I made the ONE rookie mistake I tried to avoid!

[Gee Williams]

My husband and I purchased our first flip in March after MONTHS of analysis, reading books, sitting in on master classes, watching podcasts, etc. I got the financing, used the BP calculators and finally purchased foreclosed home. We interviewed 3 contractors and decided to go with the contractor that provided references, and my husband actually knew him outside of RE. The first month went great. We paid for the materials up front and would pay a weekly draw every week after examining his work. However, in that first month some things came up that resulted in a change order. And he wanted change order money upfront! My husband gave him $5k in cash and now he has ghosted us! We have been calling, texting, emailing, etc. It has now been 1 month with no activity on the house, alhough he does still have his generator , dumpster, and other items in the house. We paid cash for the home by using a HELOC from our primary residence. I have now had to start paying the interest on the loan for a gutted house. The contract stated that the house was supposed to be completed by end of May. We are now in July. I will be happy if we can get the 8300 of supplies we paid for upfront and cut our losses. My husband wants to give him the benefit of the doubt and believes he will show back up and finish the house, because he did let us know his mom has cancer and is in hospice....I'm so frustrated and stressed out! I need advice from some experienced flippers: Should we cut our losses and move on with another contractor or should we wait another month or so and see if the contractor shows up?

[V.G Jason]

"after MONTHS of analysis, reading books, sitting in on master classes, watching podcasts, etc."

I stopped reading after this. Quit doing this ****, just take a look at the market and make your own analysis. How long are houses sitting still, what's selling, what's not. Research your team locally, know the laws, set yourself to where you are never in the defensive and can easily pivot to being offensive if someone tries you. Too much crap about reading books, master classes, podcasts, all that stuff is immaterial to being literally involved.