Affordable Equity Project: a scam?

Is the Affordable Equity Project a scam? Perhaps you have seen the advertisements on Craigslist or other such property sites about "The Affordable Equity Project".

You can view the site here: http://www.equityproject.net/. So you may be wondering, is this too good to be true? Afterall, they have picture of gorgeous oversized apartments in some of the best neighborhoods around New York City. And, how can you be sure of getting one of these apartments with all the competition that exists in NYC?

Well, I did some research online and found out that this may indeed be a scam.

On Yahoo Answers, one person had this to say:

"Affordable Equity Project is an illegal unlicensed Apartment Information Vendor. Here's their BBB listing:

http://search.newyork.bbb.org/reports.aspx?id=98005&pid=44&page=0&FindStr=affordable+equity+project&SearchBy=company&Address=&City=&Phone1=&Phone2=&Phone3=&MembersOnly=False

There are 6 complaints listed so far, they have no office and no license. It smells like a scam to me. Here's more info from the BBB:

Competency Licensing

This business is in an industry that requires competency licensing, registration, or bonding. The Bureau encourages you to check with the New York State Department of State to be certain that the business meets these requirements. The New York State Department of State can be reached by calling 1-518-474-4429, or you can perform an online search of licensees and registrants at www.dos.state.ny.us.

Additional Locations

This firm also does business at the following locations.

Keizersgracht 505-4a

Amsterdam, N-H, 1017 DN

If you have a problem with an unlicensed company that isn't even in the USA, good luck getting your money back. You'll have no recourse. Beware."

Well, I thought I would do my own research and send them an e-mail. Here is a copy of my communications with the Affordable Equity Project:

First, as a student, I asked if they work with students. I got this e-mail back:

"To Whom It May Concern:

Yes, we do rent out to students and have rented to many students in the past and you are welcome to apply with us and we will do what we can to help you to locate affordable housing in NYC. Please let us know when you have mailed in your rental applications and fees so that we can be on the lookout for them.

Thanks

The Affordable Equity Project"

Then I wrote another e-mail, getting to the heart of the issue:

"I read this is a pyramid scheme-like scam. Is this true?

Sincerely,

Whom"

In which I got the following reply:

"To Whom It May Concern:

Thank you for your interest in our available apartment rentals. We assure you that we are a real company, we have been online and in business now for over 5 years with no issues. If you are interested in an available rental and would like to make an appointment to come in to view and rent it, then please download and complete a rental application for all of the properties that you are interested in and send them into us along with your processing fees so that you can be pre-qualified. All rental applications can be found at our website:

http://www.equityproject.net

Once you have been pre-qualified and your applications has been approved, we will then call you as soon as we possibly can, to give you an opportunity to view and rent the available property if you are interested in doing so. So there is still time to apply, so we urge you to submit your applications as soon as you can, so that we can help you secure affordable housing for yourself and your family. I hope this helps, if you have any other questions, then feel free to email us back.

Thanks

The Affordable Equity Project"

In the last few months none of the properties have changed, no new properties have been added, and none have been taken down. This shows to me that this is probably a scam and should be avoided at all costs. Do not send $40 to them. You will have a heck of a time trying to get it back.

One website had this to say:

• The Affordable Equity project communicates only by email. If you call the number on the website, someone at a call center will answer. He/she will take a message, which will be returned with an email usually from "Jon Henderson." (Come on...) He/she at the call center doesn't know (or pretends not to know) anything about AEP.The company that designed the web site refused to give me any information about the people they dealt with while building the AEP website. They also answered my calls with emails and used first names only.
• The people on the testimonials part of the web site do not exist. (That page hasn't been updated in a year and a half by the way.)
• Another reason for suspicion is that AEP doesn't have a physical location--just a PO box in Long Island City.
• I know that they bank(ed) with Washington Mutual, which couldn't give me a shred of info because AEP is their customer.
• Being "listed" with the Better Business Bureau, as AEP advertises, means nothing. The BBB awards accreditation to select businesses that have been reviewed, but will list anyone who provides information.

Conclusion: Avoid at ALL costs.

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If you are looking for a real apartment in New York and are looking for something inexpensive, you may be interested in the apartment finds that I list here for under $1200 a month.  If you want to subscribe to this blog and receive information about inexpensive finds as they come up (I check daily) or ways to find real apartments that are NOT scams, sign up to this blog on the right side.

Further, if you are a student, and you are looking for an apartment, consider reading this article.

Don't lose hope.  Just realize that if anything sounds "too good to be true," it probably is. 

Bonus: Do not travel with cheapoair, one of the most dishonest travel companies in the world.