Clayton Morris Invest

60 Replies

I am a new investor with limited time/resources. In listening to the BP podcast, I heard the Clayton Morris one and was curious if anyone on here has used his services. For any of you who have, do you have any feedback or reviews that might assist me in deciding to make that leap of faith?

I've spoken with his reps a few times and I'm impressed with the organization. I'm currently deciding between Clayton and two other turnkeys after the first of the year. I'll keep you updated. 

@Kevin Siedlecki  form the last threads on this company they deal is highly risky properties caution for anyone who thinks a D class can be a good investment for buy and hold

I wouldn't exactly call @claytonmorris a BP regular - he has 2 posts.  In fact, he has been quite absent in other threads that were very critical of his company, which says a lot.

Essentially, Morris Invest wants all-cash purchases on $50,000 houses in C to D neighborhoods. You have no real exit strategy on an investment like this. Take the $50k and use it for a couple of down payments on homes in better areas where you'll actually have the ability to sell the SFR to a family if you want to, not another investor.

I own a home in Franklin, IN, just south of Indy.  It's a B+ or so area, with good schools, and a nice smaller town feel.  I know I could put this house on the market and recoup my costs right away.

Before I purchased a turnkey home, I talked to about 15 different providers, talked to 10 different property mgmt companies, and analyzed hundreds of turnkey possibilities before making a decision.

My turnkey home is cash flowing about $200/mo for me (which includes 20% for vacancy/capex/repairs and 10% for prop mgmt--from a liquid point of view, I'm really cashflowing closer to $450/mo until I hit some vacancy or repairs).

Yes, you can cash flow with turnkey homes, you just have to know who you're buying from, be confident in the property management, and have ALL the exact numbers in your calculations. And, YOU MUST still have an exit strategy.  Clayton's homes are in areas where home ownership is low, and the only other buyers are really other investors.

Don't trust what any turnkey provider says.  Do the research yourself.  I think you'll find there are far better options that a $50k home in D neighborhoods of Indianapolis.

I was going to invest with them but communication was VERY poor. They would send 1 property, I would email back questions and get no response for days. I would call or text to someone, then get a couple more properties sent, rinse and repeat. If their communication is like this on the sales end, what happens AFTER the sale :\     

Based on hearing about the experiences others have had with Clayton's company, I'd strongly recommend staying away. As is mentioned above, his company sells properties in highly questionable neighborhoods. I've heard others also complain about the quality of the rehabs. If true, my guess is that the properties would bring nothing but endless headaches and potentially negative cash flow. The numbers on paper may sound great but that doesn't necessarily play out in reality.

Hi @Robert Shelton - Just to add my two cents here. I actually have two SFH and three duplexes that I acquired through Morris Invest. They are in Indianapolis. They are professionally managed by Oceanpointe Investments. I can say I am happy with my ROI, the quality of their rehab work, and the team. I have viewed everything in person. Thus far, they have delivered on what was promised.

Anyway, I hope this helps.  Thanks,

Christian

Updated over 1 year ago

A quick update after over a year: MI/OP is no longer managing any properties for me. I've had countless issues with Oceanpointe and Morris Invest. Zero communication. The quality of the rehab (when it was actually completed) was terrible. Many items simply were not completed, yet, I paid for them. I have photos and videos if anyone is interested. One of my properties had over 3k of Board of Health liens from multiple violations. I used to receive Board of Health violations weekly when they managed my properties. Since I moved to another PM, I've received zero violations. BoH Violations are not normal, despite what people say. If anyone need more info, please PM me. I would definitely AVOID Morris Invest and Oceanpointe Investments LLC.

Be wary - I bought a duplex  from them in August and the "rehab" was allegedly already done. No pics, no real scope of work, etc. My fault for not demanding more info prior. 

The PM was unresponsive for months when I kept asking why 1 side wasn't rented so I changed managers Jan 1. The new manager who seems to have it together, went through, took photos and pointed out all the things that weren't done or were done poorly. So now i have another 5-10k in rehab that has to happen. They also left a bunch of garbage from the demo / construction in the yard. Just got a notice from the Health Dept that it needs to be cleaned up - Yay...

This is my first foray into Real Estate investing and I wouldn't even be trying to learn or invest if not for the Morris Invest Podcast. However, you must do your due diligence (Which I did not). You must get the answers to ALL your questions. You need to pre-screen the Property Manager - I learned the hard way that this is crucial. 

I don't want people to chase after something like this without knowing what they are getting into. 

Perhaps others have better experiences, but mine has been a mess 

Brian

This is great info. Thank you Tyler for sharing!!! I had my "Call" yesterday. I spoke with Larry also. He was very knowledgeable about Morris Invest and had plenty of stories and examples of what the company had done for others. I asked him to provide me with a list of available properties and he said that he would in a follow up email. After hanging up he sent me an email with examples of what I can expect though investing with the company. Examples of a turnkey rental that would be ready immediately and an example of a property that still needed heavy rehab. These were not available properties but, "general information for your reference." I, again asked if he could send information on actual properties. He sent another email with more examples of properties that weren't available.  This went on for two more emails.  Later in the day I received the first email (again) with a different opening paragraph.  A total of five emails, none of which answered my single question.  This all seemed very strange and nothing like my initial impression of the company.

On the podcast and on the youtube videos there is always an emphasis on acquiring money to pay for these properties.  I'm going to put 2 and 2 together here.  A company who wants my $ and won't provide me with information with what I'm buying.  Think I'll take my investment elsewhere.  

We were also interested in Morris Invest and set up a phone call (which was scheduled more than 3 months out).  During the call, all the information given was "positive."  Yes - we rehab! Yes - we property manage! However...digging deeper, things began to not add up.  Early in the call we asked about their rehab team.  "We have two teams" we were told.  When asked how quickly they rehab and get things on the market, they said they are rehabbing 100 units per month.  There is NO way two teams can rehab 100 units per month.  There simply isn't.  When this was asked directly, we got the "you wouldn't understand how it works" line.

We continued asking things about how/when is the property inspected, what kind of appraisals are done, etc. COMPLETE avoidance on these questions with ZERO answers.  The repeating phrase we got was "If you have a lot of questions, then this type of investing is not for you."  Seriously.  Word-for-word.

When the call was ending, we were told to send any questions we had thru email, and that we would also receive a list of "general" properties to see what they are like.  We sent our email, and NEVER heard anything back.  We followed up again, and to this day have never heard back. BLEH.

@Stephanie Windemuth   your correct there is NO company in the US that can rehab 100 homes per month.. that would mean they have 4 to 5 months of inventory. .IE just purchased beginning rehab middle rehab and closing.. so that would be 300 to 400 homes in inventory..

I just spent 2 days in Indy looking at my projects  ( I have 22 going) and there simply is not 400 to 500 homes that could be purchased unless they are the absolute dogs of dogs..

Man O man  thread after thread of the same stuff ... LOL...   I mean who owns all this inventory ????

math simply does not add up.

Now to be fair I know a couple of companies one if fund others I don't that do 20 to 40 a month... so that number can be done.. but those companies have 10 to 15 million in cash out controlling the inventory and have appropriate staffing... go to Memphis and ask for an appointment with Memphis Invest or Reedy.. walk into their offices those are for real companies..

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