Private Lending & Conventional Mortgage Advice

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Kevin Tillery
  • Investor
  • Elizabeth, NJ
10
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46
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SEAN RICHWAY CFRE INVESTMENT FLIPS INFINITY CAPITAL FINANCE

Kevin Tillery
  • Investor
  • Elizabeth, NJ
Posted Dec 6 2019, 06:53

I'm writing you to save you and yours from dealing with a thief, a liar and a fraud. Read the entire message and inform everyone you know to prevent others from experiencing such financial loss.

On 3/26/19 Sean Richway (who was fined in March of 2019 for violating real estate related laws in Essex County [https://newyork.cbslocal.com/2019/03/27/forgotten-families-landlord-2/]) entered into a joint venture agreement to share in profits upon the sale of an asset located in Roselle, NJ. Sixty percent to the me, and forty percent to Sean Richway. Prior to this ratified arrangement, roughly around 11/1/2018, I was contracted to purchase the above mentioned asset solely, without the “partnership” of Sean Richway. Ultimately, Sean Richway persuaded me to allow Sean and his company, CFRE Investment Flips I NJ Corp to become the buyer. Now, I see this was done with the intent to defraud and steal.

Once the property was acquired, I renovated the asset to the point of bearing a fair market price. In addition, I sourced a buyer that ultimately purchased this asset. Approximately a week prior to settlement, I asked Sean Richway via email for just compensation on the day of close. Sean responded very arrogantly and denied payment. I responded by sending Sean Richway appropriate wire instructions, which was never requested at any point from Sean, which gave me proof of Sean's intent to commit the fraud and theft I'm dealing with now. I also informed everyone associated with this transaction, including Sean's appointed title company, that the JV agreement and the addendum between Sean Richway and myself will be recorded at the county recorder to make sure my funds aren't stolen. Sean's response was that my profits gain for rehabbing and selling the Roselle asset will be used for Sean's legal fees and losses on another property not associated with this deal.

On 10/29/19, Sean's lawyer mailed a letter that violates false or misleading statements, hiding evidence, failing to disclose all relevant facts, and arguing a position while neglecting to disclose prior law which might counter the argument in an attempt to retain my portion of the JV profit split. This letter was coincidentally sent around the time I requested payment for my lawful profit share... The premise of these letters state his client, Sean Richway of CFRE Investment Flips I NJ Corp and Infinity Capital Finance is essentially lawfully allowed to commit multiple crimes within the jurisdiction of New Jersey. One of these crimes are theft by unlawful taking, committed on 10/29/19. On this day, Sean Richway and I should have concluded our signed contractual obligation by wiring me 60% of the net proceeds; $25,388 (which includes $2,600 that I paid out of pocket, which hasn't been reimbursed) from the sale of the asset on 10/28/19. Or, $39,596 when eliminating the unconscionable 3% management fee clause (a very sneaky way to increase Sean's equity split even though he did not manage the asset in any month from purchase to resell...). These figures are derived from the HUD/CD net proceeds Sean Richway received in the amount of $108.086.41 on 10/28/19.

At his point, Sean’s unlawfully and illegally withholding money not owed to or owned by him. Sean’s desire to commingle funds, pay for his lawyer fees, offset different property expenses, satisfy debts or investment losses, etc is wrong, unethical and more than enough for you to avoid him and his companies at all costs. There's absolutely no such signed document in existence to support Sean’s choice of taking and keeping my $25,388-39,596.

Rather than figuring this out like men - Sean chooses to hide and not respond to text messages or emails. So, I'll have to use the government to find him and bring him justice... Speaking of an unscrupulous act, Sean Richway agreed to allow a woman to go without heat in her apartment during a Jersey winter...See article above.

DO NOT waste your time with this guy. Sean Richway, CFRE Investment Flips I and/or Infinity Capital

Finance isn't honorable. I’ve never dealt with such a person and company...I urge you to STAY AWAY! Hopefully, I've saved you and your family, friends, colleagues, partners, contacts, affiliates, etc. from dealing with such drama, deceit, fraudulent dealing, stealing and being unresponsive during times of concern. Real estate is too lucrative and fun to deal with such scumbags and crooks like Sean Richway and his companies.

Happy investing! If, you avoid Sean Richway...

INVESTORS BEWARE!!!

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Mark F.
  • Rental Property Investor
  • Bergen County, NJ
360
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469
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Mark F.
  • Rental Property Investor
  • Bergen County, NJ
Replied Dec 6 2019, 10:45

@Kevin Tillery Looks like this isnt the first time.

https://www.biggerpockets.com/forums/22/topics/618398-buyer-beware-infinity-capital-finance-sean-richway

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Gaspare U.
  • Rental Property Investor
  • Cranford, NJ
147
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245
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Gaspare U.
  • Rental Property Investor
  • Cranford, NJ
Replied Dec 7 2019, 18:13

This is a fear most people have. What precautions can an investor take to make sure that a Syndicator/GP doesn’t have the power to just see a property and keep all the profits, or doesn’t take the upfront investments and never buys the property.

Reverse, what steps can a Syndicator implement to assure their investors that they couldn’t do this even if they want?

Thanks!

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Nate Marshall
  • Financial Advisor
  • Evergreen, CO
217
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439
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Nate Marshall
  • Financial Advisor
  • Evergreen, CO
Replied Dec 10 2019, 12:22

Gaspare U. 

2 items that never get said enough....

Make sure they have registered with the SEC. Verify their trust accounts and banking.

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Kevin Tillery
  • Investor
  • Elizabeth, NJ
10
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46
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Kevin Tillery
  • Investor
  • Elizabeth, NJ
Replied Mar 10 2020, 06:28

Hey. I'm suing him in NJ. Let's discuss the class action option. I would be definitely interested in being a party. 

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Sean Richway
  • Bel Air, MD
130
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1,269
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Sean Richway
  • Bel Air, MD
Replied Apr 9 2020, 19:23

@Mark F.  You can check out my responses on that post to understand what happened there.  No one was scammed there nor did I make any money on that loan but that is the nature of the business sometimes.  Your response insinuates that I took someone for their money but that is far from the actuality of what happened.

@Gaspare U.  Best advice I can give someone here is if you take out a loan make sure to see it through and pay it back.  Don't go running off trying to scam tenants out of money and then claim you got scammed.  See below for the actual details on what happened with Kevin.

@Nate Marshall I actually have a separate development company in MD, CFRE Investment Flips, LLC, that is registered with the SEC. The problem that Kevin fails to mention is these were hard money loans and not a Fund structure so there would be no SEC registration in play for his deals. On my own Fund for my development arm I provide all my investors with the PPM and SEC registration. I am very much an open book but don't like when other people mislead the public.

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.

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Sean Richway
  • Bel Air, MD
130
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Sean Richway
  • Bel Air, MD
Replied Apr 9 2020, 19:23

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...

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Mark F.
  • Rental Property Investor
  • Bergen County, NJ
360
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469
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Mark F.
  • Rental Property Investor
  • Bergen County, NJ
Replied Apr 9 2020, 19:53

@Sean Richway My response insinuates it's not the first time someone was calling you out. Dont like my post? Tough ****. Maybe you should focus more on the guys badmouthing you on a public forum and not some dude linking two threads.

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Sean Richway
  • Bel Air, MD
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Sean Richway
  • Bel Air, MD
Replied Apr 9 2020, 20:03

@Mark F.  Sounds good

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Kevin Tillery
  • Investor
  • Elizabeth, NJ
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Kevin Tillery
  • Investor
  • Elizabeth, NJ
Replied Apr 9 2020, 20:37

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...

Lastly, that counterclaim is ridiculous.For reasons that are beyond obvious to everyone but you and your lawyer - monies are owed. I'll be sure to post the trial transcript with BP, FB and other platforms that will prove, without doubt, your theft, deceit and fraud.

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Sean Richway
  • Bel Air, MD
130
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Sean Richway
  • Bel Air, MD
Replied Apr 9 2020, 20:40

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.

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Kevin Tillery
  • Investor
  • Elizabeth, NJ
10
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Kevin Tillery
  • Investor
  • Elizabeth, NJ
Replied Apr 9 2020, 21:39

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. 

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Natalie Schanne#3 Innovative Strategies Contributor
  • Real Estate Agent
  • Princeton, NJ
1,104
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961
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Natalie Schanne#3 Innovative Strategies Contributor
  • Real Estate Agent
  • Princeton, NJ
Replied Apr 10 2020, 00:08

@Kevin Tillery - sorry this happened to you. I had to file a mechanics lien in New Jersey against an LLC that did this to me, prior to closing. I got paid at closing but without the lien I doubt I would have gotten anything. I would have requested my buyer make sure there was a payout to me at closing on the hud. When I borrowed money from someone on BP and the title was solely owned by my llc, I made sure the title company received his notice of payoff and wired him money at closing so my check was only my share of the profit plus some unpaid expenses on my 0% credit card. (Otherwise he would have been chasing me down in court for 150k for enforcement of our contract — I am not an evil, unethical person).

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ROTIMI OLUWO
  • Lawrenceville, GA
18
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41
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ROTIMI OLUWO
  • Lawrenceville, GA
Replied Apr 10 2020, 01:53

Clarification from you Kevin. You had 2 JV deals. You defaulted on first 19 months .105k plus interest and rented it out without c/o and expect to be paid on the second deal while still owning over 100k? I think you are in the wrong here.

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Kevin Tillery
  • Investor
  • Elizabeth, NJ
10
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46
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Kevin Tillery
  • Investor
  • Elizabeth, NJ
Replied Apr 10 2020, 10:34

@ROTIMI OLUWO Not exactly. You're missing a lot of details... I can no longer speak publicly on these matters. 



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Replied Feb 2 2021, 12:53

He has duped me as well. I'll most likely be reporting him to Consumer Finance and going after him legally as well.