Why you should never buy an investment property above the appraised value?

Hey everyone, I'm Clayton Morris.

I'm a longtime real estate investor and founder of the company Morris Invest,

which is a full service rental real estate company.

And today I wanted to talk about buying investment properties

above what the market says they're worth.

I want to tell you a little story, okay?

Because this happened.

We've had three clients in the past month come to us,

telling us that they've been working with other companies and I'm not going to name any

names that's not why I'm here but I really want to tell you this story and they explained

that they bought an investment property or they were told that they would have to buy the investment property with these other companies

above the market value. That that was simply the cost of doing business with this company.

That they were getting a property at a premium value

and this relationship of working with this turnkey company was the reason why they would pay more than the

appraised value. So instead of a hundred and eighty thousand dollar price which is

what the appraised value was, they were going to pay $200,000 for this property.

And I said, what?

Like I heard this a couple of times now over the past month, and I said, I've got to make a video about this to make

sure that people don't do this and I want to explain exactly why that is. But first

what is the appraised value? It's important for us to understand what that is.

Appraised value is the estimated market value

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