Contractors or subcontractors who are alright with not accepting payment for their services until the job is completed?

[Kai R.]

Hi, 

Does anyone know of general contractors or subcontractors in the Atlanta, Houston, Charlotte, New Orleans, or Birmingham areas who are alright with not accepting payment for their services until the job is completed? As both an investor and contractor, I understand both sides of the coin, but I'd like to get additional perspectives. A link to their website would be great, also. Thanks! Apologies if this post isn't in the right place...

[Kimberly Jones]

Seeing as how you called out my 3 favorite cities, I can give you my little 2 cents.

I have tried dealing with the contractors every way you can think of. I have played in Atlanta, Houston and New Orleans and I rehab in New Orleans today. I rehabbed here after Katrina, when the job included removing 3 ft of mud before you could do anything else. I am also a female. I have been ripped off, bent over and straight up screwed a time or two (more like many) and the one way I have found works the best is to have the contractor bid the job and give you a time frame. Break it down by the week and pay them on Friday (provided the work is satisfactory). 

I am VERY hands on though, I also buy all materials myself and I get them to the jobsite. Many contractors can't roll with my level of micromanagement and that's OK. Regular homeowners have their kinda contractors and investors have another kind. We need contractors that are going to work WITH us. They are definitely hard to find AND worth their weight in gold. It is, in my opinion, the most crucial part of a rehabbers world. They can make or break a deal in a heartbeat, if you let them. 

The best thing you can do is keep it fair on both sides. They only risk a week of no money and you only risk a week of ****** work (or no work at all). Whatever you do, do NOT hand over a bunch of money before you know the level of work they are capable of. I don't care who might have referred them, don't do it. Maybe once you have a solid working relationship, but even then it can be risky. 

Now, since you are asking as a contractor and an investor, (and the contracter part of you is likely already calling me an *******) let me throw a few "what if's" at you. What if I pay you $9k up front on Monday morning, and you cash the check and get run over by a bus? What if I pay you $9k on Monday morning and your wife or husband cleans out your bank account by 5pm? I could go on and on with real life stories that you would swear were made up. The point is even good people with the best intentions can disappear overnight. It isn't about whether you trust the person, it is simply about life.

Just today I had a plumber looking for his Friday money, so I showed up with a check in one hand and a water key in the other. Apparently he didn't think I know we don't have to have water service turned on to check his work. 10 minutes later we had a river running down the street and that check came home with me. He can come back and fix it, or I can pay someone else to fix it next week. Either way, I am not paying for something that I did not receive.