Austin Davis' Commercial Real Estate Program is a program that helps students enter into commercial real estate deals in partnerships or on your own. I bought the program for $399 and was told I would have to either pay $10,000 - $40,000 for the estimate on all closing costs for the appraiser, title company, lender, enginering report, survey, and all the various closing costs that the vendors for what ever city my first deal was going to be in would charge or that I would have to use the partner program to have a partner pay them all for me.
I wanted to do the deal on my own and not give up any ownership, but I did not have the money to pay for the up front costs, so I elected to go with the partner program.I worked with a lender on the sheet they sent me of a few dozens vendors to get started with and then apply for a partner. The name of the lender was Allied Commercial Group, and they gave me some basic criteria on what to look for. Once I found a deal that I liked I then sent it to them to look at it and they said it was fundable. I then needed $10,000 to get started so applied for the partner program with Austin,
4 days later they provided me a partner, her name was Jessica B, (I do not want to list her name if I do not have to in full as I do not want her to sue me for listing her full name as per our non disclosure agreement). Austin did not ask me to sign a non disclosure agreement so I do not think I am bound to not share this.Jessica overnighted them a cashiers check for the $10,000 and they got started on the deal. 3 weeks later they said that they could not fund it as we had set it up because the lender's guidelines had changed, and then offered to either help us on another deal or refund the $10,000.
Jessica wanted to back out then, so she went with the refund. At this point we were both hoping that this was not going to be a scam. We had to fill out the forms for the non disclosure and then we waited. Jessica got her check 3 days later fedex for the $10,000. That was a big relief that we got the money back, but this left us with out deal with no funding and a seller who was getting very pressing on us on when we were going to close.
We went back to Austin's team and asked them what to do, they then said they had another private investor interested in the deal, but would only be able to offer us 50% on the ownership, well that was a problem, because me and Jessica were splitting it 60/40, and there is no way to split our 60/40 even close, when we are only getting 50% of it. So Jessica said she wanted out, but she was not happy about it. She wanted to know if I would accept $100,000 for a one time fee and take no ownership,
I did not want to do that because the yearly share of my 50% would be $75,000 the first year, and the deal was good with rents likely to go up, so I sure was not going to give up that kind of cashflow for a one time payment of $100,000.Jessica was not happy and said she would however just back out of the deal. That was the first thing that was frustrating, I understand that the lenders change their guidelines, but there should be something to protect us so that we do not have these problems, it made me look very bad to the seller.
So then I am basically starting over from scratch all over again on the deal. So my new partner, Rich, requested I send everything over, so I sent it all over. He got started on it. 2 days later he comes back and says he has to use the last 2 years averages for the rents and the expenses for his private lender, well the property was half empty 2 years ago, so of course that is going to on the averages drop our rent down, and that is going to lower the cashflow we can use to come up with a value. Well then he says we have to come down on the price we can give the seller.
I go back to the seller and tell him this and he then gets mad at me! As though this is my fault!!!! The seller would not take the lower price. So then I have spent all this time working on my first deal for nothing!!! I went back to Austin and told him I want a refund, they then issued my refund. I told my girlfriend after this the details of what had happened, she got mad and send Austin's team a angry email that they should get their act going and help me and give me a deal to get in on for all the time I put in the deal I had.
They said they could not do that, but I did not send that email! I never asked for that! Well that started a bad thing to our relationship, I told her she can't be so rude to Austin's team cause they will ban me and I don't want to get into any trouble. Two weeks later we broke up, basically I caught her messing around with my coworker, and that did not go well. Well I told her how I was going to give the program another shot, because I had found another really good deal. She was mad at me for breaking it off, so she sent Austins team a email from my laptop, with my email, I stupidly had left it logged on. She goes on to tell them a lot of lies, not true about me, and I get a email back the next day, that they do not wish to work with me for not being professional anymore.
I reply to them that it is not true, I did not send that email, but they do not reply now to me. I send them a email that I am going to reveal this scam and them not working with me if they do not let me back in. I still got no reply. Then a week later I get a email from Jessica again, wanting to know if I have any deals, I said yes, but that Austins team is not replying to me and that they have wrote me off now, and I explained the story. After that I never heard back from her. I sent her a email again, and she wrote back that until I am on good terms with Austin's team again that she will not work with me because she doesn't want to step on Austin's teams toes.
I dont know what that means, but it seems like now that I have got banned from Austins program and now Jessica, will not reply to me at all. I have called her 5 times, and she does not call me back.While I got my refund, and they did everything right at first, none of this is my fault and I am being black listed it seems because of all this. I should not have to pay for any help anymore because I put in a lot of time and work, and I should be allowed to get back into the program. Maybe I am wrong in this, but I sure do not see how I can be wrong. They need to let me back in. I need this. I cant do deals on my own and I do not know any other partners who will partner with me.