Struggles with a Columbus Contractor as a Remote Investor

Investor · Westchester, NY · Member since 2021 · 91 posts · 83 votes

Hi BiggerPockets Community,

Im reaching out to this knowledgeable and supportive group for some guidance on a situation I’m currently navigating as a remote real estate
investor.

I'm a remote investor who's recently encountered a challenging situation in Columbus, Ohio. After a successful rehab of a multi-family property, I gave a larger project to the same General Contractor. Unfortunately, the GC's responsiveness has dropped significantly, and communication is sporadic, though he does stay in touch with my realtor occasionally. We're about halfway through the project, and there's a $30k He has for work that's not yet completed (the 30k was given because he completed work prior but once he received the 30k communication diminished drastically right as winter came around! .

This situation is not only frustrating but also time-sensitive due to the looming loan deadline. I'm seeking insights from those who have navigated similar waters, especially in remote investing scenarios. How do you manage contractors and ensure project progress, particularly when
you can't be physically present and under tight time constraints?

Your insights and experiences would be incredibly valuable and much appreciated. I'm eager to learn from this community and find a way forward in this situation.

Thank you for taking the time to read and share your thoughts!

2 Reply

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Caroline Gerardo

Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes

Time to take leave from your family and job and go there. Cambria hotel is $78 a night make a deal with them. Do you have his home address? Show up at his house at 6:30 AM in the snow with your boots on ready to work with him to complete. A breakfast burrito for him in your hand. He's going to stammer and be embarrassed and have excuses but you married him, time to get him cooking bacon or if he is mortally injured to release all liens and get someone else started today.

Others suggest an attorney - sure spend $70000 and waste time in court, that avenue is going to take thirteen months. You cannot leave the subject property half completed. Bad guys will break in and wreck everything. Have Amazon send you security cameras and some dummy ones to the hotel so they are there when you arrive. Borrow a ladder from your GC and install them and practice the app with your phone. Let him know you have someone coming daily to monitor progress and you have eyes on the driveway as well. IF he is dishonest those cameras disappear when you leave town.

Interview new sub contractors at Modern Builders on 5th/ and Columbus Builders on 3rd/ and Home Depot on Hamilton Rd. The $30000 might be gone for now BUT you MUST get completed. Your Realtor can recommend an honest person to be your project manager- the job requires a notebook, cell phone and to go to the subject property for 30 minutes at different times 7 days a week. This person logs who is working, what supplies are there and texts you - progressing yes or no daily. You are going to have to pay the person by venmo or something weekly to keep them reporting and taking photos.

The cost to extend your loan may be in the thousands. Carry costs, liability, theft, and weather are against you. It's 54 degrees there today so bring warm casual clothing, work boots, rubber boots.

Don't respond that you cannot go there. You chose this and you have the guts to see it through. Do it.

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Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
2y
Quote from @James Luctamar:

Hi BiggerPockets Community,
Im reaching out to this knowledgeable and supportive group for some guidance on a situation I’m currently navigating as a remote real estate
investor.

I'm a remote investor who's recently encountered a challenging situation in Columbus, Ohio. After a successful rehab of a multi-family property, I gave a larger project to the same General Contractor. Unfortunately, the GC's responsiveness has dropped significantly, and communication is sporadic, though he does stay in touch with my realtor occasionally. We're about halfway through the project, and there's a $30k He has for work that's not yet completed (the 30k was given because he completed work prior but once he received the 30k communication diminished drastically right as winter came around! .

This experience has been quite frustrating, and I'm reaching out for advice from those who've dealt with similar situations, especially in remote investing. How do you manage and monitor your projects from afar when things are starting to go left, especially when facing communication and progress issues with contractors?

Your insights and experiences would be incredibly valuable and much appreciated. I'm eager to learn from this community and find a way forward in this situation.

Thank you for taking the time to read and share your thoughts!

So you pre-paid the $30k for the work and now he's essentially ghosting you?
I would try to continue to call him and get a hold of him non stop and from other numbers. He needs to know you're on top of him. You should engage an attorney if you truly think he's "ran off" with your money. You can maybe try dangling some future work in front of his face and see if he'll get his act together to finish up this 30k project and then just don't give him anything in the future.
Overall, having a boots on the ground project manager (such as paying your property management company 10% project management fee) is really the best way to go about it. If you're not doing that, then you really need an unbiased person on the ground reporting objective facts to you. I've had contractors say they finished painting the entire house only and send one photo of the painted front, only to find out the sides/back weren't painted. Plus contractors will always try to use scare tactics to get you to pay or keep paying more since they know you're out of state and are not checking up on stuff. If you absolutely do not have a project manager, then flying out for certain "stages" of the project to sign off on the repairs/quality is another recommended way. Photos can be very misleading vs walking the property.
Usually the best way to prevent this chaos is by getting a GC who has been referred to you and vetted by several trusted folks (property manager, realtor, etc.). Sorry you're in this situation. Hopefully you can pressure him to get this 30k project finished.
[email protected]614-363-2787
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James Luctamar
OP
Investor · Westchester, NY · Member since 2021 · 91 posts · 83 votes
2y
Quote from @Marc Rice:

Quote from @James Luctamar:

Hi BiggerPockets Community,
Im reaching out to this knowledgeable and supportive group for some guidance on a situation I’m currently navigating as a remote real estate
investor.

I'm a remote investor who's recently encountered a challenging situation in Columbus, Ohio. After a successful rehab of a multi-family property, I gave a larger project to the same General Contractor. Unfortunately, the GC's responsiveness has dropped significantly, and communication is sporadic, though he does stay in touch with my realtor occasionally. We're about halfway through the project, and there's a $30k He has for work that's not yet completed (the 30k was given because he completed work prior but once he received the 30k communication diminished drastically right as winter came around! .

This experience has been quite frustrating, and I'm reaching out for advice from those who've dealt with similar situations, especially in remote investing. How do you manage and monitor your projects from afar when things are starting to go left, especially when facing communication and progress issues with contractors?

Your insights and experiences would be incredibly valuable and much appreciated. I'm eager to learn from this community and find a way forward in this situation.

Thank you for taking the time to read and share your thoughts!

So you pre-paid the $30k for the work and now he's essentially ghosting you?
I would try to continue to call him and get a hold of him non stop and from other numbers. He needs to know you're on top of him. You should engage an attorney if you truly think he's "ran off" with your money. You can maybe try dangling some future work in front of his face and see if he'll get his act together to finish up this 30k project and then just don't give him anything in the future.
Overall, having a boots on the ground project manager (such as paying your property management company 10% project management fee) is really the best way to go about it. If you're not doing that, then you really need an unbiased person on the ground reporting objective facts to you. I've had contractors say they finished painting the entire house only and send one photo of the painted front, only to find out the sides/back weren't painted. Plus contractors will always try to use scare tactics to get you to pay or keep paying more since they know you're out of state and are not checking up on stuff. If you absolutely do not have a project manager, then flying out for certain "stages" of the project to sign off on the repairs/quality is another recommended way. Photos can be very misleading vs walking the property.
Usually the best way to prevent this chaos is by getting a GC who has been referred to you and vetted by several trusted folks (property manager, realtor, etc.). Sorry you're in this situation. Hopefully you can pressure him to get this 30k project finished.

Hey Marc,
Thank you so much for taking the time to share your insights. Your advice is incredibly valuable, and I appreciate your empathy for my situation.

To provide a bit more context, the overall project is around $120k, and I've already disbursed close to $90k in draws. It's this last draw, which brought the total to $90k, where I've noticed a significant slowdown in communication and progress. The situation is indeed challenging, and I understand the importance of having someone on the ground. Unfortunately, I realized this need a bit late in the process.

Your suggestion of continuous follow-up and considering legal action if necessary is noted.Thank you!
1 Reply
Nancy C.
Member since 2024 · 8 posts · 4 votes
2y
I did a condo remotely in Florida from the UK. I kind of had a similar situation. But before leaving ( i had to go back family emergency) I hired a friend. Gave a kitty to her of 3 k to go check on the property from time to time to report progress and deduct from it each time.
In my contract there was a specific payment timeline as per the works being done. We followed that. However they still did lag and it wasn't until I got back out there to actually get it done. It took another month for them to final fix things even though they said it would be done. First by Sept, then December. Then I arrived in January, and it took another month to finish. I negotiated a reduction in fee due to not meeting the deadline which they granted. I didn't need to consult a lawyer, but they were worried about their reputation. My suggestion is that you need to go there an sort it out and given that you paid a chunk up front, hire an lawyer. I don't know what your contract with him says but you need to, as well as getting him to refund it to move on, maybe get him to release a lien on your property if there is a permit involved and if he made the application for you. If you move on you will need to get this released.
2 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
2y
Quote from @James Luctamar:

Hi BiggerPockets Community,

Im reaching out to this knowledgeable and supportive group for some guidance on a situation I’m currently navigating as a remote real estate
investor.

I'm a remote investor who's recently encountered a challenging situation in Columbus, Ohio. After a successful rehab of a multi-family property, I gave a larger project to the same General Contractor. Unfortunately, the GC's responsiveness has dropped significantly, and communication is sporadic, though he does stay in touch with my realtor occasionally. We're about halfway through the project, and there's a $30k He has for work that's not yet completed (the 30k was given because he completed work prior but once he received the 30k communication diminished drastically right as winter came around! .

This situation is not only frustrating but also time-sensitive due to the looming loan deadline. I'm seeking insights from those who have navigated similar waters, especially in remote investing scenarios. How do you manage contractors and ensure project progress, particularly when
you can't be physically present and under tight time constraints?

Your insights and experiences would be incredibly valuable and much appreciated. I'm eager to learn from this community and find a way forward in this situation.

Thank you for taking the time to read and share your thoughts!

I'd start focusing on new construction for that exact reason. Everything we do in COlumbus is structured with vetted subs that are fully transparent. Numbers still work like flips just without managing people like that. Report him is the best you can do. He probably has an HIC license not a General Contractor license in Columbus if he pulled permits. If you didn't pull permits on the job and you hired unqualified business then I don't feel bad for you unfortunately.
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Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
2y
Pay your realtor or someone local to manage it part time. Get on site with your contractor asap and get aligned on remaining scope and timelines. If he's MIA, get another contractor to finish the job. OOS rehab with a large job for part time investors like us without scale is the riskiest and hardest strategy discussed on BP. Heck, it's hard to do when local.
5 Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
@James Luctamar what job can you get that will pay you in advance for labor you haven't performed yet?
Not many!
But, contractors expect and often demand it.
Yes, they have valid reasons, but only if they are large, established companies. 1-10 man operations are not large and most aren't established.
So, you should avoid as much as possible fronting money to contractors for labor!
Instead, you can pay for materials as they are obtained. Most supply houses, including Home Depot, allow you to pay over the phone. Contractor orders materials, send you the quote, you review to make sure they aren't padding it for materials for other jobs, and then you call and arrange payment with the supply house.
Yes, this arrangement won't be accepted by 50%+ of contractors, but you are already experiencing the alternative!
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1 Reply
Caroline Gerardo
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
2y
Time to take leave from your family and job and go there. Cambria hotel is $78 a night make a deal with them. Do you have his home address? Show up at his house at 6:30 AM in the snow with your boots on ready to work with him to complete. A breakfast burrito for him in your hand. He's going to stammer and be embarrassed and have excuses but you married him, time to get him cooking bacon or if he is mortally injured to release all liens and get someone else started today.
Others suggest an attorney - sure spend $70000 and waste time in court, that avenue is going to take thirteen months. You cannot leave the subject property half completed. Bad guys will break in and wreck everything. Have Amazon send you security cameras and some dummy ones to the hotel so they are there when you arrive. Borrow a ladder from your GC and install them and practice the app with your phone. Let him know you have someone coming daily to monitor progress and you have eyes on the driveway as well. IF he is dishonest those cameras disappear when you leave town.
Interview new sub contractors at Modern Builders on 5th/ and Columbus Builders on 3rd/ and Home Depot on Hamilton Rd. The $30000 might be gone for now BUT you MUST get completed. Your Realtor can recommend an honest person to be your project manager- the job requires a notebook, cell phone and to go to the subject property for 30 minutes at different times 7 days a week. This person logs who is working, what supplies are there and texts you - progressing yes or no daily. You are going to have to pay the person by venmo or something weekly to keep them reporting and taking photos.
The cost to extend your loan may be in the thousands. Carry costs, liability, theft, and weather are against you. It's 54 degrees there today so bring warm casual clothing, work boots, rubber boots.
Don't respond that you cannot go there. You chose this and you have the guts to see it through. Do it.
7 Reply
David F.
Member since 2018 · 113 posts · 135 votes
2y
Quote from @Caroline Gerardo:

Time to take leave from your family and job and go there. Cambria hotel is $78 a night make a deal with them. Do you have his home address? Show up at his house at 6:30 AM in the snow with your boots on ready to work with him to complete. A breakfast burrito for him in your hand. He's going to stammer and be embarrassed and have excuses but you married him, time to get him cooking bacon or if he is mortally injured to release all liens and get someone else started today.
Others suggest an attorney - sure spend $70000 and waste time in court, that avenue is going to take thirteen months. You cannot leave the subject property half completed. Bad guys will break in and wreck everything. Have Amazon send you security cameras and some dummy ones to the hotel so they are there when you arrive. Borrow a ladder from your GC and install them and practice the app with your phone. Let him know you have someone coming daily to monitor progress and you have eyes on the driveway as well. IF he is dishonest those cameras disappear when you leave town.
Interview new sub contractors at Modern Builders on 5th/ and Columbus Builders on 3rd/ and Home Depot on Hamilton Rd. The $30000 might be gone for now BUT you MUST get completed. Your Realtor can recommend an honest person to be your project manager- the job requires a notebook, cell phone and to go to the subject property for 30 minutes at different times 7 days a week. This person logs who is working, what supplies are there and texts you - progressing yes or no daily. You are going to have to pay the person by venmo or something weekly to keep them reporting and taking photos.
The cost to extend your loan may be in the thousands. Carry costs, liability, theft, and weather are against you. It's 54 degrees there today so bring warm casual clothing, work boots, rubber boots.
Don't respond that you cannot go there. You chose this and you have the guts to see it through. Do it.
Every OOS BRRRR investor should read this as a requirement before investing. My local market suddenly looks a lot more attractive.
2 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
2y
Quote from @James Luctamar:

Hi BiggerPockets Community,

Im reaching out to this knowledgeable and supportive group for some guidance on a situation I’m currently navigating as a remote real estate
investor.

I'm a remote investor who's recently encountered a challenging situation in Columbus, Ohio. After a successful rehab of a multi-family property, I gave a larger project to the same General Contractor. Unfortunately, the GC's responsiveness has dropped significantly, and communication is sporadic, though he does stay in touch with my realtor occasionally. We're about halfway through the project, and there's a $30k He has for work that's not yet completed (the 30k was given because he completed work prior but once he received the 30k communication diminished drastically right as winter came around! .

This situation is not only frustrating but also time-sensitive due to the looming loan deadline. I'm seeking insights from those who have navigated similar waters, especially in remote investing scenarios. How do you manage contractors and ensure project progress, particularly when
you can't be physically present and under tight time constraints?

Your insights and experiences would be incredibly valuable and much appreciated. I'm eager to learn from this community and find a way forward in this situation.

Thank you for taking the time to read and share your thoughts!

You will most likely have to cut your losses and hire another person to do the job
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Jacob Sherman
12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
2y
what was the 30k for ? were they deposits or have actual material on site now in return for the money . If yes can hire another contractor . Do you know if they're working on other projects and delaying yours ?
0 Reply
James Luctamar
OP
Investor · Westchester, NY · Member since 2021 · 91 posts · 83 votes
2y
Quote from @Nancy C.:

I did a condo remotely in Florida from the UK. I kind of had a similar situation. But before leaving ( i had to go back family emergency) I hired a friend. Gave a kitty to her of 3 k to go check on the property from time to time to report progress and deduct from it each time.
In my contract there was a specific payment timeline as per the works being done. We followed that. However they still did lag and it wasn't until I got back out there to actually get it done. It took another month for them to final fix things even though they said it would be done. First by Sept, then December. Then I arrived in January, and it took another month to finish. I negotiated a reduction in fee due to not meeting the deadline which they granted. I didn't need to consult a lawyer, but they were worried about their reputation. My suggestion is that you need to go there an sort it out and given that you paid a chunk up front, hire an lawyer. I don't know what your contract with him says but you need to, as well as getting him to refund it to move on, maybe get him to release a lien on your property if there is a permit involved and if he made the application for you. If you move on you will need to get this released.
Thank you for this,
Pretty difficult to get him to release a lien with someone being unresponsive. As well as lawyer fees. Any suggestions for that?
0 Reply
James Luctamar
OP
Investor · Westchester, NY · Member since 2021 · 91 posts · 83 votes
2y
Quote from @Caroline Gerardo:

Time to take leave from your family and job and go there. Cambria hotel is $78 a night make a deal with them. Do you have his home address? Show up at his house at 6:30 AM in the snow with your boots on ready to work with him to complete. A breakfast burrito for him in your hand. He's going to stammer and be embarrassed and have excuses but you married him, time to get him cooking bacon or if he is mortally injured to release all liens and get someone else started today.
Others suggest an attorney - sure spend $70000 and waste time in court, that avenue is going to take thirteen months. You cannot leave the subject property half completed. Bad guys will break in and wreck everything. Have Amazon send you security cameras and some dummy ones to the hotel so they are there when you arrive. Borrow a ladder from your GC and install them and practice the app with your phone. Let him know you have someone coming daily to monitor progress and you have eyes on the driveway as well. IF he is dishonest those cameras disappear when you leave town.
Interview new sub contractors at Modern Builders on 5th/ and Columbus Builders on 3rd/ and Home Depot on Hamilton Rd. The $30000 might be gone for now BUT you MUST get completed. Your Realtor can recommend an honest person to be your project manager- the job requires a notebook, cell phone and to go to the subject property for 30 minutes at different times 7 days a week. This person logs who is working, what supplies are there and texts you - progressing yes or no daily. You are going to have to pay the person by venmo or something weekly to keep them reporting and taking photos.
The cost to extend your loan may be in the thousands. Carry costs, liability, theft, and weather are against you. It's 54 degrees there today so bring warm casual clothing, work boots, rubber boots.
Don't respond that you cannot go there. You chose this and you have the guts to see it through. Do it.

Thank you so much!
Going there might be the best way, any tactics on getting someone to meet when they are unresponsive in the first place?
0 Reply
James Luctamar
OP
Investor · Westchester, NY · Member since 2021 · 91 posts · 83 votes
2y
Quote from @Jacob Sherman:

what was the 30k for ? were they deposits or have actual material on site now in return for the money . If yes can hire another contractor . Do you know if they're working on other projects and delaying yours ?

There were in draws they have completed the first two phases then we gave them a draw for the third phase and then they went unresponsive.. Only issue for me about hiring another contractor is they pulled permits so I believe they can put a contractors lien on the property.
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @James Luctamar:

Hi BiggerPockets Community,

Im reaching out to this knowledgeable and supportive group for some guidance on a situation I’m currently navigating as a remote real estate
investor.

I'm a remote investor who's recently encountered a challenging situation in Columbus, Ohio. After a successful rehab of a multi-family property, I gave a larger project to the same General Contractor. Unfortunately, the GC's responsiveness has dropped significantly, and communication is sporadic, though he does stay in touch with my realtor occasionally. We're about halfway through the project, and there's a $30k He has for work that's not yet completed (the 30k was given because he completed work prior but once he received the 30k communication diminished drastically right as winter came around! .

This situation is not only frustrating but also time-sensitive due to the looming loan deadline. I'm seeking insights from those who have navigated similar waters, especially in remote investing scenarios. How do you manage contractors and ensure project progress, particularly when
you can't be physically present and under tight time constraints?

Your insights and experiences would be incredibly valuable and much appreciated. I'm eager to learn from this community and find a way forward in this situation.

Thank you for taking the time to read and share your thoughts!

Welcome to the world of real estate investing. I have extensive experience in the Cleveland markets have done about 500, yes 500 deals there 1ks of reno/repairs and 1ks of move in and outs. So my team in solid. I have a good buddy in Columbus he is one of the top " players" there owing about 260 props, not bad for a 35-year-old. So I am certain he can help. Feel free to reach out , let me see what I can do. Oh I also have a GC as well there. So between the two of them we can get it sorted out. Not keep in mind the money you already gave your current maybe gone, ( it happens) so you may take a loss on this but get it done.
All the best
1 Reply
James Luctamar
OP
Investor · Westchester, NY · Member since 2021 · 91 posts · 83 votes
2y
Quote from @Bob S.:

Quote from @James Luctamar:

Hi BiggerPockets Community,

Im reaching out to this knowledgeable and supportive group for some guidance on a situation I’m currently navigating as a remote real estate
investor.

I'm a remote investor who's recently encountered a challenging situation in Columbus, Ohio. After a successful rehab of a multi-family property, I gave a larger project to the same General Contractor. Unfortunately, the GC's responsiveness has dropped significantly, and communication is sporadic, though he does stay in touch with my realtor occasionally. We're about halfway through the project, and there's a $30k He has for work that's not yet completed (the 30k was given because he completed work prior but once he received the 30k communication diminished drastically right as winter came around! .

This situation is not only frustrating but also time-sensitive due to the looming loan deadline. I'm seeking insights from those who have navigated similar waters, especially in remote investing scenarios. How do you manage contractors and ensure project progress, particularly when
you can't be physically present and under tight time constraints?

Your insights and experiences would be incredibly valuable and much appreciated. I'm eager to learn from this community and find a way forward in this situation.

Thank you for taking the time to read and share your thoughts!

Welcome to the world of real estate investing. I have extensive experience in the Cleveland markets have done about 500, yes 500 deals there 1ks of reno/repairs and 1ks of move in and outs. So my team in solid. I have a good buddy in Columbus he is one of the top " players" there owing about 260 props, not bad for a 35-year-old. So I am certain he can help. Feel free to reach out , let me see what I can do. Oh I also have a GC as well there. So between the two of them we can get it sorted out. Not keep in mind the money you already gave your current maybe gone, ( it happens) so you may take a loss on this but get it done.
All the best

Thanks Bob sent a message
1 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @James Luctamar:

Quote from @Bob S.:

Quote from @James Luctamar:

Hi BiggerPockets Community,

Im reaching out to this knowledgeable and supportive group for some guidance on a situation I’m currently navigating as a remote real estate
investor.

I'm a remote investor who's recently encountered a challenging situation in Columbus, Ohio. After a successful rehab of a multi-family property, I gave a larger project to the same General Contractor. Unfortunately, the GC's responsiveness has dropped significantly, and communication is sporadic, though he does stay in touch with my realtor occasionally. We're about halfway through the project, and there's a $30k He has for work that's not yet completed (the 30k was given because he completed work prior but once he received the 30k communication diminished drastically right as winter came around! .

This situation is not only frustrating but also time-sensitive due to the looming loan deadline. I'm seeking insights from those who have navigated similar waters, especially in remote investing scenarios. How do you manage contractors and ensure project progress, particularly when
you can't be physically present and under tight time constraints?

Your insights and experiences would be incredibly valuable and much appreciated. I'm eager to learn from this community and find a way forward in this situation.

Thank you for taking the time to read and share your thoughts!

Welcome to the world of real estate investing. I have extensive experience in the Cleveland markets have done about 500, yes 500 deals there 1ks of reno/repairs and 1ks of move in and outs. So my team in solid. I have a good buddy in Columbus he is one of the top " players" there owing about 260 props, not bad for a 35-year-old. So I am certain he can help. Feel free to reach out , let me see what I can do. Oh I also have a GC as well there. So between the two of them we can get it sorted out. Not keep in mind the money you already gave your current maybe gone, ( it happens) so you may take a loss on this but get it done.
All the best

Thanks Bob sent a message
Your welcome this is common out there. The GC THINKS he is getting over on you by stealing, 10, 20 k, but in reality, they are losing 100s of thousands. One of guys or should say old guys, I gave him about 400k in work last year, well the last 100k he got from me he stole, it was spread over 4 jobs. Well I just laughed and said, it's that mindset as to why you will always be broke. I now have him tied up in court for 300k. I will drag it on and on for years costing him 10s of thousands in legal fees and I told all my buddies, (most of the top " players " in Cleveland about him so he will have a difficult time getting more work.
2 Reply
Caroline Gerardo
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
2y
Quote from @James Luctamar:

Quote from @Caroline Gerardo:

Time to take leave from your family and job and go there. Cambria hotel is $78 a night make a deal with them. Do you have his home address? Show up at his house at 6:30 AM in the snow with your boots on ready to work with him to complete. A breakfast burrito for him in your hand. He's going to stammer and be embarrassed and have excuses but you married him, time to get him cooking bacon or if he is mortally injured to release all liens and get someone else started today.
Others suggest an attorney - sure spend $70000 and waste time in court, that avenue is going to take thirteen months. You cannot leave the subject property half completed. Bad guys will break in and wreck everything. Have Amazon send you security cameras and some dummy ones to the hotel so they are there when you arrive. Borrow a ladder from your GC and install them and practice the app with your phone. Let him know you have someone coming daily to monitor progress and you have eyes on the driveway as well. IF he is dishonest those cameras disappear when you leave town.
Interview new sub contractors at Modern Builders on 5th/ and Columbus Builders on 3rd/ and Home Depot on Hamilton Rd. The $30000 might be gone for now BUT you MUST get completed. Your Realtor can recommend an honest person to be your project manager- the job requires a notebook, cell phone and to go to the subject property for 30 minutes at different times 7 days a week. This person logs who is working, what supplies are there and texts you - progressing yes or no daily. You are going to have to pay the person by venmo or something weekly to keep them reporting and taking photos.
The cost to extend your loan may be in the thousands. Carry costs, liability, theft, and weather are against you. It's 54 degrees there today so bring warm casual clothing, work boots, rubber boots.
Don't respond that you cannot go there. You chose this and you have the guts to see it through. Do it.

Thank you so much!
Going there might be the best way, any tactics on getting someone to meet when they are unresponsive in the first place?

You are not going to arrange a meet or tell him. I would have the Ohio lien release forms filled out ready to be signed in my coat, a notary lined up to verify his driver license (your lender has a gal who will wait in her car at 6:30 AM for $125). You have his home address? You know what type of truck he drives? Showing up with the hot cheese melting in the burrito and a smile, no argument, no accusations ~ assume the best of him and act with kind heart (big stick in coat). You already interviewed other contractors (do not tell him) and have one to start if he refuses to go to the site, and they dig in that same day. Never threaten just act with honor and courage.

If he refuses, get any materials you paid for from his garage. Secure the site from theft immediately. If the house is complete enough to have someone stay there,( the house is heat working).

So I gave you the hotel contact (sign up for Choice), enterprise will deliver a car ~ choose a 4 wheel drive if you can with hatchback, the notary you send instructions/ maybe she has a boyfriend who can help with the night security. Around 2 AM is the vulnerable hour. How handy are you with tools? Cleveland Public Power/don't know if you are Dominion Gas but you should know. What needs to be buttoned down?
He's not going to pay YOUR lawyer fees, if you chase him in court it's going to be more losses and days where no work occurs means greater $$$$
2 Reply
Austin Steed
Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
2y
Might be a situation where you just fire the current GC and make sure you finish the project on schedule to avoid loan deadlines.

I'm with @Mike Dymski here. Having your agent or another trustable point of contact help where they can would be key.
I've had buyers have the same issue and stepped in and helped the process along. But biggest thing is you just need someone keeping an eye on things there!
0 Reply
Johann Villalvir
Real Estate Consultant · San Francisco, CA · Member since 2023 · 109 posts · 71 votes
2y
This is an extremely frustrating situation indeed. Sorry you're going through it.
Being an out-of-state investor is challenging already, that's why I always recommend having trustworthy boots on the ground people. Someone who has some skin in the game in your success
0 Reply
Zac Mckenzie
Contractor · Columbus, OH · Member since 2017 · 85 posts · 83 votes
2y
HI James, I'm sorry your in this situation. It is extremely frustrating to me because we own an Investor only GC Business in the Columbus market and this situation gives us all a bad rap. Others have given you great advise on this thread and some our group has done work for and i'm sure could speak to our name. My advice would be to get what you can from the current situation but don't let it discourage you from your goals, keep your project moving forward and line up the next. This situation will resolve itself and you will be on to the next one. If we can be of service please do not hesitate to reach out.
0 Reply
Nancy C.
Member since 2024 · 8 posts · 4 votes
2y
Quote from @James Luctamar:

Quote from @Nancy C.:

I did a condo remotely in Florida from the UK. I kind of had a similar situation. But before leaving ( i had to go back family emergency) I hired a friend. Gave a kitty to her of 3 k to go check on the property from time to time to report progress and deduct from it each time.
In my contract there was a specific payment timeline as per the works being done. We followed that. However they still did lag and it wasn't until I got back out there to actually get it done. It took another month for them to final fix things even though they said it would be done. First by Sept, then December. Then I arrived in January, and it took another month to finish. I negotiated a reduction in fee due to not meeting the deadline which they granted. I didn't need to consult a lawyer, but they were worried about their reputation. My suggestion is that you need to go there an sort it out and given that you paid a chunk up front, hire an lawyer. I don't know what your contract with him says but you need to, as well as getting him to refund it to move on, maybe get him to release a lien on your property if there is a permit involved and if he made the application for you. If you move on you will need to get this released.
Thank you for this,
Pretty difficult to get him to release a lien with someone being unresponsive. As well as lawyer fees. Any suggestions for that?

I think you may be able to speak to your local council. They may be able to help in the process. Call the planning dept. Tell them he's unresponsive.
0 Reply

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