Morris Invest and Clayton Morris Review

309 Replies

I want to notify everyone and anyone that is currently looking at and considering a purchase of a property from Morris Invest. It is a scam.  Don’t fall for the trap of the high returns. There is potentially a class action lawsuit in the works. There is no way to know which potential clients he may be reaching with his online YouTube videos but this post is just meant to be a warning to any potential investors. Find another company!  You have been warned.  I, along with over 200 other investors, have invested and essentially not seen the return promised or presented.  It is a SCAM.  This post is meant to be a warning to save potential investors from the trouble that we all have gone through.

Thanks Tom  the Morris invest debacle is well chronicled on this site.. and I am glad to see that you folks that have been harmed are not just grinning and bearing it.

there are many on BP who for whatever reason think you should just chalk it up to a learning curve..

I get that sentiment if it was one off.. but this is hundreds of folks who have been conned.

its like getting caught stealing then saying sorry let me put it back..

If your talking to Lawyers I would also mention a Civil Rico and wrap up every single person involved and all the markets he is in.. including the new ones..

But just my expreince talking..   one of the other big promoters is going through a rico right now..

its a Utah based company... and another Utah based company the owner got 7 or 8 years in prison.

here is the link to that one  

https://www.sec.gov/litigation/litreleases/2016/lr23451.htm    these guys came to my office back in the day ( Clatfelter did)  and I told them flat out buying in the hood never works at the scale you want and you cannot market these as solid safe returns.. or easy to manage properties.. ( just like MOrris is doing)..

Keep at it sorry it came to this.. but remember there are some really good solid people that sell investor properties through out the US>.

the reason Brie and I start turn key reviews was to out people like Morris and to give the solid players some recognition for good work product and ethics.. I don't think folks new of TK reviews in time to warn folks..

 

Hopefully this will turn into something big! People spent their life savings buying multiple properties from MI. Now they got nothing but trashed properties.

Originally posted by @Son D. :

Hopefully this will turn into something big! People spent their life savings buying multiple properties from MI. Now they got nothing but trashed properties.

they went from euphoria of believing morris pitch of a freedom number .. now unless Morris will recind and buy all these back there is no question that many folks are going to lose their savings.. very sad.. but at the same time these folks need to step up for what is right and try to protect others.. Morris is not stopping as we know.. His model is alive and well and will continue to ruin investors. there is no way it cant even if they rehabbed the homes you simply cannot buy the cheapest ghetto homes and expect solid returns.. and your running a high % chance of losing significant money.. your asset is only worth what they paid for it after its been trashed a few times.. 5 to 15k max just what they paid for it from the local wholesaler community.  

I know it’s a pretty easy to just jump on here and talk trash about people but remember do your due diligence and don’t just invest with someone because they have a website.

Only work with people you know like and trust.

I started buying turnkeys a few years ago and urge people to never listen to a broker and think for yourself.

Buy homes that rent for 900 or more. And buy with inspection and appraisal.

I totally agree with Jay. People should not just sit back and take being taking advantage of. @Dale Hensel who was in a podcast with BP has cheated me and several other investors out of 100’s of thousands of dollars.

I’ve told my story in hopes it saves other hardworking folks money. No room in this world for a criminal.

Originally posted by @Ronnie Boyd :

I totally agree with Jay. People should not just sit back and take being taking advantage of. Dale Hensel who was in a podcast with BP has cheated me and several other investors out of 100’s of thousands of dollars.

I’ve told my story in hopes it saves other hardworking folks money. No room in this world for a criminal.

its one thing I have mentioned on BP more than once  just because someone does a podcast.. it seems there is an irrational exuberance to trust and believe that they are experts or expert investors or whatever I can think of a few I know for a fact are criminals.. past financial felons etc.. but BP is not the gate keeper we all need to just take it as information and entertainment basically..  My self included in that.. !!! 

no one investor is perfect.. we all have our bummers.. and if you have not had a bummer simply means you have not been doing it long enough or you have not done many deals.. 

I don't know what this dale Hensel did to you guys a link would be good to see what your talking about.

but I have personally been funding these DCB class mid west for going on two decades.

I like B class and strong C for out of state and D and C are only appropriate for locals .. and have repeated this 1000 times on this site.. of course not many listen some do but not many.

But this one takes the cake huge volume and rehab money sent and never spent on the rehab.. and fake leases and getting rent money with no tenants or tenant is paying 400 but they are sending you 700.. all this is just to give the illusion of a safe secure investment or other would say a Ponzi..  

At this point its probably not a "getting my money back" issue (they'll just file bankruptcy after the pressure rises), but should be a goal of tossing multiple people in prison. And that's important. Saying/doing nothing and blaming yourself or your lack of DD is no better than a street full of neighbors who see an innocent person gunned-down but are silent to the police. YOU (anyone reading this who was defrauded) as someone affected have a social responsibility here. At this point I'd believe the only successful MI/OP properties are sheer luck or their fraud simply hasn't been discovered yet.

Originally posted by @Jeremy Z. :
Originally posted by @Eric Brundige:

Wasn't he a guest on the podcast? I follow him and I believe I found him through here. 

 He was a guest, but I believe the podcast has been removed from this site. It's still on Youtube - podcast 151.

I thought he was a guest speaker on two bp podcasts? And Bp was on his podcast once? Idk and the damage was done already it appears. Perhaps some of this was avoidable as far as promoting freedom number schemes. 

Just checked out the most recent Morris Invest youtube video. It's about how to use debt to protect your personal assets in the case of being sued. Very topical video! 

@Steve K.  , if only there was a laugh/cry react for that post! Of course, I agree with Jay - it would be one thing if it was a one-off bad experience, every investor and every provider has a bad day - but this is beyond the pale. Many of the old pros saw this coming a mile away (sub $50k homes are rarely money makers and the model isn't scalable, plus any time a provider uses used-car-salesman tactics like sending props and then immediately saying 'they're sold, sorry, but buy this one without an inspection so you don't lose out again!' is someone to avoid. But it's exactly this kind of behavior that brings the whole turnkey industry down with it, so I personally find this more than irksome on a number of levels - I can't even imagine how those who got conned feel.  Having a very similar name to Mr. Morris has actually been surprisingly cumbersome, as people either confuse us (please, no) or his ads pop up near ours and our companies seem interchangeable. 

I am happy to see that @Tom J. and others are standing up and letting the BP community know what happened. That's supposed to be the strength of BP, the ability to learn from each other, so if people don't speak out about these types of things everyone loses. Hopefully, the victims will get some sort of restitution...

Just goes to show what I (and Jay and others) are constantly harping on - DUE DILIGENCE, ask questions and expect clear, data-backed answers in a timely manner. I hope at least this serves as a reinforcement of that lesson for the BP community at large, and especially new investors. If a provider can't or won't provide the basis for their stats, can't or won't schedule a visit or 'just can't accommodate you', if they don't take the time to answer questions fully - RUN.  

@Clayton Mobley   as you know I have been around turn key when it was invented before anyone in the US that is in business today.

this is the biggest violation of the consumer trust that I have ever witnessed and I have witnessed some of the big ones.

https://www.classaction.org/news/lawsuit-buying-summit-participants-tricked-into-overpaying-for-sub-par-properties

  this is one of the biggest sellers of homes in America I would say the biggest but they got lulled into the same stuff that we see Morris doing.. to make the numbers work and make big profit they had to go into D class... and its coming back to bite them

a lot of turn key companies started like Morris but then within a year or so realized as you state this stuff is not scalable or an asset class anyone wants to manage long term and they moved up to A and B and or VERY strong C + 

these low end homes are only appropriate for locals who are not investing they are running a business of asset management and people management.. out of area investors just don't realize how half of America lives.. and its when they buy these they get schooled.

@Clayton Mobley   and these guys  ( Clatfelter) came to my Oregon office in 2011 and wanted me to fund there KC and Indy projects.

I told them their model was not sustainable they sold hundreds of these low end homes. it got so bad they went back to the buyers and started borrowing money from them.. since they had a relationship.

turns out one 60k KC property had 8 mortgages on it totaling almost a million bucks.. LOL

https://www.classaction.org/news/lawsuit-buying-summit-participants-tricked-into-overpaying-for-sub-par-properties

 but it all started just like Morris selling junk and promising the moon.

@Jay Hinrichs I agree, even at Spartan when we first started, we dabbled in some C properties (never D/ War Zone) and it was QUICKLY apparent that it just isn't where we wanted to be. Even from the provider standpoint, the amount of hassle and red tape you have to deal with makes lower-tier properties just not profitable on any large scale. I guess if you're the kind of provider that's ok with cutting corners on rehab and bureaucracy, then all the hassle might not hold you back, but for us, we quickly realized that the B/B+ properties were where we wanted to be. Luckily, we only ever held a handful of Cs, never a full portfolio, but it was enough to see that it isn't worth our time or that of our investors. I guess the differences is between looking at your future reputation and long-term survival vs trying to make a quick buck.

Yes, of course, local landlords that own C/D props in their own town and self-manage can make a profit, but it's basically slumlording in many cases. I know of only a few pro investors who specialize in lower-tier props and make money at it, it's definitely not for new investors, and not for those without a very high risk tolerance - like the junk bonds of REI.

Latest debacle from Morris Invest and their recommended PM company Oceanpointe...if people don’t sign with them, ‘rents will be returned to tenant’. Really???

Alright BP, here is what 200+ burned Morris Invest investors need:  a strong recommendation from true experience for an Indianapolis PM company that can actually manage properties in a turnkey fashion...causing the out-of-state investor less stress instead of more!

Originally posted by @Tom J. :

I want to notify everyone and anyone that is currently looking at and considering a purchase of a property from Morris Invest. It is a scam.  Don’t fall for the trap of the high returns. There is potentially a class action lawsuit in the works. There is no way to know which potential clients he may be reaching with his online YouTube videos but this post is just meant to be a warning to any potential investors. Find another company!  You have been warned.  I, along with over 200 other investors, have invested and essentially not seen the return promised or presented.  It is a SCAM.  This post is meant to be a warning to save potential investors from the trouble that we all have gone through.

 I do not know too much about their process. What happened?

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