On October 16, 2023, the White House announced new actions on home ownership including $16 billion for housing and rehabilitation Last Week We discussed a contractor who is facing civil lawsuits for spending construction funds on a lavish lifestyle, including a bright yellow $85k Dodge TRX, Super Bowl and World Series trips, and a million-dollar home. Then he goes missing for nearly a week. Some listeners commented that it was an interesting story but didn’t see the correlation to “shortening the DANG learning curve”. I think one of the lessons here is one that is similar to the RJC case we also recapped in Episode 108, that contractors, and business persons in general, like to point to all the outside burdens that impact their businesses. Whether this comes from insurance companies that delay, deny, and defend claims; homeowners who want everything for free and don’t want to pay the final bill when the job is done, the government messing with the economy, etc. All those outside forces are always going to be a factor, but too often as contractors we don’t deal with the one factor we have the most control over, ourselves. TDP 108 Crime & Construction - Contractor Burns Truck to Cover Fraud? - https://www.youtube.com/watch?v=QpQWVND5iWo&t=658s From the RJC vs. AISD story (Episode 92, Part 1), there are dozens of things the contractor could and should have done to better protect themselves. Its a shame when a contractor goes down, and we don’t know the full story, but we can learn from failures to communicate, to provide documentation, and have a solid contractural understanding of the scope and payout process. TDP 92 Contractor bankrupted by storm response, RJC vs AISD part 1 - https://www.youtube.com/watch?v=yjsJYljF9_0&t=124s For this contractor in Houston, there’s likely more to the story, but if the lawsuits are to be believed, it’s a common story among contractors who live well when the money is flowing but don’t properly prepare for the ups and downs of every industry. Both of these contractor horror stories have one thing in common, a big payout without the proper regard for the risk. In RJC’s case, what happens if the customer disputes the bill or delays payment? In Detamore’s case, if you have a big payout for 14 houses, don’t spend the “profits” before you’ve actually produced the job and ensured the profits are there. The simplest lesson from RJC is to develop a process that is consistent every time, from how you onboard your customer, confirm the contract and fee schedules, and how you document the work. The simplest lesson from Detamore is similar to what we tell our employees, in the peak seasons make sure you set aside money not spend it frivolously. After that first period of overtime, prevailing wage, or storm work, what does the new skilled trades employee do? They buy a huge truck. What happens when things get slow or there isn’t any OT, they are hurting. The same goes for the business. Construction Stories President Biden proposed $16 billion for the Neighborhood Homes Tax Credit, which would result in more than 400,000 homes built or rehabilitated, creating a pathway for more families to buy a home and start building wealth. NEWS - $16B from the White House for houses and rehabilitation - https://www.whitehouse.gov/briefing-room/statements-releases/2023/10/16/white-house-announces-new-actions-on-homeownership/ The President has also proposed a $10 billion down payment assistance program that would ensure first-time homebuyers whose parents do not own a home can access homeownership alongside a $100 million down payment assistance pilot to expand homeownership opportunities for first-generation and/or low-wealth first-time homebuyers. Make home repairs easier to finance: HUD, through FHA, is continuing its work to update the 203(k) Rehabilitation Mortgage Insurance Program to help homebuyers and homeowners finance the purchase or refinance of homes in need of improvement. The 203(k) Rehab Mortgage Insurance from HUD - https://www.hud.gov/program_offices/housing/sfh/203k/203k--df Thoughts on the White House press release from Real Estate Mindset including comments on the 203(k) - https://www.youtube.com/watch?v=zrwYhVsRm54&t=884s FHA is considering potential policy changes that could increase the funds available to borrowers to make renovations and repairs. Other policies under review would permit more time for the completion of those improvements. These and other program changes will increase the use of FHA-insured mortgages to finance renovations that will improve existing homes and restore them to viable use, adding to the supply of housing in communities across the country. The market is in flux right now, especially the housing market. For contractors looking to diversify their portfolio, it may be time to freshen up on what it looks like to work with the federal, state, and local government agencies that are looking to spend this “Build Back America” money. This story shows that at least some of those proceeds, if not additional funding, is going into the residential market for housing assistance, hopefully, more people will be able to get into affordable housing, as well as housing rehabilitation, allowing homeowners to access low-interest loans for safety, accessibility, and necessary renovations to their existing homes. While it’s not as simple as applying for the loan and then the work can immediately start, the process also isn’t as cumbersome as some might think. Charleston area real estate broker Bill Olson shared some of these requirements on his YouTube page. Biden’s homeownership actions could affect Charleston - https://www.youtube.com/watch?v=x8zILT2WfXM Requirements include: Could borrow up to $35,000 dollars, must use an approved contractor, the work has to start within 30 days of closing on the 203(k) loan, and the work has to be completed within six months. In our area, the requirements aren’t beyond the reach of most contractors so it would be in the best interests of contractors listening to check out what is available in their city, county, and state. For our local business, we have been doing some research and wrote a blog post covering some of the details for the City of Tacoma and Pierce County, Washington Blog post on the Pierce County Home Rehabilitation program - https://www.aresrestoration.com/post/pierce-county-home-rehabilitation Closing Thoughts President Biden proposed $16 billion for the Neighborhood Homes Tax Credit, which would result in more than 400,000 homes built or rehabilitated, creating a pathway for more families to buy a home and start building wealth. According to the website neighborhoodhomesinvestmentact.org the group estimates that each $1 billion in Neighborhood Homes investment would result in the following impacts nationwide:
The government claims it is investing in making housing affordable, but there are other actions that several construction groups argue are making building affordable housing more difficult. We had previously reported on the emergence of natural gas bans on Episode 97. TDP 97 Book #5, Gas Stoves, and 80s Prisons - https://www.youtube.com/watch?v=yf75eMi1ifg&t=229s It appears that the gas ban in New York has made it through their state legislature whereas the one in Berkley, California is at a stalemate for now - https://gizmodo.com/new-york-gas-stove-ban-lawsuit-1850931008 The gas ban passed this May when New York Governor Kathy Hochul signed the All Electric Buildings Act. This made New York the first state to ban gas hook-ups in new buildings. The law aims to decrease the use of fossil fuels in the state and is supposed to take effect for new buildings smaller than seven stories high by 2026. This means those properties will not be allowed to use gas-powered appliances like water heaters, furnaces, and stoves. The policy will apply to larger buildings starting in 2029. It does not apply to existing buildings. Next Week
Episode 108 of the DYOJO Podcast was about a contractor who potentially mishandled hundreds of thousands if not millions of dollars. Episode 110, coming soon, will address an issue in Washington State where a construction project was off the mark by billions of dollars. TDP Credits The DYOJO Podcast is produced by The DYOJO (D-Y-O-J-O). Host Jon Isaacson, the Intentional Restorer, is an author and contractor based in Puyallup Washington. You can find out more about this podcast, including blog posts with content references, as well as Jon’s books for contractors and other services at thedyojo.com. If you have enjoyed this content, please like, subscribe, and share.
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On Episode 108 of The DYOJO Podcast, we are talking about crime and construction. Our main story centers around a burning truck, a missing contractor, and millions of dollars for housing developments being unaccounted for. Intro The DYOJO podcast Helping Contractors shorten their DANG learning curve Join host Jon Isaacson as we explore contractor stories, experiences, and best practices to help listeners thrive in the skilled trades. Prior - Related This isn’t the first time we’ve covered the intersection of construction and criminal activities on TDP. You may remember we did a four part series on RJC vs AISD - here’s a brief recap (video with Michelle Blevins from C&R Magazine / Restoration Today Podcast) RJC vs AISD Episodes Ep 98 - Part 4 - https://youtu.be/uJ_Z5nOOtNg?si=646hdBVa8iEDOPsB Ep 96- Part 3 - https://youtu.be/pZlJa5jz64s?si=qv-11QchnrnMmZZX Ep 93 - Part 2 - https://youtu.be/J8I-z9kSr8o?si=R9eCofvPIv-0kZkv Ep 92 - Part 1 - https://youtu.be/yjsJYljF9_0?si=bIsLLVUQnn7hNXfw New video https://youtu.be/0FyTqR6POQk?si=CahmeXjNh-eTAz2o Unfinished houses, open roofs: RJ Construction customers take their claims to bankruptcy court - https://www.keranews.org/business-economy/2022-09-12/unfinished-houses-open-roofs-rj-construction-customers-take-their-claims-to-bankruptcy-court Sponsors You know what the true crime is? Not checking out our sponsors… EPIC Esitmates - Any estimate, anywhere, anytime. Let the award-winning EPIC Estimates help your team write the next Xactimate or Symbility estimate. Freeing your team up to do what their good at, while helping your business maximize productivity and profitability. Restoration Industry Association (RIA) - Connect and collaborate with your industry peers through the largest non-profit professional trade association dedicated to the unique plight of restoration contractors. Join us April 8-10, 2024 in Dallas for the Restoration Industry Association Convention and Industry Expo. Discounts are available for early registration. Washington Business Brokers partners with business owners to confidentially explore selling their business with discreet, objective counsel as well as insight into market activity and comparable private transactions. Encircle - The only all-in-one field documentation solution. Visually document and present high-quality reports, so there are no questions asked. Their floorplan tool now integrates with Xactimate to create an ESX for estimating. So, You Want To Be A Project Manager? The third book from Jon Isaacson, written to help those wanting to advance their careers in the skilled trades. This book covers the mindsets and habits for construction project management with an emphasis on property restoration. Story Today's construction crime, developer Bret Detamore allegedly faked his disappearance for nearly a week and burned his bright yellow Dodge TRX as a potential cover-up for stealing hundreds of thousands, if not millions, from clients near Houston, Texas. We discuss the timeline and details of this story that started with his wife reporting him missing on Wednesday, June 21, 2023 and the fallout from the many unanswered questions related to this unique event. His business seemed to be thriving, according to those who know him. In his Instagram account in February, he showed what he termed “the 1st of 14 homes to be completed in 2023,” and he was driving a model of a Dodge Ram truck which sells with a low-end price tag of $84,555. TIMELINE Wed June 21, 2023 8:46am Wife reports 38 year old Contractor Brett Detamore missing to West University Place PD; a suburb near Houston, TX 100pm call from Houston PD to West U PD That same day Brett’s truck is found burning (pic) bright yellow dodge ram TRX in Bear Creek Park. According to WPD Chief Ken Walker, "The vehicle was severely burned. Most of the recognizing or identifying information had been destroyed. One of the HPD officers knew that they could find a secret VIN number. He found that number, ran it and it came back as a missing person’s vehicle. We were then notified where the vehicle was." The Houston Fire Department is investigating the arson case for Detamore's burnt truck and will determine if any charges will be filed. So far, HFD says no one has been ruled out as a suspect. Last week, the Harris County Precinct 1 and Precinct 5 Constables’ Offices and Texas Equusearch helped to conduct a search at the park last week but did not find Detamore. No shared evidence or discovery other than a male witness who claims to have observed a male walk away from the burning truck the morning of 6/21/23 Cameras from 6/21/23 at 4:21am (confirm) WPD cameras pick up Brett driving his truck, he is not following anyone or being followed Monday, June 26, 2023 Police still looking According to Fox 26 Houston - On Monday night, authorities say his wife received an e-mail from Detamore. "We had to verify it wasn’t a hoax. We had to verify it wasn’t somebody that was holding him hostage," Rosen said. "He was located in San Antonio Texas. He was located at a bus stop. He was then transported back to Harris County, voluntarily. We didn’t have to do anything other than we want to bring you back to Houston." Tue June 27, 2023 Brett is found in San Antonio at a bus stop According to Fox 26 Houston - Harris County Precinct 1 Constable Alan Rosen confirmed with a Facebook post that Brett Detamore, 38, has been located. Authorities say Detamore was taken to a hospital for medical evaluation and treatment. Constable Rosen expressed the family's gratitude for the support and requested privacy. Criminal charges? According to Fox 26 Houston - West University Police Chief Ken Walker says there was no foul play involved but believes his disappearance was pre-planned. "We are not investigating the missing person for a crime," he said. "We are still investigating people that may have been complicit in some things that were occurring, and we’ll continue to run those leads down." WPD has subpoenaed phone and financial records Civil lawsuits Detamore has not been charged criminally, but he and his development company were previously face two civil lawsuits. Detamore had two lawsuits — totaling about $325,000 — filed against him in New York after he allegedly defaulted on a pair of borrowing arrangements frequently used by strapped businesses seeking infusions of fast cash by signing away future revenues. Both cases were filed in Kings County, N.Y. by the same law firm on behalf of clients.
10/4/23 lawsuit The lawsuit, filed Wednesday, Oct. 4, in Harris County District Court, accuses Brett Detamore of abandoning home construction builds when he executed a plot to go into hiding. Now a $1,000,000 civil lawsuit filed by Zaffer Syed on Oct. 4 in Harris County seeks to fill in some of the gaps. Claim Before going into hiding, Detamore had already stolen money meant for the construction of homes, the lawsuit says. He falsified invoices and submitted them to a financing bank to acquire the money, according to the lawsuit. “Rather than use the funds for the homes, the stolen funds were used to support Brett Detamore’s lavish lifestyle,” the lawsuit says, alleging Detamore used money on Super Bowl and World Series tickets, high-priced vehicles and a home in Galveston worth more than $1 million. Response At attorney representing Detamore told KPRC the allegations are still being reviewed. “The events of the last few months have been tragic and unfortunately the subject of much public speculation and rumor,” a statement from the attorney read, according to KPRC. “Mr. Detamore is getting the help he needs, and the entire Detamore family requests privacy at this time.” SOURCES News clip - 2:43 https://youtu.be/WKyPz4JVurc?si=XJTJf3SmfnYXg3sD Police - 14:44 6/26/23 https://www.youtube.com/live/fNXcAt43cy8?si=-d8_VLDp0LEavF1n Police - 14:52 6/27/23 https://www.youtube.com/live/fNXcAt43cy8?si=fgieWBwOJElh6fQi Report - 6/26/23 https://www.fox26houston.com/news/missing-brett-detamore-search-continues-for-man-last-seen-in-west-university-place-truck-found-burned.amp Two Lawsuits prior - 6/26/23 https://www.essentialsnews.com/2-lawsuits-charge-missing-west-u-man-with-defaulting-on-cash-advances/ Found - 6/27/23 https://www.fox26houston.com/news/missing-west-university-resident-brett-detamore-found-alive Third suit - 10/9/23 https://lawandcrime.com/lawsuit/home-builder-jet-setted-around-blew-project-cash-on-super-bowl-and-world-series-before-faking-disappearance-and-setting-100000-truck-on-fire-lawsuit/ Ad - Encircle Closing Thoughts - Foul Play? Police said Detamore’s disappearance was pre-planned, and there were no indications of foul play. No “foul play” suspected Definition of foul play - “criminal violence or activity that results in a persons death.” Next Week - Missed a construction estimate by BILLIONS (with a B) What is the worth of a construction company? What is the value of a company that provide water and fire damage restoration services? According to Washington Business Brokers, "Understanding the worth of your business is just as important as knowing your personal credit score or having a will drawn up. It offers numerous benefits, including comparing its current value to the previous year, identifying strengths and areas for improvement, calculating revenue per employee, qualifying for bank loans or financing, planning for the future and retirement, and creating a succession plan." Ryan Hemmert, the founder of Washington Business Brokers, will be speaking at the Fall PNW Contractors Symposium on Tuesday, October 11, 2023 to discus Determining the Worth of a Construction Company. Seattle Workshop for Construction WorthFall PNW Contractors Symposium Presentation 1 Ryan Hemmert - Washington Business Brokers (Seattle) Would You Buy Your Business? Ryan Hemmert partners with privately-held business owners to think strategically and position for a successful sale of their most valuable asset – their business. His presentation will help contractors create maximize value and build financial freedom. Is your business running the way you would like? If you had to start over, how would you set it up differently? Ryan will help contractors approach their business with a fresh set of eyes and make a plan that buyers will value and pay for. Seattle Construction Value EventTHEME: Creating Value Within Construction Teams
Hosted by FoCKED and The DYOJO Podcast DATE: Tuesday, October 10, 2023 TIME: 8am - 130pm (Doors open at 730am) LOCATION: Tukwila, WA 98188 Please RSVP through Eventbrite Meeting sponsors:
730 Doors open and set up 805 Opening Theme - Creating Value Within Your Teams 815 Presentation 1 Ryan Hemmert - Washington Business Brokers (Seattle) Would You Buy Your Business? 900 Presentation 2 Geoff Lawson - Auburn School District Collaborative Productivity Goals 1005 Presentation 3 Peter Holmes - Encircle Communicating the WHY of Documentation 1050 Presentation 4 Mari Borrero - American Abatement (Kent) Telling Your Story, Achieving Your Dreams 1140 Closing Thoughts Panel with all speakers 1205 FREE Lunch, networking, and exhibits Sponsored by Luke Draeger - Aramsco (Tukwila) The Fall Pacific Northwest Contractors Symposium will be hosted Tuesday, October 10, 2023 at Aramsco's Seattle office. This event is being organized by The DYOJO Podcast and the Fellowship of Construction Knowledge and Entrepreneurial Development (FoCKED). FoCKED hosts monthly roundtable meetings for contractors and this will be the second symposium of 2023. The first symposium focused on water damage mitigation and was hosted by American Water Damage Restoration at the Yacht Club of Edmonds. The theme of the October Contractor 1/2 Day Symposium is "Creating Value Within Construction Teams." Seattle Workshops for ContractorsThe format for the Fall PNW Contractors 1/2 Day Symposium is four TED-talk style presentations by subject matter experts. Each presenter will address the theme of "Creating Value Within Construction Teams" from their area of expertise. Following the twenty minute presentations there will be focused peer-to-peer roundtables as well as question and answer (Q&A) with the speaker. Presentation 1 Ryan Hemmert - Washington Business Brokers (Seattle) Would You Buy Your Business? Ryan Hemmert partners with privately-held business owners to think strategically and position for a successful sale of their most valuable asset – their business. His presentation will help contractors create maximize value and build financial freedom. Is your business running the way you would like? If you had to start over, how would you set it up differently? Ryan will help contractors approach their business with a fresh set of eyes and make a plan that buyers will value and pay for. Presentation 2 Geoff Lawson - Auburn School District Collaborative Productivity Goals Geoff Lawson is the Operations Coordinator at Auburn School District. Having built his career in the skilled trades, from a janitorial technician to supervisor and now coordinator. His innovative process for creating clear productivity goals and collaborative results have helped him guide service teams through the various challenges inherent to working within the educational system. Contractors will learn new ways to approach team goals and develop accountability. Presentation 3 Peter Holmes - Encircle (Ontario) Communicating the WHY of Documentation Peter Holmes is an account manager at Encircle. He helps restoration contractors do more with less by making it easy for their teams to deliver clear reports that get them paid on time and in full. This presentation will focus on the importance of documenting work to field teams. It will cover how to capture data that tells the true story of every property loss and ways to involve field teams in the process. Contractors will leave with three key takeaways centered around context, clarity, and consistency. Presentation 4 Mari Borrero - American Abatement and Demolition (Auburn) Telling Your Story, Achieving Your Dreams Mari Borrero is the CEO of American Abatement and Demolition (AAD). Inspired by the dignity of work, the promise of education, and seizing every opportunity. Mari will share her story of building a business within the skilled trades, contributing to the local community, and the lessons learned during the growth process as a leader. She will share unique ways that contractors can tell their story to inspire team members and community partners to help achieve those visionary goals. Fall Seattle Contractors SymposiumTHEME: Creating Value Within Construction Teams
Hosted by FoCKED and The DYOJO Podcast DATE: Tuesday, October 10, 2023 TIME: 8am - 130pm (Doors open at 730am) LOCATION: Tukwila, WA 98188 Please RSVP through Eventbrite Meeting sponsors:
730 Doors open and set up 805 Opening Theme - Creating Value Within Your Teams 815 Presentation 1 Ryan Hemmert - Washington Business Brokers (Seattle) Would You Buy Your Business? 900 Presentation 2 Geoff Lawson - Auburn School District Collaborative Productivity Goals 1005 Presentation 3 Peter Holmes - Encircle Communicating the WHY of Documentation 1050 Presentation 4 Mari Borrero - American Abatement (Kent) Telling Your Story, Achieving Your Dreams 1140 Closing Thoughts Panel with all speakers 1205 FREE Lunch, networking, and exhibits Sponsored by Luke Draeger - Aramsco (Tukwila) Geoff Lawson, Auburn School District, will be one of four subject matter experts presenting at the 2023 Fall PNW Contractors 1/2 Day Symposium in Tukwila, Washington. Fall PNW Contractors Symposium - SpeakersGeoff will lead attendees through a collaboration process that he created for developing productivity metrics and holding team members accountable for achieving goals. There will be three additional TED Talk-style presentations from local subject matter experts centered around the theme of "Creating Value Within Your Team". Each presentation will be followed by peer-to-peer roundtable discussions and Q&A with each speaker. You can hear more about Geoff's productivity metrics on Episodes 105 and 106 of The DYOJO Podcast Fall PNW Contractors Symposium - AgendaTHEME: Creating Value Within Your Team Hosted by FoCKED and The DYOJO Podcast DATE: Tuesday, October 10, 2023 TIME: 8am - 130pm (Doors open at 730am) LOCATION: Tukwila, WA 98188 Please RSVP through Eventbrite 730 Doors open and set up 805 Opening Theme - Creating Value Within Your Teams 815 Presentation 1 Ryan Hemmert - Washington Business Brokers (Seattle) Quantifying Real Value for Your Team 900 Presentation 2 Geoff Lawson - Auburn School District Collaborative Productivity Goals 1005 Presentation 3 Peter Holmes - Encircle Communicating the WHY of Documentation 1050 Presentation 4 Mari Borrero - American Abatement (Kent) Telling Your Story, Achieving Your Dreams 1140 Closing Thoughts Panel with all speakers 1205 FREE Lunch, networking, and exhibits Sponsored by Luke Draeger and Tim Conley - Aramsco (Tukwila) Fall PNW Contractors Symposium - Sponsors
A new article by Jon Isaacson was published in Construction Business Owner Magazine - The Three P's of Project Management.
EXCERPT: Project management is an essential function of any organization offering services in the skilled trades. Project managers feel they are overutilized and underappreciated by owners, managers, subcontractors and customers. Meanwhile, owners and managers wonder why their teams cannot consistently produce profitable projects with happy customers. Digging further into the three P’s of project management can help all parties improve their processes and outcomes. Please give the full article a read and let us know what you think. If you are a business owner, manager, or aspiring skilled trades professional, check out Jon's third book So, You Want To Be A Project Manager? for more on this topic. |
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