Need advice on flip and sell.
I purchased a 2unit building to flip and sell June 2021. Since purchasing I am only 30% done with the rehab project. I have not had a good experience with the GC or hard money lender. I am at a profit loss so I decided to wholesale the property as is. I have an interested investor who wants to take over(all Chicago permits are paid and architectural drawings are paid). Now the GC states that I owe them money for labor. The last draw money given to me was 12k which I forwarded to the GC to complete the next scope of work which is not completed. The GC gives me the invoice which includes all labor and materials and that’s it. I send the invoice to the lender and then they quick back the money, I forward to the GC. How can I protect myself from the GC or is this legal? I had no idea how the GC was getting paid. I thought it was from the money that is given from the draw request. Any advice, this is holding up the sell. Thanks
- Real Estate Broker
- 1658 N. Milwaukee Ave Ste B PMP 18969 Chicago, IL 60647
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@Chershauna Dorsey you should probably be touching base with a good attorney at this point to make sure you know what you are doing. A GC can put a lien on your property and freeze your ability to sell the property. Normally a GC is paid in installments from the title company after an inspection. To get paid, the GC typically has to do lien waivers for all subs and there is more paperwork you have to do as well. Either way, the next call is almost definitely to an attorney so you make sure you get this right.
Quote from @John Warren:
@Chershauna Dorsey you should probably be touching base with a good attorney at this point to make sure you know what you are doing. A GC can put a lien on your property and freeze your ability to sell the property. Normally a GC is paid in installments from the title company after an inspection. To get paid, the GC typically has to do lien waivers for all subs and there is more paperwork you have to do as well. Either way, the next call is almost definitely to an attorney so you make sure you get this right.
Thank you! I will reach out.
