How Mike Mannino Builds Wealth Through Multifamily Distressed Assets
Finding and acquiring multifamily distressed assets has become one of the most powerful strategies for real estate investors looking to create significant wealth in today’s market. In this episode of Multifamily Rockstars, Mike Mannino shares how he transitioned from fixing and flipping over 100 homes to building a portfolio of multifamily properties and self-storage facilities by targeting deeply discounted opportunities.
Mike explains why multifamily investing became a critical part of his long-term wealth strategy after facing large tax bills from his successful house-flipping business. Rather than relying solely on active income, he sought assets that could provide cash flow, appreciation, and tax advantages while creating financial security for the future.
Turning a 68 Unit Apartment Deal Into $3 Million in Equity
One of the most valuable lessons from this conversation is Mike’s detailed breakdown of a recent 68-unit apartment acquisition in Sumter, South Carolina. The property was purchased for $3.3 million, with approximately $500,000 invested into renovations and operational improvements.
Within less than a year, Mike and his team increased average rents from roughly $700 per month to over $1,000 per month while dramatically improving the property’s appearance and functionality. These improvements included:
- Parking lot resurfacing and striping
- Exterior cleanup and landscaping
- Sewer line replacements
- Adding dryer hookups to units
As a result, the property’s value increased by nearly $3 million in just 11 months, demonstrating the power of buying multifamily distressed assets with clear value-add opportunities.
Why Distressed Multifamily Deals Are Creating Opportunity
A major topic discussed during the interview is the current state of the multifamily market. Rising interest rates, increasing operating expenses, and financing challenges have placed significant pressure on many apartment owners.
According to Mike, multifamily property values have declined substantially from their 2022 peak, creating a rare buying environment for investors who understand how to identify distressed opportunities. He believes investors who can successfully acquire and operate multifamily distressed assets during this cycle may be positioned for substantial gains over the next several years as markets recover.
The discussion highlights how disciplined underwriting, conservative assumptions, and patience are essential when evaluating today’s deals. Rather than chasing volume, Mike’s team reviews hundreds of opportunities every month and only acquires one or two properties each year.
How Wholesaling Commercial Real Estate Generated Six Figure Paydays
Mike also shares another strategy that many investors overlook: commercial real estate wholesaling. By putting apartment and self-storage properties under contract and assigning those contracts to other investors, he generated several six-figure assignment fees.
His recent wholesale transactions included:
- $175,000 assignment fee on a self-storage facility
- $175,000 assignment fee on another commercial property
- $224,000 assignment fee through a partnership with a fellow Warrior Group member
These deals demonstrate that investors do not always need to own a property to create substantial income in commercial real estate.
Lessons From Challenging Apartment Investments
Not every deal goes according to plan. Mike discusses a 19-unit apartment property where occupancy unexpectedly dropped after acquisition, creating significant financial strain during renovations.
The experience reinforced the importance of thorough due diligence, verifying seller information, and maintaining adequate reserves for unexpected challenges. Even experienced operators encounter setbacks, but successful investors learn from them and continue moving forward.
Building a Team to Find Better Deals
Another key takeaway is the importance of building the right team. Mike credits much of his success to partnerships, networking, virtual assistants, and relationships developed through industry communities.
His acquisition process involves reviewing hundreds of deals every month through a structured system that filters opportunities based on key metrics before deeper analysis begins. This allows his team to focus only on properties that meet their strict investment criteria.
About Mike Mannino
Mike Mannino is a real estate investor, entrepreneur, and operator who has fixed and flipped more than 100 homes throughout Metro Detroit. He later expanded into multifamily real estate and self-storage investing, building a portfolio that includes more than 220 apartment units and hundreds of self-storage units. Through his company, he focuses on acquiring multifamily distressed assets and value-add opportunities that generate significant equity growth and long-term cash flow.
If you want to hear the full conversation and detailed insights, watch the podcast video or read the complete transcript below.
Multifamily Distressed Assets FAQ
What Are Multifamily Distressed Assets?
Multifamily distressed assets are apartment properties experiencing financial, operational, or physical challenges that create opportunities for investors to purchase them below market value. Distress may result from poor management, deferred maintenance, vacancy issues, loan maturity problems, or economic pressures affecting the property’s performance.
Why Are Multifamily Distressed Assets Attractive to Investors?
Multifamily distressed assets often allow investors to acquire properties at discounted prices and increase value through renovations, operational improvements, and better management. These opportunities can create significant equity growth, increased cash flow, and strong long-term returns when executed properly.
How Do Investors Find Multifamily Distressed Assets?
Investors typically find multifamily distressed assets through broker relationships, direct owner outreach, foreclosure lists, loan maturity data, networking events, and off-market marketing campaigns. Building strong industry relationships often provides access to opportunities before they become widely available.
What Are Common Signs of a Distressed Apartment Property?
Common signs include high vacancy rates, below-market rents, deferred maintenance, poor curb appeal, financial distress, delinquent loans, declining occupancy, and management inefficiencies. These issues often create opportunities for value-add investors to improve performance.
How Do Multifamily Distressed Assets Create Equity?
Investors create equity by increasing net operating income through rent growth, expense reductions, property improvements, and operational efficiencies. As income rises, the property’s value typically increases, often creating substantial equity gains.
What Risks Should Investors Consider When Buying Multifamily Distressed Assets?
Investors should evaluate renovation costs, financing challenges, tenant issues, unexpected repairs, market conditions, and operational risks. Thorough due diligence and conservative underwriting are essential to minimize potential losses.
Are Multifamily Distressed Assets Good During High Interest Rate Environments?
Many investors believe distressed opportunities become more abundant during periods of higher interest rates because some property owners face refinancing challenges and increased operating expenses. This can create favorable buying opportunities for well-capitalized investors.
How Much Capital Is Needed to Invest in Multifamily Distressed Assets?
The amount varies depending on property size, location, financing structure, and renovation requirements. Investors may use personal capital, partnerships, syndications, or commercial financing to acquire and improve multifamily distressed assets.
What Is the Difference Between a Value Add Property and a Distressed Asset?
A value add property typically has opportunities for improvement but may still be operating effectively. A distressed asset generally faces more significant financial, physical, or operational challenges that require substantial intervention to stabilize and improve performance.
Can New Investors Successfully Invest in Multifamily Distressed Assets?
Yes, new investors can succeed by educating themselves, partnering with experienced operators, building strong teams, and conducting thorough due diligence. Many successful investors begin by learning from mentors and participating in smaller deals before taking on larger acquisitions.
00:00:00:02 – 00:00:20:01
Rod Khleif
Welcome back to Multifamily Rockstars. So as you guys know, these are the episodes where we dive deep into our guest deals and really give you some practical and actionable items for getting started doing your first deal, even if you’re brand new to multifamily. And I’ve got a real kick ass guy on the show with me right now. He’s a warrior and his dad’s a warrior as well.
00:00:20:02 – 00:00:26:24
Rod Khleif
Mike Mannino the second. He’s done a lot of big stuff, and we’re going to have a lot of fun talking about it. Welcome, brother.
00:00:26:24 – 00:00:29:08
Mike Mannino
Thank you very much for having me. I’m very happy to be back.
00:00:29:09 – 00:00:36:04
Rod Khleif
That’s right. We did have you on a long time ago. How long have you. When did you join the program? When did you become a warrior? I don’t remember.
00:00:36:05 – 00:00:49:14
Mike Mannino
You know, I was thinking about it. I think it was during, like the Covid times. Like in 2020. Yeah. Okay. We were buying our first commercial deal, and I said, I don’t know what I don’t know. And I was listening to your podcast and it changed my life, so.
00:00:49:15 – 00:01:05:16
Rod Khleif
Oh, oh thanks, buddy. So so give a little background, you know, for people that don’t know who you are. Talk a little bit about why real estate and just kind of bring us current with all the different things you’ve done, because I’d like to drill down on a few of them, but let’s let’s go ahead and give us an overview.
00:01:05:17 – 00:01:22:06
Mike Mannino
Sure. Yeah. So I my background is fixing flipping. I’ve bought, fixed and flipped over 100 homes in metro Detroit, Michigan. I started flipping homes when I was 22, 23 years old. Now I’m 33. Getting old, but.
00:01:22:08 – 00:01:27:12
Rod Khleif
Very socks that I have, socks that have three decades on you, just so you know.
00:01:27:14 – 00:01:59:21
Mike Mannino
But very blessed. And I started working with my dad flipping homes and I retired him. He was a contractor, and I retired him from contracting for him to just drive his tussle around, check out the job site. And so I basically retired my father. And then we in 2022, I went really heavy into multifamily because in 21, I had a six figure tax bill from the IRS because we were successful fixing flippers and you get penalized for it, unfortunately.
00:01:59:23 – 00:02:23:14
Mike Mannino
So I said, I need to solve this. So we got into multifamily, started really buying apartments to offset our income tax problem, and then also have something that if I wanted to take a year or two off, I still get paid because in a fix and flip business, the second I stopped fixing and flipping, my income goes to zero, so I wanted some security with that.
00:02:23:14 – 00:02:27:17
Mike Mannino
I don’t have A41K, I don’t have a job. There’s no I don’t know.
00:02:27:17 – 00:02:29:15
Rod Khleif
For what you kill, basically.
00:02:29:16 – 00:02:31:01
Mike Mannino
Exactly, exactly.
00:02:31:03 – 00:02:46:06
Rod Khleif
Okay, now you’ve done you’ve fixed and flipped houses. You’ve got 220 plus multifamily units right now. You’ve got 250 self storage units. You know, you look for deep value add properties that you can buy to discount. Yes. Would that be accurate okay.
00:02:46:06 – 00:02:46:22
Mike Mannino
That’s very accurate.
00:02:46:23 – 00:02:56:18
Rod Khleif
Yep. All right. Well let’s let’s do this. Let’s talk about that first deal you did as a warrior. And.
00:02:56:20 – 00:03:01:07
Rod Khleif
On here I’ve got my notes in front of me here. So it was a 68 unit. Yeah. Where’s it located.
00:03:01:08 – 00:03:04:01
Mike Mannino
So that’s actually my most recent one is a 16.
00:03:04:01 – 00:03:07:05
Rod Khleif
Oh that’s the recent one. Oh okay. All right. Well that’s fine. Let’s go through that one. No big.
00:03:07:06 – 00:03:09:14
Mike Mannino
68 units. Way more fun than my first one.
00:03:09:16 – 00:03:10:08
Rod Khleif
Okay.
00:03:10:09 – 00:03:21:12
Mike Mannino
So this one we bought last year. So 2025 was our best year in business, which is very rare to say with, you know.
00:03:21:14 – 00:03:22:08
Rod Khleif
All the districts.
00:03:22:09 – 00:03:34:18
Mike Mannino
Going on. Yeah, all the distress going on. So I’m feel extremely blessed. But this one is a 68 unit in Sumter, South Carolina. I moved down to South Carolina for years now to be.
00:03:34:19 – 00:03:45:09
Rod Khleif
Well, that’s not a bad move if we’re talking Detroit to South Carolina. Just saying. So, you know, I’m sorry. Right. Sorry, but, yeah, you know, it’s true. Anyway.
00:03:45:11 – 00:04:07:11
Mike Mannino
Sorry. I know you’re fine. I can also use my boat nine months a year instead of two months a year. So no, it was such a better move. But this one, when we bought it, we paid 3.3 million for it. We’ve invested just under 500,000 so far. So into it for just under four. And when we’re done, it’s going to be worth $7 million.
00:04:07:17 – 00:04:30:02
Mike Mannino
So one deal. We’ve created $3 million in equity. We bought that July 28th, 2025. So in 11 months we’ve created almost $3 million of equity, bringing the average rental rate was $707 a month to today, it’s $1,007 a month. So we’ve increased rents by 50% in ten, 11 months.
00:04:30:04 – 00:04:38:12
Rod Khleif
Yeah, 300 bucks, 300 bucks a door. Yeah. That’s that’s a that’s a really fantastic deal. How’d you find that deal?
00:04:38:16 – 00:04:56:00
Mike Mannino
So they actually came from a broker. It’s funny. We were supposed to buy another deal with him maybe two years ago, two and a half years ago. And then the seller just ended up backing out of the deal. We. We agreed on a lie. Letter of intent. We were writing up the purchase agreement, and then he just said, I don’t want to sell anymore.
00:04:56:02 – 00:05:01:00
Mike Mannino
So the broker kind of kept us in his back pocket because he knew we were serious buyers.
00:05:01:01 – 00:05:03:21
Rod Khleif
Okay. And how did you find it?
00:05:04:02 – 00:05:16:00
Mike Mannino
This one we syndicated. So we had, you know, 70% bank debt, 30%. We syndicated with investors. So friends and family and and some of our money too.
00:05:16:02 – 00:05:27:13
Rod Khleif
Okay. Fantastic. How did you. So you put about 4 or 500 grand in in renovations into it at CapEx. Is that correct? What sorts of things did you fix? What did you do?
00:05:27:15 – 00:05:47:14
Mike Mannino
Yeah, so I love doing the exterior stuff first before you increase rents to show tenants that like, hey, we’re not just coming in here increasing rents to market just because, you know, we’re investing. We do care. So we go through, we power wash, trim the bushes, seal coat and striping. Parking lots is like the cheapest. That’s bang for your buck you can get.
00:05:47:15 – 00:06:08:08
Mike Mannino
It looks like a brand new parking lot. And sewer lines had sewer line issues. Were replacing those and the tenants are happy. And then a lot of these units actually all the units have washer hookups, but no dryers. No dryer hookups. Oh, so so people are washing, but then they’re using like clotheslines or hanging them in their unit.
00:06:08:09 – 00:06:21:02
Mike Mannino
Yeah. And it looks unsightly. So for, you know, $1,500 per unit we’re going through, we’re adding the 220 lines, installing the dryer events. And the tenants are absolutely loving.
00:06:21:04 – 00:06:23:13
Rod Khleif
What you’re built. What you’re built. Was that thing. Just curious.
00:06:23:14 – 00:06:26:01
Mike Mannino
1970s like 1978, 77.
00:06:26:01 – 00:06:46:24
Rod Khleif
That’s some stupid shit. Not putting dryer outlets in there. Good lord. Yeah. Well, good. Fantastic. Well, that’s that’s a no brainer, man. When you can add something like that, it makes a huge difference. I won’t buy an asset candidly anymore. If it’s just all laundry rooms. I want to have washers and dryers in the units. You know, people don’t want to have to carry their laundry around.
00:06:47:00 – 00:07:01:00
Rod Khleif
You know, it’s just, you know, we live in a day and age now where, where, you know, that’s kind of gone by the wayside. So are you. So is this a C-Class asset? Because I see I see section eight here. You’re doing some housing in there.
00:07:01:01 – 00:07:14:19
Mike Mannino
Yeah. So half of it is housing and everyone’s lived there for a very long time. The extremely low I mean we have a couple times have been there since it was built. I mean it’s crazy. Wow. So yeah, it’s a C-Class property. Yeah.
00:07:14:19 – 00:07:50:06
Rod Khleif
Okay. Okay. Okay. Well, great. You know, we’ve had a little challenge with C-Class assets just because, you know, they’re struggling with this freaking inflation. You no cost of groceries and gas. That’s just like, ridiculous. But if you’re making it work, that’s fantastic. So I want to shift. That sounds like a great deal. Awesome job on that, brother. Now I want to shift gears for a minute because, you know, I remember posting in the warrior group, and I don’t know if you saw this post, it may have been before you joined about how many had wholesale a multifamily deal and made over $100,000.
00:07:50:07 – 00:08:08:11
Rod Khleif
Do you recall that? Was that? Were you were you around when I did that post? You did okay. And 12 of them had and two actually made over a million, believe it or not. But you have had some kick ass wholesale deals. Talk about your wholesale deals. You wholesale the what’d you tell me self storage or what was it that you wholesale.
00:08:08:14 – 00:08:13:12
Mike Mannino
Yeah. So I’ve wholesale two self storage facilities an apartment complex okay.
00:08:13:13 – 00:08:25:23
Rod Khleif
And how much did you make in each one of these deals by the way if you don’t know what wholesaling is, guys, you basically put a place under contract and you basically just sell the contract to someone else. You don’t even close, they close on it and you get a fee for, you know, shifting the deal to them.
00:08:25:23 – 00:08:27:13
Rod Khleif
So how much did you know?
00:08:27:15 – 00:08:37:03
Mike Mannino
Each one was over six. So the first one was 175,000. The second one was 175,000, and the third one was $224,000.
00:08:37:08 – 00:09:03:21
Rod Khleif
Nice, nice, nice, nice. By the way, guys, if you sign up for my freaking boot camp now, I am making it so ridiculous. So not only can you get my virtual bouquet, you can come for 25 bucks, but you get my multifamily wholesaling course, 15 modules on how to wholesale multifamily with the ticket. Plus, you know, my finding deals course, my courage and confidence course, my deal evaluator software, my document library, my my best selling book.
00:09:03:22 – 00:09:21:19
Rod Khleif
Tell me your freaking excuse. Okay, 25 bucks. I don’t sell anything. Two days of training and you get all that stuff. So, yeah, I’m so glad that that I asked you about that before we started recording, because I knew you had done a wholesale deal for some, some decent change, because I remember you posting about it, three of them for over 100 grand a pop.
00:09:21:20 – 00:09:22:24
Rod Khleif
That’s an interesting man.
00:09:23:00 – 00:09:40:08
Mike Mannino
And like, I want to talk a little bit to like. So the first two I did on my own and then I talked about it in the, in the program, you know, and I shared my success. And because of doing that and then sharing your success and documenting it, another warrior reached out. He said, hey, I saw you did this with a self storage facility.
00:09:40:08 – 00:09:52:09
Mike Mannino
I’m actually looking at one. Maybe we could do this. And we worked together, and it was a $224,000 assignment, maybe $220,000, because I shared my success in the group and worked with someone else in the group.
00:09:52:10 – 00:10:10:07
Rod Khleif
Life changes. Beautiful. That’s beautiful man. Yeah. So so by the way, if you are interested in the warrior program, text the word crush to seven two, three, four, five. And that’s how you apply. We look you over, you look us over. If it’s a fit, you’re off to the freaking races. Has it been good for you?
00:10:10:10 – 00:10:24:00
Mike Mannino
It’s been life changing it. I, I think we’re talking a little bit before we recorded. It’s changed my life. It’s changed my father’s life. It’s changed my employees lives. It’s the best decision I’ve ever made my whole entire life.
00:10:24:02 – 00:10:44:17
Rod Khleif
Oh. That’s nice. Thank you for that. So you know what? You know, I get I have a lot of brand new people. What is, you know, maybe an action item that you could talk about, you know, maybe deep dive a little bit that would benefit a listener. That’s just getting started. What would you speak? Speak to someone that’s looking at doing this.
00:10:44:17 – 00:10:47:15
Rod Khleif
Hasn’t done it yet. Giving us some advice.
00:10:47:17 – 00:11:12:11
Mike Mannino
Yeah. If you’re looking at doing this, like what I did when I first got started in this, because I knew if like fix and flip and then multifamily similar but different. First, surround yourself with other people. Listen. I listen to every single one of Rod’s podcasts. I, I have been to maybe six of your virtual events I have from 2020 to 2024.
00:11:12:11 – 00:11:31:02
Mike Mannino
I never missed one of your events for four straight years. Wow. I went to all your warrior events. Every single event. Really not just understand that I could even articulate it too. So really, first is understand and surround yourself with people who understand the business that you want to do.
00:11:31:03 – 00:11:33:15
Rod Khleif
People who think what you think is hard is easy.
00:11:33:17 – 00:11:34:15
Mike Mannino
Yeah, yeah.
00:11:34:16 – 00:11:45:14
Rod Khleif
Right, right. Yeah. And we just had a warrior event just literally a couple of weeks ago at a few hundred people here. It was a kick in the ass. I know you’ve got a new baby, and I don’t remember seeing you there. Of course, my eyes crossed.
00:11:45:15 – 00:11:51:23
Mike Mannino
Yeah, I know we couldn’t make it this time, but I want to very soon. He’ll be the youngest for you there.
00:11:52:00 – 00:12:12:16
Rod Khleif
So love it. So? So get around people network getting a group of people that are doing this. You know, I don’t know if you know this. You don’t even know this mic. We just did a count on on the number of multifamily deals that our Warriors have last Wednesday. It’s up to 305,000 units that are owned by the Warriors.
00:12:12:17 – 00:12:33:15
Rod Khleif
Yeah. And and we know it’s more than that because there’s so many people don’t even respond. So probably 350,000, which is more than everybody else that does this. It teaches this combined. So it’s just you know, I keep bragging about that because it’s just freaking awesome. So I always like to talk about good decisions you’ve made. Obviously you love the warrior event, but also like to talk about seminars.
00:12:33:15 – 00:12:50:21
Rod Khleif
You know what I mean by that statement at the time, you got your ass kicked and I know you weren’t ready for this question, but you know, I when I do my boot camps now, I ask every panelist talk about a seminar because I think people learn more from, you know, when you get your ass kicked and, and, you know, there’s lessons in it, then, you know, everybody always talks about success.
00:12:50:21 – 00:13:06:02
Rod Khleif
But I like to, you know, be authentic and, you know, because you’ve got a whole menu to choose from. I know you do. It’s like we all do in the business. Can you think of one where you could add some value, talk about something that may have happened. Maybe it was an equity raise, maybe it was a lender issue, I don’t know, give you some thought.
00:13:06:05 – 00:13:37:19
Mike Mannino
Yeah. I’m a very blessed that I haven’t had too many like major seminars. Right. But like like I’m just thinking the fixing full of business. I’ve lost money. Like out of the hundred homes, ten of them weren’t. I’ve lost 20, 30 grand. Right. They’re not all home runs. And, you know, thankfully, we haven’t experienced that in the multifamily, but I have, like a seminar, even as much renovations as I’ve done, I have we have an apartment building where there was a 19 unit that we bought two years ago in North Carolina.
00:13:37:21 – 00:14:05:13
Mike Mannino
I think there was out of 19 units, 2 or 3 were vacant. And then after we closed, within three months of closing, we went down to one occupied. Wow. So we were expecting to at least break even while we’re doing the renovations to now, we are losing $10,000 a month and that went on for 18 months. We had contractor issues win over budget on the renovations with no money coming in.
00:14:05:15 – 00:14:09:01
Mike Mannino
So it happens to all that’s that’s.
00:14:09:03 – 00:14:16:03
Rod Khleif
That’s a good one. That’s a good one. Is there anything you could have done differently. Just is there a lesson. There is just one of those things I.
00:14:16:03 – 00:14:18:06
Mike Mannino
Think, you know, when you’re buying these types of assets.
00:14:18:07 – 00:14:32:24
Rod Khleif
By the way, sorry to interrupt. Sorry to interrupt, but that sounds kind of nefarious. Do you think there was some bullshit going on as far as the occupancy? Because that doesn’t sound right when you’ve got, what was it, 16 people or 15 people move out within a month or two? Something. Something fishy to me in that.
00:14:33:00 – 00:14:51:06
Mike Mannino
Well, I think so. When you that’s kind of when we buy these types of properties at such a significant discount, you know, the bookkeeping isn’t they don’t have rent rolls, they don’t have tea twelves, they don’t have. So could this seller been misleading me about his rent collections? Possibly. And that could have been what happened. So that’s where we had it started.
00:14:51:06 – 00:14:53:10
Mike Mannino
Victim people. Because nobody was paying except for one.
00:14:53:14 – 00:14:57:18
Rod Khleif
Got it. Okay. So you evicted a bunch of them. They didn’t just leave.
00:14:57:20 – 00:15:01:13
Mike Mannino
Like some left some, you know, in the middle of the night, you know, the whole stuff.
00:15:01:15 – 00:15:16:11
Rod Khleif
Got it. Okay, now I understand. Okay. So so, so. Well, that’s a good one. So what’s a hot topic? You know, in this business that everybody seems to be talking about? I’d love to get your opinion on what’s what’s hot right now.
00:15:16:13 – 00:15:21:07
Mike Mannino
Yeah. So I believe right now Charlie Peters posted this in the group.
00:15:21:09 – 00:15:22:21
Rod Khleif
That’s another warrior.
00:15:22:23 – 00:15:44:10
Mike Mannino
Yeah. He’s another warrior. He’s he’s when rod said like other people think your problems are nothing that he’s one of those guys. Like if I got him with my problems like that’s nothing. But he puts in the group that multifamily is, you know, from its peak in 2022, from the Fred website, they, you know, they which is the was it the financial website for the federal government?
00:15:44:12 – 00:15:58:14
Mike Mannino
They posted a chart that in 2022 to today, multifamily values have gone down 20%. Yeah. That’s because, you know, interest rates have risen which cap rates increase and expenses gone up. And and the whole thing.
00:15:58:15 – 00:16:00:06
Rod Khleif
So all of that, all of that. Yeah.
00:16:00:11 – 00:16:20:12
Mike Mannino
So that was four years ago. And you know talking to AI and I’m like, hey, when real estate drops, you know, maybe 20% from its peak, how long does it usually take to recover. And, you know, it says like within ten years. There’s no reason why we shouldn’t recover. So that means it’s been four years. In the next six years.
00:16:20:14 – 00:16:42:19
Mike Mannino
My mind, I believe that, you know, statistically, looking at the past, that real estate should go up at least 20% to back to what it was from four years ago and then real estate. Ever since it it’s been around, especially with, you know, printing the US dollar will just keep going up in value over time. So I believe right now is the best time to get aggressive with buying properties.
00:16:42:19 – 00:16:56:07
Mike Mannino
If you can make a deal, work at these high interest rates and find a distressed asset right now, which they’re they’re starting to come out. I believe those who do it today, in the next five, six, seven, ten years from now will be heavily rewarded.
00:16:56:09 – 00:17:15:16
Rod Khleif
Absolutely. Agree. Completely. Yeah. I think we’re in one of the greatest opportunities we’re going to see in our lifetime because there’s so many distressed assets right now. You know, Merrill, you know, Merrill SEC attorney that a lot of the Warriors work with, he got six foreclosure clients, separate apartment complex clients in one day in foreclosure. Yeah, in one day.
00:17:15:18 – 00:17:33:16
Rod Khleif
You know, we’re seeing deals being sold for less than the debt right and left, you know, and so, you know, that’s that’s a that’s a big piece. Now, now, Brian, cut this out. Is there a question you’d like me to ask you? I’ve got a bunch of them here that I don’t normally ask. I’ll cut you off guard.
00:17:33:17 – 00:17:34:08
Rod Khleif
No.
00:17:34:10 – 00:17:35:22
Mike Mannino
I’m not that.
00:17:35:22 – 00:17:36:04
Rod Khleif
Okay?
00:17:36:04 – 00:17:37:01
Mike Mannino
No. All right.
00:17:37:02 – 00:17:39:24
Rod Khleif
All right, let’s see.
00:17:40:01 – 00:17:41:12
Two. Two. Two, two.
00:17:41:14 – 00:17:55:14
Rod Khleif
Give me a second. Yeah. So talk about Mike. Talk about your team. What is your what’s what’s your team comprised of if you have one I mean you still doing the flipping or you just totally doing assets the cash flow at this.
00:17:55:14 – 00:18:19:13
Mike Mannino
Point you cannot and should not do this business by yourself, especially when getting started. So I have my partner Adam and then Bryce Bedwell, who actually I met through the warrior program again, sharing, you know, what I do in the warrior program. He was a young guy. I think it was 24 at the time, and he’s going to be a multi-millionaire very shortly.
00:18:19:18 – 00:18:39:24
Mike Mannino
And he helps us find deals and reach out to brokers. And then we have have a couple Vas who, organized deals for us. So our team, I believe why we’re extremely successful is we look at over $300 per month with over $3,600 per year. We offer on hundreds of them, and we only buy 1 to 2 per year.
00:18:40:01 – 00:18:47:12
Mike Mannino
So it’s a lot of output on our end to buy because we look for deals on 40 to 60% on the dollar. So.
00:18:47:16 – 00:19:10:15
Rod Khleif
Right right, right. Distressed deals. So what are you doing to blow through that? Many deals are using AI at all yet. Or is it you know, I mean you get to a point where you can smell if it deals decent to get the crap off your desk to focus on the ones that have merit. You know, we’ve got great software in the warrior program to do your detailed analysis, but how are you looking at so many?
00:19:10:16 – 00:19:14:04
Rod Khleif
Is is it a team sport where you’re each dividing and conquering, or how do you do it?
00:19:14:09 – 00:19:41:17
Mike Mannino
So we haven’t implemented using AI for our deals yet I do, I’m actually writing a post right now. I’m going to post Inside the Word program how we have saved $150,000 last year using AI. It’s really cool, but for looking at our deals, we use our Vas who our virtual assistants, they organize all the deals that they see, they put into a spreadsheet with address the price, price per door, a couple metrics and it turns red, yellow and green.
00:19:41:17 – 00:19:54:02
Mike Mannino
And we’re looking at the yellow and green. And that’s what Brice does. And then once that passes that sniff test then I’ll look at it. And then we will do the detailed, like you’re saying with the software’s of right. That’s where we going through all the expenses. And it comes.
00:19:54:03 – 00:20:11:10
Rod Khleif
Very nice, very nice. Well, listen, brother, I really appreciate you coming on. Make sure you smack your dad in the back of the head for me and tell him it’s from me. And you know I love him. And, do you have a are you okay with listeners reaching out to you? Yeah.
00:20:11:11 – 00:20:12:16
Mike Mannino
Yeah.
00:20:12:18 – 00:20:14:03
Rod Khleif
How would they do that?
00:20:14:04 – 00:20:31:04
Mike Mannino
Yeah. So you can reach out to me if you go to facebook.com, Nino II. Because that’s for the second you’ll find me. I have 13,000 followers. You can go to our, our company website, reciprocity capital group, which is reciprocity.
00:20:31:06 – 00:20:45:20
Rod Khleif
Well, listen, brother, I really appreciate it. It’s great to see you. And again, all kidding aside, I give you dad my love, and we’ll. We’ll see you soon, I hope. Yes. Take care of that little baby. All right. Take care, brother. See you later.
