***ATTN REALTORS / CONTRACTORS / INVESTORS*** Around a year ago I met a couple who where investors who where interested in partnering with me on projects. He was a Contractor for 20yrs and land developer and she was a Licensed Realtor and a Designer for 10yrs. After looking at several houses and meeting several times to discuss the details of our partnership and the direction we wished to move, we finally agreed on a marketing strategy. We would focus on an area (that I picked) and use a method I suggested, yet split the cost for this marketing 50/50. Upon locating a house and reviewing my repair estimates and her numbers we devised a plan and made an offer. It was accepted and thus the partnership moved to the next stage. My partners where to gain access to private funds (he has a wealthy uncle and lots of connections) or even borrow against money from a previous investment. (note: this previous and only investment property deal ended badly because of their contractor) Instead my partners used a hard money loan. This was acceptable by me as the numbers would still make since by my calculations. Upon closing on the property my partners and I did a walk through in which we decided what walls would be moved and what upgrades/changes would be made. My partners informed me that they wanted to handle getting the cabinets, windows, doors, and flooring. As well as pick out the paint colors and other finishes. (after all she is the designer). After several weeks of not receiving the new floor plan, kitchen design, bathroom design (including enlarging the shower and moving fixtures) or any other aspect of the design I contacted my partners at which time I was told I dont know how to do any plans. I pick out stuff not draw it out. At which time I stated my reason for the confusion; Designers are ones who make plans. i.e. space plans, floor plans, furniture plans, etc. Decorators are the ones who pick stuff out. To which I replied Not a big deal, I can draw them out. When can I get the plans from your kitchen cabinet contractor? At which point I was informed I would need to get them from him myself. (plans where made and delivered the same day.) First draw: In order to insure the trades where paid I requested that funds be available to pay trades immediately upon completion. After several weeks of being told it was in the process I was told to hire the first trade (foundation) and that it would be covered by my partners. I did, they did. Yet after this I still had no access to funds while my partners had already hired a cabinet company, paid for flooring, windows, doors, as well as some fixtures. It was not until after the demo was 100% complete, all new plumbing (not in my original scope), all new electrical (not in my original scope) new framing (including headers for removing load baring walls) had been completed before I received a draw to pay the trades. (note: No funds where paid to me, all funds reflected the trades invoices with no overhead or profit to me in any way) This draw was for 15k and at that point another request for the second (of three) draws had been made. (a total of around 22k in invoices to trades) After weeks of asking for the second draw and being given a multitude of excuses by my partners the lender was schedule to be out on Sat. I received a call from my partner on Sat telling me that the lender wanted to speak to me, apparently not enough work has been done to justify the next draw. I told my partner Its going to be close, but remember he is not counting the plumbing or electrical. It wasnt in our original scope. I contacted the lender who was still at the house. He stated that the reason that we did not have enough done was nothing to do with the plumbing or electrical. But that my partners had already taken another draw and not borrowed as much for the deal as I stated was needed. I then called my partner back and informed him that we did not get another draw till the project was 100% complete, and that I should have been told they were taking money out of order in the draws and I could have done something. That WE owed the trades 7k or so still just for what had been done. I reviewed how much him and our other partner has already promised or spent. He apologized and stated that he had done the lender right on the last one and he will get us the money I did not hear from my partners (despite my repeated phone calls and txt) and went to the property to find that the door people had replaced all the doors and knobs. Leaving only the keys to the front door in the lock box. With thousands in cabinets and fixtures and tools everywhere I changed the lock and left notes on the door and window stating that I had done so and to contact me if someone needed in. The next morning I got a txt from my partners demanding I come immediately and let them into THEIR property. I stated that if they would have answered their phones they would have known I did that, or if they would have called and told me they where going out there I could have met them. Again I was responded to with vulgar messages to bring them their keys. 20 min later I am at the house, my partners are not. I wait a bit and call them. (no answer). I then see them drive past the end of the street one way, then the other. About 15min later several police cars arrive. Guns out and yelling at me not to move. I am frisked and held for 45 min. After txting me and seeing me arrive at the house my partners went to the police station and stated that, I was a contractor who had been fired and had threatened them with a gun and where scared I would use it on them this time At the same time they had their lawyer write an email stating I was fired and needed to stay off their property or the authorities would be told I am an armed intruder AND I would still receive my 50% of the profit. After showing the txt messages to the police that I was asked to come to the property and that I did not in fact threaten anyone, my partner showed the letter from his lawyer claiming I had already been informed I was fired and came out and changed the locks. Implying that I did so after receiving the letter. I was told to leave and did. My trades tools and a trailer was left on the property. I was sent a letter from the lawyer demanding I have someone remove them or he informed me that he would give it away. I informed him that the owner would pick it up the next Wed. Upon arriving Tuesday my trade was informed by my partner she didnt know anything about his (now missing) trailer or tools. Nor would she allow him to look inside for his tools. I offered a meeting with my clients and their lawyer (even offered to pay a mediator) in order to settle final payments to trades as well as establish paperwork to end our partnership. At which time I was informed You where just an incompetent contractor and are not owed anything. Note: I have a lien (via agreement) on this property, instead of listing it and selling (as our agreement states) it my partners have decided to pay off the lender w/out a closing and rent out the property. These are facts- I have lots of documentation including recordings from conversations, emails, police reports, etc. Final note: In a final conversation with my ex partner he claimed that I was incompetent. I asked, If you were a contractor for 20yrs and walked half a dozen houses with me including the one we bought, reviewed my scope of work and my budgets, you saw the job before you requested the first and second draw, why didnt a contractor for 20yrs see it before all this? His response, You dumbass, I built computers as an electrical contractor. I had a specialty contractors license in Washington that allowed me to hired people, but I never did. Both my partners lied and misled as to who they where, what they had done, what they intended to do, and what had happened to them by me. These are the types of individuals that give business people a bad name. https://youtube/watch?v=Cs_ZQ3WoLgc&feature=youtu.be
Posted on: Sat, 23 Aug 2014 04:13:52 +0000
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