How do weekly labor draws work for rehab projects?

We quote your full project price upfront. Instead of paying 30-50% as a deposit, you pay weekly as labor progresses. Each payment is credited toward your project total. Draws start at $4k/week for smaller projects and scale with project size. Materials are separate: we provide detailed lists and you purchase directly, so you control the spend.

Is SLH a project manager or contractor?

We're the licensed general contractor. Our crews do the work: demo, framing, plumbing, electrical, finishes, everything. We're not a middleman coordinating other contractors.

Why do investors purchase materials separately?

Transparency. Traditional contractors mark up materials or bundle them so you can't see what you're paying. We provide detailed material lists with quantities and timing. You buy directly from suppliers at cost. No hidden markup, full visibility.

What payment methods do you accept for rehab projects?

The $150 scope fee can be paid by credit card. All other payments (weekly labor draws, final balances) are wire transfer, check, or cash only. No credit cards for project payments.

How do I qualify for Portfolio Partner pricing?

You qualify with either 3 or more concurrent projects OR a commitment to 5+ projects per year. This gives you 10% off weekly labor draw rates plus priority scheduling and included pre-acquisition estimates.

Do you handle permits for rehab projects?

Yes, as an add-on service. We manage the entire permit process including applications, coordinating inspections, and maintaining documentation. Permit fees are passed through at cost.

What should I do first if my contractor ghosted after taking my deposit?

Document everything right now. Screenshot all communications, photograph the property, save the contract and proof of payment. Then send a formal demand letter via certified mail with a 14-day deadline to begin work or refund the deposit.

Can I take a ghosting contractor to small claims court?

Yes. For deposits under $10,000, small claims court is your best option. It is cheap to file, doesn't require a lawyer, and moves quickly. Bring your contract, proof of payment, and documentation of non-performance.

How do weekly labor draws prevent contractor ghosting?

No deposit means nothing to ghost with. Weekly payments for completed work only means the contractor has to show up and perform to get paid. Their next check depends on this week's work.

What is included in the $150 scope visit?

Full property walkthrough, detailed room-by-room scope of work, cost estimates, timeline projections, and a weekly draw schedule. You get everything you need to evaluate the project.

Do you work with hard money lenders?

Yes. Our weekly draw documentation meets most hard money lender draw requirements. We provide photo documentation and completion reports that lenders need to release funds.

Contractor Ghosted After Deposit? Here's Your Action Plan

You handed over the check. The contractor said he'd start Monday. Monday came and went. Then a week. Then the texts stopped getting returned. You've been ghosted. Welcome to the club nobody wants to join.

Let's talk about what to do right now, then how to make sure this never happens to you again.

Step 1: Document Everything Right Now

Before you do anything else:

Screenshot all text messages and emails with the contractor
Photograph the property as it currently stands
Save the contract, invoice, and proof of payment (cancelled check, bank transfer, Zelle receipt)
Write a timeline of every interaction from first contact to now

This documentation matters whether you pursue legal action or just need to explain the situation to your next contractor.

Step 2: Send a Formal Demand Letter

Don't just text "where are you?" Send a formal written demand via certified mail:

The contract terms and deposit amount
Timeline of their non-performance
A specific deadline (14 days is standard) to begin work or refund the deposit in full
A statement that you will pursue legal remedies if they don't comply

This isn't just about being professional. It creates a legal paper trail. In many states, a written demand is required before you can file a lawsuit.

Step 3: File Complaints

Hit them everywhere it counts:

State licensing board - if they're licensed, this hurts
BBB - creates a public record
State Attorney General - consumer protection division
Local police - if the amount is significant, this may be theft by deception

Step 4: Small Claims or Civil Court

For deposits under $10,000, small claims court is your best bet. It's cheap to file ($50-$200), doesn't require a lawyer, and moves fast. For bigger amounts, talk to an attorney.

The hard truth? Most investors never recover ghosted deposits. The contractor may be judgment-proof - no assets, no business bank account, nothing to collect. This is why prevention beats recovery every single time.

Why Ghosting Happens So Often

This isn't random bad luck. It's a predictable outcome of a broken payment structure. When a contractor collects large deposits from multiple clients at the same time, they're running a cash flow scheme. Your deposit funds their payroll on another project. That client's deposit funds materials for a third project. When any link in the chain breaks, everything collapses.

This is why the same contractors who ghost one client often ghost several around the same time. It's not laziness. It's insolvency.

The Fix: Weekly Labor Draws

At Seller's Little Helpers, we use weekly labor draws specifically because they make ghosting impossible. Here's why:

No deposit means no deposit to lose. You can't get ghosted out of money you never paid.
$4,000/week for completed work only. If the crew doesn't show, you don't pay.
Weekly accountability. You know within 5 business days if something's wrong, not 5 weeks.
If work stops, payment stops. The contractor's only path to getting paid is showing up and performing.

Think about it. If a contractor already has $15,000 of your money, their incentive to show up tomorrow is weak. But if their next $4,000 depends on this week's performance, the incentive is immediate.

Red Flags That Predict Ghosting

Watch for these before you hire anyone:

Deposit over 10-15% of total project cost - warning sign
Cash or Zelle only - professionals have business bank accounts and accept checks
No written contract - if they won't put it in writing, walk away
"I can only hold this price if you pay today" - that's a scam tactic, not a business practice
No proof of insurance or licensing - verify independently, never take their word

What Experienced Investors Do Instead

Investors who've been doing this 5+ years almost always move away from deposit-based contractors. They either:

Use a weekly draw model (like ours)
Hold all funds in escrow with a third-party manager
Purchase materials themselves and pay labor-only on completion
Work exclusively with crews they've used for 10+ deals

All four approaches share one principle: don't pay for work that hasn't been done yet.

Moving Forward

Getting ghosted hurts. But if it pushes you toward a better payment structure, it might be the most expensive lesson that actually saves you money long-term. The deposit model is broken. Smart investors are done pretending otherwise.

Book a $150 scope visit at sellerslittlehelpers.com - no deposit, no BS. We walk your property, build a detailed scope, and work on weekly draws so ghosting is structurally impossible. Call (708) 536-6700 or visit https://sellerslittlehelpers.com.

Contractor Ghosted After Deposit? Here's What to Do (And How to Prevent It)