Am I being too trusting?
Good morning fellow Investors!
So I needed some input into a situation right now from some experienced Investors.
I purchased my first real estate deal that I will be flipping in 3-6 months with a contractor doing all the work. I put in everything I have into the deal. The contractor came recommended from a wholesaling company that apparently recommends him to most investors.
So I hand the Contractor 12k for a deposit on a 80k job. I'm thinking, "What a great guy, since he isnt charging me the 20% deposit that most contractors have told me they charge".
Today, we are now 4 weeks since I purchased the property and the contractor has changed the date of when the permit would be in our hands about 4 times. He has promised to send workers over for to the property to at least start clean up about 4 times as well, and no one has been to the property.
So I ask the contractor about 2 weeks ago to email me the plans from the architect so I can at least see what is being submitted to the city. I ask him about 3 times, and he says he will, and I never get anything.
Finally, I decide to call the city myself since the contractor refuses to email me any documentation of the process. The city tells me that NO application has even been started for the property, and we are now 4 weeks in! I get pissed, I call the guy, and I tell him to cut the sh*t. I tell him that I called the city and that he hasnt even started the process! He starts telling me that he is in negotiations for a permit with someone in the city through the "backend" in order to get things done faster. He tells me NOT to go to the city, cuz if I do, I could mess up what he is doing in the backend.
He reassures me, says he is a reputable company, and he himself has 7 kids, and he wouldn't do this to me and my family. Frankly, the way he is talking, I want to believe him. He tells me to give him till Monday. So I give him the benefit of the doubt.
Honestly, I don't want to believe that he is maliciously attempting to rob me or anything of the sort. I talk to the agent that recommended him, and he says that right now, the contractor seems to be overbooked. But, I do feel like he is lying to me about doing the permit process in the backend, and instead of telling me that maybe he hasn't had time to even start the process, he has been lying to me this whole time about even starting the process, because I have NEVER heard of government employees bypassing the process dictated by the government, just to help someone out.
I have sought legal advice and I told this contractor, if he didn't show me at least SOME evidence on Monday of the process, we will part ways. How do you guys feel I should handle it? Have I handled it properly so far? What is your opinion as a seasoned investor?
Thank you for your time!