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My Trials and Tribulations with Contractors

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With my team gone, I had to rely on temporary contractors who I hired for specific projects. These contractors did not owe any loyalty to me or my company, except for the specific jobs they were hired to do. The result was that, as soon as a contractor landed a job with me, they were busy looking for another job, so when they were done with mine, they had another job waiting.

Sometimes, they signed up with more than two jobs, so they showed up at my job one week, another job another week, and yet another one the following week. By the time they got back to my job, they had lost their sense of continuity. I was now operating in a completely unfamiliar territory where I had lost my sense of control. How could I run a business where the contractors I had hired seemed to be in the driver’s seat? Sometimes these contractors confused my designs with those in other companies they worked for at the same time as mine. In other cases, they couldn’t remember at which company they had left their tools.

I wondered why a contractor would not simply tell the truth that from this date to this date, they would be working at a different site. Their lies led to mistrust, arguments, bad blood, and jobs done poorly. In one instance, a contractor I had worked with for many years persuaded me to advance him over $40,000 that it would make the construction cost cheaper as he would buy materials in bulk to reduce acquisition costs. In economic terms, he would get discounts through bulk buying, and the economy of scale savings would trickle down to me in the form of reduced material costs. He disappeared after he took my money. Mind you that this was a contractor I had worked with in many projects, over a period of six years. I was confused and beyond shocked.

To me, this guy had become more than a contractor. He was now a friend, a confidant at that. I had developed a level of trust with him, trust that many people only have with immediate family members. To say that I was confused and shocked is an understatement! I was mad. I was livid. I felt betrayal beyond measure. I didn’t know who else I would trust in this business. I had to use my knowledge from the corporate world to get most of my money back. Still, it was a lesson that you have to be on your guard in this business. You need to have proper rules of your own, and you need to follow the rules even if your dad is the contractor. Business is business! Trusting someone does not mean breaking your rules. Rules are rules. Period!

From all these instances, I thought that there had to be a better and easier way to work with contractors. I also thought that, if even with my advanced education and extensive experience in the real estate business, I could be lied to in this manner, then people with less education and experience were unquestionably at the mercy of these contractors.

I talked to various professionals, attended seminars, read books, and researched various systems that would create a streamlined method to help me with investor and contractor interactions. In the process, I solidified my belief that relationships with contractors are a major problem in the real estate business. In my research, I Googled, “How do I get the support I need to rectify contractor mess?” “Why am I always having problems with contractors?” “I need to find the right contractor,” and “I need to learn to detect and quickly fire a lying contractor.”

As many experts and investors in the industry will tell you, the success of a rehab or building process greatly depends on your relationship with contractors. Therefore, those new investors and homeowners seeking success in the industry need to know the best ways to hire and retain reputable contractors.

Why Do Contractors Lie?

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