Infomarine On-Line Maritime News - 'We Did Do Our Homework. We're Smart People,' Says Retiree — But Their Florida Builder Collapsed, Leaving Dream Homes Unfinished and Savings Drained

What stings most, many say, is hearing that they failed to protect themselves.

These families weren't reckless. Many had thoroughly vetted the builder, read online reviews, spoken with previous clients, and researched his standing in the community. "People will say to us, ‘Well, you should have done your homework,'" Kramer said. "But we did do our homework. We're smart people. But there was no way to know."

So how does something like this happen—and what can actually prevent it?

In theory, protections do exist. Escrow-controlled payment structures, where funds are only released upon completion of verified construction milestones, can reduce risk. Independent inspectors and third-party project managers can keep contractors accountable. Contracts should also include lien waiver requirements to protect homeowners from subcontractor disputes.

But once a builder collapses financially—especially in cases where deposits are not secured in escrow or misused—homeowners often have limited recourse. Lawsuits are slow. Payouts in liquidation are minimal. Lenders may freeze remaining construction funds, leaving borrowers unable to finish the build without additional capital. In some cases, even if the builder is stripped of a license, there's no guarantee of criminal accountability unless fraud can be clearly proven.

Many of the homeowners caught in the Beattie collapse were retired or close to it, making it even harder to recoup losses through traditional means. Some dipped into inheritances, retirement accounts, or took on new loans to complete the projects themselves.

For others approaching retirement and looking to build or invest in property, this story is a cautionary tale—one that's prompting many to rethink how they approach real estate entirely. For those who still want exposure to the housing market but without the risk of managing a construction project, platforms like Arrived allow investors to buy fractional shares of income-generating rental properties in established markets. It's not a replacement for a dream home, but it's one way to stay in the game—earning passive income from real estate without betting your future on a single build.

The homes in Cape Coral were eventually finished, but only because families paid again to complete them. For many, retirement was delayed. For others, the trust that once defined their biggest investment has been permanently shaken. There's no blueprint for rebuilding that.

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