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When it comes to building a home, one of the most important steps is to know the risk associated with your builder. While it is common for builders to go bankrupt in the good times, it can be even more devastating if it happens in the bad times. It is important to be aware of the risks associated with any builder and to take steps to mitigate them.
When choosing a builder, it is important to do research. Ask for references and read reviews. Make sure the builder is licensed and insured. Ask questions about their experience and the types of projects they have completed. It is also important to ask about their financial situation. Knowing the builder’s financial health can help you determine whether they are at risk of bankruptcy.
In this week’s episode, Bob and Hilary talk about what to do when your builder goes bankrupt. They discuss why more building companies go bankrupt, what questions to ask potential builders and the importance of speaking with a lawyer to know and understand the legal implications of a builder going bankrupt. So if you’ve found yourself in this type of situation or you are looking for ways to avoid ending up in a situation like this, you won’t want to miss this week’s episode!
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Our FREE 4 hour Masterclass is on April 22nd at 9am (AEST). If you’d like to learn more about this free online event, click here: https://www.thepropertyaccelerator.com.au/property-development-foundations-masterclass
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Episode Highlights:
- What to do when your builder goes bankrupt [02:25]
- Asking the builder if things are fine [09:48]
- Going to your lawyer [13:12]
- How do you have the conversation? [13:47]
- How long does it take to create a new contract? [16:04]
- Is there insurance that can help? [17:34]
- The difference between the coast of complete and what’s left on the project [18:27]
- At what point do you let your investors know what’s going on? [21:39]
- Why is replacing your builder a problem? [24:41]
- Can there be a clause? [26:47]
- What about the emotional tool? [33:07]
- Upcoming event [37:19]
