Feeling Scammed What do I do ?

[James R.]

About a 18 months ago I put a property under contract and assigned it to a private money lender who purchased it cash. He also paid for the rehab. The plan was to rehab it buy it with traditional financing and rent it on Airbnb. This was my very first deal. The private money lender agreed to sell the property back to me at the appraised value . He also agreed to give me any value add minus his $10,000 fee. After interviewing what I thought were licensed contractors I chose Bob (obviously not his real name) I thought Bob was a licensed contractor. A year later I find out he is not. My private money lender at the time knowingly or unknowingly hired the unlicensed contractor to do the work. I was sent all he invoices all which stated permits would be pulled. The private money lender was charged so ultimately I was charged. This was a big project requiring new electrical new plumbing bathroom addition new roof Windows, everything. The home was completely gutted. We converted a home from a 4/2 to a 3/3 to rent on Airbnb. After paying the lender his fee and buying the property back we made a small profit. We took the small profit to buy furniture. I was not completely happy with the rehab it took much longer then expected but I was happy I get a property with no money. Fast forward a year later I used the contractor for my second deal and now more recently im working on my 3rd deal using the same contractor. In the middle of a huge project I check to see if permits have been pulled after code enforcement stopped and said permits where not pulled. This was a surprise because we were told they numerous times they had been. For every project we had received invoices for permits. Looking back me and my partners were very ignorant and stupid not to check for a license number. The project we are currently doing, the 3rd deal we immediately stopped and are now hiring a real licensed contractor. I sold this property as an RE agent and am managing it for them on Airbnb. To avoid a law suit Bob has agreed to pay back the 30k that was paid to him. The 2nd deal which I own 25% of Bob has completed the project already. Bob has agreed to have permits pulled and pay for any fees or code violations charged. He as agreed to make sure it's a true 4/3 not a 3/2. Neither one of these deals were assignment of contracts. They were both a straight purchase and renovation. Since then the private money lender has proven himself untrustworthy and shady and have not spoke to him in almost a year. I don't know what my course of actions should be or if any should be taken at all. I don't plan on selling the house anytime soon not for 15 years or so. Problems with the property that I'm aware of. Windows and doors are not storm or hurricane impact. Fencing is not to code. I am sure there are many other issues and violations as nothing was permitted. We had a 4pt home inspection before purchased that was all. I didn't have my license at the time. So I didn't work with or no much about how title companies worked. Any suggestion and or advice on how I should approach this situation would be greatly appreciated. Thanks in advance.

[Jay Hinrichs]

your post is too hard to follow..