Hardware Store to 4 Lofts Conversion

[Paul Biniasz]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Atlanta.

Purchase price: $175,000
Cash invested: $275,000
Sale price: $730,000

This was an abandoned hardware store. It came with a parking lot and lots of potential. My goal was to rescue it from "the street" as squatters were calling it home and it was not much more than a shell. I worked with an architect and GC while I worked in advertising everyday to convert this into an award-winning renovation although we ran on a tight budget. In the end 4 spacious lofts were created and I held it for 5 years. Today, it is functioning as a mixed use property.

What made you interested in investing in this type of deal?

It had always been a dream to take on a historic warehouse type of structure and convert it to a modern living residence.

How did you find this deal and how did you negotiate it?

This property was abandoned for years. It sat empty because the owner was an angry old man. Realtors apparently had been hounding to get the listing. I came along, called the owner and began to inquire about the property, which enraged him and I was told something about "You realtors..." Then abruptly disconnected from the call. Shaken, I wasn't done. He wouldn't give me 5 sec's on the phone to explain myself. So I went to a local steakhouse, bought a gift card and sent it with my offer.

How did you finance this deal?

Conventional construction loan and then refi to conventional residential.

What was the outcome?

This project was very successful. As luck would have it, the financial housing crisis was just about to break wide open when I sold it. The best timing ever!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Mark Galey as my GC in Atlanta. He was running several similar projects at that time and I would have to say, he was key to the success of this project.