First and foremost, when somebody rips you off, they don’t put that money in a CD or money market account waiting for you to ask for it back. It is almost always gone. Collecting a judgment is often the most difficult part of the process. There are numerous protections for a debtor and you just cannot get at some assets. This is something that is difficult for many people to believe. You may be lucky to even find these people. Very often there is realistically nothing that can be done.
Avoid problems.
Here’s the list of things to think about:
- Going cheap.
For example, if a roofer comes in several thousand dollars cheaper than any other bid, run don’t walk away. He either is an idiot, screwed up his bid, desperate to get a job (and will probably be looking for another job while not working on/finishing yours) or actively out to rip your off.
This goes for everything. Going “expensive” is no guarantee of not having a problem, but cheap is almost always a recipe for disaster.
2. Don't invest with or partner with a guy from church.
For whatever reason, I hear this one too much.
2 a) Avoid guys with religious symbols in ads, letter head or business cards unless they are a preacher.
See above
3. References. Ask for recent ones and check them out.
I once worked in an office in which I was assigned an assistant. The assistant almost immediately stated she needed my company credit card. I was not travelling anytime soon and refused. She persisted. I guess a couple other people had some questions about her. I spoke to the HR lady who hired her. The HR lady was more interested in smoking and what was for lunch than doing her job. After enough questions were raised, HR lady finally contacts her references. One of her “references” was shocked he had been listed. He said he had a $650,000 judgment against her for embezzlement. Nice work HR. Have a smoke. ( A few years later I heard a story about this assistant, from a completely unrelated source. The assistant had started cleaning houses and was caught stealing from a kids piggy bank. The group of people she was cleaning for then caught her stealing from all their children’s change jars)
If there is a hole resume look into it. Old references are useless. For construction guys, ask for their last half dozen jobs. Call them.
4. Unqualified and uninsured
We had a lot of new general contractors out there recently. Many with zero gc experience. Usually not good.
Tree trimmer + No insurance = no thanks.
5. Use the Better Business Bureau and Missouri Case Net system to check them out.
Look for complaints and or lawsuits against company and owner. Just having one or two may not be too bad, but look into them. Default judgments and not responding to BBB complaints are poison.
Also the Missouri Secretary of State for companies. Look for name changes, new companies or if the owner is the registered agent for several companies.
Buying a business? Hire an attorney and an accountant. Don't take the business brokers word for anything. He doesn't get paid unless you buy. Know what you are buying.
2. Don't invest with or partner with a guy from church.
For whatever reason, I hear this one too much.
2 a) Avoid guys with religious symbols in ads, letter head or business cards unless they are a preacher.
See above
3. References. Ask for recent ones and check them out.
I once worked in an office in which I was assigned an assistant. The assistant almost immediately stated she needed my company credit card. I was not travelling anytime soon and refused. She persisted. I guess a couple other people had some questions about her. I spoke to the HR lady who hired her. The HR lady was more interested in smoking and what was for lunch than doing her job. After enough questions were raised, HR lady finally contacts her references. One of her “references” was shocked he had been listed. He said he had a $650,000 judgment against her for embezzlement. Nice work HR. Have a smoke. ( A few years later I heard a story about this assistant, from a completely unrelated source. The assistant had started cleaning houses and was caught stealing from a kids piggy bank. The group of people she was cleaning for then caught her stealing from all their children’s change jars)
If there is a hole resume look into it. Old references are useless. For construction guys, ask for their last half dozen jobs. Call them.
4. Unqualified and uninsured
We had a lot of new general contractors out there recently. Many with zero gc experience. Usually not good.
Tree trimmer + No insurance = no thanks.
5. Use the Better Business Bureau and Missouri Case Net system to check them out.
Look for complaints and or lawsuits against company and owner. Just having one or two may not be too bad, but look into them. Default judgments and not responding to BBB complaints are poison.
Also the Missouri Secretary of State for companies. Look for name changes, new companies or if the owner is the registered agent for several companies.
6. Get it in writing.
Hire an attorney, see rule #1.
I will add to the list as I think of them. Nothing earth shaking here, just common sense. Keep these in mind to stay out of a jam and out of my office.
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