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th71
Flash in the pan


Joined: 03 Dec 2008
Posts: 34
Location: Houston

David Powers Homes - Houston
PostPosted: Wed Dec 03, 2008 5:16 pm Reply with quoteBack to top

Does anyone have any info regarding the company's current financial situation? My wife and I are building a home with them and needless to say, we are very worried. Any feedback would be greatly appreciated.

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th71
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syntheticheroin
Nitroglycerin


Joined: 05 Mar 2007
Posts: 646
Location: Lake of the Ozarks

Re: David Powers Homes - Houston
PostPosted: Wed Dec 03, 2008 5:50 pm Reply with quoteBack to top

I can tell you established builders generally don't just hang-up their spurs all nice and easy.., try to relax.
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th71
Flash in the pan


Joined: 03 Dec 2008
Posts: 34
Location: Houston

Re: David Powers Homes - Houston
PostPosted: Thu Dec 04, 2008 2:16 pm Reply with quoteBack to top

The CFO of our builder called me last night asking for an additional deposit so that they could get the cabinet manufacturer to start on our cabinets. The bank who caries the construction loan will only pay an invoice and will not pre pay for work to be done.

The fact that our builder is asking us for more money at this point (we're only about 7 weeks away from completion) is a huge concern.

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th71
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t2940
Schumpeter Reincarnate


Joined: 13 Feb 2008
Posts: 5548
Location: cave dweller

Re: David Powers Homes - Houston
PostPosted: Thu Dec 04, 2008 2:19 pm Reply with quoteBack to top

Stick with what the contract says
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FIXMYLOAN
Consigliere


Joined: 27 Dec 2007
Posts: 4684
Location: Jersey

Re: David Powers Homes - Houston
PostPosted: Thu Dec 04, 2008 2:26 pm Reply with quoteBack to top

th71 wrote:
The CFO of our builder called me last night asking for an additional deposit so that they could get the cabinet manufacturer to start on our cabinets. The bank who caries the construction loan will only pay an invoice and will not pre pay for work to be done.

The fact that our builder is asking us for more money at this point (we're only about 7 weeks away from completion) is a huge concern.



Sure is - where's the rest of your deposit?

The banks I have dealt with only pay draws on completed work...and "cabinets" is not a typical "draw".

Sample (generic names)

Initial (lot acquisition, surveys, approvals, and landscaping)
Foundation
Framing/Roofing (sometimes separate)
Siding/windows, doors
Plumbing (includes Sewer/Septic)
Electrical
HVAC
Finish Carpentry (may include cabinets)/Flooring
"Punch List" (may include appliances) CofO may be issued BEFORE this

Typically follows the schedule of inspections, and is broken down by trades.



Anyone else who does more than a few of these a year want to chime in?

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clgruber
Dud?


Joined: 17 Mar 2008
Posts: 17

Re: David Powers Homes - Houston
PostPosted: Thu Dec 04, 2008 2:33 pm Reply with quoteBack to top

Did your builder/contractor sign the draw schedule? They know up front when they sign it they only get a check cut when the work is complete for that draw and the inspection on the work is approved.
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buyerbeware
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Joined: 08 Aug 2007
Posts: 3326
Location: minneapolis

Re: David Powers Homes - Houston
PostPosted: Thu Dec 04, 2008 3:27 pm Reply with quoteBack to top

th71 wrote:
The CFO of our builder called me last night asking for an additional deposit so that they could get the cabinet manufacturer to start on our cabinets. The bank who caries the construction loan will only pay an invoice and will not pre pay for work to be done.

The fact that our builder is asking us for more money at this point (we're only about 7 weeks away from completion) is a huge concern.



What's the relationship between the cabinet maker and the builder? If there is none, the cabinet maker is not likely (especially these days) to accept C.O.D. terms. Even if the builder does have an established relationship with the cabinet maker, there has probably always been a deposit requirement which the builder paid from their own funds and recouped at delivery/scheduled draw.

Maybe your builder doesn't have the cash to pay the deposit and needs the money to come from your loan (or your pocket) to cover the deposit. If that's the case, ask the builder for the cabinet manufacturer's invoice and present that invoice to the lender. This may not fit with the existing draw schedule but the lender can adjust the terms of the draw schedule to accommodate the circumstances if it means expediting completion. I can assure you, your lender gains nothing from a delay.

Your construction lender knows that custom built cabinets require a deposit far enough in advance to fit the builder's installation schedule; it's not unusual.

If your builder balks at providing the manufacturer's invoice, it's probably because they don't want you to know what their profit margin is for materials and/or labor to install. If that's the case, you may want to assure the builder that you have no intention of pursuing a renegotiation of the contract price. You're paying interest - money - on that loan and each day that goes by with no progress made is not money well spent.

Keep us informed. I'm curious to know how it turns out.

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th71
Flash in the pan


Joined: 03 Dec 2008
Posts: 34
Location: Houston

Re: David Powers Homes - Houston
PostPosted: Fri Dec 05, 2008 2:21 pm Reply with quoteBack to top

I spoke with the CFO again yesterday. Now, instead of asking for an additional deposit for the cabinets, they are asking that we pay for the entire bill. The price: $13,366. We are in for about $15K on a $395K home. I told the CFO we are not investing more cash then asked her what her plans were...her response: "I guess we'll have to find another way, but we don't have the money".

I am speaking to my attorney today about working a way out of buying the house. To be clear, this is not a "build on your lot" or "custom" build...we are building in a subdivision.

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shaqdiezel
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Joined: 11 Dec 2008
Posts: 12
Location: Houston TX

David Powers Homes- Bad idea
PostPosted: Thu Dec 11, 2008 5:43 am Reply with quoteBack to top

They sold me a model home and leased it back for 2 years but guess what.. received a letter saying they are not going to honor the contract and getting out of paying the years rent, 2 years property taxes and maintenance on this property. in addition they are not in a position of paying past due rent because they do not have any funds available. I suggest at thie point any payment made to this builder would be like kicking yourself. you should try to get out of this contract if you can. I am looking at my legal options also. I wonder how the other builders in that development doing.
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th71
Flash in the pan


Joined: 03 Dec 2008
Posts: 34
Location: Houston

Re: David Powers Homes - Houston
PostPosted: Thu Dec 11, 2008 1:47 pm Reply with quoteBack to top

I have been expecting a call from the CFO for a week now to let me know how they are going to proceed. I spoke to our builder yesterday and they finally found a tile company that will accept COD terms...so now we're at least 10 days behind on the tile. We are considering proposing a new offer for the house, approximately $45K less than previously agreed to...if they don't accept our offer, we're probably walking away.

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