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Mandelon
09-21-2006, 10:29 AM
Any biz owners have experience factoring their receivables? My A/R are growing but its taking up all or working cash.
We have an equity line, but not much room left on it, Wells won't consider an increase for a couple more months. :mad:
A/P is only about half of A/R. 60 days is about our typical turnaround time by the time the brokers get the reports and requests off to the banks and the check finally arrives.
I may need to switch banks altogether??

seanv
09-21-2006, 10:35 AM
i handle my depts. recievables and its a mother chasing 60-90 day money. thats what has kept me from jumping into my own gig is seeing how even big companys dont pay 30day money.
as for your deal i really dont have an answer for ya sorry

C-2
09-21-2006, 10:51 AM
Mandelon:
You might try some of the specialized, smaller business banks.
Alliance Bank (www.allbank.com) in Culver City has loan products similar to factoring, sans the baseball bats and gold chains. They even write loans to pay off judgments. I used to do a lot of work for them, my contact was Will Rogers.

centerhill condor
09-21-2006, 11:22 AM
switching banks won't solve your problems and "factoring" is just more fingers in your wallet... we have several "world leader" customers well known and giants in their industries and they pulled that 60-90 pay with us and our little "fly on the elephant's ass company" threatened to cut them off and bam we got our money on time every time.
build the relationship so that you're "needed" by your customer and get somebody at your outfit to play the "bad guy" and get you money or get clients that will pay on time. No pay no play! You have leverage in this situation and you must use it to survive.
Get that bank out of your pocket...take you time and don't rush yourself. plan your work and work your plan..

TRIMM MANN
09-21-2006, 11:26 AM
I always seem to have the same problem. The longer the big companies leave"YOUR" money in the bank the more interest they make. I have had them write a check on the 10th of amonth and not send it out for 90 days and then tell me look at the date on the check.
I find it helpfull to get friendly with their A/P people.

superdave013
09-21-2006, 11:28 AM
i handle my depts. recievables and its a mother chasing 60-90 day money. thats what has kept me from jumping into my own gig is seeing how even big companys dont pay 30day money.
as for your deal i really dont have an answer for ya sorry
From what I see the bigger the company the slower they are at paying.

NashvilleBound
09-21-2006, 11:29 AM
Get the hell out of Wells Fargo and dont use B of A. That should be your first step. I would need more info on the rest to assist further..... :boxed:
Not that I have a clue what I'm even doing....:D :D :D :D

switchin'addiction
09-21-2006, 11:31 AM
Get the hell out of Wells Fargo and dont use B of A. That should be your first step.
I was in the banking industry for 10 years & I agree 100% w/ NB!!

Tremor Therapy
09-21-2006, 11:37 AM
Mandelon,
I wish I had something positive to say, but we are in the same boat! Companies who want discount terms, get them, write checks on those days taking the discount, then sending them 2-8 weeks later! Our AR person goes nuts trying to collect sometimes. Our line is maxed and the bank won't budge on additional funds. It seems that in todays business climate that our customers think we should be chasing 60-90 day monies!

C-2
09-21-2006, 11:40 AM
100% of my clients are attorneys, banks and cities/municipal agencies (thank god no insurance companies).
60 days is nice, consider yourself lucky.
90-120 seems to be the norm. :mad: :mad:

Old Texan
09-21-2006, 11:46 AM
Factoring is a rip off and solves no problems in my opinion unless you have a helluva markup in your products/services.
From a small business standpoint and experience dealing with small business and cash flow, what you need is an in office A/R professional. There is no need to be treated like you are by any sized company.
Be specific with your terms at time of sale and have a proffessional follow the A/R trail. I don't mean someone who threatens and screams, but someopne that knows how to work the system correctly and how to stay on top of decision makers.
Too many businesses rely on timid, ineffective, or disorganized personnel to take care of this, one of the most essential portions of their business.
If you can't afford this type of person find and attend a seminar that shows how A/R needs to be run.
Plus once you show positive cash flow, banks will come to you with the best rates as they see a solid busines model.

rivercrazy
09-21-2006, 11:51 AM
Your getting good advise here. Factoring is VERY high cost financing. Most lenders are taking down 2% per month plus fees.
Your better off with a smaller business oriented bank. Stay away from the retail oriented banks as they will not have the expertise, experience, or credit approvers who know business lending.
If you need a few referrals, shoot me a PM

moneypit
09-21-2006, 12:06 PM
A/R's can be a big Hassle. You need to have someone on staff that is aggressive with collections. Weekly calling and assessing interest on top is what needs to be done. Also don't be afraid of using the court system to provoke payment. Companies don't want to have to show up to court or pay someone to represent them in court. Once they see a supeona they will tend to cut a check.
Thats the bad part of being in business, your also forced be a collection company.

DMOORE
09-21-2006, 12:33 PM
You Have a PM. Local Business Bank. Has been Great for us.
Darrell.

Mandelon
09-21-2006, 12:35 PM
A little more info. Its the banks that owe us the $$$$.
We rehab foreclosed homes, that banks and financing companies have taken back due to non payment by the homeowners. We are typically hired by brokers or agents doing the bidding of the banks' asset managers.
So the broker has to futz with our paperwork and submit it. Then it runs past the Asset Manager and finally to the bank's A/P department. There are maybe a dozen or two institutions that we work for, so firing the customer is a little tough.
Most of them are within the standard time period, it is just that our volume has increased so much.
I kinda thought this was the deal with factoring. I will check into a more mobile local bank.

OutCole'd
09-21-2006, 12:47 PM
One thing I'm a firm believer in now is get a good credit line set up way before you need one, because when you need it, no one will give it to you.
Like we've talked about, try to go with a small local bank. They are usually willing to jump through more hoops to get your business.

Deano
09-21-2006, 12:51 PM
growing pains. Been there. I was at Wells Fargo and they wouldn't raise our credit line. I went to a small local bank and got about 1,000% more within a day. Big banks suck!! :argue:

Scream
09-21-2006, 02:25 PM
Mandelon, changing banks sux almost as much as moving, but you would be better off in a smaller bank. Instead of a small fish in a big pond you'll be a keeper in a lil pond.
Factoring is really not the way to go IMO, it's a vicous cycle, much like auto leasing. You really never get to the end of the rainbow with that warm and fuzzy feeling. Put Puptent on the corner and make him earn his keep, that'll bring in at least $20.00 a week.
Scream

Dave C
09-21-2006, 02:32 PM
good advice here.
factor is a euphemism for high cost financing.... plus is very difficult to calculate the APR. This is intentional because they don't want you to know how high it is. ;) :rollside: :yuk:
go talk to another bank about LOC increases. if you got good credit you should be OK.
don't use the factoring unless as a last resort.
good luck
davec <---- CPA..

Sportin' Wood
09-21-2006, 03:06 PM
Mandy, I went through the same thing about 6 months ago. Search HB, I posed the same question. Factoring is a no go from the research I did.
What I ended up doing is hiring a gal that does just AR and tracks the AP. She does not pay the bills but keeps them in order. She calls weekly and gets on a first name basis with the payable dept's. Likely you are running into the same BS I do with releases not being just the way they want them, allowing them to keep the money another month. I still have to work for the money but its comming in a little faster.
BTW She does not act like a creditor, she uses her time to create a relationship with the people on the other side. I found that because its not there money (on either end) they don't get as emotional as I did(or do).
Good luck growth is a double edge sword.

NashvilleBound
09-21-2006, 03:08 PM
One thing I'm a firm believer in now is get a good credit line set up way before you need one, because when you need it, no one will give it to you.
Great advice! Each building I buy gets a line of credit in first place opened right away. Your exactly right by you saying get it open now cause when you need it they will not give it to you.

totenhosen
09-21-2006, 05:26 PM
Try to stay away from factoring if you can. Gets pricey for you. If you need any help I'd be more than happy to help you out or refer you to someone who can. The bank I work for can help you out. The only bad thing is the nearest branch to you would be Corona or Anaheim.

Havasu Luvr
09-21-2006, 06:03 PM
I afford NET 1 to brokers and NET 15 -30 to OEM's. I find that most will pay on time but a few think NET 1 mean NET 10 phone calls or the usual is I never recieved that invoice, could you fax me another. BS when I instruct my Germany or Hong Kong warehouse to ship goods my Commercial Invoice is inserted with EVERY shipment for US Customs and I also fax a copy with the Freight AWB# and I also mail the original. I also find with continous delequint payments that I inform them of a NEW credit status...COD.... wow, that lights a fire under their AP dept and the next thing I know they want terms again and start paying on time. It's like raising children, you have to figure out what works with each individual.

Mandelon
09-21-2006, 06:21 PM
Thanks for the great advice. And not a single smart aleck response in there at all. You guys are slipping... :p
I will check around for a recommended local ( San Diego ) bank and see what we can get. We are not some big company but will be running likely $2 mil through the account every year....
Its great on the days when $50K arrives in the mail, and then sad the next day when it all goes back out.....

ROZ
09-21-2006, 06:36 PM
Factoring is to write an expression as a product of factors. For example 5 and 2 are factors of 10

Froggystyle
09-21-2006, 06:37 PM
Thanks for the great advice. And not a single smart aleck response in there at all. You guys are slipping... :p
I will check around for a recommended local ( San Diego ) bank and see what we can get. We are not some big company but will be running likely $2 mil through the account every year....
Its great on the days when $50K arrives in the mail, and then sad the next day when it all goes back out.....
When you get that answer... give me a call. I am at the end of my rope with B of A.

C-2
09-21-2006, 07:20 PM
What I ended up doing is hiring a gal that does just AR and tracks the AP. She does not pay the bills but keeps them in order. She calls weekly and gets on a first name basis with the payable dept's. Likely you are running into the same BS I do with releases not being just the way they want them, allowing them to keep the money another month. I still have to work for the money but its comming in a little faster.
BTW She does not act like a creditor, she uses her time to create a relationship with the people on the other side. I found that because its not there money (on either end) they don't get as emotional as I did(or do).
I also agree with this strategy.
First step is developing a relationship with whoever processes the invoices;
Second part is to kill him/her with kindness;
Third part is to ask them for help. Straight up ask them, “Can you help me?”. Since you are now their buddy, you give them a crash-course about the problems slow paying clients create. Tell your buddy how often times your family goes “without” since there’s not enough cash coming in and you always make sure your employees are paid first. Remember, it’s human nature to wanna help, as evidenced in this thread.
Truth is, none of these people know the problems associated with small biz and slow pays….they are engrained with corporate only, where red tape is the norm.
The first time they help you, send them a sizeable Starbucks card, movie tickets or restaurant gift certificates. Send it in a nice card and tell them to take their spouse out for a “getaway night.” Trust me, if the invoices get slow again, it only takes a phonecall.
Doing the above is a lot cheaper than hiring some a-hole like me!

wsuwrhr
09-21-2006, 07:27 PM
At American Eagle, ONE person opened all the mail and distributed it to the intended person, less any "freebies" you describe. The owners "re-gifted" them.
I like your strategy, however I just figured you might be interested in what "might" happen.
Brian
I also agree with this strategy.
The first time they help you, send them a sizeable Starbucks card, movie tickets or restaurant gift certificates. Send it in a nice card and tell them to take their spouse out for a “getaway night.” Trust me, if the invoices get slow again, it only takes a phonecall.
Doing the above is a lot cheaper than hiring some a-hole like me!

C-2
09-21-2006, 07:32 PM
At American Eagle, ONE person opened all the mail and distributed it to the inteneded person, less any "freebies" you describe. The owners "re-gifted" them.
Brian
Sorry about that.
BTW
Both the dinner and movie were great :220v: :220v:

wsuwrhr
09-21-2006, 07:36 PM
Sorry about that.
BTW
Both the dinner and movie were great :220v: :220v:
Laughs

Misogynist
09-21-2006, 07:46 PM
I also agree with this strategy.
First step is developing a relationship with whoever processes the invoices;
Second part is to kill him/her with kindness;
Third part is to ask them for help. Straight up ask them, “Can you help me?”. Since you are now their buddy, you give them a crash-course about the problems slow paying clients create. Tell your buddy how often times your family goes “without” since there’s not enough cash coming in and you always make sure your employees are paid first. Remember, it’s human nature to wanna help, as evidenced in this thread.
Truth is, none of these people know the problems associated with small biz and slow pays….they are engrained with corporate only, where red tape is the norm.
The first time they help you, send them a sizeable Starbucks card, movie tickets or restaurant gift certificates. Send it in a nice card and tell them to take their spouse out for a “getaway night.” Trust me, if the invoices get slow again, it only takes a phonecall.
Doing the above is a lot cheaper than hiring some a-hole like me!
That strategy may work in your favor with some people.... I used.... USED... to be in the contruction business in another life.... it was normal for f**kers to hang me out to dry for 90 to 180 days... No matter how much I cajoled or screamed.... Once I made the "I'm starving plea"... and the f**ker offered to pay me 50 cents on the dollar to settle the account "to help me out". I went ballistic... his reply.... " you are taking this personally... it's only business."... The next morning I had the small part of his neck tie wound around my left hand and as he gasped for air... I hovered my right fist above his face.... I mentioned to him that after I fisted his teeth down his throat to keep this in mind... " It's not personal... it's only business."... I got paid... but I also changed professions before I landed in jail for assault.

C-2
09-21-2006, 08:05 PM
Misogynist
It’s funny you mention that. Just today I was speaking with a friend who’s an electrical contractor. He said everybody is paying slower and slower and now he's getting worried…..
For anybody in the business – if you’re a sub and your general or developer is paying slower and slower, or even if you’re a supplier and your customers are paying slower……knowing when to change credit terms is critical. Why? Because they’re not slow paying JUST YOU – they’re slow paying everybody and then the snowball effect happens. Their combined debt becomes TOO much to pay ANYBODY.
Know when to change your credit terms with them. If you get promise after promise to pay – ask for personal guarantees. If two principals of a business are unwilling to give PG’s– what’s that tell you?
By the time you call an attorney – it’s too late - you’re gonna get some BK papers and your receivables go bye bye.
So for you peeps in the construction biz – stay on top of your receivables. The time is ripe for cash-starved developers/contractors to start fawking everybody.
Bottom feeders are already lining up, we're all doomed :crossx: :) :crossx:

You Te
09-21-2006, 08:29 PM
A bird in the hand is better than 2 in the bush. Trying to get big sometimes means you go broke.

Mandelon
09-21-2006, 09:13 PM
My customers are the freaking banks...they have plenty of money. It is just that in so cal everyone is suddenly overwhelmed and understaffed by the explosion in foreclosures.

LakeRacer
09-22-2006, 05:53 AM
My customers are the freaking banks...they have plenty of money. It is just that in so cal everyone is suddenly overwhelmed and understaffed by the explosion in foreclosures.
Do you file notice of intent to lien on the properties you are working on? I would think mechanics liens should help you out when the banks try to re-sell the property? Maybe not.

Mandelon
09-22-2006, 07:09 AM
The issue is to collect without ruffling feathers. These are all repeat customers, and if you alienate them you are done in the industry...
I've never had one not pay...in 12 years of doing it....its just they are slow. The wheels of big institutions turn slowly. Collecting is not the problem, its how to last long enough to keep going.
It also helps keep competition out of the biz too. The other guys want to get paid immediately. The banks won't do it. So not many const co's are willing to take the projects. But the pay is good and the work is easy.
Its a compromise, no doubt. We charge enough to make the wait worthwhile. Its just our volume has gone up so much. I am not bitching about them not paying, just wondering best how to increase working capital.
:cool:
Thanks again for all the advice.

Sportin' Wood
09-22-2006, 07:12 AM
My customers are the freaking banks...they have plenty of money.
Think that was the same public opinion in 1939? LOL :)
I'm thinking the Saprano move might be more fun then my method. "Think maybe I should put your head in a vice?" :crossx:
Construction is going to be fun over the next 21 months, We get to see what we're made of.
Mandy I'll shoot ya a pm of a lead for a new bank I'm switching banks currently after 10 years with Temecula valley bank.

ChumpChange
09-22-2006, 07:28 AM
Depending on how your business is set up(I think you are technically a contractory), a good factoring company(if there is one) really isn't an option as they don't like contractor's receivables. Factoring companies generally will only advance receivables that are on terms of 60 days. If they take longer to pay, they won't take them as they know that it will be VERY expensive to the customer.
Depending on your current line of credit, I'd look at other banks, not to necessarily replace your line but for dual lending. The banks hate it but as long as you keep small enough lines at each institution, the banks will not need to file a UCC1 or "all business assets filing" and they really won't know about each other other than the fact they might see it on your credit report. Banks like WF, BofA and more will give up to $100,000 each(stated income) and not place a UCC1 filing. You can have numerous lines like these around the area. As the credit lines go higher, different standards apply of course.
Contractors are high risk right now and as I looked over some reports yesterday, the contractors and churches were the highest nonperforming loans at this time. Banks see this and are not giving much money to them. I don't have the time to type the history of contractors in times like we are now in, with others cutting back and paying slowly.
The best advice was given before: Get as big of a line when you don't need it because when you do, the bank is not going to give it to you.

wsuwrhr
09-22-2006, 07:30 AM
We charge enough to make the wait worthwhile.
That was my next idea for you Mandy.
Brian

Misogynist
09-22-2006, 08:12 AM
Do you file notice of intent to lien on the properties you are working on? I would think mechanics liens should help you out when the banks try to re-sell the property? Maybe not.
Oh yeah..... wave a piece of paper in their faces... that really scares them... NOT..... Once in a while you come across a sophisticated debtor and they don't care if you have a lien.... if you are in construction and you encumber their title... all they have to do is dangle a check in your face to waiver the lien. In the mean time you are financing THIER project while your business goes in the crapper. That was the tactic in Deer Valley Utah in the 80's... If you went into the county recorder's office and looked at the abstracts of the properties you would faint over the number of mechanic's liens. The developers didn't give a $hit. They just let their subs starve while they tried to sell their overpriced condos. When they would get a fish to bite on a condo... they would type up lien waivers and checks for that particular unit. If you had interest terms in your contract they would insist that you waiver the interest to get paid... IF YOU REFUSED to waiver the interest and take it in the a$$... They would claim the work was "substandard" and merely escrow the money they owed you to clear the title. Trust me on this one... everyone waivered their liens to get paid the original amount. This is nothing less than letting all the trades finance their project. It happens all the time and their isn't anything you can do about it. If you don't file a lien... you won't get anything. Always file the liens before the expiration date. It may not get you your money in a timely fashion... but it will make them pay attention to you.

seanv
09-22-2006, 08:23 AM
mandelon, perfect timing. i just had to call my contact at a body shop on the hook for a sizeable chunk. if you read these posts you see several peeps say "build a relationship" this is something i do and made my call today easy as well as productive.60 day money im chasing here and after a lil humorous " hey guido's coming to talk about kneecaps" jokes he has a check ready for pickup. i have built good relations with most accounts and great ones with the slow pays.
it does sound like growing pains for you and i hope you get it ironed out.

C-2
09-22-2006, 08:54 AM
project. It happens all the time and their isn't anything you can do about it. If you don't file a lien... you won't get anything. Always file the liens before the expiration date. It may not get you your money in a timely fashion... but it will make them pay attention to you.
You gotta be careful with liens against real property. In Cali - you have 90 days to perfect the lien, otherwise it expires. Perfecting the lien requires a lawsuit to foreclose, and there are strict requirements for a properly filed lien. You know what happens when you try to foreclose with other comntractors and banks with security interests? A whole lotta legal mess and unless you have your own legal staff like many developers do - it's gonna cost some big jacks.
Quite a few construction people don't even know this and think it's a cure-all remedy; you go to Office Depot, pick up the form, file the lien and it's good until paid. Wrong. In between here and there, if you put a cloud on title and the title company refuses to ignore an expired lien, you just bought yourself a lawsuit.
I agree it scares the beejeezuz out of the average homeowner, but you gotta be careful with other contractors/developers.
Sounds like you're a happy man to have gotten out of the industry?
***** Sorry for the threadjack ****** :)

rivercrazy
09-22-2006, 08:55 AM
A few points of advise coming from a commercial banker
* DO NOT split borrow at different banks. Once the lender does find out you have another revolving line at another bank, they will do one of two things - 1) not renew your line at maturity and require you to pay it off in full, 2) term out the principal balance of the loan over a 2-4 year period.
* Any lender will want to see 2 solid repayment sources for a working capital line. Typically on a revolver, the primary repayment source needs to be sufficient short term assets to repay the line with excess margin. A/R is the most preferred short term asset to lend on as its the easiest to covert to cash. However, lenders hate terms over N30 and would like to see A/R collected close to the terms granted. If they stretch over 30 days beyond terms or higher, they will start to look at how to eliminate those assets from the borrowing pool. Most lenders do not like inventory, especially goods that are not easily convertable commodities. Lenders also want a second way out in the event the primary source doesnt cover the loan balance. Typically they look to all corporate assets and assets of the business's owners for additional support (i.e. guarantees). Sometimes a bank will require a guarantee to be secured with personal assets to solidify the secondary repayment source.
* Never borrow to finance losses. That is a sure fire way to screw up a business and banking relationship. A lender can be your BEST friend or your WORST enemy!
* Always find an experienced account officer that is genuinely interested in your business and understands business, economics, and the specifics of you industry.
* Maintain a very fluid and honest line of communication with you banker. Surprises will hurt you more than honesty. A banker puts their neck out for borrowers. Surprises will damage trust and the desire to recommend your deal for approval.

ChumpChange
09-22-2006, 09:21 AM
* DO NOT split borrow at different banks. Once the lender does find out you have another revolving line at another bank, they will do one of two things - 1) not renew your line at maturity and require you to pay it off in full, 2) term out the principal balance of the loan over a 2-4 year period.
This is correct although generally if the lines are smaller(under $100,000) the bank will not check. Demand lines of credit vs. Annual Renewal. It's always a gamble though.
* Any lender will want to see 2 solid repayment sources for a working capital line. Typically on a revolver, the primary repayment source needs to be sufficient short term assets to repay the line with excess margin.
Wouldn't the bank want the primary repayment source to be cash? :D Secondary source is the liquidation of collateral. Just giving you a hard time on this one.
* Always find an experienced account officer that is genuinely interested in your business and understands business, economics, and the specifics of you industry.
* Maintain a very fluid and honest line of communication with you banker. Surprises will hurt you more than honesty. A banker puts their neck out for borrowers. Surprises will damage trust and the desire to recommend your deal for approval.
This is probably the one I agree with the most. You need to find an experienced loan officer that will know their company's loan policy. Anybody can send in the requirements the bank wants but a good one will know the proper way to structure the loan for the best chance of approval. It takes credibility within the company to get things approved, especially in this market.

rivercrazy
09-22-2006, 09:36 AM
Wouldn't the bank want the primary repayment source to be cash? :D Secondary source is the liquidation of collateral. Just giving you a hard time on this one.
Cash is nice but rarely available as direct collateral in a borrowing base!
For non-lenders - For a working capital line, the primary repayment source is typically conversion of assets to cash. Then when the crap hits the fan, hopefully liquidation is enough to payoff the line so the bank doesn't came after the guarantees!

Misogynist
09-22-2006, 10:11 AM
You gotta be careful with liens against real property. In Cali - you have 90 days to perfect the lien, otherwise it expires. Perfecting the lien requires a lawsuit to foreclose, and there are strict requirements for a properly filed lien. You know what happens when you try to foreclose with other comntractors and banks with security interests? A whole lotta legal mess and unless you have your own legal staff like many developers do - it's gonna cost some big jacks.
Quite a few construction people don't even know this and think it's a cure-all remedy; you go to Office Depot, pick up the form, file the lien and it's good until paid. Wrong. In between here and there, if you put a cloud on title and the title company refuses to ignore an expired lien, you just bought yourself a lawsuit.
I agree it scares the beejeezuz out of the average homeowner, but you gotta be careful with other contractors/developers.
Sounds like you're a happy man to have gotten out of the industry?
***** Sorry for the threadjack ****** :)
Am I happy I got out of construction?.... yes... in a big way. The only way I would ever be in construction again is to work on my own property. The laws are designed to protect the consumer... and as much as the laws are designed to protect everyone... they favor the consumer. If someone knows how to use the laws to their advantage you are screwed.Lien laws vary from state to state... but one thing for sure is they protect lending agencies much more than they do contractors. That is why you have to exercise (perfect) a lien within a given time frame. I once had to foreclose on a property and it took two years and 11 thousand dollars in legal expenses to get paid 6 thousand. Nice return for my trouble. Lose money to get paid. The home owner knew the bankruptcy laws and he held everyone, including the mortage holder at bay for years.... in the mean time he siphoned money off the construction loan... paid back taxes... then filed bankruptcy after 90 days so that the tax payment didn't look "preferential".the homeowner went B/K and I couldn't collect the legal fees. The only reason I got the 6 thousand he owed me is because the money was escrowed to clear the title. If I were still contracting I'd be typing on a computer terminal behind bars because I was getting wound so tight I was about to beat someone to death.

C-2
09-22-2006, 11:14 AM
Am I happy I got out of construction?.... yes... in a big way. The only way I would ever be in construction again is to work on my own property. The laws are designed to protect the consumer... and as much as the laws are designed to protect everyone... they favor the consumer. If someone knows how to use the laws to their advantage you are screwed.Lien laws vary from state to state... but one thing for sure is they protect lending agencies much more than they do contractors. That is why you have to exercise (perfect) a lien within a given time frame. I once had to foreclose on a property and it took two years and 11 thousand dollars in legal expenses to get paid 6 thousand. Nice return for my trouble. Lose money to get paid. The home owner knew the bankruptcy laws and he held everyone, including the mortage holder at bay for years.... in the mean time he siphoned money off the construction loan... paid back taxes... then filed bankruptcy after 90 days so that the tax payment didn't look "preferential".the homeowner went B/K and I couldn't collect the legal fees. The only reason I got the 6 thousand he owed me is because the money was escrowed to clear the title. If I were still contracting I'd be typing on a computer terminal behind bars because I was getting wound so tight I was about to beat someone to death.
You're a well-versed and smart man misogynist. :)