Preston Tedesco comes from a family of real estate developers. His grandfather lent him the money for his first property, which he successfully flipped last year while he was a full-time law student. It made him a profit of $70,000. Looking to make a name for himself in the New Orleans real estate world, the 24-year-old set out to do his second flip without the help of his relatives. He found a rundown, 100-year-old shotgun home in the Bywater district with a lot of potential, and while Tedesco had some money to work with — $25,000 — it wouldn’t be nearly enough. He estimated he would need a total of $275,000 to buy and renovate the property. That’s where real estate mogul Sidney Torres came in.

Inside the home Torres and Tedesco flipped on "The Deed" CNBC

Torres, who uses his own money and expertise to help struggling property investors on CNBC’s “The Deed,” offered to partner with Tedesco 50-50 and put up the remaining $250,000. Half of that money would be his own investment, the other half would be Tedesco’s loan and they’d split whatever profit they earned after selling. Tedesco agreed to the deal and they bought the property for $175,000. Then they started a three-month long renovation process with a $100,000 budget. The process taught the student a valuable lesson, and one that he would pass on to other young home flippers: Don’t cheap out.