1031 Contractor Nightmare: $33K Gone

Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes

4mo

This is something that happens all the time sadly, hard to get your money back. Even if you went through small claims I doubt he'd pay you (most likely spent it all). If he has any social media/website I'd leave reviews and blast his name out there so others avoid

2 Reply

Dan H.Pro Member

Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes

4mo

Are you stating title company issued the second check without your authorization? If so, they failed on their fidituary duties to you and should cover that error.

Was the contractor you used licensed? Were they bonded and insured? Different jurisdictions have different procedures for issues with licensed contractors, but this is where I recommend you start if he was licensed. If he was not licensed, your best remedy is small claims court where the maximum amount you can sue for will be fairly small. Also winning in small claims court is sometimes only half the battle. I have an $8k judgement that the other party has failed to pay $1. The next step is a financial asset hearing where the judge rules how I recover the $8k. It is my view that the process is broken.

Good luck

7 Reply

Chris SeveneyBusiness Member

Moderator

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

4mo

Have you considered looking into if this person was licensed? Sometimes the licensing boards and commissions can pay for claims like this. If he is unlicensed, then your only option would be to sue the individual. The question is, you can sue somebody and spend $3,000 to $5,000 on the lawsuit. The question will be, will you be able to recover anything from that person? That is the bigger question.

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2 Reply

Andres Martin
OP
Real Estate Agent · Indianapolis, IN · Member since 2021 · 49 posts · 36 votes
4mo
Quote from @Dan H.:

Are you stating title company issued the second check without your authorization? If so, they failed on their fidituary duties to you and should cover that error.
Was the contractor you used licensed? Were they bonded and insured? Different jurisdictions have different procedures for issues with licensed contractors, but this is where I recommend you start if he was licensed. If he was not licensed, your best remedy is small claims court where the maximum amount you can sue for will be fairly small. Also winning in small claims court is sometimes only half the battle. I have an $8k judgement that the other party has failed to pay $1. The next step is a financial asset hearing where the judge rules how I recover the $8k. It is my view that the process is broken.
Good luck
The full scope of the work (repairing both sides of the duplex and rehabbing the detached garage to make it into an ADU) totaled around 42k.

There was also additional work for a licensed plumber to replace the sewer line.

I negotiated a bit under 33k in concessions for the rehab and 16k to repair the sewer line with the seller.

I received three checks at closing in July 2025:
1) General Contractor: 23k for the first payment of the rehab.
2) General contractor: 9k for the second payment for the rehab.
3) Plumber: 16k for sewer line replacement.

The order of events after closing goes as follows:
- I gave checks number 1 and 3 to GC and the plumber, respectively, and kept number 2 to give to GC at a later date as agreed.
- Plumber completed the sewer line replacement.
- GC finished repairs on the first side of the duplex (the side that needed the least amount of repairs) by the end of September and was scheduled to begin the other side of the duplex one week later, but never started the work and disappeared.
- I gave up trying to find him by mid-October and called the Title company to ask if I could change the check to a different contractor, and they said it would be possible if I got approval from my lender (which I did not understand, but I knew I would get).
- Got verbal approval from the lender and began the search for another GC.
- Found another GC around the end of October and called the Title company to change the check I had in my hands, just to find out that (according to them) their system voided check number 3 after 90 days of not being cashed in, and automatically sent a new one to the GC to the address they had on file, and GC had cashed it in already.

Do you think I have a valid case against Title? Keep in mind that my communication with the title company was verbal.
My next step will be to determine whether he was a licensed contractor in Indiana, as some of you have mentioned (which is likely where I went wrong to begin with), and to assess whether I can hold him to account.
1 Reply
Andres Martin
OP
Real Estate Agent · Indianapolis, IN · Member since 2021 · 49 posts · 36 votes
4mo
Quote from @Chris Seveney:

Have you considered looking into if this person was licensed? Sometimes the licensing boards and commissions can pay for claims like this. If he is unlicensed, then your only option would be to sue the individual. The question is, you can sue somebody and spend $3,000 to $5,000 on the lawsuit. The question will be, will you be able to recover anything from that person? That is the bigger question.
I agree; I highly doubt I would be able to recover anything from him, even if small-claims court decided against him, but I will definitely look into whether he was licensed.
1 Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
4mo
Quote from @Andres Martin:

Quote from @Dan H.:

Are you stating title company issued the second check without your authorization? If so, they failed on their fidituary duties to you and should cover that error.
Was the contractor you used licensed? Were they bonded and insured? Different jurisdictions have different procedures for issues with licensed contractors, but this is where I recommend you start if he was licensed. If he was not licensed, your best remedy is small claims court where the maximum amount you can sue for will be fairly small. Also winning in small claims court is sometimes only half the battle. I have an $8k judgement that the other party has failed to pay $1. The next step is a financial asset hearing where the judge rules how I recover the $8k. It is my view that the process is broken.
Good luck
The full scope of the work (repairing both sides of the duplex and rehabbing the detached garage to make it into an ADU) totaled around 42k.

There was also additional work for a licensed plumber to replace the sewer line.

I negotiated a bit under 33k in concessions for the rehab and 16k to repair the sewer line with the seller.

I received three checks at closing in July 2025:
1) General Contractor: 23k for the first payment of the rehab.
2) General contractor: 9k for the second payment for the rehab.
3) Plumber: 16k for sewer line replacement.

The order of events after closing goes as follows:
- I gave checks number 1 and 3 to GC and the plumber, respectively, and kept number 2 to give to GC at a later date as agreed.
- Plumber completed the sewer line replacement.
- GC finished repairs on the first side of the duplex (the side that needed the least amount of repairs) by the end of September and was scheduled to begin the other side of the duplex one week later, but never started the work and disappeared.
- I gave up trying to find him by mid-October and called the Title company to ask if I could change the check to a different contractor, and they said it would be possible if I got approval from my lender (which I did not understand, but I knew I would get).
- Got verbal approval from the lender and began the search for another GC.
- Found another GC around the end of October and called the Title company to change the check I had in my hands, just to find out that (according to them) their system voided check number 3 after 90 days of not being cashed in, and automatically sent a new one to the GC to the address they had on file, and GC had cashed it in already.

Do you think I have a valid case against Title? Keep in mind that my communication with the title company was verbal.
My next step will be to determine whether he was a licensed contractor in Indiana, as some of you have mentioned (which is likely where I went wrong to begin with), and to assess whether I can hold him to account.
Just to verify, the title company was in some way acting as an escrow company in this case (holding funds until work is performed).

My opinion is the title company should not be paying the contractor without your authorization or some other proof that the contractor has met the requirements of the next payment. The title company has no way to know the work was performed and completed, and in this case it was not. What could be their justification for distributing this check without any confirmation that the work was completed? I do not understand how this happened.
My experience with escrow companies is even if a deal fails to close for one of the listed contingencies, the escrow company requires both sides to ok the release of funds before releasing funds. Releasing funds to a contractor without confirmation of the contractor meeting the conditions for release of additional funds seems like a large mistake and something the escrow company should take responsibility for I find it strange that this happened as it is very different than my experience with various escrow companies that are very careful when releasing funds.
Good luck
3 Reply

Kevin Sobilo

Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes

4mo

@Andres Martin, a few thoughts:

1. The police will almost never touch a case like this. They will call it a civil issue not criminal. I think it is in part because there is a civil process and because these issues are so numerous that there are not resources to investigate and prosecute all of them.

2. Why was a 2nd check cut to begin with? No reason to cut a check that is not meant to be delivered and cashed immediately. That check should have only been requested when it was time for the contractor was ready to receive it.

3. In my opinion, I would sue the title company for the difference between $33k and the amount of the first check. So, if the first check was $15k, and with this error they gave the contractor the full $33k they should be liable for at least $18k.

You are more likely to collect from the title company as they likely have insurance that covers their errors.

4. Even if you find the contractor and sue them, its very difficult to collect on a judgement unless the person has real assets like real estate or big equipment that can be seized and sold.

5. Keeping in mind #4, I would always try to break up payments into smaller phases of work so as not to pay a contractor too much ahead of any completed work. That way if they walk away, I am not in a bad position and struggling to to finish the project.

3 Reply

Matthew Paul

Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes

4mo

Its easy to find a contractor that likes to scam . Have someone else call him for an estimate , he will show up and serve him papers .

Now if you can ever collect is another thing .

2 Reply

Andres Martin
OP
Real Estate Agent · Indianapolis, IN · Member since 2021 · 49 posts · 36 votes
4mo
Quote from @Matthew Paul:

Its easy to find a contractor that likes to scam . Have someone else call him for an estimate , he will show up and serve him papers .
Now if you can ever collect is another thing .

Unfortunately, I have tried this from multiple phone numbers, but he never picks up. I have dropped by the address on his invoices, and it is a SFH in a somewhat downtrodden area that appears to have been vacated quite some time ago.
2 Reply

Alan F.

Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes

4mo

Quote from @Andres Martin:

I'm posting this partly as a cautionary tale and partly because I'm running out of options—so if anyone has dealt with something similar, I'd love to hear how you handled it.

Last year, I closed on a duplex where the only way the numbers made sense was if I could turn the detached garage into an ADU. So we made it work.

To finance the rehab, I negotiated seller concessions—about $33K that would go directly to my contractor for the necessary repairs and ADU build-out. We structured it so the contractor got half at closing to start work, with the other half to follow after phase one was complete.

Here's the catch: I had actually worked with this contractor before through my property management business. He'd done handyman work and minor contracting jobs on other properties—both mine and my clients'—and he was always reliable, always on time. So when it came time for this bigger job, I trusted him. Mistake.

He started on the first unit (the side that needed the least amount of work), and it took him three and a half months to finish something that should've moved faster. Then, before he was supposed to touch the second unit, he just... disappeared. Ghosted. Stopped responding to calls, texts, emails. Gone.

I immediately called the title company to void the second check. But here's the kicker—more than 90 days had passed, so the check I had was already void. The title company, on their own, reached out to the contractor asking if he wanted a new check since the first one hadn't been cashed (it was in my power). They reissued it. He cashed it. Got paid for work he never did.

What I've done since:

Called the police (said they couldn't do anything)
Talked to my brokerage (recommended a lawyer)
Consulted with the lawyer (said the amount was too low to sue him and that it would cost me more to sue him than what I was going to get if I won. Also said that nothing would guarantee him paying the money even if we won)

But I'm not sitting on this. I brought on a different contractor—solid guy—and he managed to finish the second unit of the duplex. Both sides are now occupied with tenants. He's starting next week on the ADU conversion in that detached garage, and we're looking at a two to three-month timeline. Should be wrapped up by end of summer.

My question for the community: Does anyone have experience with contractor fraud at this scale? Are there legal remedies I'm missing? Has anyone successfully recovered funds in a situation like this?

Small claims court is technically an option, but the max there is $20K, and I'm out $33K. Plus, I'd have to find him first, and I would have to be in charge of collecting the money when I win the case.

I'm also posting this as a heads-up: if anyone on here has worked with a contractor matching this description, let me know in DMs. I don't want to see anyone else get burned by this guy (Idon't know if the forum guidelines allow me to post his name here, so I won't, but if anybody in the area wants to know who he is, feel free to send me a PM).

Any advice appreciated—or just commiseration at this point.

Its best to know how contractors are licensed & regulated before doing business. Some states have specific requirements for $, like escrow accts etc. Here’s a link, maybe helps for some sort of punitive action.

https://www.indy.gov/activity/contractor-licenses

2 Reply

Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

4mo

Quote from @Andres Martin:

I'm posting this partly as a cautionary tale and partly because I'm running out of options—so if anyone has dealt with something similar, I'd love to hear how you handled it.

Last year, I closed on a duplex where the only way the numbers made sense was if I could turn the detached garage into an ADU. So we made it work.

To finance the rehab, I negotiated seller concessions—about $33K that would go directly to my contractor for the necessary repairs and ADU build-out. We structured it so the contractor got half at closing to start work, with the other half to follow after phase one was complete.

Here's the catch: I had actually worked with this contractor before through my property management business. He'd done handyman work and minor contracting jobs on other properties—both mine and my clients'—and he was always reliable, always on time. So when it came time for this bigger job, I trusted him. Mistake.

He started on the first unit (the side that needed the least amount of work), and it took him three and a half months to finish something that should've moved faster. Then, before he was supposed to touch the second unit, he just... disappeared. Ghosted. Stopped responding to calls, texts, emails. Gone.

I immediately called the title company to void the second check. But here's the kicker—more than 90 days had passed, so the check I had was already void. The title company, on their own, reached out to the contractor asking if he wanted a new check since the first one hadn't been cashed (it was in my power). They reissued it. He cashed it. Got paid for work he never did.

What I've done since:

Called the police (said they couldn't do anything)
Talked to my brokerage (recommended a lawyer)
Consulted with the lawyer (said the amount was too low to sue him and that it would cost me more to sue him than what I was going to get if I won. Also said that nothing would guarantee him paying the money even if we won)

But I'm not sitting on this. I brought on a different contractor—solid guy—and he managed to finish the second unit of the duplex. Both sides are now occupied with tenants. He's starting next week on the ADU conversion in that detached garage, and we're looking at a two to three-month timeline. Should be wrapped up by end of summer.

My question for the community: Does anyone have experience with contractor fraud at this scale? Are there legal remedies I'm missing? Has anyone successfully recovered funds in a situation like this?

Small claims court is technically an option, but the max there is $20K, and I'm out $33K. Plus, I'd have to find him first, and I would have to be in charge of collecting the money when I win the case.

I'm also posting this as a heads-up: if anyone on here has worked with a contractor matching this description, let me know in DMs. I don't want to see anyone else get burned by this guy (Idon't know if the forum guidelines allow me to post his name here, so I won't, but if anybody in the area wants to know who he is, feel free to send me a PM).

Any advice appreciated—or just commiseration at this point.

This is why we RARELY give contractors money upfront!

We have 10+ accounts with local suppliers and can open an account with a new supplier if a specific contractor has a really good reason for needing to use that supplier.

So, if we're paying for materials, there's ZERO reason for a contractor to ask for upfront funds.

Of course, we still get asked by contractors when we first start doing business with them and some won't change their way of doing business - NEXT!

There are also contractors of a certain size will not negotiate on this, but we then get added to their insurance and verify their license, etc. - to minimize this theft from happening.

MOST OF THIS IS ON YOU!

1) You never verified this contractor was licensed of insured, yet you've been using him for a while.
2) You don't much in writing to protect yourself or your clients.
3) You waited over 3 months for a 30-day job to be completed and didn't get suspicious?

You need to MAKE DRASTIC & IMMEDIATE CHANGES in how you do business to avoid similar situations, or worse, in the future!

[email protected]248-209-6824

Logical Property Management4.9450 Reviews

Website View Page

4 Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
4mo
Quote from @Drew Sygit:
Quote from @Andres Martin:

I'm posting this partly as a cautionary tale and partly because I'm running out of options—so if anyone has dealt with something similar, I'd love to hear how you handled it.

Last year, I closed on a duplex where the only way the numbers made sense was if I could turn the detached garage into an ADU. So we made it work.

To finance the rehab, I negotiated seller concessions—about $33K that would go directly to my contractor for the necessary repairs and ADU build-out. We structured it so the contractor got half at closing to start work, with the other half to follow after phase one was complete.

Here's the catch: I had actually worked with this contractor before through my property management business. He'd done handyman work and minor contracting jobs on other properties—both mine and my clients'—and he was always reliable, always on time. So when it came time for this bigger job, I trusted him. Mistake.

He started on the first unit (the side that needed the least amount of work), and it took him three and a half months to finish something that should've moved faster. Then, before he was supposed to touch the second unit, he just... disappeared. Ghosted. Stopped responding to calls, texts, emails. Gone.

I immediately called the title company to void the second check. But here's the kicker—more than 90 days had passed, so the check I had was already void. The title company, on their own, reached out to the contractor asking if he wanted a new check since the first one hadn't been cashed (it was in my power). They reissued it. He cashed it. Got paid for work he never did.

What I've done since:

Called the police (said they couldn't do anything)
Talked to my brokerage (recommended a lawyer)

Consulted with the lawyer (said the amount was too low to sue him and that it would cost me more to sue him than what I was going to get if I won. Also said that nothing would guarantee him paying the money even if we won)

But I'm not sitting on this. I brought on a different contractor—solid guy—and he managed to finish the second unit of the duplex. Both sides are now occupied with tenants. He's starting next week on the ADU conversion in that detached garage, and we're looking at a two to three-month timeline. Should be wrapped up by end of summer.

My question for the community: Does anyone have experience with contractor fraud at this scale? Are there legal remedies I'm missing? Has anyone successfully recovered funds in a situation like this?

Small claims court is technically an option, but the max there is $20K, and I'm out $33K. Plus, I'd have to find him first, and I would have to be in charge of collecting the money when I win the case.

I'm also posting this as a heads-up: if anyone on here has worked with a contractor matching this description, let me know in DMs. I don't want to see anyone else get burned by this guy (Idon't know if the forum guidelines allow me to post his name here, so I won't, but if anybody in the area wants to know who he is, feel free to send me a PM).

Any advice appreciated—or just commiseration at this point.

This is why we RARELY give contractors money upfront!
We have 10+ accounts with local suppliers and can open an account with a new supplier if a specific contractor has a really good reason for needing to use that supplier.
So, if we're paying for materials, there's ZERO reason for a contractor to ask for upfront funds.
Of course, we still get asked by contractors when we first start doing business with them and some won't change their way of doing business - NEXT!
There are also contractors of a certain size will not negotiate on this, but we then get added to their insurance and verify their license, etc. - to minimize this theft from happening.
MOST OF THIS IS ON YOU!
1) You never verified this contractor was licensed of insured, yet you've been using him for a while.
2) You don't much in writing to protect yourself or your clients.
3) You waited over 3 months for a 30-day job to be completed and didn't get suspicious?
You need to MAKE DRASTIC & IMMEDIATE CHANGES in how you do business to avoid similar situations, or worse, in the future!
only give money up front that you can afford to lose.. bottom line.. only pay for work in place. I get it some contractors need up front to buy materials but your taking a risk.
going after dead beat contractors is the same as going after dead beat tenants.. you can get the small claim judgement record it and hope some day they want to buy or sell property in that county.
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2 Reply
Andres Martin
OP
Real Estate Agent · Indianapolis, IN · Member since 2021 · 49 posts · 36 votes
4mo
Quote from @Drew Sygit:
Quote from @Andres Martin:

I'm posting this partly as a cautionary tale and partly because I'm running out of options—so if anyone has dealt with something similar, I'd love to hear how you handled it.

Last year, I closed on a duplex where the only way the numbers made sense was if I could turn the detached garage into an ADU. So we made it work.

To finance the rehab, I negotiated seller concessions—about $33K that would go directly to my contractor for the necessary repairs and ADU build-out. We structured it so the contractor got half at closing to start work, with the other half to follow after phase one was complete.

Here's the catch: I had actually worked with this contractor before through my property management business. He'd done handyman work and minor contracting jobs on other properties—both mine and my clients'—and he was always reliable, always on time. So when it came time for this bigger job, I trusted him. Mistake.

He started on the first unit (the side that needed the least amount of work), and it took him three and a half months to finish something that should've moved faster. Then, before he was supposed to touch the second unit, he just... disappeared. Ghosted. Stopped responding to calls, texts, emails. Gone.

I immediately called the title company to void the second check. But here's the kicker—more than 90 days had passed, so the check I had was already void. The title company, on their own, reached out to the contractor asking if he wanted a new check since the first one hadn't been cashed (it was in my power). They reissued it. He cashed it. Got paid for work he never did.

What I've done since:

Called the police (said they couldn't do anything)
Talked to my brokerage (recommended a lawyer)

Consulted with the lawyer (said the amount was too low to sue him and that it would cost me more to sue him than what I was going to get if I won. Also said that nothing would guarantee him paying the money even if we won)

But I'm not sitting on this. I brought on a different contractor—solid guy—and he managed to finish the second unit of the duplex. Both sides are now occupied with tenants. He's starting next week on the ADU conversion in that detached garage, and we're looking at a two to three-month timeline. Should be wrapped up by end of summer.

My question for the community: Does anyone have experience with contractor fraud at this scale? Are there legal remedies I'm missing? Has anyone successfully recovered funds in a situation like this?

Small claims court is technically an option, but the max there is $20K, and I'm out $33K. Plus, I'd have to find him first, and I would have to be in charge of collecting the money when I win the case.

I'm also posting this as a heads-up: if anyone on here has worked with a contractor matching this description, let me know in DMs. I don't want to see anyone else get burned by this guy (Idon't know if the forum guidelines allow me to post his name here, so I won't, but if anybody in the area wants to know who he is, feel free to send me a PM).

Any advice appreciated—or just commiseration at this point.

This is why we RARELY give contractors money upfront!
We have 10+ accounts with local suppliers and can open an account with a new supplier if a specific contractor has a really good reason for needing to use that supplier.
So, if we're paying for materials, there's ZERO reason for a contractor to ask for upfront funds.
Of course, we still get asked by contractors when we first start doing business with them and some won't change their way of doing business - NEXT!
There are also contractors of a certain size will not negotiate on this, but we then get added to their insurance and verify their license, etc. - to minimize this theft from happening.
MOST OF THIS IS ON YOU!
1) You never verified this contractor was licensed of insured, yet you've been using him for a while.
2) You don't much in writing to protect yourself or your clients.
3) You waited over 3 months for a 30-day job to be completed and didn't get suspicious?
You need to MAKE DRASTIC & IMMEDIATE CHANGES in how you do business to avoid similar situations, or worse, in the future!
Agree 100%. It's my fault. Thanks for your input.
1 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4mo
Quote from @Andres Martin:
Quote from @Drew Sygit:

Quote from @Andres Martin:

I'm posting this partly as a cautionary tale and partly because I'm running out of options—so if anyone has dealt with something similar, I'd love to hear how you handled it.

Last year, I closed on a duplex where the only way the numbers made sense was if I could turn the detached garage into an ADU. So we made it work.

To finance the rehab, I negotiated seller concessions—about $33K that would go directly to my contractor for the necessary repairs and ADU build-out. We structured it so the contractor got half at closing to start work, with the other half to follow after phase one was complete.

Here's the catch: I had actually worked with this contractor before through my property management business. He'd done handyman work and minor contracting jobs on other properties—both mine and my clients'—and he was always reliable, always on time. So when it came time for this bigger job, I trusted him. Mistake.

He started on the first unit (the side that needed the least amount of work), and it took him three and a half months to finish something that should've moved faster. Then, before he was supposed to touch the second unit, he just... disappeared. Ghosted. Stopped responding to calls, texts, emails. Gone.

I immediately called the title company to void the second check. But here's the kicker—more than 90 days had passed, so the check I had was already void. The title company, on their own, reached out to the contractor asking if he wanted a new check since the first one hadn't been cashed (it was in my power). They reissued it. He cashed it. Got paid for work he never did.

What I've done since:

Called the police (said they couldn't do anything)
Talked to my brokerage (recommended a lawyer)

Consulted with the lawyer (said the amount was too low to sue him and that it would cost me more to sue him than what I was going to get if I won. Also said that nothing would guarantee him paying the money even if we won)

But I'm not sitting on this. I brought on a different contractor—solid guy—and he managed to finish the second unit of the duplex. Both sides are now occupied with tenants. He's starting next week on the ADU conversion in that detached garage, and we're looking at a two to three-month timeline. Should be wrapped up by end of summer.

My question for the community: Does anyone have experience with contractor fraud at this scale? Are there legal remedies I'm missing? Has anyone successfully recovered funds in a situation like this?

Small claims court is technically an option, but the max there is $20K, and I'm out $33K. Plus, I'd have to find him first, and I would have to be in charge of collecting the money when I win the case.

I'm also posting this as a heads-up: if anyone on here has worked with a contractor matching this description, let me know in DMs. I don't want to see anyone else get burned by this guy (Idon't know if the forum guidelines allow me to post his name here, so I won't, but if anybody in the area wants to know who he is, feel free to send me a PM).

Any advice appreciated—or just commiseration at this point.

This is why we RARELY give contractors money upfront!
We have 10+ accounts with local suppliers and can open an account with a new supplier if a specific contractor has a really good reason for needing to use that supplier.
So, if we're paying for materials, there's ZERO reason for a contractor to ask for upfront funds.
Of course, we still get asked by contractors when we first start doing business with them and some won't change their way of doing business - NEXT!
There are also contractors of a certain size will not negotiate on this, but we then get added to their insurance and verify their license, etc. - to minimize this theft from happening.
MOST OF THIS IS ON YOU!
1) You never verified this contractor was licensed of insured, yet you've been using him for a while.
2) You don't much in writing to protect yourself or your clients.
3) You waited over 3 months for a 30-day job to be completed and didn't get suspicious?
You need to MAKE DRASTIC & IMMEDIATE CHANGES in how you do business to avoid similar situations, or worse, in the future!

Agree 100%. It's my fault. Thanks for your input.
Bad contractors and bad tenants are rarely worth pursuing - you're often just throwing good money after bad:(
[email protected]248-209-6824
Logical Property Management4.9450 Reviews
Website View Page
1 Reply

Adam Michael Andrews

Investor · Austin, TX · Member since 2017 · 107 posts · 89 votes

4mo

Your practical next step is pulling up the escrow agreement and closing instructions. If your story is true they have liability for disbursement of funds against those governing documents.

1 Reply

Gregory Chadwell

Real Estate Broker · Milwaukee, WI · Member since 2015 · 299 posts · 90 votes

2mo

CON-tractor. One of my worst experiences too. Robbing peter to pay Paul.

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1031 Contractor Nightmare: $33K Gone

1031 Contractor Nightmare: $33K Gone

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