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Utilize a Pre-Lien Notice

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How to Collect Money with a Lien

What happens here

Integrate a pre-lien notice into your proposal for one-off projects. A pre-lien notice is a legal document that allows you to place a lien on a property where you have made improvements, should the customer fail to pay for your services. It's crucial to research and understand your specific state's regulations regarding pre-lien notices (using resources like a computer with internet access) to ensure it is correctly executed and legally binding. The speaker emphasizes that specific text for this notice will be provided in the video notes, which should then be added to your project proposal document.

Goal: Protect your right to payment by legally being able to place a lien on the property if the customer defaults.

Tools and materials

  • Computer/Internet Access N/A — Researching state-specific pre-lien notice regulations
  • Project Proposal Document N/A — Documenting the terms of the project and payment agreement, including the pre-lien notice

What they say

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the reason you do that is it commits the customer to your project if you don't get any money down the customer can cancel at any time before I used to get $100 down I'd be driving out to a job site have the equipment loaded and have the customer call me up and go oh you know what I think we're not going to do the job here here now I've got a big opening in my schedule and I'm on the road it's a waste of time for me and it's annoying so you get $100 down it's not refundable so the next thing you're going to do is you're going to ask for half down as soon as you show up on that site so when you pull up to their house or their project you have the equipment in hand or the materials are there the customers should expect that they have to walk out with a check for half of the total project do now you don't want to ask for more than that it sends off kind of a weird vibe but half down is kind of a industry standard that most customers can swallow without too much worry and then you're going to let the customer know that as soon as the the project is done as soon as everything is finished you expect balance in full paid right away another thing that you have to do is you have to put a prean notice on their proposal otherwise you for you forgo all of your lean rights you got to protect yourself customers protect themselves you as the business owner are obligated to make sure that you have all your your uh T's crossed and eyes dotted and in this case a pre- Le notice on the proposal in many States is mandatory or you give up your lean rights and it's nothing more than a little tiny box that you put on the proposals and it has some technical lingo Google that crap you'll find it copy and paste it if you don't have it email me I'll give you mine I'll copy and paste mine and give it right to you so those are the simple ways you can protect yourself so you don't get bit in the ass by a customer money makes people funny and now you know what you can do to protect yourself have a good one

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