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Re: Partner Opportunities by SummitCapital Partners
I am planning to invest with Summit Capital Partners LLC, a company in seattle who provide partnering opportunities. Here are some of my questions.
1. Has anyone worked with them in the past that can vouch for them? I have met them in person and when to their office but still would like to know if someone worked with them personally
2. How do I get the agreement reviewed by an attorney? Can I just find a WA state attorney online and get the agreement reviewed?
3. I am planning to invest in a venture that is an office location. How do I go about researching that? Houses I understand but no idea how to research about office location.
Thanks !
SummitCapital link to their site
What is your experience dealing with Summit Capital? I'm very interested in also investing with them?
Unfortunately, I chose not to invest with them.
From my research:
I sincerely tried hard to find more about them but could not find a lot about them. Then I researched about James Thorpe who they said was their wonderful architect. I saw some red flags and some complaints about how they handled some construction with asbestos in the house. But that was one instance so did not think too much about it.
So, I met with the team in Seattle office. I saw their slide deck for different projects and the numbers were ridiculously too good to be true. I asked them about their prev investments. I learned that they were previously called Northlake Capital + Development LLC. Looks like many of their JV projects simply got foreclosed on and their investors got hurt pretty badly. You can't find much on google, they must have paid someone to manage their reputation. The only thing I could find is a complaint https://dfi.wa.gov/documents/s...
Maybe they are better now? I did not know them personally so I am not sure. But things did not feel right to me so I backed out.
Again this is just based on my research. Please do your own due diligence about this and not take my opinion at face value. All the best
#5 All Forums Contributor
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#5 All Forums Contributor
- Real Estate Agent
- 🌧️ Seattle Investor & OG HouseHacker | 🤑 Helped 90 Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | 🏗️ Built 5 DADU's
Disclosure - I've never invested with Summit Capital Partners but know their projects, and know a few investors who have put money in. All the people I know that invested with them invested pretty recently, so too early to see what the results are.
Looking at their numbers "too good to be true" is accurate. My concerns with them would be:
1. They have changed business names and had (I believe multiple) bankruptcies in the past
2. They claim returns that would make any investor salivate, but market towards new investors with small investments required ($50k for instance). If the returns are so good I would assume they could target higher net worth individuals, and the fact that they cobble together a bunch of beginners $50k investments is a red flag for me.
3. If they hit their numbers they would be leaving hundreds of thousands of dollars on the table by financing with equity instead of debt. Any investor with this track record should have access to debt at 10% interest with 1-2 points, or potentially even less for someone their size. The fact that they're not taking debt makes me think they know something you don't.
As with all things, if you feel like you're being pitched or sold, you probably are.
@Michael Haas, I'm VERY interested to hear back about the folks you know that have invested. ANY feedback will be appreciated. My brother in law works for them, absolutely loves his job and his employer, so very hard to be objective about deciding to invest. I fit their demographic as far as being new to investing and not having much to invest, so I feel like it's the easiest and best way for me to jump in, but your concerns have me listening. I've met Jim and Chris, both on informal basis's at the Haunted House which was a great fundraiser for Northwest Harvest and then as a guest at the suite for a Kraken Game (had my own tickets, just got a guest pass to the suite to hang out with my in laws). Easy to get along with, easy to talk to. Part of what makes them good salesmen obviously. Literally trying to dig up dirt to help me stay objective and realistic, found this thread.
@Doug Stankavich
I know nothing of the company - so I do not know about their capital raising.
How are they raising their $ is my ?
Hopefully they changed their fundraising efforts as it appears based on link above they were fined $85k by the state with their former company.
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#5 All Forums Contributor
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@Doug Stankavich I talked to my clients about their experience with Summit. They told me "So far still overall optimistic, but of course not without its hurdles. Our project has been pushed out quite a bit, but as far as I can tell all for legitimate reasons with permitting delays and market shifts. We were originally targeting a September 2022 completion date, but now it looks like the front house will be completed April 2023 and the main mid-summer 2023 for the DADU."
Since their project is running longer than anticipated they can't speak to the ROI yet and whether they're going to make the return that was projected / advertised.
@Doug Stankavich and anyone else that might be interested. I invested with Summit Capital in late October of 2022 as a 50 percent owner. The property closed in early December. They were offering interest payments of 7.5% until construction is completed. They took our initial investment and have never paid any interest yet. It's almost time for the third payment due. It's always a runaround excuse if I can even get a hold of anyone. They do not answer the office phone at all and hardly can get a response by text or email. Summit Capital approaches sellers that have owned their properties for a long time, so they have a lot of equity or own the property outright. They get seller financing with a low down payment. Today, I reached out to the seller of the property we have invested in and they have not received their monthly payments yet either. I had my attorney review the LLC agreement before hand, which we made a few changes to, but nothing really stuck out as a red flag individually. Now that I am digging deeper, I would not recommend this company to invest with as we have had a poor experience. I would love to hear from anyone else who has invested and hopefully there are some positive ones out there!
@Rayna Hahn, thank you. First person to say they’ve invested. Interested to hear any updates. You’re feedback is very much appreciated.
You're welcome @Doug Stankavich. I wish it was more positive, but at least it lets everyone here know how it has gone for us. I will post any updates here in this thread.
I just wanted to give an update. I was able to get in contact with the owner of Summit Capital and he responded back to me quickly. All of our missing payments have been caught up and I am feeling more optimistic about our project moving forward.
Thank you Rayna, that is VERY encouraging news, especially for you! I'm still a little gun shy about it, but I'm glad that things are better for you and it does help to encourage me to continue considering it.
I have invested around Oct 2021 and Summit Capital has missed their commitment. We were supposed to be paid within 8 months with 40% guaranteed returns and till date we haven't gotten a penny. They sold highly about the owner Jim, his experience and he even personally guaranteed the investment. We reviewed some of the past closures that were impressive.
After almost 2 years, we aggreed for an adjusted reduced guaranteed payout and even that schedule was not honored. An amendment was suggested by owner which was not honored too. I went to meet them yesterday at the location as they do not communicate or answer phone calls and the owner's voice while talking to me was not pleasant. We are discussing amicable resolution now and I will keep this thread updated if anything changes part of the ongoing dialogue.
Quote from @Rayna Hahn:
I just wanted to give an update. I was able to get in contact with the owner of Summit Capital and he responded back to me quickly. All of our missing payments have been caught up and I am feeling more optimistic about our project moving forward.
Rayna - are your payments still on track? Our experience has been unpleasant so far.
Update from my limited experience: My brother-in-law no longer works there due to very confusing and shady communication or lack thereof. Essentially echoing everyone's frustrations above.
Doug Stankavich- I just sent you a PM.
Quote from @Santosh Ameti:
Quote from @Rayna Hahn:
I just wanted to give an update. I was able to get in contact with the owner of Summit Capital and he responded back to me quickly. All of our missing payments have been caught up and I am feeling more optimistic about our project moving forward.
Rayna - are your payments still on track? Our experience has been unpleasant so far.
@Santosh Ameti I just sent you a PM
Quote from @Doug Stankavich:
Update from my limited experience: My brother-in-law no longer works there due to very confusing and shady communication or lack thereof. Essentially echoing everyone's frustrations above.
I just sent you a PM
Santosh,
In our deal, we are receiving interest payments and they have been paid every month although I have to send an email almost every time to remind them. Only two payments I did not have to send a reminder and it was never set up for ACH although I have asked several times. You can also send me a personal message if you would like.
Quote from @Rayna Hahn:
Santosh,
In our deal, we are receiving interest payments and they have been paid every month although I have to send an email almost every time to remind them. Only two payments I did not have to send a reminder and it was never set up for ACH although I have asked several times. You can also send me a personal message if you would like.
I have also invested with them and it has been two years of run around. I am currently looking at having a lawyer review all previous contracts. The last agreement which I didn’t sign was monthly payments. This didn't included interest payment just the principal which he borrowed. The contract vaguely stated interest payments would be paid at a later time. After properties sold. However the last conversation was that summit would like to hold properties.
Jamie,
You can also message me privately if you would like to speak further. I would love to hear more about your situation. I am sorry you are going through this!