Flipping Houses

How to Handle Issues After the Flip is Over

Expertise: Real Estate Investing Basics, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Landlording & Rental Properties, Business Management, Personal Development, Flipping Houses, Commercial Real Estate
151 Articles Written

One thing does that doesn’t get discussed during all of the flipping shows on TV is what happens after you sell your fix and flip to a homeowner. Most times, the homeowner is happy, and you and your team are onto the next project. However, issues can absolutely arise after the property is sold. How do you handle it as the developer? This is an important question to answer and to determine ahead of time.

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Related: 3 Ways to Fund Your Very First Flip

Issues Post-Flip? Watch This.

During today’s video, I share some tips to help you when you find yourself in this situation, including the following:

  • Purchasing a warranty
  • Listening and discussing
  • Involving the contractor

I hope today’s video is helpful to you. Let’s get into some discussion.

What strategies have you used in these sticky type of situations?

Thanks as always for watching and commenting!

Matt Faircloth, Co-founder & President of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, is a developer and owner of commercial and residential property with a mission to “transform lives through real estate." 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 owning and managing over 370 units of residential and commercial assets throughout the east coast. DeRosa has completed over $30 million in real estate transactions involving private capital including fix and flips, single family home rentals, mixed use buildings, apartment buildings, office buildings, and tax lien investments. Matt Faircloth is the author of Raising Private Capital, has been featured on the BiggerPockets Podcast, and regularly contributes to BiggerPockets’s Facebook Live sessions and educational webinars.

    Rogelio Miramontes from San Anotnio, Texas
    Replied 8 months ago
    Very nice article and video! Outside of real estate investing, i have a background in the criminal justice field. Most of the criminal complaints brought forth against contractors for prosecution, per my experience, have shown that the owners/principals of the contracting business or firm have a history of crimes involving DECEPTION. So these crimes would not be violent crimes, rather, crimes such as theft by check, forgery, execution of document by deception, embezzlement, misapplication of property as a fiduciary, failure to provide full and fair disclosure, etc. As part of a due diligence in hiring contractors, I strongly encourage a criminal background check. R. Miramontes
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied 8 months ago
    Thanks Rogelio, This is a great point, I appreciate you bringing it up! If you have the means, run a background check. What service to you use? Matt
    Letitia Harris Flipper/Rehabber from Ahwahnee, CA
    Replied 6 months ago
    An excellent video, thanks! I’m glad to know about the other methods of handling possible problems, down the line. I’m diligent about fixing everything that’s found on my initial inspection when I purchase a flip, and don’t cut corners. Strangely, I’ve had offers from people who for some reason, didn’t check off the Home Warranty box when placing an offer! I’ve had my realtor correct that, since it’s cheap protection for both me the seller, and the buyer. So far, so good. I just sold my last flip last Monday, and am looking for the next one…