Problems with Contractor?

Question

I started investing in real estate in 2007 and since then I've had a terrible experience with a contractor and have talked to a lot of people who've had the same experience. I went to the home improvement commission and they said it would take two years to even try to resolve anything. I also went to the Attorney General who told me that they only take complaints against new home builders and couldn't do anything. I went to the BBB and it seems that they want to help protect their paying businesses rather then protect the consumers. 
            
            Thanks,
            Jeff

Patricia De Haerne · Answer

Alright so I got taken and I am really in a panic I am down to two months left to get a refinance so I can get some of my cash back out to pay for my home ..
 two weeks ago I was expecting to have finished up a drawn out rehab.. As was the case I handed my home depot to the gut helping me and a check for a 1000 this is two montjhs later some drywall and wiring and one rubber hose.. a real long story but allot of painting and caulking caulking everywhere and everything..
so instead of getting my kitchen cabinets and the stove, venting micro and dw..
He bought the goods to tile a shower and more a few thousand this was the charming cheapy cabinest and descent stove and dishwasher..
anyway .. I gave him the card .. but he got what he wanted..
no answer on his phone .. ..
So I called his son who directed him to me when I bought windows from him... oh it sounds like you two need a meeting..
really.. See I had the copies of the recipts I needed a kitchen not a meeting..
all weekend nothing.. I tried his son again and said to have him leave the card and keys at the house or I was going to the police..

nothing.. so I go to the police and I have a report filed but little I can do because I gave him my card..

Wow At least I am not in tears today but I go from being livid with my stupidity and darned if I do not want to hunt him down I have no funds to finish the kitchen.. I grabbed  3 of the 5 cabinest I needed at minimum but when I went to get the Stove my limit would not even cover that..
What a sleaze..
Another of his sons comes by and we talked a bit.. he didn't know anything his father  said you had called about a leak .. ( that was 4 days ago.. 
He said his father said when I had all my stuff together he would bring my plumbing connections and finish up.. heh..
When I had all the stuff here at the house..

hmm.. so I called the son who I didn't want involved but dad's phone doesn't even offer voice mail..

I simply said if his dad had any b@@@s I wouldn't be calling him.. but to relay that unless he gets my plumbing connections and thermostat to the house finds a way to get the stove, Micro and DW the next day I was going to file  a fraud report, hire an electrician and plumber and then go to sma;ll claims court to have him pay back what he stole and for the costs of the people I  had to hire for the work he didn't do not to mention the distress he caused me and my poor family who wonder why I am about to kick the dog.. who did he think would win.

Anyway I know I ...good luck right?

Patricia.. 
Oh yes and I have no problem naming names if anyone from Southeast Ga to Jacksonville need to know who to avoid  just ask. I saw he ran an investment group in Kingsland GA a few years back also a southeast georgia contracting  company then a windowdepot..

Harrison Painter · Answer

I work more in the role of project manager, not only for myself, but for others.

For the workers that I have a trusted relationship with, I visit the site at the beginning of the day to make sure we have a schedule, and at the end of the day to make sure we met the schedule. If I am running multiple projects, the less experienced crew gets the first visit, and the most experienced I go to last.

If it is a new set of workers, I will spend a lot of time on the site, 2-3 hours at a time.

I do not agree with point 2. up there, as the contractors need some protection too. My company takes 50% up front, and 50% upon the completion of the job. We have the quality of work, and the references to back it up. I am not going to get stuck with the bill for a bunch of material I do not need, and a mechanics lien does not pay my crew on Monday morning! (If you are running crews, it is always best to pay on Mondays, but that is for another thread)

While there are many crooked contractors in the field, you also must realize that there are many shady investors out there too.

The 50% plan has worked out well for all parties, and it builds the foundation of trust that both sides need to have.

That said, there is a sea of very bad contractors out there, and many will rob Peter to pay Paul, and others will just leave you in the middle of a project for one that is more profitable to them. This is, and always will be, the trickiest part of the process.

So on the first few projects, if you have the ability to do this, my advice is to get the materials list, buy them yourself, and have everything delivered to the job site. Then you can just pay a small up front deposit to the contractor to get started. This way, very little money is changing hands, and everybody is treading lightly.

Do not let the contractors intimidate you. It does not matter if you do not know what Luan, or a ring shank nail is, Google it, and learn as you go!

At the same time, do not try and fake it, Contractors will see right through you. Also, please do not try and micro-manage your crew. You hired them for a reason, let them do their jobs.

Since I work in the real world, let me give you some more advice on this: Once you build that trusting relationship, do not take it for granted. Construction workers, and investors, can change on the drop of a dime depending on their financial position. I have personally seen some very good people do bad things out of desperation.

So the key it to always be looking over your shoulder, do not ignore any red flags, do not become friends with each other, and no matter how much experience you have in the business, keep your eyes wide open!

When you manage a project, you will be a part-time babysitter and a full-time psychologist. Once you find that crew that you can depend on, it makes all of the pain it took to get there worth it.

Chalk up money lost as the cost of education and keep your focus on the prize. It will help you keep your sanity. :lol:

Good Luck!

Bob McIntosh · Answer

How important is it to be there a "couple of times a day" vs. say once a day or every other day?  I understand the importance of making sure that they are doing work when you are not there but I also think you are going to be able to tell if they are not really working based on the timeline you have setup (which is number 3 on your list).  I am working on purchasing my first rehab but I still also have a full time job which would restrict me from be able to stop by a couple of times a day... just curious

Thanks!
-Bob

Phil * · Answer

This is where you contract would come in.

Lee Washington · Answer

Hey,
                                                
                                                This might help out with your questions about general contractors.
                                                
             http://www.myprimebuyersguide.com/ca/santa-rosa-general-contractors.html 
                                                
                                                It is a list of general contractors for building and remodel. Good luck to you.

J Scott · Answer

There are lots of bad contractors out there...hopefully this isn't too much of a surprise...

Make sure you protect yourself upfront:

1. Check references before you hire a contractor.  This includes seeing (GO VISIT!) the last one or two jobs he completed, and speak with the person who hired him.

2. Never pay ahead of the work that's been completed (i.e., after 25% of the work is completed, pay 25%, etc);

3. Get a schedule from your contractor before the work starts.  If you know where he is supposed to be in a project, you can tell if he is ahead, behind, or on-schedule at any point.

4. Make sure you visit the job site at least a couple times a day, and make sure you "drop in" by surprise.  You want to make sure your contractors are working when you're not around.

5. At the first sign of trouble, don't hesitate to get rid of a contractor.  While it may be a pain in the ass to have to find a replacement mid-project, it's much worse to have to deal with a bad contractor for any amount of time.