fliprent

The never ending battle between contractor and real estate investor continues.  No matter how many times you seem to use a contractor there will almost always be a time when the contractor wants to be paid and the investor is not satisfied.  Well..that’s the nice way of putting it.  More than likely, it’s that the contractor wants money before he/she finishes the job. 

I will never understand why it’s so hard to find a tradesman that just wants to do the job the way it was agreed upon and THEN ask for the check. 

Yes, Yes I know… there are those investors that don’t pay on time (if ever), and the contractor has to look out for himself… Really?  So asking for money early somehow protects him against being ripped off?  I’m guessing asking to be paid prior to finishing, won’t help very much.  What are we to think is the real reason they want to be paid early?   Here is a “short” list of reasons:

• They can’t finish the job.
• They have no intention on finishing the job.
• They don’t have enough money to finish the job.
• The sub contractor will not finish until he is paid.
• The job will not pass inspection and they know it.
• They really are not licensed and just want to get as much money as they can and bounce.
• They had an emergency come up.
• They think you are new to the game i.e, “sucker”.
• They take your kindness for weakness.

If you have been in this game long enough for just one deal, you are sure to have come across one of these “reasons”.  If it hasn’t happened yet, IT WILL! As a new investor it’s almost guaranteed to happen.

What to Do When a Contractor Wants to be Paid Early?

It’s simple.  Don’t pay the final check until you are satisfied with the work.  This sounds easier than it really is.  As a new investor you may not know exactly when the work is completed.  For example, the plumber finishes the rough in and has all the fixtures in place.  Pay day right?  Well…no not really.  Here is a short list of questions to ask your plumber:

• Has the main water valve been turned on?
• Have you turned on all the fixtures in the house to see if the water is running?
• How is the water Pressure?  Is it good in the shower?
• Is the hot on the left and the cold on the right?
• Are there any leaks coming through your walls?
• Have you had an approved final inspection from the local authority?  If so where is the sticker?

As you can see there are many reasons not to simply trust pay up.   If you do, you can bet your bottom dollar that they won’t be back for a while (if ever).