Contractor scammed me - help and advice request

[Justin Brasher]

Hi All!

I’ve gotten into a predicament where my contractor hired turned out have used a fraudulent license and provided me a quotation that was way under scoped. After 10 weeks of fake photos, updates and locking me out of my own house I embraced the truth and fired him. I know, I’m a fool and a rookie.

I need advice (and probably emotional counseling). The house actually needs far more work than expected. I need to find 3 times what I got in a construction loan to hire a new contractor and my commercials are upside down. After finding the additional amount somehow and if everything goes perfectly I'll sell for $20k loss if I get my expected ARV. I'm stressed and worried. Any advice on options you think a rookie like me should know?

[Greg Scott]

This is stressful, especially for your first deal.

1) Take a deep breath

2) Center yourself

3) With a clear mind, evaluate all your options 

My first reaction was, does it make sense to complete the construction?  If you sold "as is" would it be smarter than spending more time and money to end up at a $20K loss.  My next thought is "why sell"?  In the long-run real estate is very forgiving.  If you complete the repairs, can you rent it for more than your monthly cots. If you can kick the can down the road, you might end up in a good place. (Delaying the exit helped save my first deal.)

There may be more ways, but there isn't enough information here to provide other ideas.