Out-of-state rehab in Florida: how do you know the work is really done?

Question

Hi everyone, and happy Tuesday!

Last week the Hillsborough County Sheriff's Office announced "Operation Bad Builder": 50 people arrested between June and early October, mostly for contracting without a license or leaving homes worse than before. Their advice: check the license with DBPR, ask for proof of insurance, get the scope in writing, and don't pay the full amount up front.

That covers who you hire. But what about after the job starts, when you're in another state and can't walk the site?

• What does your contractor send you that actually helps you trust the progress: photos, video calls, a local inspector?
• Where did you get burned when you weren't there?
• What do you require now before releasing a payment?

What does your contractor send you that actually helps you trust the progress: photos, video calls, a local inspector?

Where did you get burned when you weren't there?

What do you require now before releasing a payment?

From 15 years in construction, my rule is simple: money follows a finished stage, not the calendar. Curious how you do it from a distance.

Have a great day!

Richard Neese · Answer

Great post . We've been burned before on a Commercial roof and it took months to track the guy down. I think his mom died 3 times in the process or atleast that was the story. We pay for materials and have them delivered to the job. we contract labor with a scope to be paid out with pictures, videos and or a walk if we are local. This applies for subs and for our own guys with daily progress pics to be put into a tracker. I haven't been a state away yet, but looking forward to learning more from this group!

Stevan Stojakovic · Answer

Hi Vladimirs, happy Tuesday! Out-of-state rehabs can definitely be nerve-wracking, especially with headlines like the recent sting in Florida. As a private lender, we see the good, the bad, and the ugly of long-distance flips.

To protect both the investor and our capital, we never release funds based on a calendar. We require third-party draw inspections. Instead of relying on the contractor's photos, an independent local inspector walks the site, takes date-stamped photos, and verifies the exact percentage of completion for each line item. Only then does the money move.

Video calls are great for a quick pulse check, but nothing beats an unbiased set of eyes on the ground before a wire goes out. Stay safe out there, and feel free to reach out if you need any help!

Ametria Chaney · Answer

If I could only get one thing each week, it would be a live video walkthrough, not just photos. Photos help, but a walkthrough lets you ask questions in real time and see the corners, the finishes, and the work that is still open. I would pair that with a written scope for each stage before work starts, so everyone agrees on what 'done' means. Then I would tie payments to completed stages, not to dates, and keep a small holdback until a final walkthrough is done. For a larger job, I would also have a trusted local person or inspector check the work before a big draw. That combination keeps surprises smaller, and it gives you a clear record if you ever need to sort out a disagreement.

Ametria Chaney · Answer

I would not pick a fixed percentage first, because the holdback should match the value of the unfinished and punch-list work, not just a round number. The choice between a smaller and a larger holdback matters less than having it agreed in writing before work starts, with a clear final walkthrough step before the last payment is released. For larger draws, I would prefer verification from someone without a financial interest in that draw, such as a licensed inspector or another trusted local person, rather than relying only on the contractor's own report. That separation keeps the draw tied to finished work, and it gives both sides a clear record if anything still needs correcting.

Ametria Chaney · Answer

That is a fair question, and I see it happen often enough that I always warn buyers about it: final payment is leverage, so it should not go out until the punch list is actually verified, not just promised. In practice, I recommend holding back the final payment until someone you trust has walked the property and confirmed each item with photos, and until any remaining items are put in writing with a completion date. If a contractor pushes for payment first, that is a sign to slow down, not speed up. A clear written scope and a payment schedule tied to verified milestones will protect you far better than any verbal assurance.

Mark Updegraff · Answer

@Vladimirs Veiss, I’d decide what proof closes each stage before the work starts. A photo can show that drywall is up; it may not show what happened behind it or whether the work matches the scope. For an out-of-state job I’d want the original scope broken into measurable checkpoints, same-angle photos or video, and an independent local walkthrough at the milestones where later corrections would be expensive. Then the payment decision is tied to an agreed deliverable instead of a reassuring update.

Vladimirs Veiss · Answer

@Mark Updegraff thank you, Mark, same here! Behind-the-wall work is something we never accept from a photo of the finished wall: on our Swiss projects the stage closes before the drywall goes up, while pipes and wiring are still visible, and a technical supervisor checks it against the agreed scope, with photos and video taken at that checkpoint from the same angles. We pay on sign-off, not on an update. And the milestone you mention, where later corrections get expensive, is our strictest checkpoint. One practical question: when the owner can't be there in person, who usually does that independent walkthrough in your projects, and who pays for it, the owner or the lender? Have a great week!

Vladimirs Veiss · Answer

@Inder Singh thank you, Inder, this is a real system! Matching each draw to invoices and receipts for materials on site is the piece I rarely see people mention, and it closes the gap that photos can't. We do the same on our Swiss projects, plus one thing: the next stage doesn't start until the previous one is accepted, so a problem never gets buried under new work. Happy to connect, I'll send you a request. With 17+ units, do you still walk the big stages yourself, or has your team taken that over? Have a great evening!

Inder Singh · Answer

Your rule is the right starting point, Vladimirs — money follows a finished stage, not the calendar. I operate 17+ units across Worcester, Warren, and Revere, MA, and even as a “local” owner I'm not on site daily, so we verify the way an out-of-state owner has to.

What works for us:

• Scope broken into defined stages before work starts. No draw releases until that stage is documented with dated photos and a short live video walkthrough — not stills the contractor chose.

• Each draw matched to invoices and receipts for materials actually on site.

• Big stages confirmed by a separate set of eyes — our own management team (I co-founded TWM Residential), never the contractor's word alone.

• Final payment held until the punch list is closed and the work passes our walkthrough.

The burn comes from paying ahead of verified work — once you're behind the money, the leverage is gone.

Happy to connect — DMs are open.

Vladimirs Veiss · Answer

@Ametria Chaney thank you, Ametria, that's a clear rule: final payment is leverage. We go one step further: every remaining item on that list gets its own price, not just a completion date, so the final payment shrinks by exactly what is not done, and both sides sign the list during the walk. Do Memphis contractors sign such a list on the spot, or does it turn into an email chain? Have a great evening!

Out-of-state rehab in Florida: how do you know the work is really done?

Out-of-state rehab in Florida: how do you know the work is really done?

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