All Forum Posts by: Michael Mannino II

@Account Closed, Great question. I started off house hacking and that helped a ton with the monthly bills and allowed me to build up more cash for the next project. What I did was live in the property, and renovate it. After 2 years sold it for 2X what I paid for it originally. Then used that cash to snowball into the next one, which is even bigger... Now currently at 50 doors, and selling my 6 unit which has enough equity to purchase a 16-unit apartment... What I have found out is that successful people just keep trading up and up. There gets to a point where your assets make more $ than you do. Which takes care of saving up for your downpayment problem. DM me if you'd like, I'd love to chat more about how we do this in our business!

Hey Christopher! I totally understand the idea of saving up to use your own money, but I have found it is more simple than most think to find a good deal and send it to a private money lender. Obviously for your first deal or two, the lender may want you to have some skin in the game as well, but that would be discussed by building a relationship with those people, plus it totally depends on the deal. Become very skilled in estimating all of your numbers properly (ARV, rehab estimates, profits, etc.) and lenders will know when it's a good deal and that you understand the numbers and process behind it. I've got a great lender in mind if you need someone, would be happy to help you out, we do 20+ flips a year in MI.

Ahh that would be tough!! Haha I think It's doable to some extent, but your network is everything. Having strong connections wherever you're going to be investing out of state (or in state) is super important! 

Awesome job!! Looks like this will be a great rental! 

@Marcus Auerbach I ran the business for a few years before bringing on my partner that has equity. Once I had the system built and those relationships made and he came onto the team, I moved to SC (June 2022) and haven't been back yet! Don't plan on heading back until the summer to see family and honestly might not go to any of those properties while in town if I don't need to. They've purchased and sold 10+ properties since I left and I have only seen pictures. All the properties are within about an hour of each other, so I do know the area pretty well. And they are all that first time home buyer type house (2-3 bedrooms, around 1200 sq ft). They've also purchased a 17 unit property that we are completely renovating since I left as well! Our team meets virtually 2x a week to go over where each property is at/what the next steps are (takes about 20 minutes) and then they handle it from there. 

@Jen Markosian  We do about 20 single family fix and flips in Michigan (just north of Detroit) each year and we invest in multifamily / self storage all over the country. Currently living in South Carolina! 

@Malek Bohsali Those are all valid concerns. I buy fix and flip houses that are in a different state that I've never seen in person we do about 20 houses per year.
The way I structured it is to have someone boots on the ground for me who does have equity. So that when we do well, he does well. When we do poorly, he does poorly. His job is to oversee all of the contractors (we currently have 3 crews running).
These crews have been with us for 7+ years and are like family. We give them consistent work and pay really well, we give them coffee and doughnuts, take them out to lunch and have parties with unlimited drinks and food together.
Because of this we go out of the way for each other and if pipes are freezing (like we had in November and had a few pipes burst) one of our contractors went out over the weekend and fixed the problem. I would suggest to not underestimate the power of having a great relationship with your contractors. 

Hey Shmiyer! I think being either of those things are a huge advantage when it comes to knowledge, when I started my flip business I was my own agent. Now that we have systems and processes in place that allowed me to scale, I hired an office manager who was licensed and she lists all of our houses for us now. I also found that when the buyers can see that the agent owns the house - they seem to try to negotiate harder, where when it's my office manager as the agent, it's more of a regular deal if that makes sense. Plus, being my own agent was adding another full time job to the list for myself to do, which for long term and growth of the business that wasn't realistic to maintain. I'd love to chat more about how we set up our business if you'd like to chat! 

Hi Emily! Welcome to the world of Real Estate. If you are looking for a mentor, feel free to reach me out. Would be more than happy to connect! :) I have free course/training that might be helpful to you for sure! :) Excited to talk about it with you :)

Hi Luis! Well, flipping houses is definitely not as glamorous as the TV shows make it out to be, but it can definitely be very profitable with the right systems in place! What home buyers are looking for depends on what type of houses you're looking to flip. Personally for our business, we buy the types of homes that would be good for first time home buyers. So we would look for houses that once they're remodeled, would sell for between $200-$300K. This is what we call the ARV (After Repair Value) and we use that number to work backwards to come up with the price we would be able to pay for the house. A simple formula we use for this would be: (ARV x 0.7) - rehab costs = Purchase Price. I've grown our business to 20+ houses a year and would love to talk to you more about it!