How I Lost $10,000 Per MONTH with This One Dumb Mistake


100 thoughts on “How I Lost $10,000 Per MONTH with This One Dumb Mistake

  • Thanks for this quick video. Learned a lot from it. I finally have my phone call with your team tomorrow and am excited for it and 2019!

  • This is a great video it shows people who are just starting out that even though things are not going to plan you guys can still keep a positive lookout on the situation.

  • Hey Clayton, is there anyway I can have the spreadsheet you use for your properties? I am willing to pay for it. Thanks in advance.

  • thanks for your videos and sharing your mistakes and success, looking to buy my first rental property but nothing looks good in my area maybe need to look in Detroit & Indiana lol

  • Thank you for sharing your lessons good and bad. Your videos are very educational, I have learned a lot and continue to go back on topics to refresh as I get closer to taking action. You guys are very inspirational.

  • We're all at different levels in this business and there are always improvements to be made. Thanks for being transparent.

  • I have a question about comparables. I was recently looking at a site that built homes in a good area and I see the builder with a mortgage (or something – I can’t tell from public records), where each one of them had a debt of $450k by the builder. Then he sold them at $600k or so each about 9 years ago. Due to several foreclosures in that area, the bank is selling them for average half of that $600k. Then the real estate agent comes in now, and says to the sellers not in foreclosure that the comparables are at the foreclosure rates. What’s going on with that? How can a house that appears cost the builder $450k each only be worth around $300k? It doesn’t sound to me like these agents know what they’re doing and ruining that market. Of course if I’m buying, that’s great, but I have to feel bad for the seller.

    I was also told by a friend selling a different house that his new roof and siding didn’t add any value to the comps. Oh really? But the granite counter top kitchen was worth gold? Seems agents these days aren’t being very honest with first-time buyers. The granite might shine very pretty but it’s no substitute for a good roof that costs a lot more and will last you 30 years. I can’t understand these comps!

  • Keep grinding guys! Got off Lake Fork, heading to work and tomorrow getting my first duplex. 10 properties by Summer!!!! Love ❤️ seeing your vids on Mondays. Sets the week off right!!!

  • Thank you for showing a real world example of how this can go I've been waiting for one like this. those people talk about their successes but don't often go into detail about things that maybe don't go according to plan so it's very humbling that you're showing the reality.

  • 23k/month from a guy who only buys single family isnt bad at all. But, what if those 53 houses was a 53 units apartment building? He wouldnt be losing this much monthly cash flow. Since he s got too many houses scattered all over the country, he cant focus on all of them at a time. Too many tax payments, too many managers, too many deeds and too many tenants NOT in 1 place. How much more could this guy accomplish if he wasnt closed minded and refuse to look at the power of multifamily investing? Dont get me wrong. He s smart and he s doing ok but hell, he got a full time job in hand trying to control all these single family houses.
    Sell these singles, buy apartment building and you ll gain more control in 2019!

  • I appreciate you guys making this video. Late night infomercials will make the uninformed believe that if you buy any piece of property, you will magically get rich, and spend your days lounging on the beach.

    I would rather see the truth, real estate investing requires work, dedication, discipline. You have to "mind your business". Double thumbs up guys! You are the best!

  • I’m in the exact same spot!! I mean exactly! Have to get out there and get the new year empty houses filled. Also I have an old 5 plex I’m sinking too much money in. Sucks right now.

  • Thanks for being transparent and the reminder that's it's not totally passive income. You still have to nurture your portfolio and manage your manager(s).

  • Thanks, Clayton. While you and Natali are very successful, your point offers that it still takes work and attention to make it work. I suspect an indicator to your current situation is time spent on Morris Invest or serving others who seek to become investors.

  • Hey man im new to you're channel and im new to the whole real estate business. What videos do you recommend in you're channel to start learning?

  • Thanks for sharing..not everything is as easy as others may paint it. To be an investor it requires a lot of work and education. Continuous Education!

  • Often managing the manager is more of a pain than managing the property yourself. No one cares about your properties as much as you do.

  • Thanks for sharing. We are just starting our journey into real estate investing and have learned a lot from your channel.

  • This is part of doing business.I hope to start in soon with my Husband
    you are a great inspiration ,do not give up and Naty you are the best

  • How do you spell RISK…I never hear flippers or renovators discuss risk.
    As a prior bank auditor I know a few things about risk…. Lived through the 1980's savings and loan crisis that was totally invested in real estate.
    Create a video on the risk…financial risk, govt risk, tenant risk, and as you so well pointed out…investors falling asleep at the wheel.

  • One of your best videos yet. Really enjoyed the authenticity of your investment story . Now I don’t feel so bad about one of my properties 🙂 but it is time to get things going on that one also! Keep up the awesome work!

  • I appreciate seeing a reality video among the real estate genre. A couple of videos on closing the gaps would be useful to your viewers.

  • $33K/mo is great money you should be happy! Most small investors will never do those kinds of numbers. Personally I feel 30+ units+ work better.

  • do you have a lot of partners that put up the money to buy your properties or has it been mostly your money and then scaling it with refi heloc 1031 etc?

  • Great video Clayton! I suspect that some may think it doesn’t require any input after purchasing a property to turn a profit; any business requires constant oversight.

  • Thank you Clayton for posting the video.  My wife and I are still saving funds for our first property.  And while it may seem strange to some, I don't feel daunted at all by this.  I know this is a business and should always be treated as such.  Even then, the attention I'll have to devote to managing it is nothing compared to what I do for a living now.  I really can't wait for the challenge.

  • Thanks for the honesty Clayton. You two are a true inspiration to me. I plan on giving your team a call within the year after I build a little more equity in my home using the heloc strategy. Thanks for all of your wisdom, talk to you soon.

  • Do you not have one person or team acting as superintendent of all these different managers and construction crews? I know your time is divided between your holdings and your business of selling turnkey properties. My experience on multimillion dollar construction projects is that if you don’t have a project manager, then below that person a superintendent, too many things can go wrong in a hurry with all the different subs on site, and equipment and materials to keep on top of, plus permits, inspections, etc. Seems you are spread too thin to be your own ‘project manager’.

  • These type of videos are honestly better to watch. She mentioned she cried a lot in 2018 (I'm assuming) but from seeing your channel, that really is not indicated. Maybe it's because she seems to handle the finances? idk, these videos are better though and more real.

  • When you calculate your ROI for your properties, is your property management fee factored into the 40% that you set aside?

  • I am feeling the same pain as yall, got into real estate investing a few years back, purchased and rented out a my first rental, then about 1.5 years ago a fire burned it down along with about 40 others, insurance gave me the run around because my policy was setup incorrect by the multi-agency company i went through.. Finally, insurance has agreed to cover it, but they are dragging their feets basically, been a year and the most they have done is demo the old house, not im waiting as they claim to be coming up with plans county approval to rebuild the property. Now for 1.5yrs ive been paying mortgage/insurance/taxes on a house thats not standing and not being rented out.

  • thank you for having the integrity to show the ugly parts of investing. instead of pretending you guys are perfect gods of investing you show us you are human and can make mistakes too. that shows class and i have to show respect. already loved this channel so much

  • Much respect for being so transparent and willing to admit your mistakes. We all make mistakes and I’m sure you guys will greatly benefit from all of this. Thank you for sharing this with us. Much to learn.

  • Have a question? If i owe 80 k on mortgage and can get 100 k heloc would you get the heloc as a 2nd lien or get the Heloc to become 1st lien? I wanna invest so thats the reason i dont refinance 1st mortgage

  • I LOVE your transparency! I mean… you guys are the most inspirational couple ever!! I will be investing in my first rental in 2019 thanks to you guys! PLEASE keep it up! I really appreciate you!

  • So grateful for the honesty. We are about to travel with our four kids for a year and I have the same concerns about “holes” but we hope to stay connected to our management team team on a scheduled, consistent basis.

  • Great video! How often, would you say, should we be evaluating and nurturing our portfolio? Once a month? Couple times a month? A couple of times a year?

  • How do you know if a property manager is taking care of maintenance on your out of state rentals? I’ve been having issues with maintenance not being done on my rental. The property manager never mentioned that anything needed to be done. It wasn’t until I drove by it one day and I noticed some deferred maintenance issues. Could you please make a video on what steps you take to make sure that your out of state properties are being well maintained? (Or point me to one of you’ve already covered this). Thanks!

  • I love real estate! Just kick back. Go over the computer. Make a few phone calls. Make some moves. Cash flow 10-30K a month. So much better than working 40 hours a week. Trust me! Great job. Keep up the good work.

  • I don't understand. Don't you have property management that should be on top of this? I'd be pissed if they were not informing me about the property, but on the other hand I'm constantly checking in on them from bills, maintenance and city ordinance we need to follow. It takes some time, but definitely beats a 9-5 job anyday! Ha, ha.

  • So I am looking to start investing. Currently saving for my first home to purchase (20k in the bank). Repos in my target area are going for 40’s. 3br, 1ba homes 950sq ft. Typically rent for 800-850 per month. I have an opportunity to get a personal loan now (no current prospects available) for 6-7% interest. Was thinking of taking it and putting it in an ally savings account (2% interest) to reduce my interest I am paying until an opportunity to purchase at auction. Does this plan sound reasonable?

  • I really enjoy watching your videos. I SUBSCRIBED….. I’m looking for a mentor ? Could you help me purchase in a good area ? Thanks

  • Because of you guys, I'm not scared to handle the down side of investing. My first property is under renovations right now because you guys showed me, don't be fearful. Mistakes happen to everyone. Nice video Clayton!

  • Seems like your mistakes are really minimal. They are similar to some things I am doing, but I don't consider them mistakes, but intentional moves with many unforeseeable hurdles.

    I am not as large of an investor as you but I have a different perspective; in your portfolio you have a lot of different projects you are undertaking and you can afford to be very patient with your projects. Investment is a long term game.

  • Very informative! Thanks for the video. Do you have a video talking about how much equity vs debt you have in your portfolio? I’m looking for it on your channel but can’t find it. Thanks

  • Clayton, if going through an eviction how can you speed up that process other than making sure the property management company is on top of this? I've purchased two properties with Morris Invest, the first closed in June, and rented mid-October, however no rent has been collected, and now going through the eviction process. The 2nd was closed in early September, with rehab expected to be completed by end of January. I'm following up as dates near on the eviction process, and bi-weekly on the rehab, trying to nurture, but not micromanage, allowing the team to do its job. Is there any advice you can offer?

  • Hi Guys… I want to point something out that "appears" to raise a red flag, and want to give you guys a chance to clear it up for any of us that are thinking the same thing.

    I am a longtime lurker on this channel. Been watching for nearly a year, in anticipation of divesting from the ownership positions i have in my Asian garment factories. I haven't made "the call" to you guys yet, as I have heard you mention several times not to call if your not ready (and of course my full divest doesn't happen until summer 2019).

    What concerns me is that I assumed that the property management company was Morris Invests' own company. In hearing your story on this video, I question whether my understanding was correct. If the property management unit IS your own company, it would seem strange to me that your own portfolio wasn't a priority for them… & to the extent that it caused such a hole in your strategy/fill rate. The logical red-flag is that if they could allow the owners portfolio to lapse 17%, what would become of your clients portfolio's?

    Perhaps (as you have mentioned) the bigger teaching point to your viewers, that you cannot take a property management company for granted, and must always stay on top of it (even if you own it yourself)?…

    Look forward to your answer, and booking "the call" soon.

  • I agree on REIT’s!
    Who gets the Depreciation in a REIT? The REIT right?!
    With a REIT you are paying top $ I’m sure for any Property [email protected],
    I own and manage my own! To much being spent of
    The management of Rental Houses these days!

  • Thanks for sharing!
    Maybe you said earlier but can you please let me know which countries do you have properties? Only in the UK?

  • 2 things:

    1) is mad the right word or is frustrated the right word? If your getting mad
    (angry, furious, infuriated, irate, raging, enraged, fuming, blazing, flaming mad, blazing mad, in a towering rage, incensed, wrathful, seeing red, cross, indignant, exasperated, irritated, berserk) you might have anger management issues and good for you for taking a walk. You have a lot to be thankful for so try not to spend it being hot blooded

    2) you said you don’t have “the time” for one of your properties. I thought the whole point of real estate was so that you had unlimited time. Is that not the paradox?

    Thanks and I enjoy your channel and videos

  • Wow thank you for sharing….I hope you the best….. you guys are amazing to get this ….far …… know you can turn it around……. One of the best videos I've watched from you

  • That's amazing 53 units $23,000 a month cashflow….

    I thought i was doing good with 2 units cashflowing $675 a month

  • At first I thought.   Ok, they're still making 20k a month.  Why are they being dramatic about it.   But 10k would be a 50% increase in income..  I'd be angry too.

  • Ya know what gets us? My husband listens to these construction/managers and believes them!! I've cut him out of the discussion and use him to fix the stuff he can. I discuss the renovation on a daily basis and make sure I know what's going on. They count on office types to not ask questions and they spout off some crap. I break their balls and don't take crap. My husband would take in all their bs and they want to do more work that we had planned on.

    The renters, I deal with because I don't believe some property manager will do it better. If you have street smarts, it goes a long way.

  • Im a bit confused.  After watching this I watched videos that you guys posted in Jan 2018.  In the 5 part series you mention a few times that you guys cashflow at 40K per month.   What am I missing?

  • Great video! Any tips or top ways on how one should nurture their rental properties monthly? What are some of the things to do or even how can you stop turn overs. Thx👍🏼

  • You guys are amazing !! Thank you for caring to educate others about something that can really help themselves and their families. Blessings to u guys.. 👏👏👏👏

  • Thanks for the video and info. Sorry, you took that loss. However, this is the info I can really learn from. Your Financial Freedom Academy is great for some people but not for me at this time. I would love to see a course that goes thru your property acquisition and management. Soup to nuts. I know if I sifted thru your online tutorials I could probably find all info I need but would prefer to see it in a course. Would like to see how Natalie manages a portfolio's on a spreadsheet to identify losses. Would like to see how Clayton acquires property and rent out from start to finish (Case Study Style). Would like to see Morris Invest walk me thru purchase and cash flow of one of their properties. I would definitely pay for that course and would want to be apart of that Facebook Group. Plan on calling into Morris Invest to set up a consultation to purchase a property. Thanks for Great Channel. Looking forward to your 100K Subscriber video!

  • This is probably my favorite part of real estate investing. This is where the investing aspect is put to the side and entrepreneurial mindset kicks in… taking your business and growing it to it's full potential.

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