General contractor not performing

[John Chan]

Hi BP community,

I am an out of state investor doing a BRRRR in Cleveland OH. I've purchased a property back in July and hired a contractor to rehab the unit. I've paid the contractor $12,900 for 50% down payment of the project in July, and the other 50% are due after the rehab is completed. It was suppose to be a 6 days rehab, and the contractor has done almost nothing to the property (beside painting the exterior of the house). The contractor told many lies about the rehab work is in process, but in reality there's no progression. And he is now avoiding all communications including phone, text, and email. Any advice on how should I proceed to get my 50% down payment back?

Thanks for your input in advance!

[David Terbeek]

You could have an attorney contact them with a demand for a refund or settlement.  Of course, you have to pay the attorney so you may be throwing more money after bad if they not collectible.  Some of these small contractors are basically bankrupt day to day, taking your deposit to finish the last job.  In the end, you may need to chalk that up as a loss as others have said.  Please share contractor name!