Oceanpointe (and Morris Invest) Property Management Problems

Oceanpointe (and Morris Invest) Property Management Problems

Liliana RuanoPro Member
Raleigh, NC · Member since 2016 · 21 posts · 15 votes

Hi everyone,

As mentioned before on another post, my husband and I bought a property through Morris Invest back in August 2016. Everything went smoothly, and there were no issues. The only problem that we had was a lack of communication on the part of the Property Management company (Oceanpointe) that we were using based on Clayton's recommendation. The whole thing was set up sort of like a one-stop shop ... Call Clayton, he tells you about a great, completely rehabbed house that he has that he will sell to you for $40k but that he says will appraise for $60k and is renting for $700, and he has his assistant set you up with his network of people (property management and insurance). A few weeks ago, we switched management companies due to the lack of communication from Oceanpointe, and posts on Biggerpockets from other dissatisfied Oceanpointe clients. The new property management company that we went with discovered that the lease agreement provided to us by Oceanpointe might be a complete fraud. The new property management company was provided with a completely different lease agreement by the tenant than what we had been given by Oceanpointe. The "tenant's" hand writing is different, the signatures are completely different (Oceanpointe's lease agreement isn't really even signed by the tenant ... his name is just written), and the rent on the tenant's lease agreement is $350/month, instead of $700. I tried reaching out to Oceanpointe again hoping they would provide proof of payment (copy of checks, or a ledger, etc), but as usual, they have not replied to that request.

In hopes of getting this sorted out, I tried reaching out to Clayton on Jan 30th via email. Below is the email I sent. He usually replies within a day, but so far, no response. I was truly hoping I would get a response, because I don't think Clayton is a bad person, and don't think he purposely sends people toward harm, but I do think he is, perhaps, trying to move too quickly, grow too fast, and, in the process, is guiding, even encouraging his buyers to make bad decisions. For example, he implies that buyers of his houses do not need to worry about performing due diligence. We are learning as we go, and I guess we were susceptible to all of the rah rah and excitement of such exceptional investment opportunities.

At this point, we are waiting to be able to have the new management company do an inspection of the house and an appraisal to possibly off-load it. Fingers crossed that there will not be any additional bad news. I'll add updates here as our ordeal unfolds.

Anyone have similar experience with Oceanpointe's lease agreements ?

Thanks,

~Liliana

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y

you give Mr. Morris far to much leniency  there is no way he is not aware of every aspect of what is going on at least in my opinion..  he is the one making the claims  he needs to back them up.

I suspect based on the investor feedback some major fraud going on here with fake tenants etc. all done to prop up new sales

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  • Managing Broker / Investor · Indianapolis, IN · Member since 2015 · 350 posts · 362 votes
    8y

    HEADS UP! Just heard yesterday that Oceanpointe is either changing names or adding an alternate management company: URBAN CONSTRUCTION MANAGEMENT, INC.

    Morris is also promoting his new management company: BLUE SKY PROPERTY MANAGEMENT LLC

    Same people, different names...

  • Indianapolis, IN · Member since 2018 · 9 posts · 9 votes
    8y

    Bottom line is this whole thing was just a cash grab for Clayton and Bert  (Oceanpointe owner) They never had any intention of developing a long term business out of it. Rather Clayton used his platform to get "financially free" from his own job on the backs of the investors who are now holding the preverbal bag (ghetto homes in need of tons of repair) 

    I'm sure there is a lawyer or 2 that got burned in this mess that can get a class action lawsuit going.

  • Member since 2018 · 1 post · 0 votes
    8y

    My story sounds all too similar to everyone else's.  Given the number of people who have posted here and assuming this is probably a relatively small percentage of the total number of people who have been injured by what seems like a fraud I echo the thoughts that class action may be in order.  I'm curious to know how many would be interested in investigating this avenue.  If fraud (and I emphasize 'If' as we don't have all the evidence available to us) is present I want to see those who perpetrated it brought to light and, at a minimum, held up for the public ridicule they deserve.  If Clayton did, in fact, commit a fraud then it only seems proper that the good name and reputation he utilized to promote his business are recast to reflect reality.  Let his friends, family, business associates, and acquaintances know who he really is.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Devin Satz:

    My story sounds all too similar to everyone else's.  Given the number of people who have posted here and assuming this is probably a relatively small percentage of the total number of people who have been injured by what seems like a fraud I echo the thoughts that class action may be in order.  I'm curious to know how many would be interested in investigating this avenue.  If fraud (and I emphasize 'If' as we don't have all the evidence available to us) is present I want to see those who perpetrated it brought to light and, at a minimum, held up for the public ridicule they deserve.  If Clayton did, in fact, commit a fraud then it only seems proper that the good name and reputation he utilized to promote his business are recast to reflect reality.  Let his friends, family, business associates, and acquaintances know who he really is.

    This is what a Civil Rico action was created for..  class action is more product defect driven.. Civil Rico is more appropriate for all these folks that came together to take advantage and obviously defraud you folks.  this was a concerted effort by numerous people to keep the truth hidden

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Liliana Ruano. Did you ever get an appraisal done? Unfortunately in these rough areas you’re going to have constant turnover and being Ming distance you’ll get eaten alive on turnover costs and lease-up fees.

    What’s included in that 5k rehab estimate? Why not invest locally? There are plenty of affordable markets within an hour or less of Raleigh.

  • Liliana RuanoPro Member
    OP
    Raleigh, NC · Member since 2016 · 21 posts · 15 votes
    7y

    @Caleb Heimsoth, here's an image of what the estimate includes.

    We have a couple local properties, but as we have major life changes right now, we  need to figure out what is best to do with the property in Indy.  

  • Liliana RuanoPro Member
    OP
    Raleigh, NC · Member since 2016 · 21 posts · 15 votes
    6y

    Quick update: We were able to sell the property in Indiana.  We sold it for a (very) slight 'profit' from purchase, but we are still in the negative due to rehabbing costs we had to do last year.  All in all though, I am happy we no longer have to deal with that property.  We are set to close on a property in Cameron, NC which will give us very good returns.  

  • Fairfax, MO · Member since 2017 · 113 posts · 170 votes
    6y
    Originally posted by @Liliana Ruano:

    Quick update: We were able to sell the property in Indiana.  We sold it for a (very) slight 'profit' from purchase, but we are still in the negative due to rehabbing costs we had to do last year.  All in all though, I am happy we no longer have to deal with that property.  We are set to close on a property in Cameron, NC which will give us very good returns.  

     I'm glad you made it out in relatively good shape!

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