BUYER BEWARE Infinity Capital Finance / Sean Richway

BUYER BEWARE Infinity Capital Finance / Sean Richway

Rental Property Investor · Seattle, WA · Member since 2014 · 215 posts · 77 votes

http://infinitycapitalfinance.com/ - This is the company I am referring to.

On August 1st I was told (By Sean) we would be able to close this refi (on a duplex) "mid to late next week" pending committee review. A week later I had to follow up with them to find out they were still processing. On 8/21, after this loan was approved their attorney reached out to me. 8/21 all docs were resubmitted for them (We had to resubmit the same docs 3X during this process, FYI), 8/29 all insurance docs sent to lender and changes made to policys by my Insurance agent to satisfy lender. They then asked me for a party wall agreement and foreign entity registration, weeks after this deal was approved and with me having asked at least 3 times if they needed anything further from me. Got them the foreign entity doc within 2 hours, and sent a party wall agreement (which was completely inappropriate for this deal, not the correct form at all - but I signed that form on both sides, literally making an agreement with myself, which they accepted! Huh?) On 9/14 I signed closing docs, expecting to receive funds the following business day. Its 9/21and I still have not received the funds. Lender states our insurance is inadequate, my agent tells me their requests are not reasonable or possible for most insurers, yet their company has a preferred insurance agent who can write the correct policy... fishy. A week after signing off on all closing docs, 4 weeks after I was told we could close, I do not have the money and am not sure this deal will ever close. Buyer beware.

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Member since 2019 · 1 post · 4 votes
7y

I had 3 deals with this company and was told we would close.  They never closed

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  • Overland Park, KS · Member since 2015 · 44 posts · 14 votes
    7y

    @Kevin Moen can you update us on how this went? Looking at using them to finance. Thanks!

  • Investor · Bowie, MD · Member since 2016 · 143 posts · 51 votes
    7y
    Originally posted by @Kevin Moen:

    http://infinitycapitalfinance.com/ - This is the company I am referring to.

    On August 1st I was told (By Sean) we would be able to close this refi (on a duplex) "mid to late next week" pending committee review. A week later I had to follow up with them to find out they were still processing. On 8/21, after this loan was approved their attorney reached out to me. 8/21 all docs were resubmitted for them (We had to resubmit the same docs 3X during this process, FYI), 8/29 all insurance docs sent to lender and changes made to policys by my Insurance agent to satisfy lender. They then asked me for a party wall agreement and foreign entity registration, weeks after this deal was approved and with me having asked at least 3 times if they needed anything further from me. Got them the foreign entity doc within 2 hours, and sent a party wall agreement (which was completely inappropriate for this deal, not the correct form at all - but I signed that form on both sides, literally making an agreement with myself, which they accepted! Huh?) On 9/14 I signed closing docs, expecting to receive funds the following business day. Its 9/21and I still have not received the funds. Lender states our insurance is inadequate, my agent tells me their requests are not reasonable or possible for most insurers, yet their company has a preferred insurance agent who can write the correct policy... fishy. A week after signing off on all closing docs, 4 weeks after I was told we could close, I do not have the money and am not sure this deal will ever close. Buyer beware.

     Did you close on the deal?

  • Member since 2019 · 1 post · 4 votes
    7y

    I had 3 deals with this company and was told we would close.  They never closed

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    7y

    @Melvonne Geiger

    He changes company names like Hollywood stars change lovers.

    7e investments53 Reviews
  • Staten Island, NY · Member since 2017 · 2 posts · 0 votes
    6y

    Run away from Sean Rich-way. He and Khari Harper had a company named CFRE | JV flips.

     Joint venture for flipping houses

     What they offered it to put downpayment on any deal we brought in. Get a loan on the property.  Through infinity capital finance .aThey secure financing., we do the renovations and once the property is sold the profit would be split 50-50. Great, so I thought . I sent them the contract. We started the whole process .  Appraisal came in good .  Only for closing to never happen even after 50 days. Excuse on appraisal. Loan docs never showed . My lawyer was screaming this is a  scam .

    New appraisal was ordered .   they still never closed.

     Gave excuse of being in a conference, away from the states for a while,  get new inspection, just filthy excuses

     Wasted 3 months of my time .

     We had money to close the deal with other lenders. Was just looking for decent leverage , minimal risk 

     Ended up closing with Walnut Street Finance within 5days of clear to close from sellers..


    SCAM!!!! 
    He’d never close !!!!!!! 

  • Investor · Pleasanton, CA · Member since 2015 · 2 posts · 0 votes
    6y

    @Kevin Moen. So sorry to hear this! Thanks for sharing.

  • Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
    6y

    But what is the scam? Does he collect upfront fees? 

  • Investor · Elizabeth, NJ · Member since 2015 · 46 posts · 10 votes
    6y

    INVESTORS BEWARE!!!

    The first and last 60/40 JV deal I closed with this company (see below) settled on 10/28, Monday morning. It's now Saturday afternoon, 11/2, and I still haven't received my money (over $25K). An amount sent via email in a spreadsheet, 2 days after the date we agreed I would receive payment, was equal to 12% of the net profits...Vastly different from the 60% split I was anticipating after rehabbing, managing and selling the property...This calculation included doubled the closing costs, recouping revenue and expenses that were already subtracted from the HUD/CD. Prior to closing, I had a feeling Sean Richway, the president of this company, would do this. So, I asked to be paid at closing. That was denied with all types of excuses. My wire instructions were sent without the company's request, which was questionable. Responses from Sean prior to receiving the settlement money were within the hour. Now, that Sean is in receipt of the closing funds, responses take 24 hours...Before experiencing this very unprofessional way of handling business - I knew there wouldn't be a second time at bat with Sean and this company given the persuasion of becoming the buyer instead of the lender, and the 3% monthly management fee outlined in the JV agreement. This clause is a very sneaky way to turn his 40% split to upwards of 50%. Sean, when discussing this transaction at least, did not manage the subject property in any aspect. Yet, he stands to generate $37K in management fees. Roughly, 1/3 of the net proceeds...That's a straight rip off! The money I've earned should have been wired at this point, period. Any amounts in question north of this payment, could be hashed out and negotiated at a later date. If I do not receive payment Monday, a full week after closing - I will be contacting the authorities and taken appropriate action to receive payment. Hopefully, I've saved a few people from dealing with Sean, Infinity Capital Finance, its affiliates and this drama...Real estate is too fun and profitable to deal with individuals like this.

    Fellow investors, BEWARE!!!

    Sean Richway, President

    Infinity Capital Finance

    srichwayatcfrejvflipsdotcom

    srichwayatinfinitycapitalfinancedotcom

    www.infinitycapitalfinance.com

  • Lender · Stoughton, MA · Member since 2013 · 3 posts · 0 votes
    6y

    I’m chasing him to return my investment as well! He invested my money in two deals... he said both went south on him. Now he’s unresponsive. He gave a personal guarantee too...

  • Member since 2020 · 5 posts · 1 vote
    6y

    Hey everyone. .. Glad I found this. . I am currently suing Sean Richway. We did a JV. And his said appraiser over valued the house by $150k each... (Yes we did two at the same time) had buyers for both and he rejected them and now they are sitting.... Love to hear about all these horror stories.... Also found out he doesnt register with each state which is good for me.....

  • Sean RichwayBusiness Member
    Lender · Chevy Chase, MD · Member since 2015 · 1k+ posts · 136 votes
    6y

    @David Flanders  @Ryan Lee Regarding Kevin Moen's deal, this deal did close. A lot of the issues were derived from our equity group partner in reviewing the insurance policy Kevin provided along with the confusion on the registration of the parent company not having a foreign registration. We ended up offering Kevin $500 towards covering our preferred vendor's insurance policy so Kevin could finally close. He paid $295 roughly for his piece as we had agreed. We appreciate Kevin's patience with us and we learned a lot from his closing so that we never have this issue again.

    Regarding Melvonne - He had 3 deals he wanted 100% financing on. None of the deals were even doable from a cost prospective so we weren't able to lend on any of his deals. Not really sure why is saying we would close and never did as the deals never go approved in the first place. 

    Chris Seveney - Not really sure why he is commenting as I have never dealt with him. I have Infinity Capital Finance that is my lending company. I also own a series of CFRE companies which was my own development companies when I flip houses myself. I have one for each state so obviously I would have multiple entities but it has nothing to do with deception

    Oluwatosin- I don't know the exact specifics on this one but we don't lend in NY under the 100% program I used to do so not really sure why he is saying new appraisal etc. unless I had him switched over to the cost program. Most likely his appraisal didn't come back for the cost program and we couldn't do his deal. I don't ever remember even speaking to this borrower so not sure if he is legitimate or not.

    @Eric M - I don't collect any fee upfront other than credit report fee and appraisal.  Both of which are cost and I make $0 on either one.

    If anyone wants to know the actual truth behind Adam's claims feel free to read through the verified counterclaim I filed as the lender in lawsuit on 2 properties I lent to Adam and his father on. They owe me $1,067,821.23 in principle alone on two flips in Naperville. They never made an interest payment nor are the projects completed and sold and I funded these in August 2018. He himself, wife, kids, and mother in law have moved into the one flip as well. Far from the picture Adam is painting above.

    https://www.dropbox.com/s/q6lv...

    Infinity Capital Finance4.48 Reviews
  • Sean RichwayBusiness Member
    Lender · Chevy Chase, MD · Member since 2015 · 1k+ posts · 136 votes
    6y

    Anyone who wants to know the truth about Kevin's deals as well see below:

    Kevin and I did 2 projects in NJ together that were fix and flips projects. I agreed to lend Kevin and secure a 1st, 2nd, and profit-sharing interest on the houses as the lender. Kevin did not have to put any money himself into the deals. The 1st deal is still ongoing, and I had to exercise my pledge agreement I had on Kevin’s entity as he still hadn’t sold or repaid me. This was originated in August of 2018 and was a 12-month term note. It has been 19 months past maturity and the deficiency amount he owes me is $190K and growing. The 2nd deal was sold in October of 2019 and his net profit per our arrangement was $15K. That $15K was kept as right of offset on the 1st deal since Kevin still owed me over $190K, which is per the laws in NJ. In NJ if a joint venture deal is entered into and one of the projects goes south the party who takes that loss can hold proceeds from another deal as right of offset for that loss. Kevin didn't like the fact he thought I was the bad guy for keeping $15K of his profit when he owes me $190K still. He therefore tried to file fraudulent suits himself instead of hiring an attorney. I had to spend $18K to prepare my defense and file a counterclaim against Kevin. Once that was filed Kevin did hire an attorney that advised him to withdraw the suits.  I had to take over the Burlington property when Kevin listed it for rent without my knowledge and placed tenants in the property without authorization from me. Once I sold the collateral at auction to take it over he continued to threaten and intimidate the tenants to pay him rent. He collected $4K from these tenants and never made a single payment on the mortgage for over 15 months. He sent a relative to the house to try to make contact with the tenants after a cease and desist letter was sent to him from my attorney.  He never applied for a CO and occupied the property so the city actually went after him as well.  I had to redo about $12K worth of work that he botched or wasn't to code.  Below is the counterclaim that was filed in his lawsuit he filed against me:

    https://www.dropbox.com/s/b7s9...

    O forgot about the article he linked to his post. Basically my ex contractor forged deeds to homes I owned in NJ and applied for the SOTO program with NY to place tenants in those properties. Without my knowledge he applied for the program and created forged deeds, leases, and property management agreement all between himself and his entity. The State of NY never bothered to verify the online records for who the owner was and sent him $50K upfront for the years worth of rents. I then got fined when the living conditions were up to code when I didn't know anyone was living there. They had been contacting my contractor directly and he wasn't fixing anything. I ended up paying $3K in fines and now I am having him prosecuted by the NY Attorney General's Office of Financial Fraud. They already have assigned someone to head the arrest and trial against him.

    Infinity Capital Finance4.48 Reviews
  • Investor · Elizabeth, NJ · Member since 2015 · 46 posts · 10 votes
    6y

    The first sentence in your post is a lie, so everything that follows is not creditable. You didn't lend me money... The funds came from a company, I will not name, who pools funds/crowd funds and distributes - not you... What you did and continue to do is fabricate reality. In the end, you owe me joint venture profits.

    You not only stole money from me, but others who are in the process of a class action lawsuit. I will not say more, because I'm in the middle of suing you for stolen profits... However, I will share this post with my lawyer as additional evidence of your perpetual lies and fraud...

  • Sean RichwayBusiness Member
    Lender · Chevy Chase, MD · Member since 2015 · 1k+ posts · 136 votes
    6y

    Do you really want me to post the loan docs you signed for a 1st mortgage, 2nd mortgage, and joint venture agreement guaranteeing me a min earned profit?  The loans were originated by my company.  Later I sold a portion of the note to a note investor but that changes nothing regarding your obligation.  There is a default clause in the note purchase as well that converts legal and financial responsibility back to me if you default within 3 months after the sale of the note.  That indeed occurred so regardless of who holds what I have a financial interest and still hold one the 2nd mortgage entirely as well as the 1st mortgage since you defaulted immediately once I sold the note.  This was already all shared with your attorney as it was part of the counterclaim I attached.

    Infinity Capital Finance4.48 Reviews
  • Investor · Elizabeth, NJ · Member since 2015 · 46 posts · 10 votes
    6y

    You own that entity smart guy, not me...Hence, you making the mortgage payments...Having me personally guarantee the loan then assume the entity is not only fraud but morally unconscionable.

    $190k, huh. Purchase of $65k and rehab of $40k. You chose the right business. Anyway, the forensic audit will uncover where those funds came from. And sending a subpoena to the company who dispersed the rehab draws will also show who financed this transition.

    I'm waiting to see the document joining these two separate transactions...Both in which you own on paper, hence the lender financing you, not me...I'm just the guy who did all the work and never got compensated.

    I notice you didn't mention the money owe me on the other property, which is a totally separate agreement. Well, you did admit to owing me. Your excuse for not paying is court costs, which are not eligible to be deducted from jv profits, and a totally different set of contracts to a property you just said you sold, but reclaimed... Interesting.

    I'll conclude by saying this, people will form their own opinions across these platforms, once all the facts are presented. Pay the people you owe. If you did, you wouldn't be responding to such post. Or, having to pay lawyers and prepare for trials

  • Member since 2021 · 6 posts · 0 votes
    5y

    He has duped me as well. Don't do business with this guy.

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