Morris Invest & Oceanpointe management company

100 Replies

Inspired by @Tyler Jahnke and others on BP I've decided to chronicle my experience regarding the property i've purchased with MI & OP management company from now for as long as i own it. The purpose is to hold these companies publicly responsible and allow future investors to be aware of what they are getting into. If you want to know the complete frustrating experience i suggest you read Morris Invest Case Study 2.0 or 3.0 as i had very similar experience therefore see no need to repeat it here. I will only summarize what happened thus far.

10/26/2017: I told Larry, a contact representative from Morris Invest, that i've decided to purchase a property. (Please note that this is where Morris Invest stop, but i didn't know it at the time.)

11/8/ 2017: i received paperwork to close on the property with Oceanpointe Holding LLC. I immediately went through all the documents and sent it back the same day, along with same day ACH payment. I called them, every single business day, to make sure they've received paperwork and payment.

11/14/2017: Finally got someone on the phone who told me that they did receive payment. However, the person i replied email to could not receive email. (I still don't understand this part.) So i immediately resent the paperwork to him as requested. He emailed me within the hour that he received it and everything was all set. So i guess this is officially my closing date now, even though all documents were dated Nov 8.

11/16/2017: I received welcome package. I called them repeatedly to talk about their management, each time leaving my number for a call back. (Please note that up to date i have never received a call back from anyone at Oceanpointe ever)

12/8/2017: I got to talk to someone regarding management. She answered my questions well enough. i sent the management documents.

12/20/2017: My direct deposit info changed so i sent them the updated info and called to see if they received it. Plus they never sent me things i asked for such as sample lease form. Up to date i've never gotten anyone.

1/2/2018: I received update on my rehab saying the important things have been done and ready for drywall & paint. I called today to ask them to hold off on that until I have a third party inspect the plumbing & electrical. No call back. I'm afraid next time someone contact me the drywall will already be up and I will not be able to inspect it.

Don't trust a thing they tell you. I used wegolook , send them to take photos, and the picture were allot different that they were telling me. I would be surprised if they even started . These guys think because you are out of town they can feed you stories. 

Originally posted by @Son D. :

Inspired by @Tyler Jahnke and others on BP I've decided to chronicle my experience regarding the property i've purchased with MI & OP management company from now for as long as i own it. The purpose is to hold these companies publicly responsible and allow future investors to be aware of what they are getting into. If you want to know the complete frustrating experience i suggest you read Morris Invest Case Study 2.0 or 3.0 as i had very similar experience therefore see no need to repeat it here. I will only summarize what happened thus far.

10/26/2017: I told Larry, a contact representative from Morris Invest, that i've decided to purchase a property. (Please note that this is where Morris Invest stop, but i didn't know it at the time.)

11/8/ 2017: i received paperwork to close on the property with Oceanpointe Holding LLC. I immediately went through all the documents and sent it back the same day, along with same day ACH payment. I called them, every single business day, to make sure they've received paperwork and payment.

11/14/2017: Finally got someone on the phone who told me that they did receive payment. However, the person i replied email to could not receive email. (I still don't understand this part.) So i immediately resent the paperwork to him as requested. He emailed me within the hour that he received it and everything was all set. So i guess this is officially my closing date now, even though all documents were dated Nov 8.

11/16/2017: I received welcome package. I called them repeatedly to talk about their management, each time leaving my number for a call back. (Please note that up to date i have never received a call back from anyone at Oceanpointe ever)

12/8/2017: I got to talk to someone regarding management. She answered my questions well enough. i sent the management documents.

12/20/2017: My direct deposit info changed so i sent them the updated info and called to see if they received it. Plus they never sent me things i asked for such as sample lease form. Up to date i've never gotten anyone.

1/2/2018: I received update on my rehab saying the important things have been done and ready for drywall & paint. I called today to ask them to hold off on that until I have a third party inspect the plumbing & electrical. No call back. I'm afraid next time someone contact me the drywall will already be up and I will not be able to inspect it.

 As it was reported Morris Invests PMs had their license revoked by the Indiana AG. You may want to check and see status of this before anymore dealings with Morris PMs. To be honest as far as one can tell 2000 miles away, the operation reeks of systematic bait and switch marketing with bonus hidden side show tricks. 

Good luck!

Keep it up @Son D. - it's very valuable to document your transparent journey. There's a great group of people on BP that want to help out. Someone in Indy randomly offered to drive by my place and take photos for me and maybe someone will offer the same service to you. If not, as someone suggested, you can use the online site: WeGoLook where you can send someone to check on your place.

@Matt R. revoked Real Estate license shouldn't prevent them from finishing rehab right? Since they've already been paid at closing i'm hoping at least they'll do that. Once that happen then I can worry about management.

@Tyler Jahnke were you able to reach them regarding them being able to manage any property at all?

Originally posted by @Son D. :

@Matt R. revoked Real Estate license shouldn't prevent them from finishing rehab right? Since they've already been paid at closing i'm hoping at least they'll do that. Once that happen then I can worry about management.

@Tyler Jahnke were you able to reach them regarding them being able to manage any property at all?

It is my understanding after reading the AG letter, they would not legally be permitted to be involved in any way, shape, form or fashion and especially with a "client". However, I am not an attorney. The letter was pretty clear and concise, totally void of any legal mumbo jumbo.

@Matt R. @Matt K.   one thing is for certain there are a lot of wholesalers who just lost their gravy train  LOL.. Morris sold millions of dollars of this stuff ... and you know where it all came from local wholesalers..

Hey @Son D. ...happy to drive by your place and take photos, or whatever is needed to get you closer to the finish line with Morris. Hell, chances are that my company sold Morris your house. I can provide "before rehab" pictures if that is the case. Just let me know where I can help.

Same goes with ANY Morris client looking for quick answers!

@Jay Hinrichs @Matt R. who wants to form a LLC and buy a PM company w/ client base already in place.... We should probably rebrand

In all seriousness though is that's what is likely to happen? I find it hard to fathom that some of these people are going to walk away from likely a solid income.... 

@Matt K.   @Clay Manship   I know clay and his brother who posted above this is their sand box and as they said they probably wholesaled a good portion of these houses to these people ( oceanpointe)  I suspect Clay knows exactly how Morris bought the inventory..   this will be a great opp for Clay et al to come in and help these folks and I suspect get to resell this inventory all over again over the next few years. :)

I was able to talk to the person who sent me an email update on 1/2/18, who is the transaction coordinator from Morris Invest. (So I guess MI is involved somehow in the background.) I asked a lot about where MI stop and OC start in this whole process and all i got was that they were close partners working very closely together through a well oiled process. Any attempt to interrupt this process would be like throwing a wrench in the machine and really delay completion. Through this conversation I was able to learn the following.

1. This email marks the half way point of my rehab. (I thought it was almost finished due to the wording of email.)

2. MI has no idea about Oceanpointe Management LLC license being revoked and that they can't manage any property. Since she isn't aware of this she suggested I talk to Oceanpointe directly. She promised to facilitate the conversation since I mentioned I've been calling them every business day with no luck.

3. MI is building a new management company from the ground up (may bear different name other than Morris Management or anything like that.) This company will be active 2018 and will manage future purchases in 2018. Curious.

It amazes me how many people feel like they were scammed by Morris. Having their license revoked is definitely a sign that something's very wrong. Why do people continue to take risks with them? 

People are a dime a dozen if you need pics of a house. We shoot video and pics weekly, of the properties we rehab for our investors. But for a small fee, you can call a local realtor and they'll run over to the property and check it out for you. I've had new investors ask me if I could let a realtor in, to see how the rehab job was going and so they could take pictures or whatever. So I know there's people out there that can assist you. You're not alone!  I know that many of you want turnkey because you're too far away to handle things yourself. But their's companies on BP that can help you from start to finish. Turnkey is typically expensive, but not always. It just depends. But have a realtor go checkout a turnkey property as well. Don't let people take advantage of you! Best of luck to you all.

Disclosure: Ex Customer

Scott, if you read all the forums this goes beyond taking pics. It's instances of individuals being told their units were rented when they were not. Being told their rents were one amount when they were another. PM fees being charged and nothing been done for the units or their tenants etc etc etc. There is a ton more to this than simple pictures. We've been hit by this, we had full inspections done by a third party before buying and still are heading to legal proceedings. So please don't dismiss 'people' unless you know the full story.

@David Brown   @Scott Steffek

https://www.sec.gov/litigation/litreleases/2016/lr23451.htm

if you read this.. this company started in the same manner that I see happening right now with the morris/Oceanpointe  Clatfelter actually came to my Oregon office and pitched me to help finance and provide product for them.

I told him straight away.. you guys are buying the cheapest homes in the hood  INDY and KC .. your offering rental guarantees and your going to go broke.. well sure enough they did the same thing that is playing out here.. when the properties never got rehabbed and they were still paying rent ( acusations by others that Is the case with MOrris/Oceanpointe )  they then had to start raising money to keep from defaulting so then you go down this slippery slope .. I think if I read between the tea leaves on this one I think its paying rent so that people who never see the house have no clue no one is in it.. think they have a stabilized asset and all is well. they may even make post that HEY I JUST GOT MY 7th check on time not really knowing where the money came from... LOL..

Now we get one guy that posted a U tube and its obvious he sent rehab funds and next to nothing or nothing was done.. Then Morris contacts him and says take it down and we will make it right.. well crap that's like stealing a candy bar getting caught and saying hey I will put it back.. the fact is the crime has been committed can't put the genie back in the bottle..

The famous Tyler Jenhke post  were he said 9500.00 for rehab posted pictures and all of us in the business said BS cant be done he laid into those guys and the squeky wheel got oiled.. then of course they make sure he gets checks.. then he post every month hey I got my check.. this gives other newbies who want to believe confidence to move forward and here we are.

 

David,

I'm not dismissing anyone. All I'm trying to do is let investors know that there are things they can do to reduce fraud. I would bet that you're the exception to the rule, when it comes to third party dealings. I'd lay money on it! Many others have just trusted them and hoped what they were being told, was true. I'm very sorry that you're going through all of this.  It sounds like you did all you could to check on your properties. I'm talking about the "newbie" person who is anxious to buy an investment property and doesn't do what he should, to check things out. They jump into something and have no idea what they're getting themselves into. Those are the people I'm talking about.  I've had people call me from BP that want to invest and they don't have a clue what they want. Oh sure, they tell me how much they want to spend. When I ask them their specific criteria, they don't have an answer. What percent of cash on cash are you looking for? What ROI are you looking for? What are your investment goals? When I ask these questions, the phone goes silent. That's scary. It sounds like Morris took advantage of those people. There are plenty of them out there. I hope this helps you understand what I meant. I wish you the very best of luck and hope things turn out well for you. 

Disclosure: Turnkey Provider

Originally posted by @Son D. :

Inspired by @Tyler Jahnke and others on BP I've decided to chronicle my experience regarding the property i've purchased with MI & OP management company from now for as long as i own it. The purpose is to hold these companies publicly responsible and allow future investors to be aware of what they are getting into. If you want to know the complete frustrating experience i suggest you read Morris Invest Case Study 2.0 or 3.0 as i had very similar experience therefore see no need to repeat it here. I will only summarize what happened thus far.

10/26/2017: I told Larry, a contact representative from Morris Invest, that i've decided to purchase a property. (Please note that this is where Morris Invest stop, but i didn't know it at the time.)

11/8/ 2017: i received paperwork to close on the property with Oceanpointe Holding LLC. I immediately went through all the documents and sent it back the same day, along with same day ACH payment. I called them, every single business day, to make sure they've received paperwork and payment.

11/14/2017: Finally got someone on the phone who told me that they did receive payment. However, the person i replied email to could not receive email. (I still don't understand this part.) So i immediately resent the paperwork to him as requested. He emailed me within the hour that he received it and everything was all set. So i guess this is officially my closing date now, even though all documents were dated Nov 8.

11/16/2017: I received welcome package. I called them repeatedly to talk about their management, each time leaving my number for a call back. (Please note that up to date i have never received a call back from anyone at Oceanpointe ever)

12/8/2017: I got to talk to someone regarding management. She answered my questions well enough. i sent the management documents.

12/20/2017: My direct deposit info changed so i sent them the updated info and called to see if they received it. Plus they never sent me things i asked for such as sample lease form. Up to date i've never gotten anyone.

1/2/2018: I received update on my rehab saying the important things have been done and ready for drywall & paint. I called today to ask them to hold off on that until I have a third party inspect the plumbing & electrical. No call back. I'm afraid next time someone contact me the drywall will already be up and I will not be able to inspect it.

I find a few things in this very odd. I do not know much about this company so I may be wrong. From what I have been reading they do NOT do any of the management nor are the properties complete and have a tenant when they are sold? What exactly are they selling then? That seems like it is NOT a Turnkey to me. Again, I may be wrong here and I am sorry for that.

If they dump you off on some other company after the sale, what were they in it for? Just the commission or the sale of the property? It seems like they just want to get paid and then push you off on someone else, that is odd to me. Also, how could someone close on a property that is not complete nor occupied and call it a Turnkey? That just sounds like a regular property sale at best. The idea of a Turnkey is that it earns you a cash flow from DAY ONE!

Hmm.....

Feb 16: I emailed the transaction coordinator regarding rehab update as I have passed the 3 month mark since closing. She replied same day saying she'll relay the message and will let me know as soon as she gets word.

Feb 19: I received email from a new person who said to be the client liason at Oceanpointe who inform me that the rehab is done and they have already placed a tenant on Feb 10 (bypassing my request to have property inspected by 3rd party prior to placing tenant)

I wanted to make a recommendation for someone for inspection as I used Joe Douglass from Keystone Inspection last year to inspect our property from Morris Invest. Joe was a person/company i  found on my own. He did an outstanding job, provided pictures, details etc... I would highly recommend him. I can provide his # if you'd like privately... 

Son D... WeI had a similar situation... When Joe went out to inspect our property it was already occupied without our consent. Previously, they said our place was ready to be rented and rehab completed. they sent crappy pictures that didn't look acceptable to me. I questioned that and asked for new pictures only to find out the property wasn't really ready to be rented. They made a mistake and apologized.

@Sherri Guidone so was Joe able to give you pictures inside the house?  You think he'd be able to contact tenants directly to schedule an inspection because I've been trying to get OP for the past week to schedule one but so far they haven't replied to my email or phone calls.

Joe did go in the house and performed a very thorough inspection and we have pictures and a write up of everything, but I will say it was coordinated with Oceanpointe last year and at the time I didn't have a problem communicating

with them. but I don't think any inspector can be guaranteed access in to the tenants home without property management agreement, you run the risk of the tenant not allowing them in or being home at time of inspection.

@Sherri Guidone thanks. I wasn't thinking the inspector should just show up and knock on the door and expect to be allowed access, but rather contact the tenant directly to make an appointment. I'm trying to think of a way to do this and still have that degree of separation since I live out of state.