All Forum Posts by: Tony Matic

I spoke with Clayton Morris last week.  He was really forthcoming and answered all my questions.  He is clearly really passionate about this business.

Here's what I found out:

- He operates exclusively in Indianapolis
- He's selling/rehabbing around 15 properties per month
- From what I could gather, he prefers cash because it's faster and doesn't have all the bank-financed red-tape (inspections, appraisals, etc)
- He makes money by essentially being a wholesaler -- his team identifies the property and he sells it to investors.  At that point he brings in his crew for the rehab.  When the rehab is completed you take ownership and he recommends a Property Management company -- you can choose to use them or not.

A few hours after we finished our conversation Clayton sent me a duplex that was available. I asked if he had an SFR available and he sent that over to me as well. I ran the numbers on the SFR which came out to between 12%-20% return depending on expenses. When running numbers Clayton recommends taking out 40% of the monthly rent for expenses, which nets 12%.

I also asked if I could see a blank Purchase Agreement and the Property Manager's information; both of which he provided straight away.  The PA is the standard Indiana Realtor's Agreement.

I spoke with the Property Manager (Natalie) today and her and the company are amazing.  They focus on one area of Indianapolis called Center Township where they manage 300+ properties.  They are a full-service Property Management company, taking care of everything.  Natalie followed-up via email with all the forms they use for investors and tenants.

I have one last thing I need to figure out and that's how the purchase price compares with other comps in the area.  I'd like to buy a property somewhat below-market so I have some extra equity going in.  But if I'm getting 12%-20%, maybe day-of-purchase equity isn't the most important thing???  Looking for some thoughts on that one.

At this point I couldn't be more impressed with the operation.  Once I figure out the comps I'll most likely make a move. 

If you have any questions feel free to ask and I'll answer them if I can.

Thanks,
Robert.

Hi @Chris Gerenser

Local Indy investor here that knows most of the turnkey operators here in town who carry a good name and stand by their product. Happy to share my insights with you...feel free to reach out via PM or e-mail me. Welcome to Indy!

@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..

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