Interview: A Contractor’s Perspective on Working With Real Estate Investors

Interview: A Contractor’s Perspective on Working With Real Estate Investors

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!)

Follow
DeRosaGroup.com
DeRosa Group’s YouTube channel
LinkedIn

Read More

Join for free and get unlimited access, free digital downloads, and tools to analyze real estate.

In today’s video, I am excited to chat with one of my general contractors! Pat has been a great team member for us. He does everything from clean-up and demo work to full fix and flip projects. We talk about the most commonly discussed — and perhaps most misunderstood — relationship in real estate: the contractor/investor relationship.

When this relationship is not working, both sides are trying to get the best of each other, and no one trusts anyone. The investor thinks the contractor is slow, and the contractor thinks the investor is impatient or unrealistic. The investor thinks the contractor produces low quality and cuts corners, and the contractor thinks the investor has no idea what really goes into these projects. The list goes on and on!

Related: 4 Reasons You’ll Never Find a Good Contractor (Insight From an Investor/Contractor)

It is important for real estate investors to vet out contractors, but it is equally important for contractors to vet out investors as well! In this video, we discuss how real estate investors and contractors can work best together and build a long-term relationship.

Some of these tips to build a long term relationship include:

  • Have alignment of goals.
  • Have the same standards for quality.
  • Make sure that your definition of standards are aligned.
  • Build trust with one another.

In real estate investing, having strong contractor relationships is probably one of the most important aspects of this business. It can make or break you!

I would love to get some discussion going. How do you build a strong relationship with your contractor?

Thanks as always for watching!