095 - Quit Getting Screwed with Karalynn Cromeens
If you’re a contractor, you need to “CYA”... cover your ass. Our expert guest, Karalynn Cromeens, is the go-to attorney for helping contractors gain peace of mind and protection on their projects. Karalynn joins us to discuss what’s at risk when you’re working without a lien, what can happen when you file one incorrectly, and how to receive a lien and leverage up your work. Don’t realize the need for a lien when you’re having to pay up $100k because you didn’t have your bases covered. Listen to our interview with Karalynn to realize the need for a lien today.
Show Notes
00:00 - Intro
02:30 - Liens Don't Have to be One-Sided
04:00 - If You Aren't Careful, You'll Fail
05:30 - Different Clauses in Liens
11:20 - Your Bid is Your ___
13:00 - People That Don't Use Contracts
15:00 - Expectations Document
17:30 - Counselor, Not Lawyer
21:30 - Realistic Litigation Fees
24:30 - It's Worth the Investment
25:50 - The Stigma of Lawyers
26:30 - 'Reasonably Insured' - What it means
33:00 - Cloud v. Paper
36:00 - The Rules of Having a Partner
40:00 - Being Employees vs Partners
45:00 - Karalynn’s Advice on Liens
47:00 - What Happens When A Lien is Filed Incorrectly
51:00 - How Karalynn Got Started
Quotable Moments
“If you don’t know and you’re going in blind then you’re going to fail.” – Karalynn
“There’s a big misconception that if you’re terminated all you’re going to lose is the money that they owe you – if you walk away from a job and it costs them more to replace your scope than what you agreed to do, you’re on the hook for that difference because you promise to do this work for X amount of dollars and you didn’t.” – Karalynn
“The general contractor has the right to terminate you for no reason or any reason at all. It’s called a termination for convenience clause.” – Karalynn
“Know how to CYA – cover your ass as a general business practice. If something does happen, keep records or have systems so if you need something, it’s there.” – Karalynn
“If you don’t have certain agreements in your business, the underlying reason is you don’t really value your business.” – Martin
“Stay in your lane. You can grow your way out of it, but stay in your lane. And when you’re going to grow, let’s be intentional about it.” – Martin
“Even if you have a lien and it’s been a while, you have way more leverage than somebody who doesn’t.” – Karalynn
“Generally speaking, a voluntary lien is a security interest in a piece of property. You go to the bank and get a mortgage and take back a lien on your house – you’ll pay them back and you sign off on that.” – Karalynn
“To know about the industry, you really need to have spent some time in it right before you can really understand what to do.” – Karalynn
“I stay in my lane. I don’t do divorces. I don’t do wills. I stay here with what I’m good at.” – Karalynn
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