BP Community - I need some help!
I had an agreement with a general contractor for a property that I'm closing on tomorrow. All seems great. He was extremely responsive and knowledgeable and is currently working on a few projects very close by to my property. He worked with an architect to get renderings drawn up, permits submitted & approved. Now that we're closing (tomorrow!), I've been trying to get a hold of him for that past couple days to make sure we're aligned on getting the demo team ready to go and provide initial funding. He is M.I.A. - not responding.
I do NOT have a backup at the moment, and am very worried about prospects for getting this project going. Please provide any advice that you have or contractor referrals.
Non-responsive contractors are the worst thing about this business. Be reasonably patient with him but be ready to fire him and move on to another contractor. NEVER pay in advance for work. Payment upon completion of work. I've provided money for materials but I never pay for labor before work is completed.
Unless youre in a market where there is a shortage of vendors, just find a new one.
Generally, most of the rehab work in a house isnt that specialized that it would require a specific contractor.
Do you already have a signed contract with this contractor? Hopefully you didn't pay any advances. I agree with the others and start looking for other contractors. Would suggest using AIA A105 Standard Form of Agreement Between Owner and Contractor as a template for your contract.
First off, thank you very much for the feedback. It is greatly appreciated.
My contractor did end up getting in touch with me. Lesson learned, always have a back up. I am feverishly trying to find a reputable contractor. If you all have recommendations for contractors in Charlotte, I would greatly appreciate it.
Update: Contractor and I are in good standing. I will be funding material purchases up front, and funding labor post completion. His concern was over the draw system that I have in place with my hard money lender. I only have roughly 15k to start the $110k scope project. After this 15k is spent, the lender's inspector will have to go to the site and validate work has been completed before an initial draw from the lender will be provided, re-imbursing me for the 15k, and allowing us to continue with the project. His concern was him having to front the initial costs as he's been burned before.
Any thoughts on this?
Put him touch with your lender, so he is comfortable with the situation....availability of rehab money, scheduled draws, draw requirements, etc.
@Daniel Ramirez I just had to have foundation repair work completed on a duplex in Charlotte this year. The guy who did the work is J.R. (Jay) French, he's a GC and the company he runs is 360 contractor services out of Rock Hill SC. The other contact I'll give you is Kevin Stringari with Bottom Line Realty and management in Charlotte. He's an investor, realtor and owns a property management company in Charlotte. Both are good resources. Best of luck!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing