additional stuff follows, but you get the drift).

Matt Motil 

No, I do understand and I am incredibly sorry. You are correct, this was supposed to be passive and it hasn’t been and that’s our fault. I will get us on track and back to expectations.

Thank you,

Matt

I did not receive a February or March payment, and in March he sent the following email to his investors.

First off, I appreciate your patience. I have talked with many of you, but wanted to send out an email to make sure everyone was on the same page.

Last August, we had banking and some tenant payment issues that put us in a challenging cash flow position. We worked through them and got everything on track by the end of the month and have been pretty smooth since then. That was the first and only time we had experienced a major issue in our systems and processes. We keep reserves for these kinds of things but they are not sitting in liquid cash.

The goal of private lending is passive income, and having to chase money isn’t passive. We had to track down our payment from our largest PM this month and this was not something we anticipated from a cash flow standpoint. When normal vacancy and tenant non-payment occur, we absorb that in the portfolio and payments continue regardless to pay commitments. When we do not get paid at all, and we aren’t ready for that, it puts us in a bind.

Things are moving along and we anticipate receiving our payment this week. We also initiated some funds movement on our side yesterday to cover things should we not get paid this week, I want payments scheduled so they continue.

We have internally been discussing bringing all property management in-house moving forward for about the past year. There’s a tipping point where it makes sense to use consultants and when it makes more sense to have staff. This situation here has told us it’s time to pull the trigger on hiring our own people and controlling more of the process and flow.

2020 was a year like no one expected or had ever experienced. I’m grateful we are here, alive, and kicking. I’m grateful for you and your patience.

Beyond the property management side, we are realizing that the way we have dealt with risk from a cash flow standpoint up to now isn’t going to work long-term as we navigate what ever we are calling what we are doing now. We will be working on building up a larger cash reserve that can be quickly accessed to keep these types of things from trickling down to the investor level.

Again, I apologize for the delay and the poor communication. I’m not a resolution guy, but I know that being a better communicator is my goal for this year.

They say acknowledgement is the first step in the road to recovery.

Thanks again for your patience.

Matt

So, again, I’m reassured. I then wait until the end of our agreement. Since I did not hear from him after our agreement was supposed to be over, on May 3rd I sent an email to him saying that if I did not hear from within 24 hours, that I would contact an attorney. I received no response and contacted an attorney two days later.

Here is what the attorney has found it. There are 2 mortgages listed for the property in addition to mine. He never filed my mortgage with the county. He also received a sum of $100,000 from another individual one month after our agreement (November 2020) on the same property. There are numerous civil suits that have been filed against his company and against him personally. The lawyer actually received another phone call today from another person who has been swindled out of their investment. 

It amazes me that someone would right the responses he did, knowing that he is doing this to people. 

I am now pursuing all legal options, but not sure if I’ll ever get my money back. So please, let this serve as a cautionary tale to all of you. It sucks being in this position.

@Robin Hines . Thanks for the post!  I almost lent to him in January.  After agreeing to lend on a property, he never responded back to me.  Dumb luck I guess.

this just moved past bad investment to CRIMINAL  I would be filing complaints with the DA  DOJ and SEC 

and the OHIO department of corporate securities.. this is straight out fraud.. 

there was another guy in Utah that did the same thing on properties in KC..  his name is Chad Duecher he got 7 years in prision.  Multiple loans on same property without disclosures.

It seems you did not go through a title company and get a lenders policy.. so I know its too late.

but for others here lending money on real estate you must go through title and get a lenders policy.

Originally posted by @Robin Hines :

TL;DR Matt Motil is a fraud. Do not invest with him.

Warning, this is a long post. My purpose here is to save some of you from the experience I now find myself in after providing a short-term loan to Matt Motil of Cleveland, OH. I was on his list to receive emails of lending opportunities. I had listened to this individual’s podcast several times, visited his website, googled him, and searched for him on BP to see if there was any negative information. Not finding anything negative, I decided to pursue this potential opportunity for passive real estate investing. This is the email I responded to:

Good morning, Robert,

Current private lending opportunities.

500k at 15% for 6 months. Portfolio of single and multi-family properties valued around 800k. This can be broken up into chunks but ideally want to keep it together. (6,250/month!)

200k at 12% for 6 months. 9-unit apartment, valued at 300k. (2000/month!)

100k at 12% for 6 months. Single Family. Valued at 180k. (1000/month!)

80k at 15% for 6 months. Single Family. Valued at 120k. (1,000/month!)

65k at 12% for 6 months. Single Family. Valued at 90k. (650/month!)

50k at 15% for 6 months. Single Family. Valued at 85k. (625/month!)

25k at 15% for 6 months. Single Family. Valued at 40k. (312.50/month!)

Investors' capital is secured through promissory note and mortgage deed on the real estate assets.

Our model is to purchase real estate and rehab the units, place tenants, put under management, refinance long-term (why most are only 6 month terms) and then either hold long-term or seller-finance to an investor or tenant. Interest rates on deals are based on the projected performance and adjusted so each deal cashflows appropriately.

Let me know if you have any questions about the deals or the process.

Thanks

Matt

I then scheduled a call with Mr. Motil to discuss this opportunity. I had a delightful call with him. He explained that they use this money to improve property and then sell to another investor or refinance to pay lenders (people like me) back. I asked him, “Have you ever not paid anyone and forced them to take possession of a property.”

“Never,” he responded.

He then said, “What is the first thing you are going to do if this goes bad? You are going to get on online forums and talk about what a bad experience you had with me. That would not be very good business.”

RIGHT! Makes total sense! Look at this guy, he has a podcast, he has written a book, he has an online presence…he has to be legit, right?!? The mistake I made was not contacting a lawyer and doing my due diligence.

So, after being reassured I invested with him on October 30, providing a short-term loan of $80k. Interest payments would be $1,000 for six months, and at the end of the six-month period, I would also receive my principal back. This was my first foray into passive lending; It will also be my last.

I received the first interest payment in December, right on time: so far, so good. However, January’s payment was late so I sent an email as a gentle reminder. I received the following email back:

With the holiday and weekend everything was delayed. You should see it today or tomorrow at the latest. Please let me know when you see it.

Thanks
Matt

OK, understandable. So, I waited several days with nothing. I then sent several additional emails and left a voicemail on his company’s phone. I finally received this response.

I’m incredibly sorry for the communication. I’m sorry for the delay. No excuses but we will be making payment tomorrow. We had to pursue a property manager to get paid this month and I apologize for the delay it’s caused all around.

I’m sorry again for the communication. I know not being able to reach me made you nervous; as expected.

Thanks
Matt

Sent from my iPhone

> On Jan 10, 2021, at 11:43, Robin Hines wrote:>

You have no idea the amount of distress you have caused my family (additional stuff follows, but you get the drift).

Matt Motil 

No, I do understand and I am incredibly sorry. You are correct, this was supposed to be passive and it hasn’t been and that’s our fault. I will get us on track and back to expectations.

Thank you,

Matt

I did not receive a February or March payment, and in March he sent the following email to his investors.

First off, I appreciate your patience. I have talked with many of you, but wanted to send out an email to make sure everyone was on the same page.

Last August, we had banking and some tenant payment issues that put us in a challenging cash flow position. We worked through them and got everything on track by the end of the month and have been pretty smooth since then. That was the first and only time we had experienced a major issue in our systems and processes. We keep reserves for these kinds of things but they are not sitting in liquid cash.

The goal of private lending is passive income, and having to chase money isn’t passive. We had to track down our payment from our largest PM this month and this was not something we anticipated from a cash flow standpoint. When normal vacancy and tenant non-payment occur, we absorb that in the portfolio and payments continue regardless to pay commitments. When we do not get paid at all, and we aren’t ready for that, it puts us in a bind.

Things are moving along and we anticipate receiving our payment this week. We also initiated some funds movement on our side yesterday to cover things should we not get paid this week, I want payments scheduled so they continue.

We have internally been discussing bringing all property management in-house moving forward for about the past year. There’s a tipping point where it makes sense to use consultants and when it makes more sense to have staff. This situation here has told us it’s time to pull the trigger on hiring our own people and controlling more of the process and flow.

2020 was a year like no one expected or had ever experienced. I’m grateful we are here, alive, and kicking. I’m grateful for you and your patience.

Beyond the property management side, we are realizing that the way we have dealt with risk from a cash flow standpoint up to now isn’t going to work long-term as we navigate what ever we are calling what we are doing now. We will be working on building up a larger cash reserve that can be quickly accessed to keep these types of things from trickling down to the investor level.

Again, I apologize for the delay and the poor communication. I’m not a resolution guy, but I know that being a better communicator is my goal for this year.

They say acknowledgement is the first step in the road to recovery.

Thanks again for your patience.

Matt

So, again, I’m reassured. I then wait until the end of our agreement. Since I did not hear from him after our agreement was supposed to be over, on May 3rd I sent an email to him saying that if I did not hear from within 24 hours, that I would contact an attorney. I received no response and contacted an attorney two days later.

Here is what the attorney has found it. There are 2 mortgages listed for the property in addition to mine. He never filed my mortgage with the county. He also received a sum of $100,000 from another individual one month after our agreement (November 2020) on the same property. There are numerous civil suits that have been filed against his company and against him personally. The lawyer actually received another phone call today from another person who has been swindled out of their investment. 

It amazes me that someone would right the responses he did, knowing that he is doing this to people. 

I am now pursuing all legal options, but not sure if I’ll ever get my money back. So please, let this serve as a cautionary tale to all of you. It sucks being in this position.

 Man, that sounds like a total S&%t Show. Don't know if you saw it or not but a similar thread was started a week or so ago with several other alleged victims.

Matt Motil Cleveland Private Money

Originally posted by @Robin Hines :

@James Wise Thank you, yes. I actually received a link from my attorney right after I submitted my post.

 Ahh cool deal. Good luck with everything. Looks like you've got a messy road ahead of you.

Originally posted by @Robin Hines :

@Jay Hinrichs I’ve submitted information to the FBI.

Probably too small for FBI  its more a securities fraud deal and probably IRS ..  

 

Originally posted by @James Wise :
Originally posted by @Robin Hines:

@James Wise Thank you, yes. I actually received a link from my attorney right after I submitted my post.

 Ahh cool deal. Good luck with everything. Looks like you've got a messy road ahead of you.

I tried to look this guy up on Google there is not much there for someone who says they have done all that they have done etc.

 

Originally posted by @Jay Hinrichs :
Originally posted by @James Wise:
Originally posted by @Robin Hines:

@James Wise Thank you, yes. I actually received a link from my attorney right after I submitted my post.

 Ahh cool deal. Good luck with everything. Looks like you've got a messy road ahead of you.

I tried to look this guy up on Google there is not much there for someone who says they have done all that they have done etc.

All sizzle, no steak.

 

Originally posted by @James Wise :
Originally posted by @Jay Hinrichs:
Originally posted by @James Wise:
Originally posted by @Robin Hines:

@James Wise Thank you, yes. I actually received a link from my attorney right after I submitted my post.

 Ahh cool deal. Good luck with everything. Looks like you've got a messy road ahead of you.

I tried to look this guy up on Google there is not much there for someone who says they have done all that they have done etc.

All sizzle, no steak.

 

this also reminds me Of Jerry Cohen and his son who and Equity builders in Chicago massive trust deed fraud was uncovered.. I loaned to Jerrys clients in the south back in the day then he decamped for Chicago and I was not into funding what he was doing.. Then I see him on BP  ( his son actually ) Shawn I think advertising for investor money.. Next thing I know I get some PM's and some send me their paper work same thing multiple investors on one mortgage ( now to be fair they looked like Fractional loans ) not seperate loans like what is being talked about here .. but same thing though you wake up one day and have 700k of loans on a 125k property with 600k missing.  Feds raided them and shut them down not sure what happened after that though

 

Agreed. Thanks for posting. I listened to all his episodes until he went dark. He certainly talked a big game. You just never know someone until you give them money.

I tried to contact him just to talk to him but he never followed up, so I found him to be flaky. Glad this clown has been outed.

Originally posted by @Jay Hinrichs :
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
Originally posted by @James Wise:
Originally posted by @Robin Hines:

@James Wise Thank you, yes. I actually received a link from my attorney right after I submitted my post.

 Ahh cool deal. Good luck with everything. Looks like you've got a messy road ahead of you.

I tried to look this guy up on Google there is not much there for someone who says they have done all that they have done etc.

All sizzle, no steak.

 

this also reminds me Of Jerry Cohen and his son who and Equity builders in Chicago massive trust deed fraud was uncovered.. I loaned to Jerrys clients in the south back in the day then he decamped for Chicago and I was not into funding what he was doing.. Then I see him on BP  ( his son actually ) Shawn I think advertising for investor money.. Next thing I know I get some PM's and some send me their paper work same thing multiple investors on one mortgage ( now to be fair they looked like Fractional loans ) not seperate loans like what is being talked about here .. but same thing though you wake up one day and have 700k of loans on a 125k property with 600k missing.  Feds raided them and shut them down not sure what happened after that though 

I follow the equitybuild case on pacer ever since we looked at a few of their properties the receiver is selling. They are just now starting to discuss a process about how money will be dispersed. Or rather, what is left of the money, as the receiver has generated MILLIONS in expenses to manage/sell the properties, eating away at the money recovered from selling them off. Lots of high $$$ legal counsel fighting on both sides over the scraps that are left. Like you said, lots of $125k properties in complete neglect, with $200k recorded bank mortgages and $900k in "investor" fractionalized mortgages never recorded in the background, or 2nd to the bank mortgage but executed well before.

I, too, have a note that was due April 2021 and the last interest payment received was from February 2021. Communication from Matt has been horrific

@Robin Hines It really sucks that a new investor like me has trouble getting lenders to fund a deal that makes sense . Most don’t care that I’m good analyzing numbers and evaluating risk just because I’ve never purchased a investment property before . But on the other side experienced people like him over leverage theirself and literally take people money with absolutely no intention of paying it back.

@Ashley Corbett

This!!!!! I’m still trying to save the 20,000 cash I need to get started and then there’s guys who’ve been in the game for a while now. They get funding from others because they are “seasoned” and then screw the lender over. It’s too bad.

Originally posted by @Will Gates :

@Ashley Corbett , this whole situation definitely makes me hesitant to trust anyone...

 In real estate you should always be hesitant to trust anyone. Never invest without doing your due diligence. There is a common saying in the biz...."trust, but verify."

Originally posted by @Matthew Olszak :
Originally posted by @Jay Hinrichs:
Originally posted by @James Wise:
Originally posted by @Jay Hinrichs:
Originally posted by @James Wise:
Originally posted by @Robin Hines:

@James Wise Thank you, yes. I actually received a link from my attorney right after I submitted my post.

 Ahh cool deal. Good luck with everything. Looks like you've got a messy road ahead of you.

I tried to look this guy up on Google there is not much there for someone who says they have done all that they have done etc.

All sizzle, no steak.

 

this also reminds me Of Jerry Cohen and his son who and Equity builders in Chicago massive trust deed fraud was uncovered.. I loaned to Jerrys clients in the south back in the day then he decamped for Chicago and I was not into funding what he was doing.. Then I see him on BP  ( his son actually ) Shawn I think advertising for investor money.. Next thing I know I get some PM's and some send me their paper work same thing multiple investors on one mortgage ( now to be fair they looked like Fractional loans ) not seperate loans like what is being talked about here .. but same thing though you wake up one day and have 700k of loans on a 125k property with 600k missing.  Feds raided them and shut them down not sure what happened after that though 

I follow the equitybuild case on pacer ever since we looked at a few of their properties the receiver is selling. They are just now starting to discuss a process about how money will be dispersed. Or rather, what is left of the money, as the receiver has generated MILLIONS in expenses to manage/sell the properties, eating away at the money recovered from selling them off. Lots of high $$$ legal counsel fighting on both sides over the scraps that are left. Like you said, lots of $125k properties in complete neglect, with $200k recorded bank mortgages and $900k in "investor" fractionalized mortgages never recorded in the background, or 2nd to the bank mortgage but executed well before.

YUP for me its was clear in 2 minutes of reading the documents the equitybulder investor sent me.. but I can see where those who are not experienced in investing and mortgages would find themselves in this situation..   there are very simple ways to protect yourself when doing an investment loan and at the end of the day it appears this guy in Cleveland talked these investors into funding his deals without lenders title policies and escrows by the title/escrow company.. In Chicago of course you would use attorneys who would then buy title insurance for you.  any pooled type investment that goes under  ( well 90% of them) by the time all the different Trustee's tough and bill there is rarely anything left unless your first position and had equity day one of the investment.

Jerry was very Dodgy in Jackson MS were I met him and I got through his clients OK.. but even back then he was doing things that were not above board in my opinion so I stopped funding him.