Suing the builder

1 Reply

OP

Member since 2023 · 120 posts · 26 votes

2mo

Currently he does, which is perhaps the only positive.

Sure, I just doubt the deals you come across if that's the structure...

Chris SeveneyBusiness Member

Moderator

Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

2mo

Have you considered filing a claim against licensing board as I assume your GC was licensed to do work. Some states have recovery programs from contractors who are licensed and do not complete work

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2 Reply

OP

Member since 2023 · 120 posts · 26 votes

2mo

For sure, I'm actually just about to call the DBPR (the licensing board). He was unlicensed during a small part of doing the work which is an advantage for us. What do you mean with recovery programs?

Denise SuppleeBusiness Member

Realtor · Willow Grove, PA · Member since 2017 · 955 posts · 635 votes

2mo

Magnus, I hear you. This is really tough. Focus on protecting yourself legally, document everything, and take things one step at a time. You’ve handled hard situations before, and that experience will help you get through this too.

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OP

Member since 2023 · 120 posts · 26 votes

2mo

@Denise Supplee Thank you

Jacob Thorpe

Lender · Lake Geneva WI, USA · Member since 2023 · 141 posts · 72 votes

2mo

Maybe next time Magnus don't hire the absolute cheapest guy off facebook with the intention 'if it doesnt work out ill just sue him anyways 💅' - good luck collecting on your judgement if its even awarded.

JV Kaufman

Investor · Gulf Coast · Member since 2026 · 37 posts · 13 votes

2mo

That's a typical problem with builders. First, most have no idea how to build a dog house much less a house, relying on their subs to show the way. Hopefully, you've got a good contract. So often owners don't act until its too late. They need to be informed and "act" once their contract has been breached. Suing is probably not going to get you much except more debt even if you win. I'd make sure the contractor board is aware of that builders shenanigans. I watched a builder take countless people to the cleaners with a "cost plus contract" and finally got enough and wrote a book about it. My advise to you is lick your wounds and determine if those houses are salvageable. My experience with attorneys, I have one in the family, is that they fan the flames. They don't want it to go away. It's in their interest if the lawsuit keeps on keeping on. For you, writing about it (my experience) is the best medicine. It's going to take you a while to get over it. Good luck. Questions welcome.

1 Reply

JV Kaufman

Investor · Gulf Coast · Member since 2026 · 37 posts · 13 votes

2mo

If you have an iron clad contract with everything spelled out you may have a chance in court but don't expect to recoup much. The attorney's next step if you guys win your lawsuit is to charge you for them to go after the builder to recover. More often than not, it's not worth in.

1 Reply

OP

Member since 2023 · 120 posts · 26 votes

2mo

@Jacob Thorpe What an idiotic comment. You think that's what I did? What purpose does your comment serve?

OP

Member since 2023 · 120 posts · 26 votes

2mo

@JV Kaufman He owns some real estate assets and our contracts are clear, but interesting you say so. I'm from Sweden and investing from overseas and you wouldn't see anyone I think act as dishonest as this person, but it seems much more common than not in America. Shocking to me. Our contracts have been fixed price. I completely agree with you when it comes to attorneys and have been very careful in selecting one to handle this, with (seemingly) some conscience. Thanks for the comments

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Jimmy LieuBusiness Member

Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes

2mo

Quote from @Magnus Wikström:

Hi all,

I don't know exactly why I'm writing here, maybe just desperation. But we're going towards a lawsuit of the builder we'd hired for 2 Single Family ground-ups in SWFL, where we had taken an additional site to planning and bought another 2 lots for scaling. The builder has done severe contract breaches and didn't fininsh one of the homes after final draw was released. We brought in a lawyer for the creation of a Settlement agreement, followed by two addendums where we deviated from the agreeement and sent him more money upfront, simply because the alternative would be twice as expensive and we thought maybe we'd sue him later afterwards anyways.

Double interest for 1y+ and basically another final draw we need to pay to another builder for completing the house (if it's even worth it) has eaten basically everything we've got, all because of this very manipulative builder who must be one of the most dishonest people on the planet. Our only hope is a lawsuit I guess, I've already been forced to leave my home. I'm searching for regular jobs now but seems very difficult when you've been an entrepreneur for 9 years for some reason...

Again, I don't know why I'm writing here, just a cry for help maybe or if anybody has a word of encouragement. It all looks so grim now, I've lost aboslutely everything, I'm just lucky I've got a wife from heaven. Yeah, if anybody has any advice or the like, I'm all ears.

All the best,

Magnus

Hi Magnus, I'm really sorry you're going through this. Situations like this are incredibly tough, especially when you've done everything you could to keep the project moving. At this point, I'd focus on preserving every piece of documentation you have, including contracts, emails, texts, payment records, photos, inspection reports, and anything else that helps tell the full story. Keep working closely with your attorney and avoid making any decisions based on emotion, even though that's understandably difficult right now. If the homes still have value once completed, it may also be worth running the numbers carefully with your new builder so you know whether finishing them makes financial sense or if there's another path. On the personal side, don't view taking a regular job as a step backward. Sometimes having stable income gives you the breathing room to fight through a legal battle and puts you in a position to invest again later. I've seen experienced investors go through painful setbacks and come back stronger because they learned to tighten their systems and vet contractors differently. Hang in there, lean on your wife, and take it one step at a time. Wishing you the best, and I hope you'll keep the community updated. Happy to connect and answer any questions you have!

Jimmy Lieu, Red 1 Realty4.9118 Reviews