Clayton Morris Invest

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Clayton Morris Invest

Robert Shelton
Hampton, VA · Member since 2016 · 20 posts · 7 votes

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?

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Jonathan Watson
Investor · Glendora, CA · Member since 2016 · 41 posts · 72 votes
9y

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.

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  • Kevin Siedlecki
    Investor · Madison, CT · Member since 2014 · 710 posts · 458 votes
    9y

    @Robert Shelton. I have not, yet, but I have thought about it. If I do make a move to turnkey to expand into new markets, I would talk to him first. @Account Closed is a BP regular and from all reports here, a stand-up guy. 

    1Reply
  • Zach Quick
    Investor · Bentonville, AR · Member since 2014 · 759 posts · 379 votes
    9y

    @Robert Shelton Search the forums herefor a previous thread on him and his company. It will be eye opening, I imagine.

    2Reply
  • Calvin Waddy
    Trenton, MI · Member since 2016 · 8 posts · 2 votes
    9y

    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. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @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

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  • Scott C.
    Bronx, NY · Member since 2014 · 25 posts · 34 votes
    9y

    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.

    7Reply
  • Jonathan Watson
    Investor · Glendora, CA · Member since 2016 · 41 posts · 72 votes
    9y

    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.

    23Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Jonathan Watson  Amen !

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    0Reply
  • Robert Shelton
    OP
    Hampton, VA · Member since 2016 · 20 posts · 7 votes
    9y

    Thank you everyone who has responded. I really appreciate the feedback. It has been quite  helpful.

    1Reply
  • Par Attaran
    Investor · Rocklin, CA · Member since 2016 · 83 posts · 77 votes
    9y

    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 :\     

    4Reply
  • Ishviyan D.
    Investor · Columbus, OH · Member since 2015 · 70 posts · 30 votes
    9y
    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.
    1Reply
  • Christian Ritter
    Investor · San Francisco, CA · Member since 2016 · 16 posts · 23 votes
    9y

    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

    11Reply
  • Robert Shelton
    OP
    Hampton, VA · Member since 2016 · 20 posts · 7 votes
    9y

    Thank you for sharing, Christian. I appreciate it.

    0Reply
  • Tyler Jahnke
    Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
    9y

    Hi @Robert Shelton and @Kevin Siedlecki and @Calvin Waddy and @Par Attaran ! I just closed on my first property with Morris Invest this month! You can follow my journey and experience here: https://www.biggerpockets.com/forums/92/topics/392...

    Hope it helps! Happy Holidays!

    -Tyler

    3Reply
  • Tyler Jahnke
    Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
    9y

    @Christian Ritter - I'm so glad you've had a positive experience with Morris Invest so far. Best of luck! I'd love to connect!

    -Tyler

    0Reply
  • Kyle Boyington
    Noblesville, IN · Member since 2017 · 2 posts · 0 votes
    9y

    I have a call with Morris Invest in the morning, interested to see how it goes!

    0Reply
  • Brian Bertsch
    Real Estate Investor · Bellevue, WA · Member since 2016 · 1 post · 9 votes
    9y

    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

    9Reply
  • Jason Ferguson
    Investor · Concord, CA · Member since 2016 · 21 posts · 11 votes
    9y

    @Robert Shelton have you visited the property since rehab or relying on pics?

    0Reply
  • Robert Shelton
    OP
    Hampton, VA · Member since 2016 · 20 posts · 7 votes
    9y

    Jason, I have not used this service. Far too many negatives for me to be buying out of state without trusted boots on the ground.

    0Reply
  • Tyler Jahnke
    Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
    9y

    Hi @Brian Bertsch - May I ask who your new property manager/company is? I'm a new investor to Morris Invest.

    -Tyler

    0Reply
  • P.J. Reilly
    Investor · Denver, CO · Member since 2015 · 31 posts · 17 votes
    9y

    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.  

    7Reply
  • Stephanie Windemuth
    Real Estate Investor · Redmond, WA · Member since 2017 · 18 posts · 7 votes
    9y

    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.

    7Reply
  • Brian E.
    Investor · Kalamazoo, MI · Member since 2015 · 22 posts · 7 votes
    9y

    @Stephanie Windemuth May I ask who your contact at Morris was?  I also just had a call with them this morning.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @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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  • Jason Ferguson
    Investor · Concord, CA · Member since 2016 · 21 posts · 11 votes
    9y

    @Jay Hinrichs they can potentially fund it if they are using the customers money aka double closing...

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Jason Ferguson  theoretically and potentially being the optimum words here... never say never.. but when your chasing down random inventory spread all over a market to consistently buy and sell 100 homes a month.. is well pretty tough and I suspect a tad bit of puffing...

    in my strongest HML days and I specialized in these assets we closed about 60 deals a month but that was 6 states and 10 different vendors... one vendor 100 a month.. I simply in my humble opinion don't buy it

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    1Reply
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