Exit Strategies Every Paper Flipper Should Have in Place When Paper Flipping Real Estate

When you’re paper flipping houses, most deals go as planned—you get a contract, assign it to a buyer, and collect your fee. But sometimes, things don’t go smoothly. What if your buyer backs out? What if title issues delay closing? Or what if the seller changes their mind?

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That’s where exit strategies come in. Having backup plans in place protects your business, your reputation, and your profits.

Let’s go over the top exit strategies every paper flipper should know when paper flipping real estate.

1. Assign the Contract (Your Primary Strategy)

The simplest and most common strategy is assigning your purchase contract to a cash buyer. This is where you make your profit—collecting an assignment fee when the buyer takes over your contract; however, be mindful...always have alternatives ready in case assignment doesn’t work out.

2. Double Closing

If you can’t assign the contract (or the buyer doesn’t accept your fee), a double closing is another option. In this strategy:

1. You close with the seller.

2. Immediately close with the buyer, often on the same day.

This way, your fee is built into the deal without it being shown as an “assignment.” Double closings can cost more in transaction fees, but they can also protect your profits in sensitive deals. Many states frown upon double closings so check your local laws regarding wholesaling rules and regulations. Keep in mind that anything can happen at the closing table - the buyer may not show, back out of the deal, or for many other reasons. This may leave you stuck with a property that you really don't want so be careful.

3. Partner with Another Investor

If you’re stuck with a deal you can’t move on your own, consider teaming up with another wholesaler or investor. Ensure that you enter a JV Contract (Joint Venture) to make sure that all parties understand their roles, fees, etc. They may have buyers you don’t, and splitting the fee is better than losing the deal entirely.

4. Extend the Contract

Sometimes, all you need is more time. If your buyer backs out or title issues come up, you can negotiate an extension with the seller. This gives you breathing room to find another buyer or resolve the problem.

Pro tip: Build extension clauses into your contracts ahead of time.

5. Back Out Gracefully (When Necessary)

Not every deal will work out, and that’s okay. If you’ve structured your contract with a contingency clause (like “subject to clear title” or “subject to inspection”), you can exit the deal without major losses. This protects your earnest money and keeps you from being stuck with a property you don’t want.

Final Thoughts

Successful paper flippers don’t just rely on one way to close deals—they prepare for multiple scenarios. By having clear exit strategies like assignment, double closing, partnering, extensions, and contingencies, you protect yourself from surprises and keep your business running smoothly.

Remember: the key to long-term success in paper flipping houses isn’t just finding deals—it’s knowing how to exit them profitably and legally, no matter what happens. Sign up now for our upcoming training classes!

The information in this article are of the experience and opinion of the author. Due diligence should always be done before venturing in real estate.