All Forum Posts by: Steve K.

Jay aren’t these contracts unbelievable? If I were a victim I would just say the contract is void: no legal description, not even filled out in many important sections, seller name and info wasn’t even on there, broker was an unlicensed fraud, give me my money back I’ll convey the deed back to the owner. But to be honest the first sales contract I signed I didn’t know what I was looking at either, I just trusted my agent to walk me through it and most of these investors were buying their first investment so they just trusted CM who is a con man. So what criminal charges do you think are forthcoming? How long were Marquis/ Duecher and those guys operating their scam in full daylight before they got busted?

 Clayton the craziest part is this is not past tense: he didn’t get away with it, he’s still getting away with it. The videos aren’t just still out there,  new ones are being made every few days with hundreds of likes and comments on them from adoring fans while negative comments get scrubbed. People are probably signing contracts with him today.         I feel for you with your name and having a similar business model (to his supposed model not actual one I mean). You seem like a good example of doing it right and being successful without having to scam people. There’s so much demand for good turnkey companies, all of the marketing he does is just unnecessary and leads to more volume than his ground partners can handle which causes the problems. Now he’s probably making more money off the youtube channel anyway, too bad he didn’t stick with media the whole time people seem to live his videos.

A few weeks ago I had to replace a sewer line and a furnace on the same day in the same building. Not a typical day, but it happens (and yes I scope lines and service furnaces regularly). 

Don't assume you'll find a property that an inspector will find "absolutely" perfect, that doesn't happen, and perfect tenants are equally unicorn-like. 

You might pull it off, and if you're a gambling man go for it, don't let us experienced folks stop you. But personally I like to have $20k in reserves when I take on a new property, for days when a sewer line needs to get dug up and replaced and the furnace decides to crap the bed at the same time (for some reason these things like to occur simultaneously in my experience, and just as a tenant breaks their lease usually). 

Action in Indiana courts: suits moving forward, case files available on the court's website: https://public.courts.in.gov/mycase/#/vw/Search (enter Clayton Morris in the search).

Complaints state plaintiffs were deceived and harmed by Morris Invest. Purchase contracts were signed by Clayton Morris. Oceanpoint/Indy Jax was the true seller of the properties and also was later contracted to rent and manage them (or Blue Sky, Boardwalk, etc.). Buyers received the warranty deeds from Oceanpoint/Indy Jax conveying ownership despite contracts being with Clayton Morris and payments made to Morris Invest. There weren't any assignments.

Purchase agreements are available as exhibits and they are pretty bad: no seller info, no assignment, only Clayton's signature even though he was not the seller or a broker. The selling broker line is blank, real estate license # line is blank, legal description of property: blank, earnest money: $0, financing, inspection, insurance sections all blank (only parts filled out are sections that benefit the seller). Don't see how fraud gets any more fraudulent.

From reading the complaints (I just binged and read them all), plaintiffs allege that Clayton made oral/express contracts and presented marketing materials that promised his company would rehab the properties as included in the sale price but the properties were never rehabbed. Then months later he or his representatives told the plaintiffs that the properties had been rehabbed and rented to tenants when they were actually vacant and collecting fines from the city. Some plaintiffs received "rent checks" from tenants that were fictionalized and were also sent leases that were forged. Morris Invest videos are also referenced in the complaints as oral contracts and attempts to deceive/ induce fraud.

One complaint states that the Morris Invest house had actually burned down 4 days PRIOR TO CLOSING and that this wasn't disclosed to the buyer before closing or during the months after the sale. Only when the buyer received a letter with fines from the city saying the burned home would need to be demolished did they learn about the fire. The property managers put in place by Morris had been withholding previous letters from the city and assuring the buyer everything was going according to plan.

Opening up the documents in the case file I saw that on 3/11 a motion to dismiss was granted to Oceanpoint in one of the suits because Oceanpoint doesn't appear on the contract. All other motions to dismiss have been denied or are still pending. The one that was granted states only Oceanpoint is dismissed, not the other defendants (Clayton Morris, Morris Invest plus reps and agents for MI named personally). So it's looking like CM's having a hard time shedding blame with his signature on the contracts and his face in the videos promising turnkey investments that ended up being vacant economically obsolete or literally burned down houses.

I don't know any of these people or have any involvement or inside knowledge, just going off what I have read on here, watched on the Morris Invest youtube channel, and now read in the case files.

The different suits vary by case but allegations include many counts of fraud, fraud in the inducement, breach of contract, promissory-estoppel, quantum meriut and unjust enrichment, business opportunity deception, and offense against property. Jury trials have been requested.

I'm actually surprised there aren't more suits because we know there are several hundred victims (and counting) and I could only find a handful of suits. Perhaps more lawsuits are in the works, or a class action? Perhaps some suits have already been dismissed/settled out of court and these ones will be too? I have no idea. If a criminal case isn't also underway I'll lose all faith in the justice system.

I also looked up the property where the summons/subpoena was sent to (also listed as the main defendant's address in the complaints): a 6,500ft2 residence in NJ. It is currently listed for sale for $1.5M. It's a nice house, I recognize it from the youtube videos. I'm guessing this is asset protection, selling before the house gets taken. Or maybe he's upgrading, I wouldn't be surprised by anything at this point. He's still posting new videos every few days so doesn't seem to be slowing down... the very sad saga continues... when will it end?

Action in Indiana courts: suits moving forward, case files available on the court's website: https://public.courts.in.gov/mycase/#/vw/Search (enter Clayton Morris in the search).

Complaints state plaintiffs were deceived and harmed by Morris Invest. Purchase contracts were signed by Clayton Morris. Oceanpoint/Indy Jax was the true seller of the properties and also was later contracted to rent and manage them (or Blue Sky, Boardwalk, etc.). Buyers received the warranty deeds from Oceanpoint/Indy Jax conveying ownership despite contracts being with Clayton Morris and payments made to Morris Invest. There weren't any assignments.

Purchase agreements are available as exhibits and they are the worst contracts imaginable with no owner listed, no assignment, only Clayton's signature even though he was not the property owner or a licensed broker. The selling broker line is blank, seller real estate license # line is blank, legal description: blank, earnest money: $0, financing, inspection, insurance sections all blank (only parts filled out are sections that benefit the seller). Don't see how fraud gets any more fraudulent.

From reading the complaints, plaintiffs allege that Clayton made oral/express contracts and presented marketing materials that promised his company would rehab the properties as included in the sale price but the properties were never rehabbed. Then months later he or his representatives told the plaintiffs that the properties had been rehabbed and rented to tenants when they were actually vacant and collecting fines from the city. Some plaintiffs received "rent checks" from tenants that were fictionalized and were also sent leases that were forged. Morris Invest videos are also referenced in the complaints as oral contracts and attempts to deceive and induce fraud.

One complaint states that the Morris Invest house had actually burned down 4 days PRIOR TO CLOSING and that this wasn't disclosed to the buyer before closing or during the months after the sale. Only when the buyer received a letter with fines from the city saying the burned home would need to be demolished did they learn about the fire. The property managers put in place by Morris had been withholding previous letters from the city and assuring the buyer everything was going according to plan.

Opening up the documents in the case file I saw that on 3/11 a motion to dismiss was granted to Oceanpoint in one of the suits because Oceanpoint doesn't appear on the contract. All other motions to dismiss have been denied or are still pending. The one that was granted states only Oceanpoint is dismissed, not the other defendants (Clayton Morris, Morris Invest plus reps and agents for MI named personally). So it's looking like CM's having a hard time shedding blame with his signature on the contracts and his face in the videos promising turnkey investments that ended up being vacant economically obsolete or literally burned down houses.

I don't know any of these people or have any involvement or inside knowledge, just going off what I have read on here, watched on the Morris Invest youtube channel, and now read in the case files.

The different suits vary by case but allegations include many counts of fraud, fraud in the inducement, breach of contract, promissory-estoppel, quantum meriut and unjust enrichment, business opportunity deception, and offense against property. Jury trials have been requested.

I'm actually surprised there aren't more suits because we know there are several hundred victims (and counting) and I could only find a handful of suits. Perhaps more lawsuits are in the works, or a class action? Perhaps some suits have already been dismissed/settled out of court and these ones will be too? I have no idea. If a criminal case isn't also underway I'll lose all faith in the justice system.

I also looked up the property where the summons/subpoena was sent that was also listed as the main defendant's address: a 6,500ft2 residence in NJ. It is currently listed for sale for $1.5M. It's a nice house, I recognize it from some of the youtube videos. The saga continues...

@Jay Hinrichs

@Maria Dantas

Action in Indiana courts: suits moving forward, case files available on the court's website: https://public.courts.in.gov/mycase/#/vw/Search (enter Clayton Morris in the search).

I just binged and read most of the available documents. Complaints state plaintiffs were deceived and harmed by Morris Invest. Purchase contracts were signed by Clayton Morris. Oceanpoint/Indy Jax was the true seller of the properties and also was later contracted to rent and manage them (or Blue Sky, Boardwalk, etc.). Buyers received the warranty deeds from Oceanpoint/Indy Jax conveying ownership despite contracts being with Clayton Morris and payments made to Morris Invest. There weren't any assignments. 

Purchase agreements are available as exhibits and they are just awful: no owner listed, no assignment, only Clayton's signature even though he was not the property owner or a licensed broker. The selling broker line is blank, seller real estate license # line is blank, legal description: blank, earnest money: $0, financing, inspection, insurance sections all blank (only parts filled out are sections that benefit the seller). Don't see how fraud gets any more fraudulent.    

From reading the complaints, plaintiffs allege that Clayton made oral/express contracts and presented marketing materials that promised his company would rehab the properties as included in the sale price but the properties were never rehabbed. Then months later he or his representatives told the plaintiffs that the properties had been rehabbed and rented to tenants when they were actually vacant and collecting fines from the city. Some plaintiffs received "rent checks" from tenants that were fictionalized and were also sent leases that were forged. Morris Invest videos are also referenced in the complaints as oral contracts and attempts to deceive and induce fraud.

One complaint states that the Morris Invest house had actually burned down 4 days PRIOR TO CLOSING and that this wasn't disclosed to the buyer before closing or during the months after the sale. Only when the buyer received a letter with fines from the city saying the burned home would need to be demolished did they learn about the fire. The property managers put in place by Morris had been withholding previous letters from the city and assuring the buyer everything was going according to plan.

Opening up the documents in the case file I saw that on 3/11 a motion to dismiss was granted to Oceanpoint in one of the suits because Oceanpoint doesn't appear on the contract. All other motions to dismiss have been denied or are still pending. The one that was granted states only Oceanpoint is dismissed, not the other defendants (Clayton Morris, Morris Invest plus reps and agents for MI named personally). So it's looking like CM's having a hard time shedding blame with his signature on the contracts and his face in the videos promising turnkey investments that ended up being vacant economically obsolete or literally burned down houses. 

I don't know any of these people or have any involvement or inside knowledge, just going off what I have read on here, watched on the Morris Invest youtube channel, and now read in the case files. 

The different suits vary by case but allegations include many counts of fraud, fraud in the inducement, breach of contract, promissory-estoppel, quantum meriut and unjust enrichment, business opportunity deception, and offense against property. Jury trials have been requested.

I'm actually surprised there aren't more suits because we know there are several hundred victims (and counting) and I could only find a handful of suits. Perhaps more lawsuits are in the works, or a class action? Perhaps some suits have already been dismissed/settled out of court and these ones will be too? I have no idea. If a criminal case isn't also underway I'll lose all faith in the justice system. 

I also looked up the property where the summons/subpoena was sent that was also listed as the main defendant's address: a 6,500ft2 residence in NJ. It is currently listed for sale for $1.5M. It's a nice house, I recognize it from some of the youtube videos. The saga continues...

@Tyler Jahnke

@Colin Zhu

@Jeremy Z.

I looked up the property listed in the case files as the place where Clayton's subpoenas were delivered (a 6,500ft2 personal residence in NJ). It has been listed for sale for $1.5M. Open house this Sunday 3/17/19!

Some action in the Indiana courts lately: several lawsuits moving forward, case files available publicly on the court's website: https://public.courts.in.gov/mycase/#/vw/Search (search for Clayton Morris or Oceanpoint or Morris Invest and they come up).

Complaints state that plaintiffs were deceived by Morris and they contain the contracts to buy/sell (as exhibits). They were all signed by Clayton Morris. Although Oceanpoint was the owner of the properties and was contracted to rent and manage the properties, they don't appear on the HUD contracts. But buyers did receive the warranty deeds from Oceanpoint conveying ownership. There were never any assignments involved according to the case files.

Yesterday a motion to dismiss was granted to Oceanpoint but not Clayton (because OP doesn't appear on the HUD contracts but Clayton Morris does). Plaintiffs say Clayton personally made the verbal agreements/express contracts to rehab the properties as part of the deal but he never did. His videos are also referenced as being verbal agreements/express contracts to make the renovations. So it's looking like he'll have a hard time shedding blame and may have to be the fall guy. Other motions to dismiss were denied and the only motion to dismiss that was granted says clearly that Oceanpoint is dismissed but not the other defendents (Clayton Morris, Morris Invest). Jury trials have been requested.

The lawsuits vary but the allegations include several counts of fraud, fraud in the inducement, promissory-estoppel, business opportunity deception, etc.

I'm actually surprised there aren't more lawsuits; only a small percentage of the victims are represented since we know there are something like 200 plus victims and counting. Perhaps more lawsuits are in the works, or a class action. The saga continues...

Welcome aboard Jeff. Representing Boulder here (west of town in the mountains, important distinction as you know). Big fan of Golden. My current investments are in Longmont, Lakewood, and Denver. Sent you a connect request. Steve

@Kristofer Kersnick the only logical reason I see to have separate meters is if you wanted to title the units, get a party wall agreement, and sell them off individually as condos/townhomes. But it doesn’t sound like the setup is conducive to that idea based on the layout info you’ve provided (sounds more like an in-law suite setup) and it might not be possible with zoning anyway so I would probably just keep it as-is personally based on the info you’ve provided. Just bill back for utilities or charge a bit more and have them be included. ADUs are in high demand so it sounds like a good score just as it is if your comps are accurate. I’d avoid shaking the hornet’s nest if at all possible lol.