CONTRACTS - Editable

As far as dealing with a contractor to fix some things on a house. What is the usualy protocol for paying them? Should they get paid after their work is done? Some upfront? Plus, could I hold payment 'til the property is sold? I know that last one may be a little far-fetched, but I'm not sure. Can someone help me out?

In my experience make sure you have a good itemized contract with warranty and a completion time. Check out the contractor references and go look at some of his jobs. Do not take the word of people on the other end of the phone.Some contractor already have friends lined up for you to call that will praise his work and ethics.If the job is over $500 check him out thoroughly. Check the BBB and see if their are any complaints.Do your home work or you could be ripped off or worse be sued. Most contractors will require 30-50% down and the balance at the end of the job. The one I like most is 25% down and pay draws after a designated job description is completed. Always retain at least 25% until job is completed to your satifaction.Make sure the contract states that all work will be completed to your satisfaction,if it doesn't write it in yourself and both of you sign it and date it.The rest is up to you.If you were to hire an exspensive contractor he might only ask you to pay a small deposit and carry the job to completion. This may put you way over your budget.Good luck

Why not? As long as you both sign a contract with that says you will pay the contractor after it is sold. If you don't sell, you don't have to pay. If the contractors signs a contract like that he should know that is a possibility. That's the contract. You and the contractor can amend the original contract to both of your satisfaction if you both choose too. If you do sell, and you don't pay, the contractor can sue you based on the contract.

If you have a working established relationship with a contractor and they are making money with you consistently, they may agree to payment for their labor after you sell the property as long as you can flip the property in a reasonable amount of time. But nobody wants to tie up their money on materials without being compensated with bonus or interest on money spent on materials. However, If your contractor is struggling to pay helpers, delayed pay may not be the best choice for them.

When I used a 203K rehab mortgage in 1996 via FHA/HUD, the contractors had agreed to be paid after FHA/HUD inspected the completed work and payed me my draw that was held in escrow for thaose repairs. Only after I received my draw, did I pay them. That was the only way they could make money and they agreed to it before the property was even in my name.

The only contractor that cried was the second roofer. He accepted the job and made the same mistake as the first roofer did. The first roofer that estimated the job under bid the work and walked away. The reason was he never climbed to the roof to see there were two other flat roofs.

My friend is a general contractor and he will not front the bill for a job anymore in this economy. He has been burned twice on hardwood floor jobs in the last year and 2 grand on each.

Great to have the list at our finger tips.

If i have a buyer and another person has the property,what contract do i need to
protect us both so we can split the fee?
jeff

Good evening DG family, I want to use an option agreement when I start birddogging. I've been reading that getting a commission is not legal if I am not a licensed agent. So can I use a option agreement and get paid on the backend of the sale ? if so does anyone have a template that can be edited to my use.

So I could see an example of what one filled out looks like. Some of it I don't know what to put in the slots.

The only additional clause I would want to have in my assignment of contract is the fact that they are replacing any earnest money which is immediately non-refundible in the assignment.

Example:

ASSIGNMENT OF CONTRACT

The undersigned Assignor, having executed a contract dated on the 11th day of August, 2012 between Initial Buyer, “Contractor”, and Initial Seller “Contractee”, concerning the property described as: 54 New England Court Gretna, Louisiana 70053.

hereby assigns all rights to said contract to: End Buyer ("Assignee") in exchange for compensation in the amount of Ten Thousand Dollars ($10,000). To be paid as follows:
1. Earnest money deposit of One Thousand Dollars ($1,000) to be paid to Initial Buyer upon execution of this document.
2. Balance of the Assignment Fee to be paid at close of escrow.

Assignee agrees to fulfill all terms, conditions, and contingencies of said Contract and to perform as required in good faith and within any time periods established by said Contract this Dateth day of August, 2012.

Assignor

Assignee

Thanks for the update with the additional information.

Hi Rena,

Just wanted to let you know that I love your scripture verse. It is one of my favorites and I quoted it often to my son who had difficulty finding what God's purpose was for him. Today he happily employed by a large church in South Carolina where he is the FOH engineer. God did indeed have a plan for him. He went from drug addict/drug dealer to living for our Lord. Much prayer and love helped him reach this point. What's awesome about this scripture is that it is meant for all of us. Even those of us in our fifties. God isn't finished with us yet and we love this our new investment business. We've learned a ton and we have no doubt that our income will be subsidized through this business. God bless you as you honor Him in all you do.

Kathy Carollo

Thanks for posting this, looking for a GA Wholesale Assignment Contract. I want to get an attorney but need to get one deal done before I can afford it

newbie

I have a deal where the owner was willing to allow me to take over her loan in exchange for paying her for the equity. Ex. Asking price $230K, owe on property $195K, equity $35K. But friends advised her not to. I explained its a win win for both and selling she stills gets $35K. Anyone out there have a better way of selling this to a seller.

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