Scam contractor alert in NC and need your help!

[Susan Lee]

Hi, BiggerPockets community,

This is the first time I post here and unfortunately it is not great news. 

I'm an out of state investor and purchased a house in Raleigh, NC, last December. In February, I hired a contractor introduced by my broker for a fence work and paid a 60% (~$4,000) deposit as requested by the contractor. Given he was referred to me by my broker who said he used him many times, I did not check his background and wired the money. 

The contractor was responsive until the work had to be started. When my tenant was ready and we were about to start work, he stopped responding to my email/text/phone calls. Then I realized I never searched his name in Google and did. You know what? I was stunned to find out he was reported on the media due to scams. 

https://abc11.com/unlicensed-c...

I submitted a complaint to Consumer Protection Division (CPD) at NC Department of Justice who gave him three-week time to address the situation. Of course he didn't and the CPD (surprisingly) gave additional 15 business days and I'm (again) waiting. 

Has anyone gone through a similar situation and if so can you share with me some tips? Separately, how do you think about my broker who introduced the scam contractor? Of course he didn't know he had a few scams before but it was obvious that he did not used him many times...

Would appreciate your help. Thank you!

[Patrick Knapp]

@Susan Lee I’m sorry to hear you had this happen to you.

Unfortunately these things happen more often than not, as a general contractor here in raleigh I ask my out of state clients to have all funds held in an escrow account. It allows me to know I won’t be screwed and they are protected. Costs a little bit of money but it can protect you. Than you pay an inspector to check the job.

Again it’s insurance. I’d be pissed at the realtor for recommending him.

For anyone saying no deposits, good luck. As a GC I won’t start a job with out a deposit or a escrow account to ensure I have funds. I’m not a bank, some people don’t realize that