Made My First Rookie Mistake

Made My First Rookie Mistake

New to Real Estate · DALY CITY, CA · Member since 2019 · 24 posts · 9 votes

Hello All, 

Renovating my first property and I made a rookie mistake, a major one--I found out that my first contractor (who came recommended) is unlicensed in California!!!

I am two weeks into redoing several of the original contractor's mistakes with a LICENSED contractor, referred by several homeowners/businesses. I have surpassed my budget, but alas, things are moving in the right direction and all the wrongs are being rectified. 

I have spent a few hours perusing the CA State License Board website for FAQs or info on what to do when I've got the original unlicensed contractor pestering me via text for his final payment. Final payment for a job that was not fully completed, certainly not to my standard, no walk-through was ever done, and at this point, I am a bit scared that this person might physically confront me at the property seeking payment. 

The property locks have been changed. I have photo, text, and detailed documentation of everything done incorrectly and incompletely, which my attorney states is plenty. But this person will just not go away! 

When I crunch the numbers regarding what has to be/has been redone, the 20 days over the agreed-upon finish date this person went over--he actually owes me money! I'm just completely dodging his texts/calls at this point until I have all my photos printed and documentation completely in order. This person was paid 2/3 of the entire job, yes, I paid 1/3 cash up front rather than the 10% that I am seeing on the license board website. And I don't want anything from this person: not a dime, no repair, I just want to cut ties completely. I considered just paying him the final amount to get him out of my hair, but the only thing that stopped me is the fact that I am spending $12k to finish the entire job + clean up the original person's mess. 


I also read somewhere online that it would actually be illegal for me to pay the final installment to the original person now that I know he is unlicensed. 

I made a huge rookie costly mistake. Has anyone done anything this stupid? And what do you recommend I do? Get my attorney involved? File a formal complaint with the board (seems like this would even potentially implicate me for being so dumb in the first place)? Any websites of information recs? 


Thanks in advance! 


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Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y

Do not talk to this guy! Call the contractor board, today! Tell them what is happening and file a complaint. One of the main jobs of the board is to deal with issues like this 

https://www.dca.ca.gov/consume...

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  • New to Real Estate · DALY CITY, CA · Member since 2019 · 24 posts · 9 votes
    6y
    Originally posted by @Holden McCord:

    @Stephanie Moran

    Thanks for sharing your story. I now know to watch out for this when I get started.

    Hi there Holden! I truly hope that at least one person gains something from my experience. I was just telling my sister-in-law today, this was a lesson learned, thankfully I’m only going to be about 12k-14k over budget, but luckily with everything completely redone. I will never, ever, ever NOT do my homework beforehand. In my slight defense, it’s my first time, I was super nervous, and felt so absolutely intimidated (the fact that this guy and I didn’t even click whatsoever was a red flag). My new contractor has already gotten so much done in 2 wks, and is going above and beyond for me, probably because he feels bad that I was such an idiot. But, he’s so easy to talk to and he answers my questions, listens to me, asks for my opinion but then gently gives his professional suggestions, it’s just awesome. Today for example, he came by to pick up a payment, but stuck around to measure some things for me, give ideas, go over his tasks for tomorrow, and then we just chatted about real estate and rentals for almost an hour. I get that not everyone is that chatty, but it makes a difference when someone knows what they are doing and are willing to teach someone who doesn’t know crap about their craft. 

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