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$500K in Liens Almost Killed My Project

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The Middle Class

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Right. So, uh did you you had partners at some point in the >> I had at one point 12 partners. >> Okay, I want to so I want to talk about that a second. Tell me um or tell everyone how a good partnership is created and structured. If you can give a basic >> [snorts] >> explanation >> no choice because I had no money. So, I took in partners. After a while, they took me in because they heard I was a good worker. So, they took me in as being their workhorse, so to speak. And for that, I got a small piece of the pie. >> Right. >> Okay, so that's the way it went. And so, I bought a second facility. I took in two partners. And I didn't want to take in any other partners because they were really not interested in going any further than in this this business. I took two other partners of that facility who laid out substantial amount of money. We bought a property out in Bohemia, Long Island. Uh and a 7 and 1/2 acre property. And I started filing for plans and permits. All that cost a fortune of money. And then we at that time, we put in about a million and a half dollars into construction, buying the property, and started to work. >> Right. >> I hired a a construction company to do the whole job. And they everything went along fine for about 6 months into construction. All of a sudden, I started getting letters from the subcontractors that hadn't been paid. I'm going to put a lien on the job. >> Okay. >> And that was the electrician. And then a week later, I got a call from a plumber that I hadn't been paid. And all of a sudden, I got myself into a situation where I had a meeting with the construction guy with the builder. I said, "What's going on? I got a letter from this guy, this guy, and I haven't paid him. They're going to lien the job. What am I going to do? This is ridiculous." Well, don't worry about it. I'll take care of it. This is that and the other thing. This went on. And before I turned around, there was a half a million dollars worth of liens on my building. The [snorts] bank stopped giving more money. And I went to the bank, and I told them what the situation was. And I told them I got rid of the contractor. I got all the subs working for me now directly, and I ran the job. I finished the construction of a 175-bed facility myself. It took me a year. >> Oh, wow.