Hi BP community! Has anyone done recent business (2020 or 2021) with Morris Invest or SDIRA Wealth? When I asked them about the fraud/lawsuits they said that was Clayton Morris' old partnership with a different company and now they only refer to SDIRA Wealth which only sells new construction homes that are usually pre-leased to buyers (currently they are building in Lubbock, TX). I also have been speaking or will speak with Roofstock, Home Union, Rent to Retirement, and Marshall Reddick. If anyone has any advice or tips that would be great, I'm new to real estate investing and live in an expensive area, and wanted to invest out of state. Thank you!
I suggest you don't think about getting into business with Clayton Morris until he moves back from Portugal and makes restitution to the victims of the Ponzi scheme he was involved in. The only defense he has offered against the charge of being thoroughly corrupt is that he is unfathomably ignorant about the residential real estate business.
@Jennifer Hung While I do not know their work personally, I think it's fair to assume that one shouldn't do business with someone who was/is being investigated by an Attorney General and the FBI.
Reading the news articles it seems they were selling dilapidated homes as turnkey to out of state investors. If you choose to work with them however, I recommend flying out, or call a Real Estate Agent/Contractor/friendto video call you, and see the property before you sign the dotted line.
@Matt Moreland have you heard anything about these companies here in Lubbock?
Completely agree with the above statements. As one who was personally defrauded by Clayton (despite his claims it was all his partner's fault), it really is disingenuous for him not to take responsibility when his Ponzi scheme fell apart. Just read through some of these articles and you'll get the idea.
Clayton Morris Lawsuit Case No. 1:2019cv02467
It should be telling that not a single person is coming to Clayton's defense. What Clayton is selling is a lie. He's a fraud and a criminal. There are plenty of opportunities out there, do yourself a favor and stay away from anyone and anything associated with Clayton Morris.
Oh wow! @Brittany Warner I had not heard anything until reading this thread. Wow! A whole sea of red flags waving, this is wild.
Thank you everyone for sharing this info and insight. So helpful, I really appreciate it! This has opened my eyes and helped me dodge a bullet. I'm a newbie I'm so grateful for the BP community and your feedback.
I'll chime in here as I just closed on a new property by SDIRA (by way of Morris). This is our first REI property and it is out of state for us - thus the "build to rent" model works for us. It was a brand new 4/2 SFR with a tenant already placed. The overall experience was ok, I think the Morris group realized that partnering with new construction groups is a cleaner approach rather than selling dilapidated properties and trusting rehab teams to remediate the property in earnest.
Overall we are not unhappy per se. Yes you "pay for convenience" with the build-to-rent REI model, but as a 1st time investor it was an easier path for us to at least get in the game knowing we have kids, jobs, life, etc. We also reviewed a few duplexes from SDIRA/Morris in Lubbock & nearby Sweetwater, but we felt they were charging too much for them. Also we became uncomfortable not having seen these out of state properties. We want to close on one property and just see how things go, end to end.
Will I buy another property from SDIRA/Morris? Likely not as the margins are not that great. As we learn more we will learn how to squeeze better margins out of properties.
I'm still bullish on Lubbock and hope to pickup 1-2 multifam properties soon.
Thanks @John Howard I appreciate your feedback and hope your next investments go well! I’m doing research on other companies for now.