PSI Group and Darel Snyder were associated with the James Smith Real Estate organization, and through one of their seminars I invested in a condo in Phoenix. Darel showed glowing forecasts of growth and cash flow on the property. He said "even if you don't buy what I'm selling, you should buy where I'm buying", because they did so much market research to find the best areas to buy. Well, it turned out to be the WORST area to buy, and now the condo project is a disaster.
It's impossible to sell the condos on a short sale for even HALF of what we paid for them. It looks like foreclosure is the only way out, and they have no alternatives to suggest. It looks like they sold out their interest in the property because there's a new management company and the project has changed names from Trillium at Union Hills to the Villas at Union Hills.
PSI Group arranged lots of sweet incentives for the first two years, such as free management, but after the two years was over the management costs are eating the cash flow, so between management and loan costs the cash flow is over $1000/mo negative, which is unsustainable.
Even after we purchased our property, PSI Group continued to market condo projects in Phoenix as well as in Roseville, CA. They invited us to several bus tours in Roseville and we attended one in which they made a very similar pitch. Fortunately, we lived not too far away so we knew that the Real Estate market was already turning down in Roseville and the market was not good for buying. With all of the research that PSI Group does, they should have known this as well. Actually, they undoubtedly did know it, but since they were selling rather than buying it wasn't good to publish that information.
Darel Snyder purports to be a long-time friend of James Smith, and made presentations as several James Smith seminars. When I was recently contacted by James Smith's new organization and confronted them about the problems with PSI Group, they said that James "had been hurt by a number of his former friends", implying that Darel had taken advantage of the relationship with James Smith to push his properties. I don't know the true relationship between the two, only what I was told.
Stay away from any properties which are being sold or recommended by PSI Group and Darel Snyder. You will be sorry.
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