Inaya Mclaughlin
Morris Invest is a real estate investment company that offers a done-for-you service, helping clients to build, finance, fill, and manage their rental property portfolios. The company offers a range of financing options, including conventional, portfolio, international, IRA, and non-recourse financing. While they provide advice on whether clients should use cash or leverage when investing, it is not clear if Morris Invest is a cash-only business.
| Characteristics | Values |
|---|---|
| Cash or Leverage | If you have cash on hand, it is better to use leverage and keep your money in the bank. |
| Paying off debt or investing | You can pay off debt and invest at the same time. |
| Using a Self-Directed IRA | Morris Invest can help you use a Self-Directed IRA to purchase a property. |
| Financing options | Conventional financing, portfolio financing, international financing, IRA financing, and non-recourse financing. |
What You'll Learn
Morris Invest's business model
Morris Invest's process typically begins with a phone call to understand the client's financial goals and situation. They then co-create a customised investing plan and match clients with high-quality properties in researched markets. The company has a collaborative team that provides financial education and real estate investment advice, leveraging their experience in the industry and strong relationships with lenders to benefit their clients.
Morris Invest's model involves purchasing and developing new construction properties in bulk, which enables them to offer a range of financing options without charging additional fees. They operate in 14 states and over 40 cities, focusing on landlord-friendly states with high job growth and low vacancy rates.
The company's services include helping clients choose the best rates from over 100 lenders, providing property management support, and guiding clients towards financial freedom through real estate investments. Morris Invest's model is designed to be hassle-free for investors, allowing them to enjoy the benefits of rental income without the heavy lifting typically associated with property management.
While the company promotes the benefits of its business model, there are mixed reviews from investors. Some investors have expressed dissatisfaction with their experiences, citing issues with property rehabilitation, rental, and appreciation falling below expectations.
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Customer experiences
Morris Invest has received mixed reviews from customers. On the one hand, some customers have praised the company for its simplicity and ease of use, claiming that they didn't have to do anything but sign papers and that it helped them achieve financial freedom.
One customer, Larry, said:
> Morris Invest is the best. Everything was simple. I didn’t have to do anything but sign papers. As a matter of fact, I didn’t even need to physically see the property myself. I picked up 2 in Illinois and I’ve just been collecting rent. I’m fixing to get 2 more and do at least 1 a year. I love them.
Another customer, Justin, said:
> I was always interested in real estate but it was always something I thought was unattainable for someone like myself. I’m a novice investor. I have a full-time job but I wanted some supplemental income to help pay the bills and grow into something more where I can not work and be financially free… Buying my house with Morris Invest was so easy and I can’t say enough good things about the company.
However, other customers have had negative experiences with Morris Invest, claiming that the company made unfulfilled promises and provided vague and unprofessional paperwork. One customer, who purchased a single-family home in Indiana for $60k in late 2018, said that the rehab fell short of expectations and that the property was hard to rent, with constant repairs and below-expected appreciation and cash flow. They also mentioned that Morris Invest had a "hard sell" pitch and an attitude of "we are busy and have a lot of people knocking down our doors to invest so don’t ask questions, don’t miss out and just move fast".
Additionally, there have been accusations of fraud against Morris Invest, with one source mentioning a video by HoltonWise that claims the company is being sued because of major issues in 80+ houses due to possible negligence.
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Morris Invest's fees
Morris Invest is a comprehensive property investment firm that helps clients build their real estate portfolios and earn passive income. The company offers a range of services, from identifying and refurbishing properties to renting and managing them. But what about their fees?
Morris Invest's business model is based on purchasing and developing new construction properties in bulk, which allows them to produce in higher volume rather than higher margin. This enables the company to offer their clients a range of services and benefits without charging additional fees. In other words, Morris Invest does not charge any upfront fees for their services.
However, it is important to note that there may be other costs associated with investing in rental properties through Morris Invest. For example, property management companies typically charge a fee for their services, which can include a lease-up fee for obtaining new tenants. Morris Invest mentions that they can pass on lower rates to their clients based on their high volume with property management companies.
Additionally, Morris Invest offers various financing options through their relationships with over 100 different lenders. The specific rates and terms of these financing options would depend on the property and the client's financial situation. It is recommended to schedule a call with Morris Invest to discuss these options in more detail.
Overall, Morris Invest's fee structure seems to be based on providing value to their clients through their bulk purchasing power and extensive industry connections, rather than charging upfront fees for their services. However, investors should still be aware of the potential costs associated with property management and financing when considering working with Morris Invest.
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Morris Invest's financing options
Morris Invest offers a range of financing options to meet the diverse needs of their clients. Over the past 20 years, they have built relationships with over 100 different lenders, allowing them to offer a variety of financing options.
- Conventional Financing: Morris Invest has connections with banks and lenders that offer competitive terms for conventional financing. They can guide clients through the process and help them secure loans with favourable interest rates.
- Portfolio Financing: This option allows investors to customise their portfolio and access financing specifically tailored to their needs. Morris Invest's relationships with lenders give their clients a competitive advantage.
- International Financing: For investors based outside of the United States, Morris Invest offers international financing options. This enables individuals from other countries to invest in US real estate.
- IRA Financing: Morris Invest collaborates with SDIRA Wealth, an educational and real estate investment company. Together, they provide clients with financial education and help them navigate self-directed IRAs for real estate investments.
- Non-Recourse Financing: This type of financing secures the loan with the property itself as collateral. It lowers the risk for investors as they are not personally liable. Morris Invest can facilitate non-recourse financing for their clients.
Morris Invest recognises that each client's situation is unique. During their initial phone call, they aim to understand the client's financial goals and personal circumstances to guide them towards the most suitable financing option. Whether an investor prefers to use cash or leverage, Morris Invest offers flexibility and a range of choices to help them achieve their investment objectives.
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Morris Invest's property locations
Morris Invest operates in 14 states and over 40 cities in the US. The company focuses on landlord-friendly states with the highest job growth and lowest vacancy rates. Each market is studied for at least 12 months before the development process begins.
The company's headquarters is listed as 235 Main St. #194 Madison, NJ 07940.
While the exact locations of Morris Invest properties are not publicly available, testimonials on the Morris Invest website mention properties in Illinois and Florida.
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Frequently asked questions
No, Morris Invest offers every type of financing to allow their team to customize the right portfolio to meet your needs. They offer conventional financing, portfolio financing, international financing, IRA financing, and non-recourse financing.
Non-recourse financing is a loan that is secured by the asset itself, meaning the property, not you or your company. You, as the borrower, are not liable, which lowers the risk.
Morris Invest has formed relationships with over 100 different lenders. They offer conventional financing, portfolio financing, international financing, IRA financing, and non-recourse financing.
Since 1974, investors have been able to self-direct their IRAs. Most financial advisors offer investments in stocks, bonds, and mutual funds, which allow them to make money.
If you have cash on hand, it is better to utilize leverage and keep your money in the bank. Interest rates are currently at a historic low, so it is a great time to use the bank's money. Use some cash as a down payment and keep the rest in a high-yield savings account.
