Beware of Contractor company

[Jason Friday]

I wanted to share my worst experience with one of the contractor company, I trust them and suddenly after taking good amount of advance they start making stories like - partner is sick , partner daughter got eye cancer and about to die and partner is in coma etc.

But I should say its my bad I trust them.

First I complete first project with them and it turned out good, though he was late in that project too but i trust as he made stories of cancer issue with partner daughter. Then I assign him for 2 new projects to rehab the properties and gave the advance for 2 projects and in separate scope of work. 

He did awesome work in first month and build trust and when got 2nd installment of payments on both properties....then he just brought all stories and disappear.

Now I am going to file a lawsuit against that company as the amount is much more then 10K.

[Vijaianand Thirunageswaram]

@Jason Friday  I remember you called few weeks and talked to me about it. I am sorry about it. It's known issue with any contractor whether you gave him 100k project and working for long. It just happens because they don't understand our side of it. They think we have lot of money and buying houses a lot and you should be able to manage the loss.

It's surely hard to find a trustworthy contractor or Handyman. I learned many lessons in these years even with those lessons I tend to make mistakes and fail sometimes. We are all humans and obviously soft corners even we tried to keep it as business as possible. Here are few things I do mitigate this issue. I am not going to say it works all the time but it works for me, most of time.

1. If you find an handyman and he works well and shows up whenever you call him, don't bargain with him unless the charge he quoting are way too high. I used to bargain but not anymore because how many handyman shows up on time and how many pick their phone every time you call them.  Its hardly 10%. Not many look for longevity. 

2. I work with many vendors like AC guy, Handyman, Plumbers and contractors for few years now. I keep in touch and give them business regularly with my project or other referrals. By doing so they know that you are valuable asset. Also I respect them and take care of payment on time which many investors don't

3. I scope my projects in smaller blocks and try to split in multiple payments not just 2 or 3. That way your lose would be less and you have the accountability and can recoup quickly. I know it's pain to go back and check every few days but you gotta do it. 

4. I am also trying to implement few clauses in the contract that allows you to take over the property if they are late and don't put an lien on your property. It's going to hard to execute but at least these clauses they signed will hold them against and they might think twice. 

5. if it's small project, try to pay for material via HD online or phone and have them complete project and pay them for the day of work completed accordingly. 

Anyway, these tips hope this helps you or any other investors. If you need help, don't hesitate to pm or call me.