| Property Direct |
| Property Direct USA Indiders edge, Evelution Group, Dean Grosiosi rehabed and rented and cash flowing, earn 15percent on your investment lehi, Utah |
| 25th of Feb, 2011 by User801207 |
| Property direct calls dean grazisi leads after another of their owned companies tries to get coaching and mentoring for 30-40k. Then property direct call the sames leads and tries to sale them a turn key property. The real problem starts here. They dont even own most the homes they are selling which makes it a security issue. the marketers have no real estate license or more than a few months total in real estate. they claim the houses are rented out and have been rehabbed. 70 percent of the homes have no renters and they still need anywhere from a few thousand in rehab to as high as 20k. The buy the houses from a sourcing company after the client pays the money, which is another violation. I worked for these guys and my recommendation is to stay as afar a way as you can. Between all the programs they try to get you into, it could go as high a 100k. They pitched you really hard on tax liens which they dont have and never will have. Its just an easy pitch to sale you a 2k kit and then do the bait and switch to try and sale you a rehabbed home. They are violating all kinds of securities laws. Good luck and stay away. |
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| I wish I could understand what you are saying. What is the proper name of the company? Where are they selling? What exactly is the scam? |
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I had similar problem, actually much worse.
I bought some properties from "Property Direct USA" and each one has issues that came to light with inspection. They say the titles are clean, what a lot of crock.
I hired the contractor, "Castle Alliance", they had do the bid and first and foremost the price went up. Half way through the project to rehab, they decided they were not interested in completing the job. So far I have paid 90% of the cost. The properties were supposed to be completed 4 months ago. I can go on and on and this is just the tip of an ice burg.
Stay far far away from "Property Direct USA" and all that are associated with them.
If here are more people with issues with "Propert Direct USA" or their affiliates and want to start class action suit against them, post your interest. |
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I bought 2 properties from "Property Direct USA" and it took them 4 months to get me the titles. These houses were purchased by Property Direct USA close to 3 months after I paid them. Now both properties have issues and I will lose all the money I put in. The title are not clean despite their declaration.
I got served last week on one of the properties, that is how I found out the sellers did not declare this.
There are quite a few violations and the state should shut them down. This is a scam and stay away from there as far as you can. Also stay away from the contractor who did the bid to sell the house. The rehab on the property were supposed to be completed 4 months and it has partially been completed. Now they are not interested in finishing the job.Of couse they already got the money for rehab for both the properties. They are not registered in the states I have properties. There are major violations with all the companies that Property Direct USA deals with.
If there are other people with these kind of issues and would like to start a class action suit, post your interest. |
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| This includes the contractor Castle Alliance. All these companies are running a scam. |
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Hi
I have a similar complain
They first tell you that If you don't like we will buy the property back but then when you offer them to buyback after taking 10 percent cut they still do not buy it
They are screwing up so many people hard eArned money.
Is there a government enterprise where you can go and complain as they are all lawyered up pretty good and why did they move to Utah.
I will advise everyone to not believe anything this stooges tell you.
Let me know if there is anything that can be done to discredit them in media so that their business takes a hit because I do not believ going thru law we will get anywhere. |
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| I have a family member who paid these clowns 25, 000., and bought a house from them for 20, 000. more than it was worth. I am in contact with the other people who went to the over priced buying summitt, and only one in 10 is even remotely satisfied with their purchase price and product received. I can be reached at [email protected]. Please contact me if you would like to take these clowns down in a class action suit, which is exactly what I am going to do!! |
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Yes, this is all a scam but very well orchestrated. This is called securities fraud when you are buying in a "closed shop" without right to legal help, inspections, appraisals or contract review. It's all done under the hype of quick quick buy now or you'll miss out.
The people to hear about this is your state attorney general's office. There are online help forms which make it easy or just call. Yes, the prices are inflated and yes you don't get value for money.
Here's the real problem - You buy at inflated prices. This means you do get cashflow if you have a tenant but at no stage in future will you be able to sell for what you purchased at. Therefore, you will end up losing all your cashflow at a point when you sell. Also, they are artificially inflating neighborhood comparable prices. This make it difficult for others to buy at market because real estate agents base their listing prices on comps in the area.
Yes, they are using unlicensed everything, except lawyers!!
Report this to your state attorney general or write me, tell me what the property address is and I'll return with the path to take. [email protected] |
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Gosh I wished I had read these comments about a year ago! I bought 2 properties from them and had issues with both. I've considered getting rid of them to cut my losses, but I would lose about 40% of my initial investment (About $40K!!). Kind of painful! Plus don't fall for the 12-14% they advertise. By the time you are done with all the hidden fees of the management companies they recommend and get a real quote on what the hazard insurance will really be, you will be LUCKY to end with 8%. I have one running at 9% (but I changed the mgmt co. within 3 months and got my haz. insurance from a different company) but I am getting into the tenant renewal/change as we speak, so prepare to go down! And the other property is not even at 5% ROI! FYI, if you buy in Detroit, expect taxes and the Haz insurance to be insane! They tell you about $500. Yeah, try $1400 from the company they recommended! Oh, and good luck ever finding out what renovations were done for you before buying the property that could explain why they charged you over 2 times what they paid!
Bottom line, I was new, naive, and I consider these 2 purchases the worse purchases I have ever made! Now I have to admit, I have learned a lot from my mistake!! Now I have rental prop where I really get 16-18% return, but it is certainly not from Property Direct USA! |
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Look everyone - the best thing to do is to contact your state attorney general or the attorney general of the state where you were defrauded. Provide as much information and don't let off. These are public officials and don't have incentive unless they have personal gain... If you are in a good financial position, you may consider appraising your properties and asking your accountant to change the "cost base". This may allow you to take the capital loss at the front instead of at the rear after you pay income tax on rents collected. However, the only way you can regain your position is to keep the property for a number of years, break even and move on. OR, you can purchase more properties from reputable real estate companies or management companies. By buying more properties you equalize your portfolio position. Remember, ensure you check out whomever your dealing with and ask for insurance, license and references. Also, check with the local city government to ensure there are no ongoing complaints about the subject company.
Don't give up on Property Direct - They violated your savings, your hopes and your future. Make sure those con men are in jail sooner then later. Don't let off the politicians. Good Luck |
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| Interesting! I thought it was just me. I bought 3 properties paying more than 50% above what they are worth. I have tried to talk to them since and left several messages, but they have not called me back. I am going to send them a copy of the value given by the city and what they charged me and all the repairs I have put in on them already and see if they will at least respond to them. I am still working on it, but 2 had vacancies and 1 had to have the roof repaired and other work. One did not have a water heater. The little house I bought which was supposed to have a tenant did not; I will say they did give some money back for that property, but again I have repaired the roof, doors, hot water heater and so after 6 months have not made anything on it. I agree with above person. The cost base is much less than they give. |
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EVERYONE - What these guys are doing is not technically illegal. But you have the magic of the internet. PLEASE check www.Zillow.com for prices in the area. Don't be fooled by their promise that they renovated. You cannot renovate an improvement on market pricing for these low end areas they are buying in. SEEK the help of a local realtor or property manager. CALL the city inspectors to ask about Property Direct or their contractors. YOU have a right to ask questions.
This whole scam is based on keeping you in the dark and promising you paper returns. If the tenant moves you are in trouble having paid too much.
BE CAREFUL |
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EVERYONE - What these guys are doing is not technically illegal. But you have the magic of the internet. PLEASE check www.Zillow.com for prices in the area. Don't be fooled by their promise that they renovated. You cannot renovate an improvement on market pricing for these low end areas they are buying in. SEEK the help of a local realtor or property manager. CALL the city inspectors to ask about Property Direct or their contractors. YOU have a right to ask questions.
This whole scam is based on keeping you in the dark and promising you paper returns. If the tenant moves you are in trouble having paid too much.
BE CAREFUL |
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| We fell into the 'Property Direct' trap as well in May of 2010. We just now got a copy of a deed for our property but are not sure we have a clean deed! Are unsure if Property Direct (PD) has authority to give us a deed. Had a tenant in our property right after we bought it, but they moved out in September stating they were 'tired of the gun shots and police sirens in the neighborhood". The management company that Property Direct originally gave us when we complained told us, just be happy that we were getting our checks! We changed management companies and then started getting monthly repair bills, and were told that repairs that were needed had not been made by our previous mngmt company? Contacted Property Direct to get repairs paid for under our one year renovation warranty, and Property Direct told us that the one year warranty was provided by the previous mngmt company only if they were managing it and they did the repairs. If we could sell the house today, we would only lose $30k of our initial investment - and the only way we had positive cash flow as Property Direct so boldly boasts at the Buying Summit Seminars is because... we had paid CASH for the property! If anyone would like to join us in a lawsuit, our email is: [email protected] |
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I am so relive to see so many comments of your experiences. I am too a victim of the same scam. I spent over $50k in false statements from Dean and PMI. I was fortunate not to buy a property from Property Direct because I just didn't have money to make a purchase. I am still paying this debt almost a year now.
They brain wash you into beleiving that you'll be financially free in less than a year. I was told that their priority was to help me payoff the second $25K I charge on my credit card. How unfair they take advantage of people. My credit has dropped to the lowest ever, and I don't see when I'll be able to get out of debt.
I still don't know what's the purpose of paying an additional $25K? Subscriptions that costs few dollars and a trip to Vegas? I fojnd out that they charge an average of $7K for each of these seminars. This is not right! Outrageous amount of money! And all of these seminars have the same format! And another way to sell you another product.
Tha State of Utah should be aware of this and to put a stop. It should think of its reputation and credibility to its citizens and those around the country (and Canada)
I know a lady, and this is so sad, who digged into her retirement account to pay over $50K for this non-sense. She is facing financial trouble even more so because she's handicapped. This people knew her situation and took advantage of her. I know because we were both in the same group.
I too rule for a class action. Nothing will make me so proud than stopping these crooks from making false statements and digging deep into people's pockets. Education is expensive but their fees go beyong reasonable. |
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