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?
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.
Los Angeles, CA · Member since 2017 · 20 posts · 35 votes
8y
I totally agree with you and I do use leverage for other larger properties that I've purchased. It just so happens that with these guys, they don't deal with people that need financing...which in this case, if things had worked out the way they were supposed to, I would've been getting like a 14 or 15% unlevered return. I have thought about taking out the equity with a heloc but not really thinking that would be a good idea since this whole thing hasn't panned out the way that it was advertised.
San Antonio, TX · Member since 2017 · 5 posts · 5 votes
8y
I had my call with them back in October (spoke to James). My brother turned me on to their podcasts (which I still think are helpful). James seemed very helpful and answered my questions to the best of his ability I think. He told me they were about a 4 man team that does the initial phone calls. I think James was based out of Boston. In the end the whole thing just felt very rushed to me. He told me that properties were going very fast (within 30 min) and because of that they were only working with cash buyers. I asked him a host of questions including who would eat the rehab overrun costs if there were any. He said that they would eat them because they want my repeat business. Not just 1 deal but 10, 20, etc.
Being a brand new investor I am just very uncomfortable buying my first property sight unseen within 30 min of learning about its existence. I’d rather shop in my backyard (San Antonio) where it’s close by.
The overall impression I got was that they are underwater and struggling to meet the demand. I know some on this post ascribe more nefarious intent to them (which at the end of the day may be true) but I’m just not there yet. I think they definitely need to staff up and work on the communication for sure.
I hope this helps!
Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes
8y
It appears Clayton/MorrisInvest are now pursuing funding via a crowd-funding platform (https://www.realtyevest.com/deals). I have not had the best of luck with realtyevest and and trying to exit my investments with them.
Pretty disappointing on the reviews for Clayton's company. I also had a conversation with one of the sales guys. I have a background in mortgage underwriting, but have never purchased an investment home. What I liked about the premise of Morris Investments is buying new homes that help theoretically lower maintenance costs. However I will not purchase a class D property in a dumpy neighborhood. Just because you may have a good market, does not mean that neighborhood is any good. After I did my research, the cash flow of the SFR did not meet muster. So i followed up with the sales guy and asked for updates on rent for 2, 3 and 4 plexes. Never did hear back after a couple of days.
While I feel confidently that Clayton is a stand-up guy and i guarantee he is 100% correct on geo-political issues of today from his Redacted channel, that our Fake News lies about ad naseam on a daily basis (IE - COVID frankenshot, Ukraine, etc.) but that doesn't help me with real-estate investments.
Pretty disappointing on the reviews for Clayton's company. I also had a conversation with one of the sales guys. I have a background in mortgage underwriting, but have never purchased an investment home. What I liked about the premise of Morris Investments is buying new homes that help theoretically lower maintenance costs. However I will not purchase a class D property in a dumpy neighborhood. Just because you may have a good market, does not mean that neighborhood is any good. After I did my research, the cash flow of the SFR did not meet muster. So i followed up with the sales guy and asked for updates on rent for 2, 3 and 4 plexes. Never did hear back after a couple of days.
While I feel confidently that Clayton is a stand-up guy and i guarantee he is 100% correct on geo-political issues of today from his Redacted channel, that our Fake News lies about ad naseam on a daily basis (IE - COVID frankenshot, Ukraine, etc.) but that doesn't help me with real-estate investments.
Y'all have a great day.
@Kevin Parnella....really? Which part did I misread? Was it the part about Clayton being a "stand up guy"...... the screen must have blurred from me shooting water out my nose after reading that part
Maybe its just me but con men than flea the country dont hold a lot of credibility on ANYTHING in my book.
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
3y
@Kevin Parnella....because the sales person never called you back.... not because you feel a con man cant be trusted.... you obviously believe his other ramblings on "geo-political" issues
No. I had a phone conversation with his staff prior to getting a full understanding of what he is offering. Now that I understand his business model of developing in less than desirable communities, that does not meet my requirements as an investor and therefore that's why I won't be looking into this any further.
Rental Property Investor · boston, MA · Member since 2017 · 202 posts · 222 votes
3y
@Kevin Parnella This site is very familiar with Clayton Morris. As you can see there's enough on here to make a whole forum. Lots of people lost money investing with him. Savings lost. Lives ruined. Still tastes sour even after all this time. BP is much more popular than it used to be so hopefully more will find what's been posted and stay away from him like you did. As for Clayton's youtube channel. He's changed direction completely it seems. Went back to his roots of talking about the news. In his early days he's posted hundreds of videos hyping up his real estate company and how people can take out loans to go invest with him. All lies. He's just a front man for another company. He gets commision for referrals. Of course all those real estate videos have been deleted. But the internet never forget.
Pretty disappointing on the reviews for Clayton's company. I also had a conversation with one of the sales guys. I have a background in mortgage underwriting, but have never purchased an investment home. What I liked about the premise of Morris Investments is buying new homes that help theoretically lower maintenance costs. However I will not purchase a class D property in a dumpy neighborhood. Just because you may have a good market, does not mean that neighborhood is any good. After I did my research, the cash flow of the SFR did not meet muster. So i followed up with the sales guy and asked for updates on rent for 2, 3 and 4 plexes. Never did hear back after a couple of days.
While I feel confidently that Clayton is a stand-up guy and i guarantee he is 100% correct on geo-political issues of today from his Redacted channel, that our Fake News lies about ad naseam on a daily basis (IE - COVID frankenshot, Ukraine, etc.) but that doesn't help me with real-estate investments.
Y'all have a great day.
@Kevin Parnella....really? Which part did I misread? Was it the part about Clayton being a "stand up guy"...... the screen must have blurred from me shooting water out my nose after reading that part
Maybe its just me but con men than flea the country dont hold a lot of credibility on ANYTHING in my book.