My first real estate buy; gone wrong

[Natalie Mil]

Last year I was in Miami on holiday and thought I might try my hand at real estate.

I'm Australian and I heard other people from Australia and Canada doing well in US property.

I bought a duplex in North Miami which was a fixer-upper. I hired a builder who quoted $30,000 to repair the entire job.

We made up a contract whereby I would pay bit by bit on a weekly basis as repairs progressed. From the first week I had concerns about the way the contractor operated. He kept requesting more money upfront then what we had agreed on.

The building had been progressing for over a month with the builder sending me regular photo updates so I could see what was going on and I ended up paying around $23,000. After 6 weeks the contractor informed me he was nervous about building inspectors leaving him notes that he had no permits.

I was unaware that any permits were required and the builder told me that he was unlicensed and had not acquired permits so the whole project was very risky. At this point I told him I couldn't give him any more money.

Then the builder just up and left the whole job, leaving it like a construction site.

Shortly after I got a letter from the City if North Miami via the closing attorney who handled the sale, warning of fines for illegal building activity.

I contacted 2 other licensed building companies to go there to see about finishing off the job. They both said that everything that has been done is so bad and doesn't meet code requirements and needs to be ripped done.

I really do not know what to do from here. I just want to sell the property to get out of this situation.

Does anyone know if I can sue the original builder I hired or is it my fault for not checking his license and doing more background research?

I'd really appreciate any advice or help. This thing has caused me a great deal of stress and depression.

If anyone can recommend an agent in Miami/North Miami to sell the property for me, that would be appreciated too.