Turnkey Real Estate Investing: The Ultimate Guide to Building Consistent Roofstock

Going live. We are live. Hey everybody. Welcome into the Investing
in Real Estate Morris Invest channel. Today we’re going to talk
about passive income, as it relates to turnkey
real estate investing. We’re going to really kind
of do an ultimate guide today to turnkey real
estate investing. And our team at
Morris Invest has been sort of collating
questions over the past month. The questions that come into
the office about turnkey real estate
investing, what is it? How does it work? What can I expect
on our phone call? We have a laundry
list of questions. So feel free to add some in
the chat as we are live today. I’m Clayton Morris. I’m Natalie Morris. And thanks for our monthly chat. We got a lot of people
already dialing in here to watch on today’s show. So thank you so much for
all the kind feedback. And please say
hello in the chat. And please subscribe
to our channel. If you’re not already a
subscriber to the Morris Invest channel, we have I think
well over 100 videos here on the channel where we
talk about all manner of buy and hold real estate investing. That’s the whole
purpose of this channel is to buy and hold for the
purposes of creating legacy wealth for you and your family. So we’ve got videos
on everything from downside of buying
turnkey properties. What are some of the downsides? With the rental markets with
the highest crime rates. Single family
versus multifamily. Best rental properties to buy. What is ROI, return
on investment? We have whole videos
here on this channel. So please subscribe. Explore all of
the past archives. I like to think of each of
them as like mini lessons that you can really take
action and become a real estate investor. So just some high level
thoughts about turnkey real estate today. Some sort of tidbits
and things to chew on about when you’re
thinking about creating your rental portfolios. So sometimes we talk about
different financial products or how to evaluate a deal. Today but we’re going to assume
that you’ve listened to those or watched those
videos already, you understand the different
types of financial products, and you’re ready. What do I do, right? How do I get there? What’s it like? Do you have to go out and knock
on people’s door and say, hey, can I buy your house? Or will we do it for you? All that stuff we’re
going to get to. So should we just do it? Yeah, let’s just do it. So let’s dive in
at a high level. What is turnkey real estate? What is the idea, the
premise behind turnkey real estate investing? First of all, what is it? And then why would
a person consider using turnkey real estate? So you want to answer
the question what is it? Well, you want to
think of turnkey. There’s the word key in it. It means that someone
can go put it key in, walk in and live in it,
and then pay you rent. It’s as simple as that. But how to find a deal like
that is maybe not as simple. So the question remains where
do these properties come from? Who manages them? How do I make money? And so a turnkey provider will
sort of do all that for you. So you can either watch
HGTV, and go and try and arm wrestle people
at tax auctions. And then put your own tenant in
place and manage it yourself. That’s not turnkey. Turnkey is going to
people who specialize in this kind of thing,
finding a deal, a property maybe off market, making that
property suitable for a family to rent. And then putting
a family in there and then you cash rental
checks because you own it. Because your job here is
to put the capital into it, and the turnkey provider
finds the product, and you benefit by monthly rent. Is that a good explanation? Yeah, that’s a really
good explanation. And the idea that it is turnkey. If you find a good turnkey
provider– at Morris Invest, that’s what we do. So that’s what we
do all day long. That’s what we do
365 days a year. We even work on Christmas. And we were working
this year on Christmas. So the idea is if a company
like ours is working hard for investors, and
taking all of the pain hopefully out of the process. So you don’t have to do
much except buy the property and then get the
monthly rent checks. There are going to
be a few things we’ll talk about here today, for
instance on getting insurance and those types of things
which will still fall on you. But a turnkey
provider can hopefully make those things easy so
that it’s a seamless process. That’s something that we do
in the office in our team, so that when we match
you with a property, our team takes you through
and helps you get insurance, gets you connected
with the title company, the property management
teams that we work with. And all of that is
taken care of so it’s a pretty simple seamless
process from point A to point B to point C.
Now at the end of day, you are dealing
with human beings. There’s human beings at every
level of real estate investing, from the investor to the
contractors, who may get sick. May not show up. We don’t rent to dogs. No. The property managers,
human beings. The whole step of the
way, human beings. So it’s not always super
simple to manage human beings. There’s so many moving parts. Even the tenants
are human beings. And so all of those
things you really try to pull together in
one nice package. That’s our goal in-house. You can’t systematize
everything, but you really try to make it
sort of a beautiful turnkey process for the investors. So that’s what is turnkey
real estate investing. Now if you’re new
to our brand, you may not understand why
we do things like this. We are also a turnkey family. We, in our family, our goal
is to own as many turnkey properties as
possible so that we can create passive income
between the two of us so that we can raise our three
children in the lifestyle that we each choose. So we, our company is
helping other people to buy these houses
that we identify. And we, our company
fixes these homes up. But then also inside
of our family, we take people in the
journey of building this portfolio together. So we’re not financial advisors. We are real estate
professionals. We help other people
buy properties with us. But then we also try and
keep everything for ourselves as well because
we would love to. We’d love to own all of this
ourselves and just collect all these rent checks,
but we can’t– It all comes down to capital. So people say, why don’t you
keep every one for yourself? We do. We keep a lot. We do. We try. And it’s not a matter
of cherry picking. I can’t tell you how many
times Clayton’s like, I don’t want someone
else to buy this one. I want this one. But it just doesn’t
work that way. We can’t own everything. And we don’t cherry pick ones. Honestly, we try to do
the basically the same properties every month. That’s our bread and butter
is the same properties every month. Those three bedroom, one
baths, two bedroom, one baths and duplexes. And they’re all the same to us. I’d like to think of them
as like potato chips. You’re just going
to keep eating them because we’re all
going to be the same. I like the ones that
are folded over. The cut where there’s
like, double in there? Yeah, those are good. So there’s a lot of great
questions already coming in. So we answered the question
what is turnkey real estate investing. We’re going to
talk about now why someone would buy a house
through a turnkey provider. But before we do that, a
lot of questions coming in. I see your questions coming in. Dash Ali says do you
provide financing? Corey Robinson says, hey, guys. Christopher Pacheco
says, ROI equals freedom. Can’t wait for this
to change my life. Thank you for everything. Sean says what
level of investment is required to get
a property with you? We’re going to get to all of
these questions in a moment. So keep them coming in. Anything related
to getting started with turnkey real
estate and investing, if you’re a busy person,
please fire them away here in the chat. We’ll get to those. We’ve got a lot
of other questions we’re going to get to as well. But now, why would
you– why would a person go to a turnkey real
estate provider like us, like Morris Invest, and
purchase a property? Well let me give an example
of one of our clients. He’s a brain surgeon. He lives in California. Now there’s two things
going on there, right? Number one, he’s in California. So California is a
terrible place to but– Don’t talk about California bad. He likes to talk bad
about my home state. Don’t ruin this. So California is a
terrible place to invest. Because the ROI is going
to be in the toilet. You’re never going
to be able to get a really high return
on your investment with the taxes and the
barrier to entry to purchase a single family home is going to
cost you hundreds of thousands of dollars in those areas. It’s not going to
be your benefit. So anyway, he’s a brain doctor
and he lives in California. So he’s a brain doctor. He’s super stinking busy. He’s in surgery all day. You hope. You’d hope. And he lives in California. And when I first time we
spoke to him in the office, he owns three properties. And I said, what’s the
ROI on the properties that you currently own? And he said terrible. Absolutely terrible. Nothing like what you guys do. And he said I want to be able
to turn over the keys to you guys to get me some great
high return properties. And I’m ready to take action. And I said, great. So he now owns– I think he owns 12 or
13 properties with us. And he’s about to buy
another 10 with us. He’s about to move over a 1031
exchange with our company. So he’s getting
phenomenal returns at a much higher rate
of return than he was getting when he was
buying properties himself and trying to do it
in Arizona, I believe. Because even if you have
a little bit of time to do it on your own, there’s
still a huge learning curve. I remember listening to a
podcast once on a real estate podcast. And someone says oh,
your first deal’s always going to be stinky. Well, it doesn’t have to. It usually is if
you do it yourself. I know my first deal was
stinky before we got married. Describe it. It was in California. Hmm, interesting. Right. It was in San Francisco,
in downtown San Francisco. Even more interesting. And of course I lost money on
and it, it was a pain to rent. I had high-maintenance tenants. The taxes went through the roof. I owned it as a lady, not just
Natalie Morris, the person. Actually, it was Del
Conte at the time. So your name’s not
on that stinker. That was not a great investment. So you learn or you can go to
someone who can help you out. Now I remember, I was
working full time at CBS, and I didn’t have a lot
of time to learn this. But I would just sort of
casually over my lunch hour Google how to find real
estate investments. And then just search
through Zillow. I didn’t know how to do this. And I didn’t listen
to podcasts back then. So if you’re not
someone who wants to put all of your
time and energy into learning this and
making it your profession, it’s great to go to a
company that can help you. And who has your best
interests in heart. I don’t really care
what other companies do. So we talk about
turnkey real estate. We’re really talking
about what we do. I only learn about
competition or other companies from companies that
share, or that I’ve learned from our clients
that we work with that have come to us from them. So we’re not going to
badmouth anybody else. We’re not going to talk
poorly about anybody else. We’re just going to talk about
our experiences and what we do. And our goal when we
first get on the phone is to really try to
understand what– when we get on the phone, so
that’s our first question. What should I expect
from my phone call? So if you go to our web
site MorrisInvest.com, you click on the schedule
a consultation button. We like to get on the phone
for 30 minutes with you, our team does. And we’ll find out what your
financial freedom number goal is. If you download our cheat sheet
at MorrisInvest.com/freedom. We want to know how many
properties would you like to acquire? What are your overall
financial goals? Do you want to hit $5,000
a month in passive income? Do you want to had $7,000
a month in passive income? What does that goal
look like, based on the monthly expenses that you
have for you and your family? And then we want to find out
are you actively an investor? Or are you currently
an investor? Do you own rental properties? And how do you own them? When you own your
rental properties are you managing them yourself? It’s very important. One thing we really
want to know– and it’s really important
when you’re a turn– and I have a whole video
on this on the channel right here about the downside of
turnkey real estate investing. And the downside is
when your expectations are different than the
type of investor you are. So what I mean by that is
are you a hands-on investor, or are you a hands-off investor? We in the office do not like to
work with hands-on investors. Now what does that mean? Well, it’s not a bad thing. If you’re a hands-on investor,
and you like to go out and hang drywall and manage contractors,
and really kind of be on the phone every day with the
window delivery guy and the guy that’s delivering the furnace
and making sure all that things are running on time– if you really like to
be that, then you’re an active real estate investor. That means you’re actively
managing those moving pieces. That means you’re one
of those HGTV people who wants to do it yourself. Right. So I would discourage you. And we frankly don’t like to
work with those individuals because they can be exhausting. Because they’re
going to constantly be calling the office,
asking questions about paint colors
and carpeting, and those sorts of things. And so we like to
really make sure that when we’re
working with a client that they want to be hands-off. Because if they
want to be hands-on, we’re going to tell them we
don’t think it’s a fit for you. That you should probably
do this on your own. Because you’ve got to put
your faith in the team that you bring on. So we’re sort of asking
you to put your trust in us to get high cash flow. Well, you have to think of
it as an investment, again. So if you have a stock portfolio
through your 401K or something like that, your
portfolio most likely has some investments in
McDonald’s or Starbucks or Ford or GE. So those are investments
you cannot affect. You’re hands-off. So probably you’re
already used to this. Or do you call Ford and say, I
didn’t really like the leather you put on that Taurus. I’m not happy about that. Let’s change it. You can’t. These are investments. These are things that you have
to have a little faith in. Or hey, Ford. I didn’t like that you spent
$30 million on a Super Bowl ad this year. Shouldn’t have done that. And that’s my money I’m
investing with you as Ford. Why did you spend $30
million on a Super Bowl ad and hire Britney Spears? I don’t like Britney Spears. You’re going to use Britney
Spears in your commercials? So you’re taking
a leap of faith– Britney Spears? This is 2001. I don’t know, but
you’re taking a chance. You’re working with somebody. You put your faith in them. And you’re never going to
be 100% sure of anything in your life. As long as you’re
80% sure, then you’ve got to put your
faith in the people that you’re working with. Otherwise it’s
not going to work. So if you’ve bought
the stock, you buy in, and then you kind of
watch the performance. That’s what you
do as an investor. And if hate it, you sell Ford. You don’t like
how that performs. OK, but you’ve
given it a chance. So this is sort
of the same thing. You buy the stock,
which is the property, see how it performs,
see how you like it. And it’s going to
perform for you. That’s what we do. So let’s just answer that
question a little bit more concisely. What should I expect from my
call and how do I prepare? You know your goals. You know what cash
you have to work with. You know your finances. So we’ve talked many
times about making sure you understand the whole
picture of your own finances. You know what it takes to
make ends meet every month. And you also understand
what you have to work with. So it’s really important to
understand what your goals are. How do you prepare? That really is important to know
what goals you actually have when you’re actually
starting this process. Do I want to again,
get to $10,000 a month in passive income? Am I currently
working this 9 to 5? And I don’t want to be driving
to this 9 to 5 job any more. And I’m driving an hour
there and an hour home and I don’t want to
be doing that anymore. Next question. Should we take one
from the live stream? I think those last
two are for you. Someone wants to
say you’re sexy. Someone is trolling our feed. But I think they like you honey. Yeah, right. They want some breastfeeding. You’re not going
to get that today. So let’s take some questions
from the group here. Let’s go back up to the top. So India26 says we just
listened to your podcast. I’m almost ready
to pull the trigger on getting my first
rental property hopefully from you guys. Wonderful. Thank you so much. Seamus Lavry says is it
better to buy through an LLC? Let’s just give him the
quick answer on that, yes. And you can go back and find
several videos or podcasts about that from– can you think of
any off the top, just so we don’t
have to go over it. You can listen to the podcast
featuring Tom Wheelright. Yeah, we’ve done
several of those. But the short answer
is absolutely yes. You want to limit your exposure,
your liability exposure. And so, yes, we don’t
invest in our own names for several reasons. We’ve got some videos here
right on the YouTube channel as well where we deep dive
those questions on finances and wealth building
for 2017 and beyond. Brian Rumble wants how many
Canadian investors have you guys helped out today? We actually have a lot of
international investors who buy properties through us. There are a few
additional hurdles that international investors
have to go through, but that’s something
that our team can help international investors with. They’re just setting up
your LLC, bank accounts, and those sorts of things
in the United States. We have people that we can help
you set that up, which is good. Let’s take Dasha’s question
about do you provide financing? Because that’s also one on our
list about offering financing. The quick answer is no. And the reason for that
is because we’re not licensed for that. The SEC has very specific
rules about whether or not you can provide financing. Even if I offered you
private financing, like, I wanted to give you a loan
out of my own personal savings account. There are rules around
our relationship. I can’t market that money to
you as a financial product unless we already
know each other for a specific amount of time. It’s very specific. So that’s just not what we do. Again, we’re not
licensed for it. We don’t do that. And sometimes when a
turnkey provider does that, they may mark up the
price of the property because you’re a more sort of– maybe I want to say at risk
or needy type of investor. Really, the best way to
get started in real estate is to find your own financing
or find a favorable product to a real estate investor. It’s a separate product. And we’ve talked a
it a lot of times about evaluating
financial products. And we can do it
again another time. But again, that is not
something that we do inside of our company. Right. So again, the idea of
doing providing financing– and it’s one thing you
should talk about too. Did you mentioned the SEC? Yes, I did. Sorry, I was just going
through the chat thread. But if the property is worth $50
and they’re selling it for $60, the reason that they’re
doing in-house financing is because no bank would
give you a loan on a house that they’re charging
more than it’s worth. Does that make sense? That’s another reason
why we don’t do it. And plus, it also
complicates things. So our investors
usually pay cash. But they pay cash
a number of ways. That can be private
financing, their 401K, a self-directed IRA, whole
number of other reasons. Edward wants to know why were
so many messages deleted? Because that person just kept
typing in all caps SHOUT OUT, SHOUT OUT, SHOUT OUT, SHOUT OUT. Don’t encourage people to do it. I’m not, but he asked. We asked. So we delete trolls. So that’s what we do. That’s why Edward. So be good. Be good in our feed. We have so many great people
here on the channel, so post interesting and
relevant questions. You don’t know this
is YouTube, right? I know. But we have a lot of great
people here on YouTube. Maybe it’s the time of day. This is the time
of day that people like to poke you on YouTube. Whatever. So but, is it Sesi79? Says she’s a nurse
from New Jersey. And what’s the
minimum startup cost if you have $20,000
in cash, which is an awesome amount of savings. And it also relates to
what’s the entry point? What’s the price point
for a turnkey property? So our properties tend to
be between $40 and $50, so you’re halfway there. And then I would then sort of
keep pushing for the other ways to find a financial product that
can fit you to the other half. If you have 50% equity
in your first deal, then you can go to a real
estate investing firm, like a Lima One or a lender
that specializes in real estate professionals or real estate
loans, or private financing. We’ve done several
podcasts about how to find private money. So that’s a really great amount
of money to get started with. Right, exactly. Calida Fiddler says can you
address some of the negativity and people’s experiences
in bigger pockets. I have really
enjoyed your podcast, but am thrown off by
some of the comments. Here’s the thing,
most of the people when they write negative
comments on that internet forum have never worked with
us, they’re competitors, or they are people who
have literally never worked with our team. Now you’re going
to have experiences that aren’t 100% perfect. But our team always tries to
make it as perfect as possible. So if a rehab goes longer than
the weeks that we had hoped it would, and it goes
an extra week or two beyond that, that’s unfortunate. But again you’re dealing
with storms, winter, you’re dealing
with the holidays. Maybe a rent check bounces
back because someone gave us the wrong ACH
routing information. Well, that looks like
oh, well, they just didn’t pay us on time for
rent going out on time. Not the case. There’s usually an explanation
for when things go sideways. But our team always worked
very hard to make it better. But most of the time, that’s
why I say most of our investors, almost all of our
investors don’t hang out in internet forums. If you seek and want to
hang out in internet forums, typically you’re going
to have other people who talk you out of taking action. There’s going to be people who
are going to find negativity in anything, and
therefore I like to think of internet forums
where real estate people hang out where misery loves company. If you listen to the guests
who are on my podcast who do millions of dollars
in deals, they routinely say they don’t
like dealing with, they don’t hang
out with people who hang out in real estate forums. That’s where real
estate goes to die. That’s where people who want to
sit back and not take action, end up hanging out. And frankly, most
of our investors like the doctor
I’m talking about, they not hang out
in internet forums. They don’t have time for that. You know why? Because they’re too busy
taking action and making money. If anyone wants to
see our clients, just go to
MorrisInvest.com/testimonials. We have hundreds
of happy clients who’ve bought many,
many properties with us. Do we make mistakes? Of course. Everyone does. What do we do when
we make a mistake? We try to fix it as
quickly as possible. And that’s how we operate. So it’s not a fit for everyone. Again, if it’s not a fit for
you, if you don’t like the ROI, if you don’t like
what we do, great. But our goal is to
make as many people happy and many people
financially free as possible. Sometimes these comments,
they really perplex us. And I see Clayton sort of
saying where did come from? Who is this person? And I’ll see a name
and I’ll be like, this person’s like, these people
don’t know what they’re doing. I’m like, really? You’ve actually never
worked with us before. We’ve never had you
call into the office. You’ve never spoken
with anyone on our team, and yet you’re in an
internet forum bashing us? OK, fine. That’s why I don’t hang out in
bigger pockets of those places, because quite honestly
it’s too negative. It’s hard not to
take that personally. We should be authentic
about a lot of times where we’re kind of like,
where that come from? And maybe our brand,
this husband wife podcast YouTube stream triggers people. They don’t like us, they
don’t like the message, they don’t like the ease with
which we’re presenting this. And so it triggers
something in them. That can’t be right. Sounds too easy. And so a lot of times
that comes and it’s a very personal attack. Which is fine. You don’t have to like us. There was one guy who
was badmouthing us on one of those forums. And I should show you all
the back and forth texts with him and our team. And then he made negative
comments about us in this forum
completely contradicting his actual conversations
with our team. And it turned out that
he didn’t have any money. And he was upset that he
couldn’t get a property. And we had presented
him with property. He came and he
met with our team. We treated him the exact same
way we treat anyone else. But it just turns out that he– I don’t know. He was taking out his– I guess, his own frustrations
on himself on us. Which was fine. Did we go in and try
to fight about it and make an argument about it? No, we didn’t. But oh well. I’m not going to
lose sleep over it. I’m more concerned about helping
the people that we do have, the people that work with us. That’s what we do. So enough on that. We want to help you. Forget all those trolls who
hang out internet forums. Let’s talk about
actual investors who are here watching today
who are going to take action. There have been
several people who’ve asked about different markets. And do you get to choose
what the market is, and where you get to invest. And how much, based on how much. Someone said is it
in the deep south. Which I guess they mean like– Alabama? Does that mean the
deep south because it’s in the $40,000 range? Does that mean that deep
south is undesirable? Is that sort of the connotation
that they’re asking? The deep south is the
deep south, right? That’s Arkansas, that’s Alabama,
that’s Memphis, Tennessee. So we’re not in those areas. Dane Johnson is on. No, we’re not in those areas. Memphis, Tennessee has a
really high vacancy rate, like over 20%. I think it also has a pretty
high crime rate as well. Little Rock, Arkansas,
if you’ve seen some of the recent reports
on jobs and growth as well, it’s not so great. So the deep south, no. We are not there. However– There are plenty of cities there
that would meet our criteria. We haven’t reconnoitered
those cities yet. So the key is you’ve got to
stick with what you know. And our team, we’re
in the Midwest. So we’re in Michigan,
we’re in Indianapolis, we’re also in parts
of Ohio as well. And that’s our team. So that’s our team that we work
with that does fantastic work. And you could say well,
what about Kansas City? Or what about this
or what about that? Yes, you can go to any city
and try to make good deals and find it. But you’ve got to
have the contractors. So the key with our team is that
we’ve got contractors on staff. We’re able to buy 10 water
heaters at a discount because we’re buying 10 at
a time for our properties, or furnaces. We’ll put Goodman furnaces
in our properties. We’re able to buy 10
of them at a time. And you have those
relationships with our roofers. So when you work with
a turnkey company, you’re probably like us, going
to pay way less on the rehab. That’s how we’re able
to get great prices, because our roofer is not
then going off and trying to find other work while he
just had one property for us. It takes a long time to build
up a team that you trust. Who is your general contractor? Who’s your flooring guy? Who’s your plumber? Your electrician? All of that kind of thing. It always perplexes me when
we watch these HGTV shows, and they use
different contractors. And they’re like well, I guess
we’ll use Johnny and then Stevie for this one. I’m like why is a conversation? You should just have a system. So to build the systems, we
have a few cities in which we’ve built those systems. You don’t just get to say
oh, thank you Morris Invest. I think I’d like
to invest in Texas. That’s great. We don’t have a
system in Texas yet. So people will call,
people write and say, can you help me get a
property in Houston? We are not in Texas because
the taxes are higher, so then that ROI would be lower. So no, we’re not in those areas. We’re in some specific areas
where we have a great team. And we target
specific zip codes. Yeah, we have a great drywall
first team that we work with. Ryan is our main roofing guy. So these guys are on staff. So that way when we’ve
got a tenant turnover on our properties, when a
tenant moves out after whatever, we’re able to get in there
and do paint, carpet, drywall pretty quickly. Hey there from Texas. Brent Tyler asks the question,
does your turkey company sell houses in
B-class neighborhoods in the $80 to $100 range? Wife and I really like
your buy and hold strategy, but a $40,000 house is scary. Almost every property
I own, we own, are in the $40,000
to $50,000 range. But Brent, yes we do. But we don’t even have
B-class properties that are that expensive. Usually in the $60 range. So get in touch with us. Email me Clayton @
Morris Invest.com. And we’ll take
great care of you. Clayton @ Morris Invest.com. So we’re in that $60
range for our B-class. And the reason we do a smaller
volume of B is for Brents. The Brent just
asked the question. He’s a little scared about
doing $40,000, $50,000 homes. That’s great. So we cater to a
few clients who want to be in that B neighborhood. Your ROI is going to
be a little bit lower. But your ROI is going to
be a little bit lower, but maybe you’re going to
have that little appreciation, and you’re going to have a
little bit of that equity that you’re concerned about. Because it’s peace of
mind for certain people. So again, we can’t be
all things to all people. But we have a small volume
of B for folks like Brent who’s asking that question. Robert Kiyosaki says you can
find deals in any market. So there is a way to make deals. It’s not that some cities
are just absolutely no go. It’s just we have built our
systems in these markets for these reasons. These are the markets
that can make it work. Could we make it work
in San Francisco? Maybe. But we’d have to spend a
ton of time there searching for distressed properties. So there’s no reason to
bad mouth any specific city and say, well, we don’t
do this because this. Or we don’t do this. These are the markets
that we can make it work. That’s it. We’re only two people. Milla Herrera says what is the
cost to work with your company? So again, if you’re
new to this video, we are a turnkey company. The cost is the
purchase of a house. We don’t nickel and dime people. I only learned later
that other companies– they’ll charge a 10%
fee for maintenance. So if a plumber has to
go out to a property, they’ll charge a 10% fee on top
of the cost to fix the toilet. We don’t do that. So you purchase the
property through us in that $40,000, $50,000 range. After we do the rehab on it. So we’re doing our five
point plan on rehab. So we’re doing the roof. If it’s got less than 10 years
of life left on the property, we’re going to put on a roof. We’re going to put
a new roof on it. New furnace, new water
heater in our properties. Newer windows, so if the windows
are in great working condition. If you’ve got a
vinyl window already in there that’s
working great, it’s a waste of money to replace it. But if the other 10 windows
in the property are crap, we’re getting new
vinyl windows in there. New furnace, new water
heater, new electric through the property. So if it’s got 1950s electric
in there– ripping out all of the wiring. Putting in the new wiring. Plumbing as well. So Pex plumbing we’ll put
in throughout the property. We’re going to pull out
those old galvanized pipes, and the older piping
through the house, and putting in new plumbing. Our philosophy is that when you
take care of those main five systems of the
house, then you’ve got a rock solid house
for many, many years. 10, 15 years before
you’re going to have to replace a water heater
or do any major repairs on those properties. And that way by the time that
15 year mark rolls around, now that property has basically
paid you back three times over. Five year mark is when you’ll
make that investment back. 10 year mark, two times over. 15 year mark, three times over. So when you take care
of those main systems– and then of course
paint, carpet, drywall. That’s the easy stuff. That’s the cheap stuff right. That’s the putting in the new
cabinets, new toilet, vanity, that sort of stuff. It’s the stuff that’s not sexy
that’s behind the walls that’s the expensive stuff,
that you really keep the bones of the house
in good working order. So you buy the house. You own it. There’s no additional fee. You’re paying the property
management companies. We work with a bunch of
different property management companies across the country
that are focused on cash flow. And I’d like to say that
you’re paying them 10% a month from your monthly rent. And that’s really the
only ongoing cost at all. It’s your house. You own it free and clear. You can do whatever
you want with it. If you feel like hey, monthly
cash flow isn’t for me. I need this cash for some
reason, then that’s it. Then you end up– You can sell the house
on the open market. You can manage it yourself. Maybe you live
nearby and you don’t want to use a property manager. You want to deal
with the tenants when they have an issue,
and you want to do it. That’s fine. It’s yours. It’s yours to do
with what you what. You get the deed,
you get the tax bill. It’s yours, yours, yours. But I refer you to the
podcast that we did recently on how we make money, Morris
Invest, because people want to know what am I paying
for when I buy this property. And we lay all of
that out there. So if you want to know
about that, please go. And Sean Hardaker wants to
know, do you own the property, or does the investor? The investor owns it 100%. That;s with our company. I’m not talking about
other companies. You own the deed. You get a deed mailed
to you in the mail. You’re on title on the property. You own it. And that’s how you
build net worth. It’s your asset that you get
to claim depreciation on, and all of the tax
benefits that come with owning rental real estate. That’s our philosophy. A few people were asking
if we do multi-families. We don’t do much
more than duplexes. Occasionally a
tri-plex or a quad. Very rarely though. But most of the time,
duplex is the most. Four is the most
that we’ve done. That’s just not what we
have experience with. And if you want to do
multifamily apartment complexes, we don’t have
experience with that. Occasionally we’ll grab
one, but that’s not our bread and butter. Most of our investors buy single
families and duplexes from us. And we do about 30%, 25%
to 30% of our properties are going to be duplexes. Earlier people were asking how
often do you get properties in? Well, our team and our
office, that’s all they do. That’s our focus is
to acquire property. So we’re constantly,
almost every day getting properties
in the office. Here’s another
question from Dasha. She wants to know how soon
will I receive a check after buying a property? How soon will I receive a
check after buying a property? Is it already rehabbed? It depends. So some of our properties are– we’ve wrapped up the rehab and
you’re buying it after that, and then you’re going to
get a check pretty quickly, because it’s already rehabbed
and the tenant’s moving in. Some of them though
are pre-rehab. We don’t quote a timeline,
because we could just make an artificial
timeline and say it’s going to be 6 weeks
or 8 weeks or 10 weeks. But the truth is, our goal is
to do it as quickly as possible. So it might be less. It might be more. If we start pulling
out the floor, and we see floor
joists that need replacing that we
didn’t see, it’s going to take us an
extra week to two weeks. So it frustrates
everyone honestly, when you quote a time. And then if you don’t
stick to that time. Or you’re early. It really doesn’t really matter. So as soon as we’re done
rehab, as quickly as we can, one to two months or so. Then our goal is
they’re advertising it for rent immediately and
getting a tenant moved in to the property. Just to set expectations. Because I wouldn’t buy
something if I knew that it was going to sit for six months. Well, six months, no. But hey, it could be two months. It could be 2 and 1/2 months. If there’s a big ice storm– we had a couple of big ice
storms in one of our markets during the holiday season. We couldn’t put a new roof on. So it ground certain things
to a halt. So there you go. And so again, just
to refer you again, to how does Morris
Invest make money, that’s a podcast, a
pretty recent one. In the last two weeks
we did that one. So search that out
on Morris Invest.com or search us up on iTunes. And while you’re there,
leave us a five-star review. We like that. We accept nothing
less than five. So let’s get back on track here. So we got a lot of
great questions here. Do you sell in Michigan? Yes, Daniel we do
Michigan as well. That was one of
our first markets. And another person asked
about Indianapolis, which is a yes as well. Yes, we do Indianapolis as well. We do those. Yes. And then someone asked a great
question more recently about whether or not the price of the
property in includes the rehab. For instance, if you’re
spending $40 to $50, then do you have another
$20 owed on rehab? And no, we’re talking
about $40 to $50 all in. And then you start
to make some money. Let me give you our
philosophy on ROI and the types of
properties we sell. When we decide
what property we’re going to buy– if we buy a
package of 30 properties, well we’ll spend over a
million dollars buying a whole group of properties. We’ll buy them in all
manner of disrepair, in all manner of tax
liens and problems before you ever see it. So you don’t have to see
how the sausage is made. That’s for us to deal with. Then when we look
at a property, we’re not going to buy
that house if there’s foundation problems or other
things wrong with the house. We’re going to make
sure that we can hit an ROI between 10% and
12% on all of our properties. For you. For you. Net. Net ROI between 10% and 12%. Should we explain that
a little bit more? Well, I have a whole
video series here on figuring out ROI. But return on
investment is simply you take the monthly rent,
so $700 a month times 12. We want to remove 40% for
vacancy, repairs, and expenses. Let’s just do the math on that. So let’s just say
700 times 12 equals– that’s what you
make a year. $8,400. Now we’re going to multiply
that times 0.6 because we want to be super conservative. And we want to just be
on worst case scenario. We need to take out
vacancy, repairs, expenses. Now even though the house
is rehabbed, and even though placing a tenant, even
though placing a tenant, we still want to be
super conservative. So let’s just take out 40%. That’s really conservative. So now we’re going to
multiply that times 0.6. This is what you should expect
to bring home that year, $5,040 on that one house. That’s $700 a month times
12, taking out the 40%. Now we want to divide that,
the all-in cost of the house. So let’s just say, for round
numbers the house is $40,000. So divide that by 40,000,
and that’s a 12.6% net ROI. So that’s great. So our goal is to hit between
10% and 12% on every property that we rehab. If we can’t do it, if we end
up being at 8% or 7% or 6%, then I won’t buy the house. If it’s going to be
too costly to rehab or there’s too many
problems with the house, or it’s just too
pricey of a property, then I’m not going
to buy the house. And we’re not going to
rehab it because then you’re going to get a much lower ROI. Now people would say to me but
still 6% is better than a 3% in the stock market. Yeah, I just don’t
want to do it. Our company mission is
to hit that 10% to 12% net ROI on every property we do. That’s why we sell out of
properties within a few hours. That’s why we have buyers
all over the world. And I don’t have
to hunt for buyers. So that’s my philosophy. And I’ve stuck to that, and
I’m going to stick with it. People say to me you’re leaving
too much money on the table. And I say well, maybe I
should start charging more for my properties. Maybe instead of charging
$45, I should charge $65. And that’s fine, but
I’m not going to. So I’d rather be able
to sleep at night and know that I’m doing
a good job at helping people then screwing people. So that’s what I do. This is a good question
from John Carlos. Is do we keep all of
our personal properties with the same property
management company. So let’s be really clear
about the property management company. Once it’s all
ready for a tenant, we refer you to a
property manager who will search for tenants,
vet those tenants, take the deposit, get you a
contract, a rental contract. And get them moved in. And then they will take
your bank information and start to send you those
checks minus their 10% fee. We refer you to a company
that will do that. But if you don’t want
to use this company because your
brother lives there, and you think your brother
will do an awesome job. Maybe your brother
does do an awesome job. And maybe he’s
suited it for that. And that’s amazing. And it’s fine. And that’s none of our business. But we have experience
working with these companies because yes, they do
our personal portfolio. Is this too bright? I don’t know. So yes, let me
answer that question. I just answered that question. Well no, because we work with
a number of different property management companies in
our different markets. So it’s not just one company. So we personally use them,
to answer the question. They hold our personal
portfolio of properties. Now we own a lot of
properties in Indianapolis. Our properties are neighbors
next door to our investors on the same street. I was just in
Indianapolis last week with our team on one street. I own a property there. One of our investors
owns next door. In fact, my mother-in-law
owns one down the street. The property management
team that we work with there has been there doing
it for 20 years. They don’t have all
the bells and whistles that some other companies do. And you know why I love that? Because what they
focus on is cash flow. So where other people want
to waste money on software, and they want to tout
their dashboards so you can look at your
properties, their properties end up sitting vacant because
they don’t have the team that’s actually out collecting rent
and making sure they’re putting tenants in the property. And so when people
want to say, want to criticize different property
management teams, I rather have my properties
rented and having cash coming in then the
property sitting vacant but feeling all warm
and fuzzy because they have a nice little newsletter
that they send out every month. I don’t give a rat’s
ass about that stuff. I want cash flow. And those are the types of
property management companies I work with. We work with one in Pennsylvania
that mails us a physical check. But you know what? They mail us a physical
check, but they actually get the house rented. I don’t care that they
don’t have a website. I don’t care that our
Pennsylvania property management company doesn’t have
all those bells and whistles of direct deposit
bells and whistles. They mail us a check
and the house is rented and it produces cash flow. That’s what you should
care about when you’re working with a property
management company if you do it on your
own, or you’re working with a turnkey provider. And Clayton has a
video by himself without me on this
YouTube channel about how to work with
your property manager. Because there’s some baseline
expectations that you want. You want a statement
every month. Because if you made $700 this
month and $600 the next month, you want to know why. Did I have to replace
a valve on something? You want to have a pretty
good working relationship. And then people want to know
where are we in the process. Once you’ve purchased
the property from us and then you’re collecting rent. And then down the road,
something happens. Hey, this tenant didn’t mow
the lawn and I got a violation. Well, the property manager
should deal with that. But we do sometimes get calls. And sometimes we do
get involved and we’ll call the property
management team because we work with them too. And we’ll say hey, how come Tony
got a violation on his grass? Can you tell us about that? But again, that’s the
property manager’s issue. Brett Parker says greetings. Hey Brett. Welcome in. Keegie Galvez says
how do I buy from you? I have six paid for single
family homes already. That’s great. You just go to our
website Morris Invest.com. And then just click on the
Schedule A Consultation, and our team will jump on the
phone with you for 30 minutes. Or you can email me directly
Clayton at Morris Invest.com, and we’ll set up a call there. Matthew Bren says do you
have properties in Ohio? Yes, we do. Kevin Flynn asks
a great question. If you only get
$700 a month, how do you reduce tenant turnover
costs to not eat into your ROI? So again, ROI, we’re taking
out in our ROI formula 40%. Now my mentor Robert Schiemann,
who owns 500 properties, he owns properties on
the exact same streets in the Midwest where
I buy properties, he thinks I’m crazy
for doing 40%. 30% is even too much. When you’re working
with a great team, you’re not going to have
vacancies that high. You’re not going to
have repairs that high on these types of houses at all. He said 40% is too high. 50% is ridiculous. So how do you minimize
your tenant turnover? On these houses, you don’t want
to over upgrade your house. You want to make sure the main
systems are taking care of. The roof, windows,
electric, plumbing, furnace, water heater. Now a tenant is going to, of
course make the carpet messy. They’re going to have paint
that’s going to get chipped, and there’s going to be
drywall that will get chipped. Great. We get base grade cherry
cabinets for the kitchen. They’re not the
solid wood cabinets. And God forbid in 10 years,
one of the doors cracks or whatever, you
replace the door. But paint, carpet,
drywall, those things should be only a
few hundred dollars. $200, $300. If you’ve got a great team like
we do that get right in there. Get the carpet
cleaned or replaced. Paint touch up– and
here’s the other key. We’re using the same paint. We use the same
paint, same carpet on all of our properties. So we buy it in bulk. We don’t buy one little
thing at Home Depot. Here’s a little touch up. No we have gallons of it. So our team is going
to go in and is going– brand new coat of
paint, carpet touch up, totally cleaned or brand new
carpet placed really quickly. We’re using the same carpet
in all of our properties, and the same fixtures,
and boom, boom, boom. You’re in and out. Economies of scale. This is what Don said. Exactly right. Now know I’m perplexed about the
question about tenant turnover. Is it because you think
$700 a month is too cheap? If you only get $700 a month– Then how do you reduce
tenant turnover costs? Because $700 a month is
not cheap to some families. Almost every property we have
here is between $650 and $800 a month. So that’s pretty
good. $700 a month, and you’ve bought
it for $40,000? That’s a very high ROI. But I’m talking
about as a tenant. $700 is a pretty substantial– you pay this because
you want to live there, not because it’s cheap. To the types of families
that live there, it’s a pretty
reasonable expectation. And I’m not saying Kevin– love you Kevin–
this is not Kevin. And I’m calling you elitist
in any kind of a way. But we live on the east coast. Many of our investors
live on the west coast. And I think there’s
coastal elitism. There’s some coastal bias. And we think because
New York City that the rents are
$3,500 a month, or San Francisco where they’re
$2,800 a month, what happens? Oh my gosh. That’s a crazy amount of rent. $700 a month? Really? Why wouldn’t they just
buy the house themselves? All those questions
start coming out. But these are the
prices in the Midwest. $700 a month is a typical rate. In North Carolina it can
be even less, $500 a month. Michael Prassel writes. Oh, well let me
finish Kevin’s point. Because Kevin had a great– so Kevin says thanks. Worried about damaged
paint, carpet, et cetera. Don’t be worried about it. It’s part of doing business. And it’s actually–
it’s a write off. This is at the end of the
day part of your formula. So damaged paint,
carpet, et cetera. That’s what a great
turnkey company does. That’s what a property
management team is going to do. So we just had a tenant turnover
on one of our properties in Michigan. The tenant moved out
after five years, five years of living there. That’s how you reduce
tenant turnover. By having single family
homes where tenants will live for a long time. That’s why we love
single family homes. Because there’s a
psychological thing about living in a
single family home where you get your own yard, your
own driveway, and tenants like to nest and
stay for a long time. I lived in several apartments. Actually I moved once
a year in my 20s. And I didn’t even
hang up things. I didn’t hang
things on the wall. I had very minimal
investment in living there because I knew I wouldn’t
be there for long. But when you rent a home,
it’s because most of the time you’re not alone, and you
are living with a family and you make it your own. And we encourage that. We hope that our tenants
really have a great life there. We hope. So Kevin, hopefully we
answered that question. But you want to
minimize the amount– You want to keep those tenants
in there for a long time. So encourage them. You want to sign
a two year lease? Want to sign a five year lease? Great. Michael Prassel says, “Just
closed on our first property with you guys last Friday.” Awesome, Michael! Thank you. Can’t wait for that
first rent check. Looking to do my home equity
line or cash out refinance. Will I have issues with
it being in an LLC? Not really. There’s so many
different companies out there that do cash out
refinances and home equity lines of credit. If you want to do it as part of
a portfolio cash out refinance, I think Cap West
is a great company to do that sort of stuff. But Michael, can’t wait
for your first rent check. That’s wonderful. Michael, how long–
is it a rehab? Refresh my memory about it. Let me know if
it’s a rehab house. And then I think we’re
running close on time, but I do want to get
to Brent’s question about an exit strategy. He wants to know if
it’s not profitable or you don’t like it, can
you sell the property? Is there some kind
of exit strategy? Which, it’s a
reasonable question. Everyone wants to know
what if I don’t like this? What if I don’t want
to do this anymore? And so, do you want
to take that one? I’m sorry. Say that again. I was just reading. He’s asking about
an exit strategy. What if this doesn’t work? What if they don’t like it? If you’ve owned it for
a while, and it’s not living up to your expectations,
can you sell it back? And another investor
will definitely want that, I’m more than sure. Let me answer that question. Don Stoner says no exit
strategy for buying hold. Well, that’s a good point. All of our properties, we
don’t ever intend to sell. We’re holding them for
the rest of our lives and we’re going to hand
them down to our children. Because we’re not
buying for appreciation. We’re buying for cash flow. And these C neighborhoods
and B neighborhoods where we buy our
properties, historically don’t see much variation in
rent productivity value at all. So let me give an example. Detroit, where we own
a lot of properties. A friend of mine who
owns 79 properties during the recession. Was there a worst city than
Detroit for having problems with the recession? No. 79 properties he
owned free and clear. When the recession
hit, he did not see one dip in
his rental income. Why? Well, because the values
dropped a little bit. They were worth $40. They dropped maybe
down to $35, $30. But it didn’t matter
because the tenants were paying $700 a month. And that’s when those people
don’t lose their jobs. C class neighborhoods,
those are the people that keep their jobs in a recession. It’s the A class
neighborhoods that suffer. Those are the people that
end up losing their jobs. So he did not see one
dip in his rental income. 79 properties, the same cost. I took $1,000 per month loss
on my San Francisco property. I couldn’t hit my mortgage. I couldn’t rent
it out for what I paid in mortgage because
San Francisco got hit so hard with the recession. But yes, the C Class
neighborhoods, you’re going to want to hold those. But again, people are asking
here, what’s the worst case– I know you’re scared. You ask those kinds of questions
because ooh, you’re nervous. And we understand that
because we’ve definitely felt that way too. And I remember asking Clayton
if we don’t like these, what are we going to do? And you know what? We haven’t sold any of them. Because the perform. And even in a
recession they perform. And guess what? You can actually get a
higher rent sometimes during the recession. And more people are going
to want to rent from you. So when people talk about
rental real estate, buy and hold and owning them free and
clear is one of the best, most safest– I’ll talk to people on
the phone sometimes. They’re saying well,
I’m ready to do this but my wife isn’t because
she’s kind of risk-averse. Risk averse? That’s rental real estate. To me the stock
market is riskier. Look at the 401K. People took baths
with their 401K. They plummeted and they’re
just now getting back to where they were a decade ago. So that means they’ve
lost a decade of growth in that amount of time. They could have had an
extra decade of growth. They’re just now getting back to
where they were pre-recession. That’s 10 years of wasted time. Not in rental real estate. But this is not the
Hotel California. You can leave if
you really decide you don’t want to do that. Or we’ve had some investors
that hardship and say we need this property sold. And you can’t sell it. You’re not going to make
a huge appreciation. You can do that. Or even if you want to
learn that seller financing, you can sell it to someone. Sell it to the tenant, even. There’s plenty of ways. And we could talk about
that another time. Let’s take one more question. Cole Royce, who asked about
an LLC holding company, I refer you to again,
to our podcast. We’ve talked about how
we set up our estate. So Tech Raving Mad says you
two need a chat moderator. There are lots of questions
in this chat thread that could be answered
by a reference to your podcast site
and other videos. Yes, great point. So on our next
webcast we are going to have a chat
moderator in here. Because many of these
questions about LLC structure and all of these
things, we’ve done for videos on those exact
things on a regular basis. So on our podcast, which is
the Investing in Real Estate podcast, we have a whole episode
devoted to these things as well as videos. We have over 100
videos right here on the Morris Invest channel. So if you’re not
already a subscriber, please subscribe and
go check out the play lists we have on private
money, on LLC structure, all of those things. Plus the last live stream that
we did was over an hour long. I think where we talked about
LLC structures and business entities. And we dove deep,
deep into that stuff. And in fact, our lawyer then
went back and listened to it and said oh, they got it right. Because we’re
reading their books. We’re learning this stuff too. We said we’re not we’re
not financial advisers. We’re just trying to
learn this ourselves. So that’s sort of that’s our
brand, more than anything else is that we learn most by doing. We take you all out with us. And hopefully you learn
and you do as well. So a lot of people are saying
does Natali offer coaching on sort of like structuring the
financing side of it all of it. And also people saying
Natali needs her own show. And I’ve been pushing her to
do this for the longest time. Because personal
empowerment through finance, that’s what her blog is
about Natali Morris. com. It’s Natali without
an e at the end of it. So check it out,
NataliMorris.com, where she writes
about personal finance and how to set all
of this stuff up. So that’s really her
side of the business, the CFO of Morris Invest. She’s handling all of that. And it’s a lot about
managing your own– not just your investments,
but your family finances on the
day to day as well. It is not about budgeting,
because I don’t believe in limiting your own beliefs
about what you can and cannot afford. So if you want to budgeting
type site, go to Pinterest. I want you to live
your fullest life, and see all of your
wealth consciousness, and see your life expand. And actually we both do. So that’s the spirit
with which we deliver this lives stream, which someone
asked, how often do we do this? And we do it whenever
Clayton makes me. We try to schedule them. We’re trying to be better about
scheduling them once a month. And so like Alicia, she
says how do you organize rentals for tax purposes? Again, we have whole
videos on that. And we’ve talked about
that on our podcast Alicia, on how to organize your
rentals for tax purposes. Check out our
episodes, particularly with Tom Wheelwright
He’s the smartest tax account for real estate in
the country, hands down. He’s our boy. He’s our boy. We use Provision Wealth,
that’s his company, for our accounting and
wealth building strategies. They’re phenomenal. We don’t make any money on
telling you that at all. I will sing their
praises to the stars. But we’ve got a number
of podcast episodes with Tom Wheelwright
where we dive deep on these very questions. Maybe we’ll even do
a joint live stream, if we can, if YouTube
will allow it, where we can have dual
picture to picture. We could get with Tom. That would be really
great at some point. Or how about we just
show up in his office? Yeah. So there are plenty of
more questions coming in. I want to finish one more. I asked Michael
Prassel for his answer on what was his property
rehabbed already? Was it rented et cetera? So it is. So if he closed last Friday
and it was rehabbed already and it’s rented with
a tenant in there, that means he
would receive rent, usually on the 20th of the
month for that first month. It just pro-rated. So if you close on
the third of a month, then it’s probably not going to
hit till the following month. So let’s say you close on
the 3rd of April, well, that misses the first
of the month cutoff. So then that would be
prorated for April, and you get it at
the end of May. But because you
closed a week ago, then you should get your first
rent at the end of April. You know it’s too
bad is that people frame your first Check because
that’s an exciting moment. We didn’t do that. We should have done
that with our first– Because it was a direct deposit. But that’s my point,
exactly is that you don’t get that check to frame. What would you frame? Your direct deposit
notice, your statement. Yeah. So one final question,
Milla Herrera says what happens after
the rehab work is done and there’s other repair
issues down the road? Does the management company
help with contacting the right people to
get the problem solved? Absolutely. That’s their job. That’s their job. Their job is as a turnkey
real estate company, we don’t want you to
ever get phone calls. Remember I go back to the
beginning of this video where I said the ideal person
to work with a turnkey company is hands-off. If you are a hands-on,
don’t go the turnkey route because you’re going to
frustrate the turnkey company you work with and you’re
going to frustrate yourself because you’re like I
want to be doing more. I want to be doing more. I’m going to keep
calling contractors. No, no, no, no, no. You’re going to annoy everyone. You’re going to enjoy yourself. Don’t do it. But a great property
management company will take care of
that stuff for you. And then you won’t even know
until after it’s already fixed. Because you’re paying
them 10% per month. So every month, you’ll
see the tenant paid $500, they took 10% out for their
monthly management fees. Most months they don’t
do much for that. They don’t need to. The tenant pays the rent. They never go there. They never hear from them. That’s fine. But then there’s going to
be some month that something backs up in the sink whatever. An outlet goes out, and then
they have to go and fix it. And you’ve already paid into
them doing that because you pay them 10% per month. And one final question. I keep saying this,
but [INAUDIBLE] Waldo keeps asking some
good questions. I have a 403B plan. Can you buy it in
a pension plan? Yes, you can buy real estate. We work with people all the
time that are using their IRAs, their pension plans, their
military retirement accounts, your 401Ks. You can use all of those in
order to buy real estate. Just remember that. OK, we’re really done now. We’re really done. No more. So you can always reach us
on any of the social media platforms if you have
further questions. And we’ll either try and
answer them ourselves, or we’ll point you
to people who know how to take your
investment plans and turn them into things
that you can actually use for rental real estate. And so thank you for watching. We’re so excited that you’ve
invested enough time into this to learn and take action. And we’re looking seeing
you again on the stream. Absolutely. So go to our web site
Morris Invest.com if you want to book
a call with our team. Great, we’d love
to talk with you. I think we’re kind of booked out
for a week or two in advance. That’s because we have
a lot of volume there. So please book it though now. And also you can
email us as well, Clayton at Morris Invest.com,
and we’ll help you out in any way that we can. Guys, thanks so much. Go out there, take action and
become real estate investors. Remember, it’s a
people business. We’re all people. People make mistakes,
but in the end, we all try to move forward and
build passive income and legacy wealth. Much love to you all. We’ll see you next
time everyone.

100 thoughts on “Turnkey Real Estate Investing: The Ultimate Guide to Building Consistent Roofstock

  • Clayton/NataliDo you ever hold a group meeting of your investors and prospective clients to share information and see a tour of your homes in various stages?

  • The Forums I read randomly they have some good comments ,but the majority is negative /frustrated people that they never got the ability to accomplish a goal or they follow someone else negative opinion, I had bad experiences with programs I purchased in the pass, but also is lots of good information out there , and is like Natali said when we start ,we make lots of mistakes, specially if we doit by ourselfs , thinking we know everything , its like a recipe I see on Youtube so many people do the same one all a litle different but the concept is the same , and as we repeat ,it gets better , . .Never give up.

  • AGV – Another Great Video from this dynamic duo. One of the things I appreciate about you two is your transparency regarding your operations. Thanks for these great videos!

  • Clayton,
    You are amazing! Your honesty, and information are so helpful. I'm ready to take action and am wondering, how can I get started with your company to buy my first property?

  • I have two question. Once I decide to buy a property with you, how do I buy it? am i going to see the house before I buy it and do all the paperwork , closing etc.. in person?
    The second one is, can I call someone from the testimonial videos?

  • so what is that threshold amount to start up with acquiring a first property I've seen on your other videos credit doesn't matter but what if you have exceptional credit will it help

  • @ 32:27 Natali: "There's no reason to bad mouth any specific city." Clayton: (thinking) except California. lol 😂 love how you guys always argue about Cali because I live here. I know you guys joke around & I get the point. that yes there are deals in Cali but its harder & lower roi. that's why I'm saving up to invest with you guys instead of going at it on my own down here in Cali. #keepupthegoodwork

  • When will you guys make another live stream? I want to ask a question and it's one that I'm nervous to know the answer but it is very important.

  • Monthly rent checks PLUS the equity of held over time and if in the right market, right? Wouldn't the goal be two-fold–cash flow and equity?

  • Clayton & Natali – thank you so much for being so inspiring to me as my wife and I begin our own investing life following many of your footsteps. Unfortunately, we are "hands on" investors, so we may not be a good fit for turn-key, but I would love to be able to share our journey with you as we reach milestones in the future. My question is how does one reach you or your office? I can't find anything except for how to "book a call" yet I hear you mentioning people's comments and questions, so there must be a way to contact you and I'm jealous! I know how busy you are and I won't send you junk – but even a snail-mail PO box would be great! Thank you and please lead on – see you in the land of freedom! Cheers, Brian

  • Hi Clayton,
    l added my 2 children and husband to my LLC. l am a newbie in a real estate investment and do not know much. ls this additional members advisable at this early stage of my business?
    Please advise, thank you.

  • Love your videos. I would love to invest with you, i just have couple of question: Do i need to have a realtor to work with you? And can I buy from you under a mortgage loan?

  • do you have some kind of welcome packet for new investors? Also, included in the purchase agreement, do you detail the rehab work?

  • wait you said u didnt "charge" for ur services and it is only the purchase of the property? hmmmm … what do you get out of this? … btw … i luv ur videos. have spoke to wife about this and we might jump in … when we get the money.

  • Thank you both for your detailed, open advice! Can I also say I admire how you complement each other. It makes me smile to see couples who are also business partners (like my husband and me). Cheers to your continued success and thanks again for your guidance 😊

  • Hi. Im in a market that would be great for turnkey investing. C+ neighborhood hood, all in for tops 40k. Many of my properties were done for 35k rent 900-1200/ month. But how do i make money doing turn key? Do i mark up the house, take a percentage? Am i charging a fee on top of the house? Thanks in advance. Wonderful content!

  • The interruption at 15:18 was the best one lol! Brutal. Your wife dont give a dam if your mid sentence. Hilarious

  • Can I apply the BRRRR strategy when using a turnkey provider? If so, how does that work? I would need to continue to refinance to pull out capital to purchase the next property? Thanks

  • If I set up a consultation with your team, what information do I need to come prepared with to get the most out of the call?

  • Thanks for the all videos, great and realistic information. I do have a question and apologize if it was already addressed. So I currently work with another turn key provider and they have a local lender that they work with to do a cash out refi every 4 months. I should have enough capital to purchase another home in January 2018 and would love to have a second avenue working with you guys as well. Just wondering what the normal time frame is for a cash-out refi and if you guys have a local lender that you traditionally can pass along for the investor to work with?

  • Hi Morris Family:
    Is this going to be one of you killer strategies in the future? Not sure if you guys were yet convinced after seeing this video

  • Hi,
    Sorry, what I meant to ask is whether the Infinite Banking Concept going to be a strategy you will be using yourself?

  • Do you have property in Pennsylvania like Bethlehem or high town , maybe Allentown? I live in Manhattan and I'm interested in getting into real estate for 2018 . Would like to get into about 15 property over the next 5 years

  • If I schedule a consultation with you guys, how long does it take before we actually talk on the phone from the time I schedule?

  • I've been following your channel for a while! You guys are great inspiration for a lot of investors. Keep up the great work!

  • Hey! Quick question. I know vacancy can be a hard thing to predict, but do you have an average vacancy rate for all the properties you have sold to your team?

  • Great content guys, keep up the good work & can't wait to work with you !! 🖒🏾🖒🏾🖒🏾🖒🏾🖒🏾

  • Before I watched this video I thought I would be able to buy 4 properties, putting 20 % down on each and financing the rest. Now I know is not possible, if I were to buy a home from you it's got to be cash. Unless you know of some other kind of creative financing, like if I were to deposit $100,000 dollars into a bank as guarantee for the loans. I will send you an e-mail when the moment comes for me to pull the trigger. I don't like to "dream" all the time. Thank you for all the education you give us.

  • Is there profit for us after Morris invest makes there profit? Has to be some money for u guys.

  • It has been over a year since this was published. Do you still offer these same type of turnkey opportunities?

  • I already set up an LLC for the propose of investing but I an getting so much conflicting advice to finance, can I invest in real estate with business credit? how would that work? would that even be a good idea?

  • Thank you for all the amazing videos! Me and my wife will definitely invest with your company! We are thinking about starting next year!

  • This was a great video podcast. A wealth of info for this method of cash flow. Turn key is a great way for cash flow. I felt like you were holding my hand with this video. Clear and precise with compassion for others. You guys #ROCKS👍🏽💯💥💰

  • Thanks for all the information the you are providing for us I'm reprogram my way of thinking. Q To open a LLC it has to be in the town where the investment property is located?

  • I made that free phone call with you guys, the person who called (not naming her here), called 5 minutes past the scheduled time. I told her I’d be a first time investor, she never went over my expectations, my long term goals, and what I’m looking for. She just wanted to know how much money I’ll be investing, and she took my email address to send me list of homes. I didn’t receive further education on how to determine what properties are a good fit for me . I am out of state investor and was hoping to receive more support. The call was only 10 minutes. I like your videos and watch them diligently but was disappointed by that introductory phone call.

  • Could you make a video on international investment with you guys. Like what is the expected ROI after taxes. Do you have an accountant on your team.

  • Hello there. I love your videos and advice. I live in the Detroit area and I've already talked to James on your team about buying a turn key from you. My question is, how do I pay off my (Fund and Grow) loan debt after a year or so if there's no equity in the rental? What is an exit strategy? How can I buy the next turn key from you? Thanks

  • Clayton , do you buy in pa , Philly ? maybe i can buy with you ? i own a row home in Philly , its turnkey . excellent tenant , for about 7 to 8 years , i manage all my properties myself but somedays dont like managing . my properties . i prefer hands off now ,

  • clayton , what if the expense to the house is only 25% NOT 40% do i still get the difference of 10% or 15% ? ?

  • I love you guys! My husband and I started the process with Fund and Grow and then we will invest in Turnkey properties! Love your formula and the ROI!

  • Maricopa County Phoenix, AZ is fastest growing county in the United States!! Lots of jobs, sun, and lots of things to do. 8% fee is better for property mgt if you have 3 or more.

  • How do I keep track of your Q/A video chat? I would like to be online when you so this live videos. Thanks!

  • Another great non-edited video from the Morris Two. I've already scheduled my consultation appt for March. Looking fwd to it. Can't wait to add to my portfolio w/your team.

  • Those turn key properties you guys discuss area the ones you purchase for 40-50k? In my area, even the ones that go for 100k need serious rehab. Only good if your a flipper ( which involves a good team with contractors on deck) to flip in 3-5 months. Please advise

  • You guys are so inspiring! I love your videos and am working towards making the jump. Keep being awesome!

  • We are looking forward to coming to Turkey to do business! Thanks for sharing and stay blessed! 🤗🤗🤗🤗🤗

  • I don’t want to waste you guys time with a phone call. So I guess I’ll ask here. How much is it to buy one of your properties (range). And I was kind of confused how you do we pay you guys. How are you guys getting paid? I’m very interested in doing this. So I’m going to get the money together and invest soon as possible. How often do you guys do live videos? That may be a really good time for me to ask questions. Thank you in advance!

  • I’ve been listen to you guys non-stop the past 2 weeks. I have two properties – one in OC CA and one in Scottsdale, ROI for both is at 4%. Looking forward to the call next week, so excited, thanks!

  • I'm late discovering this channel but you guys have been hitting on the same exact topics that my wife and I have asked and tried/trying to figure out. You have the same business model that we've been trying to follow ourselves. We are working on our 5th property right now but I will look into and seriously considering the turnkey service that you are offering when it's time for the 6th (and more). Thank you.

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