As with any real estate deal, hurdles often occur. A hard money lender pulled a bait and switch on terms 24 hours prior to closing, but Beato was not going to allow someone to take advantage of her mentee. She called her go- to lender and due to her relationships was able to get new terms just three hours later. She called the wholesaler, explained the situation and asked for a 24-hour extension. The wholesaler gave them 48 hours. Exactly 24 hours after the original close date and time, Robinson had closed on his first real estate transaction! The second hurdle came when a timeline of five weeks turned into five months. Contractor delays led to finding new contractors and one hurdle led to another. However, even with the timeline delays, the overage on the budget, and the additional holding costs, they turned a huge profit! Although their hold- ing time increased, the market worked in their favor and they sold the home $17,500 above their initial projected sales price. Beato used her skills as both an investor and a seasoned Realtor ® to stay on budget as best as possible. Her design skills came into play when they changed the layout of the home (they opened some walls and closed a door- way). In addition, her retail real estate skills got them multiple offers in less than two weeks and the happy buyer closed ahead of the closing date. Know- ing what home buyers are looking for and providing a beautifully renovated home at an affordable price is key in any real estate market.
Passion Projects
Designer, Realtor ® , investor, and mentor Lorraine Beato is as much a Renovation Rockstar as are the properties she flips. She shares her reasons for real estate and some advice for newcomers. Why are you passionate about real estate? My why is creating beautiful living spaces that are affordable for first-time home buyers. I am passionate about real estate because I love providing people with a place of their own to create amazing memories and raise a family, all while building equity and wealth in a tangible asset. What are signs you look for in a potential project? For me, it's all about the location and the numbers. The numbers need to make sense and I need to have two exit strategies before I get into a deal. There are too many people right now jumping in and getting into the hype of flipping, overpaying and then getting stuck or shorting on the renovation budget and can't sell. Advice for first-time flippers? Do NOT do it alone! Thurman Robinson was smart. He heard me speak on the Think Realty panel in 2016 and asked how he could learn more. I told him I would help him with his first deal that he bought and owned, totally minimizing his risk because his money was backed by the home. I charge a minimal fee up front and then we split profits so there's an incentive for both of us to want to make it a success.
DETAILS OF THE DEAL
• Location: Atlanta, GA • 3 bed / 1 bath / 1080 sq ft • Purchase Price: $ 57,000 • Renovation Budget: $ 53,000 • Sale Price: $ 162,500
Kitchen before
Bathroom before
Bathroom after
Kitchen after
82 | think realty magazine :: september / october 2019
thinkrealty . com | 83
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