I came to know and trusted Morris Invest (MI) a Podcast for real estate investors promoted by Clayton and Natalie Morris, which they received referral fees from Oceanpointe (OP) Property Management aka Oceanpointe Investment, LLC and promoting their business to investors. In the last count, investors bought more than 1400 properties thought OP with MI promotional activities without regards to investors' well beings. MI promised me that the property will be rehab and completed in 90 days and will be tenant occupied soon after.
I purchased a property located in Indianapolis, IN 46218, for a total price of $61,038.50, which included $32,000 rehab cost for this duplex.
The rent from this duplex estimated to be $1,200 per month. The property is untouched since December 20, 2017, and I am frustrated to find an answer to my dilemma.
Ted, there are tons of people in the exact same position with you. Unfortunately, you have limited options. Most of the homes in the MI/OP group are in very tough neighborhoods and much of the 46218 zip code are lower income/higher crime areas. Most likely, you cannot recoup the cost of the rehab and the home is only valued $20k-$30k at best. We've worked with several other MI/OP clients over the last year and some people are in better positions than others, but the ones who got in the last 6 months generally are in the worst positions. I'd be happy to answer any questions that you may have and go over various options that may work for you, but typically your investment is either going to be a loss (if you sell) or have a lower ROI than you initially planned as you will likely have invest another $30k to get it rent ready.
There are some people pursuing legal recourse and @Aleks Gifford is a local person who is coordinating some of those efforts so I would recommend reaching out to him. Send him and myself PM's and we can set up some phone calls to better understand your situation.
Best of luck!
Search “Morris invest” , there is already a huge thread on this
I've warned people in the comment section of Morris Invest's Videos, but they get deleted. Anything that might portray the company "negative" get deleted within 24 hrs. They have someone working hard at cleaning up the comments v.s actually doing any work lol.
Buying those kinds of properties is almost like gambling. You have to make the bet that you might do well, break even, or have a big loss.
If a buyer has limited funds and net worth they do not need to get sucked in by the potential of high cash flow and landing nice tenants that pay on time and take care of the place with low income type properties.
Think of this.
Someone buys a piece of junk and hopes the building doesn't fall apart and the tenant pays on time so they can cash flow 200 to 300 a month based on current market rents for that product type.
So 2,400 to 3,600 a year if everything goes perfectly with no surprises. If any large expenses happen within the first 10 years of owning you are basically at break even at best or have a loss. These properties in marginal areas tend to have little appreciation if any. Not to mention the stress of owning one of these types of properties puts on a investor/landlord.
Conversely an investor buys a 150k to 200k newer product in a great area. Rents are maybe 100 a month profit but area and tenants are better. Over time with rent growth eventually the investor might get to 200 a door but with everything new there are little capital expenses that could be a drain on profit. In the same time the property has appreciated 30 to 50,000 over a 3 to 5 year hold.
Which one seems to do better PLUS has less stress to the landlord?
Low income properties in questionable areas is more for local operators or investors with very deep pockets that are taking a few percent of net worth and rolling the dice with 5% of their investment portfolio. If it doesn't work out they get the money back in short time with other investments.
I got fooled by Clayton Morris' TV personality and daily podcast of cashflow rental that he was promoting through Morris Invest. Part is my fault believing and trusting people. One bad apple ruins it for the rest of honest and hardworking property managers/investors.
On the positive side, I received an offer of $655 from a local investor for my boarded up Taj Mahal that Morris sold me for $61K. Now I understand the concept of buying high selling low! LOL
Update: Oceanpointe has re-invented itself as Freeportinvest.com. Operating out of the same two markets: Jacksonville and Indianapolis. Their website uses an Illinois phone number.