anyone deal with Maverick Investor Group?

36 Replies

they are a turnkey real estate investor group with a decent portfolio. Anyone dealt with them? I'm curious as to how the compare with other turn key investment companies.

they are a marketing company not a turn key provider.. they market properties for many different providers.. and Ali Boone on this site works with them as well I believe.

I have dealt with them. They are marketers most, (maybe all), their inventory is from other turnkey providers. The principals are good guys and I found them honest and very hard working to find me deals I needed. Can't comment on the quality of their deals because they are not actually theirs if that makes sense.

@Dean Letfus  Did you close on a deal that they found for you? I appreciate it's not their deal as it's not their inventory. But we're you satisfied that the companies they are marketing are solid, honest companies? Specifically, would you trust them enough to use them again to find you another deal?

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There has been fraud with their local provider where Maverick did not vet Birmingham Investment Properties well.  Search "Birmingham" and "Maverick" on BP and you will see a couple of threads with very unhappy Maverick customers. I am not a Maverick cistomer and would never trust them to vet local turnkey companies.

Originally posted by @Doug Johnson :

There has been fraud with their local provider where Maverick did not vet Birmingham Investment Properties well.  Search "Birmingham" and "Maverick" on BP and you will see a couple of threads with very unhappy Maverick customers. I am not a Maverick cistomer and would never trust them to vet local turnkey companies.

 I believe this is one of the threads that @Doug Johnson is referring to..it's full of valuable insights and advice:

Fraud with our Birmingham turnkey property

They have a webinar tonight regarding St Louis properties. I’ve spoken to AREI about Kansas City and St Louis and they seem to be cleaning up a mess in St Louis when they were using PropertyWare as their PM. I’ve also heard on some podcasts that inspectors in St Louis are extremely picky - which, I guess, could be good or bad.

I was on their webinar tonight. I literally created an account on their website during the webinar, placed a reservation on a property of interest, got connected to the seller via email, and now it appears their work is done and I’ll be communicating directly with the seller from here on out. They said they’ll continue to keep Maverick in the loop, but so far, I don’t really feel like they’ve added much value other than pointing me to the seller (which, I guess in and of itself is value, but I guess I was expecting more - it seems that companies like Norada also grt referral fees but that they really do a lot for their clients).

The other thing I find weird is that the seller presumably has to pay out two sets of referral fees (to the email marketer that sent me to the Maverick webinar and then to Maverick themselves). The exact property I put a reservation on is listed on the seller’s site directly for $16,000 MORE than it’s listed for with Maverick (which, you’d assume is backwards). What am I missing?

Finally, seller wants $5,000 escrow money WIRED and only gives 3 days for inspection in their contract. Are escrow funds normally wired (vs mailing a check)? Isn’t 7-14 or even 7-10 days more reasonable for the inspection period? I’m excited to move forward, but I don’t want to blindly just agree to everything either.

I would not wire anyone 5,000 without seeing a property, vetting a contract, meeting actual people behind deal. I don’t know how anyone can do due diligence in 3 days. If you think something is fishy-never wire money. In fact, if you think something is fishy you’re almost always right.

I’m pretty sure you can pay huge referral fees when your margins are really good!

Thanks, all.  HUGE disappointment in dealing with them.  You can search my recent post about "Is This Normal Language in Sales Contract?" for more information.  Long story short, I did not wire money or move forward with them.  I appreciate everyone's feedback.

Originally posted by @Jay Hinrichs :

they are a marketing company not a turn key provider.. they market properties for many different providers.. and Ali Boone on this site works with them as well I believe.

 Very True.  And there are several of us who purchased via Maverick that are not thrilled with the TK provider they continue to promote.  Follow along here if you'd like: https://www.biggerpockets.com/forums/92/topics/136097-anyone-out-there-have-experience-with-abc-capital-investments-in-philadelphia-pa-for-turnkey-properties 

Agree with @Patrick Shawn Faherty ! I purchased a property through one of Maverick's TK providers in Baltimore and it's been a nightmare experience. This speaks to Maverick's "vetting" process or lack thereof.

When I reached out to Phil from Maverick to express my latest concerns, instead of addressing it with myself or with the TK provider, he simply forwarded my email to the TK provider, which then led the TK provider to send me an extremely unprofessional and nasty email. 

I would definitely think twice before doing any business with them.

Originally posted by @Stacy Weng :

Agree with @Patrick Shawn Faherty ! I purchased a property through one of Maverick's TK providers in Baltimore and it's been a nightmare experience. This speaks to Maverick's "vetting" process or lack thereof.

When I reached out to Phil from Maverick to express my latest concerns, instead of addressing it with myself or with the TK provider, he simply forwarded my email to the TK provider, which then led the TK provider to send me an extremely unprofessional and nasty email. 

I would definitely think twice before doing any business with them.

 Very unfortunate that Maverick/Phil has apparently chosen to not address the issues. I think they see this a "typical" of a TK provider (and have a conflict of interest based on the commission they receive from the TK provider for marketing them... I will not be working with them in the future. 

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Disclosure: Partner

Hey folks,

I want to thank everyone who has shared constructive feedback in this forum. Over the past 10 years and we have been consistently committed to paying close attention to client feedback, reflecting on it, and implementing ongoing improvements to the best of our ability. This is how we have operated for the last decade and how we will always continue to operate.

I'd like to address some of the specific items conveyed in this thread.

With respect to the Birmingham situation from many years ago, all of our buyers were compensated for their losses (as the author of that thread confirmed towards the end of the thread). We ended our business relationship with that seller years ago and they are no longer in business.

@Mark S. After you reserved your STL properties, I understand that you did not communicate with either our team or the Seller (despite both reaching out to you) about this specific concern relating to the contract terms. One important thing to remember on your real estate investing journey is that all contract terms are negotiable, and clear communication with the seller is very helpful to ensuring you are comfortable with the final contract terms of any deal. 

And in terms of a refundable earnest money deposit being sent to escrow (not to the Seller), this is a standard part of most real estate transactions, whether buying a home to live in or a rental property. If a seller is going to remove the property from the market while you conduct your due diligence, they want to have assurance that the buyer is serious, and an earnest money deposit held in escrow (which is refundable in accordance with the terms of the contract) during the buyer's due diligence period is the typical protocol with all the sellers I know and have dealt with.

@Stacy Weng I want to personally apologize that your experience has been so frustrating and challenging. I want to assure you that we are here to support you to the best of our ability every step of the way. I also want to assure you that each time you have reached out to us with an issue, we have promptly conveyed it to the seller and done our best in getting you answers and solutions as expeditiously as possible. We have regularly scheduled meetings with all of the sellers we work with, during which time we discuss any challenges our clients are having and attempt to do what we can to assist in constructively resolving them, and that has certainly included yours. Phil and I both followed up with the seller this week on your behalf to try and support a constructive resolution to the challenges you experienced. I understand after additional communication between you and the seller there is now a clear path forward to getting your property completed and tenanted. I also understand that the seller has been paying you the agreed upon financial penalty for the construction delays, and that it's also agreed you will hold back the final $5,000 draw payment as protection for you until the seller completes all the punch list items to your (and your inspector's) satisfaction. Finally, I understand the seller has subsequently apologized for any offense caused by the curt language you referenced in one recent email, and that they have committed to completing your property expeditiously in accordance with the contract terms. We sincerely appreciate you being part of our community Stacy, and if there is anything further we can do to support you in the final stages, as we are always here to help.

@Patrick Shawn Faherty I would like to apologize to you that your experience has not been smoother. That sounds very frustrating and you deserve better. I want to assure you that we have regular meetings with all of the sellers we work with, during which time we raise any challenges our clients are having and make constructive suggestions for operational improvements. I just checked with my staff and we have no record of you emailing anyone since November, so we were unaware of any recent issues you were experiencing. Could you share both your current challenges and your constructive suggestions for how things could be improved, so I can review that before our next meeting with this provider? We appreciate you being part of the our community and working constructively with us to make ongoing improvements to the buyer experience.

@Matt Bowles  Appreciate you addressing this matter. However, it's been two months since the last incident and my property still isn't complete. Whatever “clear path forward” we had discussed with the seller fell short, yet again. Am I surprised? No. Disappointed? Extremely. When we went to do an inspection to generate a punch out list, the property was nowhere near ready as the seller had described. There was even a permit violation notice on the door. This was two months ago, and there have been no changes since then. Every time we’ve reached out to the seller, he’s told us he’s meeting with the city to get the permit issue resolved, week after week.

Yes, he’s paying us rent during the delay, but at this point, the lost opportunity cost from our capital being tied up for so long far outweighs any rent that we’ve received. It’s been a year since we purchased the property and it’s still not done!! How is that acceptable under any circumstances?

On top of that, I heard from other customers of the seller that they changed PM companies, which I was never even notified of.

Unfortunately, this really makes me question how your regularly scheduled meetings and check-ins with the seller are handled if these issues are constantly not being resolved in a proper manner. And from speaking with other customers who have purchased from the seller, they have all experienced the same frustrations and unprofessionalism. 

Disclosure: Partner

@Stacy Weng  I'm really sorry to hear you have had a challenging experience. Let me assure you that we are here for you and that we will do everything we can to support you though the entire process. I just checked with my staff and it appears that nobody at my company has heard from you in two months. So, first of all, I would strongly encourage you to be directly in touch with us whenever you are experiencing a challenge, so we can immediately get involved and do our best to support you through whatever the issue is.  We can only raise issues with the seller if we know about them.  

Regarding the Property Management...In an effort to serve their clients better (and in response to some of the customer feedback you cited), the seller has partnered with an established local property management company to expand the property management infrastructure and resources to better ensure that owners receive the level of responsiveness and overall customer service they deserve. The seller is still involved in fulfilling warranties, maintenance, etc.  I'm sure when your property is ready to move into the leasing and management phase, you will receive details on this preferred property management option. You are, of course, welcome to use any PM company you choose though, and are not obligated to use the one affiliated with the seller.

Regarding construction delays, there are unfortunately a lot of variables in the construction business that can cause delays. The seller obviously has a financial incentive to finish the property as quickly as possible because they have to pay you rent as a penalty every month if they don't (which you confirmed they are currently doing). While 12 months is definitely longer than most properties are taking, these kind of delays are always a possibility, which is why you have the agreed upon financial recourse of the seller paying you rent. I apologize if the possibility of delays was not clearly communicated to you from the outset. The seller is now sending out introductory letters that clearly communicate the possibility of delays, and the associated buyer recourse in the event they happen.

Moving forward, if you feel that the seller paying you rent, combined with the other advantages of the BRRRR model, is not a sufficient trade off for the potential downside of construction delays, then I would encourage you to consider buying performing properties on the classic turnkey model. Performing properties remove the variables of potential construction delays because the property is already renovated and cash-flowing on the day you close.

I apologize again for the challenges you've experienced Stacy, for the stress, and for any misalignment of expectations about potential construction delays.  We are not perfect, nor are any of the sellers we work with, and there are a lot of variables in the real estate industry that our out of our control, but I can assure you that we will work as hard as we can to support you and do our best to help resolve any challenges you may have.

Now that I am aware of your issue, I will have my staff reach out to the seller and be in touch with you privately this coming week with an update. If you can communicate directly with us moving forward, that would be the most efficient way to resolve any remaining issues. 

We appreciate your patience and thank you for being part of our community!

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