That time an investor you probably know, took me for $40,000

[Troy Knight]

Some of you have seen my posts on here and they are generally providing help to others. I'm not necessarily asking for help here, but any professional input and advice is certainly welcome. 

Last fall I began talks with an Atlanta, GA based company called Summit & Crowne Partners. Their owners, @Abhi Golhar and Walt Higgins were ecstatic to bring me on board and help facilitate the growth of a powerhouse company in charlotte that would encompass a Real Estate Brokerage which Abhi and I currently own together, a General Contracting firm, an Investment Firm, and a Project Management side for other investors. 

In December, Abhi and I started working towards opening the real estate firm in Charlotte, NC, Summit & Crowne Realty. This was realized shortly in to the new year and we hit the ground running. Shortly after this in February, I passed my General Contractors' exam. Abhi and I were both excited about the possibilities of me coming on board to take over some projects they were having trouble with; 5 in total. 

In March I started the construction of 2 spec build homes for Summit & Crowne Partners with a handshake and a verbal agreement that I could build both houses for $207,000 each and in 6 months time. They also had jump in and work on 3 remodels they had going; one in Providence Day area and 2 in Johnson C Smith University area. In the 3 months that followed that seemed like a blur considering how busy I was taking on all these projects at once, on top of my normal projects I already had going, we racked up spending amount in excess of $300,000! I had the 2 spec build homes framed and roughed in. We were ready for sheetrock when Walt, @Abhi Golhar's partner informed me that they had pissed of their investors and would essentially need to fire me. At this point they have an outstanding labor and material balance in excess of $20,000 which still hasn't been paid to date. they also have an outstanding GC fee almost equal to that which also has not been paid to date. So far for the $300,000 plus amount of work and material provided, I've been compensated a measly $10,000. I worked out a deal with Abhi and Walt early on which was a great deal for them. Instead of the projected $110,000 cost of hiring me at full  price for all projects, I decided to give them a deal of $70,000 for all projects. I've now saved them $40,000 and they are telling me they are over budget on all these houses. 2 or 3 of them, sure, they are because they had a project manager before me who apparently had free labor haha. Anyways, I've been nothing but gold for their company and i'm ahead of schedule and under budget on the 2 spec build homes I took over for them that carries a $7,500 monthly debt service EACH!!! 

I have now filed liens against all 5 of the properties that I was working on for them with the clerk of court in the name of the respective owner, Summit & Crowne Partners, LLC of Atlanta Georgia and Summit & Crowne Charlotte Reserve, LLC of Charlotte, North Carolina. My next step is to perfect the lien and file a lawsuit. I've already placed a retainer fee on deposit with my attorney in the amount of $1,000 after our $150 initial consult. She charges a whopping $200 per hour, so I'm hoping to avoid incurring any more expenses from her, but she is the necessary evil.

I guess I'm really writing this out of anger and distaste towards the folks who originally brought me in to their company with hopes and dreams as far as the eye could see. I planned on making $70,000 with this firm this year alone, so naturally I was turning down business left and right because I was so busy and didn't need/want any more income. Now I'm stuck with a $22,134.33 labor and material bill and lacking my $19,010.15 General Contractors fee based on my pay structure that again, was agreed with a handshake and a smile. Well, they did send emails confirming the pay structure, so I have that leg to stand on when we go to court. 

With any luck, this post will bring enough negative feedback for their company and we can avoid the lawsuit with a settlement (of full price of course), and I can go back to having my life back. 

In the mean time, does any one have a similar experience or any helpful hints for me as this is my first time being owed any amount of money, except for my grandma who passed away owing me $220...I guess I can write that off now :)