How I Survived Getting Sued — and How You Can, Too [Video!]

How I Survived Getting Sued — and How You Can, Too [Video!]

1 min read
Matt Faircloth

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, N.J., is a developer and owner of commercial and residential property with a mission to “transform lives through real estate.” DeRosa creates partnerships to finance select real estate investments and has a proven track record of providing safe, profitable investment opportunities to their clients.

Experience
Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to hundreds of units in residential and commercial assets throughout the East Coast. Under Matt’s leadership, DeRosa has completed tens of millions in real estate transactions involving private capital, including fix and flips, single family home rentals, mixed-use buildings, apartment buildings, and office buildings.

Matt is an active contributor to the BiggerPockets Blog and has been featured on the BiggerPockets Podcast three times (show #88, #203, and #289). He also regularly contributes to BiggerPockets’ Facebook Live sessions and teaches free educational webinars for the BiggerPockets Community.

Matt authored the Amazon Best Seller Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money. The book is a comprehensive roadmap for investors looking to inject more private capital into their real estate investing business and is a must-read for anyone looking to grow their business by using private lenders and equity investors. Kirkus, the No. 1 trade review publication for books, had this to say about Raising Private Capital: “In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader.”

Matt and his wife Liz live in New Hope, Penn., with their two children.

Education
Matt earned a B.S. in Industrial and Systems Engineering with a minor in Business from Virginia Tech. (Go, Hokies!)

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DeRosa Group’s YouTube channel
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I hate to break the news to you, but if you are in this business of real estate investing for long enough, it is inevitable that you WILL get sued. Sorry, but it is the reality of the situation! Between me and my company, we have gotten sued a handful of times over the years. While this is not fun to deal with, it is a part of this business. The best thing you can do as a real estate investor is properly protect and effectively prepare yourself for if and when you get sued.

Related: BP Podcast 109: You Will Get Sued. Here’s How To Survive with Attorney Scott Smith

In today’s video, I share a few ways to mitigate the impact of being sued, which include:

  1. Having a strong insurance policy in place
  2. Documenting all issues (we call them work orders)
  3. Being named as additionally insured by sub-contractors

I hope these tips help prepare you and lessen the impact of being sued!

I would love to get some discussion going! Anything I am missing? What have you learned as a result of being sued in this business?

Thanks for watching!