- 02:38 – Introduction to Mike Mannino and the mission of Real Estate Wealth Builders.
- 4:20 – Mike’s early experiences and the mindset that propelled him to success.
- 8:25 – Mike’s first steps into real estate, from humble beginnings to flipping his first house.
- 11:17 – Systematizing the fix-and-flip process and the importance of processes in business.
- 14:25 – Mike’s transition to larger commercial projects like multifamily and self-storage.
- 19:50 – Details about the Real Estate Wealth Builders conference in Key West, Florida.
- 21:20 – Mike’s target audience and how to get in touch through the Facebook group.
- 24:18 – The significance of finding mentors and partnering with those who’ve achieved your goals.
- Website: https://www.proliferationcapital.com/
- Facebook: https://www.facebook.com/groups/realestatewealthbuildersgroup
- Contact Number: 843-619-3005
- Instagram: https://www.instagram.com/exitstrategiesradioshow/
- FB Page: https://www.facebook.com/exitstrategiessc/
- Youtube: https://www.youtube.com/channel/UCxoSuynJd5c4qQ_eDXLJaZA
- Website: https://www.exitstrategiesradioshow.com
- Linkedin: https://www.linkedin.com/in/cmelette/
- Email @: corwyn@corwynmelette.com
Transcript
CORWYN:
Do you want something more? More meaningful moments, opportunities, deeper relationships, and memorable experiences? Do you want to make a difference? If you said yes to any of that, a career in real estate could be the opportunity you’re looking for. Guiding people through one of the most important decisions they ever made. The purchase or sale of their home can be both rewarding and lucrative. Exit Realty’s revolutionary compensation model, training, and technology provides you with the tools you need to start and build your successful real estate career. Call me today, Robyn Collins: R-O-B-Y-N, with Red Robin Homes at 843-557-5003, again that’s 843-557-5003 or visit redrobinhomes.com/joinexit and make your exit today.
Good morning, and welcome to another episode of Exit Strategies Radio Show. I am your host Corwyn J Melette. Broker and owner of Exit Realty Lowcountry group in beautiful. North Charleston, South Carolina, if this is your first time listening to this show, you, sir or ma’am, are in for a treat. Because our mission here is very simple. That is to empower our community, financial literacy, and real estate education. We’re legacy building, that is what we do. So if you’re out there making things happen with your family, for the generations, yet to come and are worried teaches us to leave a legacy to leave an inheritance for our children’s, our children, children and so forth and so on. We want you to put a hashtag on that thing that says that you are legacy building because that is what you are doing. You can find us on Facebook, YouTube, AnchorFM. You can also find us on Instagram, at our website, exitstrategiesradioshow.com, you can catch us in a number of different places on your favorite podcast applications. We appreciate you listening, please share this content with your friends, your family, your co-workers, even those in your groups, your church groups, etc, guys, but sometimes the message and the word that we are speaking here today is for you. Sometimes it is for someone else that you know, again, we appreciate you listening. Let’s get started.
So you know what I’ve been telling you, we’re having a blast along the way in in the process, making sure that we get the best guests that we’ve been bringing to you guys like the people. That’s what we’ve been doing, and having a great time along the way. So guys, today is no different now, I’m gonna tell you right now, and I’m so mean this, y’all don’t slip. Y’all don’t miss this message today. I need you to go get your pen and paper. You have to write a lot, but I need you to get it and then if you miss it, I need you to go to the website, find the episode. I need you to play that sucker back until you got it all because our guest today is going to drop the jewels and the nuggets on you. Okay, so I’m not going to take any more, if you will, of his thunder. But today we have with us none other than Mike Mannino? Yes, yeah, got it. Mike is an investor guys. He has flipped over 80 houses. He did this before ace 30. Look, he yo kid, a somebody that just came out of college and he went to work so look, I cannot stress to you enough guys. Pay attention. So guys again, we got Mike with us today from Real Estate Wealth Builders and guys who are going to drop Mike, how’re you doing today man?
MIKE:
Very awesome. And thank you so much for that warm welcome. I love it. I need to take you everywhere with me.
CORWYN:
So well look, I charge my introduction normally, we’ll discuss a discount because lucky you doing some amazing words. I cannot wait. So Mike, high level overview man. Who are you and what got you here? What do you do?
MIKE:
I’m a fix and flipper at heart. So I have a fix and flip business up in Michigan, where we buy fix and flip about 20 houses a year. We’ve done over 80 houses. Like I said in the beginning before we were recording I moved to South Carolina actually like Murray over here. So I systemized that so that I can buy fix and flip houses without seeing them in person. So as crazy as this is, if you’d have told me five years ago, Mike, would you be able to buy fix and flip houses without seeing them in person? I would say, No, you’re crazy. But we’re blessed to be doing it because we have a really good system and team in place. And the last two years have been really focused on buying multifamily and self storage facilities as well, to help with the passive income and the wealth building and to also offset my taxes on the fix and flip side.
CORWYN:
Makes perfect sense. That’s an amazing strategy. So Mike, what prompted you to even get started, like, you know, what was a driver for you? What was that, if you will, that moment of that epiphany that happened for you to take this direction
MIKE:.
Yeah, and I won’t get too in detail about it, but something negative into a positive in my life. When I was 13 years old, I was diagnosed with Crohn’s disease. And I was very blessed to have it on a very low level of it. There’s like three levels, I had a level one. And basically, it’s like a stomach ulcer. And I was taking 16 medications a day, I was on steroids for six months, I gained 30 pounds, 13 years old and middle school. And I realized that life is very delicate at a young age. And that tomorrow always isn’t promised. So something that would normally like cripple people, and maybe stop them from taking risks in life, I did the complete opposite. And I said, I don’t know what’s going to happen to my right. So I took that experience. And I would say like mindset is huge for me. So this is when I found Jack Canfield Chicken Soup for the Soul, that changed my life. So there was a movie called The Secret. It was a book in a movie. And I saw this at 13 years old. And in one part in it, there was a lady who was diagnosed with breast cancer, and she was able to cure herself with positive affirmations and mindset, and working out and eating right, and watching comedy and telling herself that she’s cured. So I took the same strategies, I watched this movie 18 times over three year period from 13 to 16 years old. And I’m blessed to say, like, I’m cure from Crohn’s disease, a disease you have for the rest of your life. And thanks to God, 100% to God, and using that positive mindset and working out and eating right, and all the things you’re supposed to be doing. I promise, I’ll get to real estate in a second. But I just wanted to lay the foundation of like the mindset and how important it is, because I was able to cure myself. And then I knew if I could do that I can do anything else I put my mind to
CORWYN:
Thank you for that transparency and for sharing that. We’re a faith based show my man, you know, exit strategy is, I tell people, it’s my baby. But you know, it’s based on a book of Exodus where, you know, God moves people from one place to another. God does things in people’s lives. And he does it for for fulfillment for a purpose. So I am looking at it’s such an impactful and amazing story. So we’ll see I love that right there, man, a mic drop, because you got to change your mind, you got to believe in what it is that you can do. You got to believe in what God has for you. And if you don’t believe, then you’re always going to have limitations. You’re always gonna have restraint. And you’re always gonna have this Well, I didn’t get this done or what have you as you move forward. And that’s what we don’t want. So Mike, thank you, again, so much for sharing that. So what was your first step?
MIKE:
in real estate? So I took that, and I took everyday, like, very serious. I worked at McDonald’s from the day I was 16, to be able to legally work at McDonald’s and Michigan. I was making 655 an hour, which is kind of funny, because I googled it because people were like, minimum wage was like 725. I was like, yeah, no, but I was getting paid 655 I know it. I found a pay stub, and it said 655 and I Googled does it: How come I was getting paid like less than minimum wage. And I found out you’re allowed to get paid 80% of whatever the minimum wages so McDonald’s paid me 20% less than the minimum wage. So that’s how I got started very humble beginnings. I see you laughing over there. And I got started in McDonald’s. And I went to school and then I worked the illegal amount, 20 hours a week. So I went to school 35 So 55 hours a week from 16 years old. And so I had to buy everything. I wanted a car phone insurance. I had a girlfriend, she was expensive, so I had worked overtime. So I went from McDonald’s to busboy to a waiter and extremely blessed. I saved up $14,500 at the age of 19 years old, and I was a waiter. And I bought a house with FHA was my first purchase three and a half percent down. FHA was a foreclosed house back in 2012. It was a three bedroom, two bath house. And it was like a foreclosure. I mean, there was like a lot on the walls and I was cleaning it up and I had the biggest smile on my face. And I didn’t care because I’m like, Oh my gosh, like this is my house. Like I own this thing. And I was just like, just so grateful. I was like, Oh my gosh, like this is so awesome. And what I did is I did house hacking before I even knew what it was before podcasts back in 2012. I didn’t know what they were. So what that means is, my mortgage was $600 a month, it was a $67,000 house. Again, I’m waiting tables, I’m cleaning up this house. And I rented out the other two bedrooms, so people I waited tables with, and we split it. So they paid $300 each for each bedroom. So they’re paying the 600, the mortgage was 600, my only financial responsibility was a third of utilities. So at 19 years old, I’m going to community college, waiting tables, and I have this house, I’m fixing up myself and they’re paying my mortgage for me. And I highly recommend anyone with a young kid, if you’re a young person, this is a great way to get started is using like these really low mortgages, we’re gonna put three and a half percent down. It was like $7,000 on tying up this house. Long story short, I fixed it up, sold it at 21 years old for $147,000. Like I was making $20,000 a year waiting tables. And I just walked away with the $60,000 Check. Like that was mind blowing right there. And I was like, Alright, if I can do this once I can do this again and again and again. So I’ll stop talking for a second and like, let you go.
Okay, now.
CORWYN:
Because that’s when it says seeing this, I just did what? Oh, wow, we got to go do this again. So did you guys live? So what was the second property?
MIKE:
Now I sold my house, I moved back home with mom and dad. And I bought this house and this thing you have to be humble, right? And especially in the beginning. So I was like, That’s okay, like, thankfully, I’m only 21. So I can move back. And it’s not too bad. But I moved back home with mom, dad and I bought a house within 30 days of having that money in my account. And it felt like it was the worst decision of my life. But it turned out to be a very good decision. My dad actually told me not to flip houses by like, well, you know, the worst case scenario, I can just move into the house if I don’t flip it for a profit. The absolute worst case scenarios, I’ll just move into an all new house. So it’s fine. If the next like flip or true flip was actually from a tax auction foreclosure in the state of Michigan the way they do, it’s different than South Carolina. But on year three, April 1, if you do not pay, you lose your house you do, there’s no redemption periods, no nothing. And it’s very bad. Then I bought it at the tax foreclosure for $50,000 over the summer. And long story short, we purchased a house for 50,000. I put $35,000 into the renovation, which I had to borrow my dad’s funds because I only had $10,000 left in my name. I was like, Hey, Dad already bought the house. In our, like, if you give me 30 grand a rehab, it will split it 50/50. So we were insured for like 80/85 sold that one for another $140,000. And we just kept that going over and over and over again. We started off with one a year then we did two a year in 2017, then I think four and then nine, and then an 18 year now we’ve been humming in the 20 houses per year ever since.
CORWYN:
That is awesome, man. I like the whole bank of dad. That you know, Hey, Dad, how about this. But what I really appreciate Mike, is the latter part. And I don’t know if our listeners caught this. You didn’t go to bank of dad and say, Dad, can I borrow this and I’ll just give you your money back. You went to Bank A dad and said, Hey, Dad, hey, look, I want you to invest in this with me. So you bring your money, and I’m gonna break bread with you. And we’re gonna keep going. And we’ll do whatever else from there. So that is awesome, man. So one of the things you mentioned, like in the very beginning, is that your strategy now as you’ve kind of gotten to where you got this systematize and anything that you for our listeners, and Mike, I know that you’re gonna probably smile at this. But I say this. So often, if you’re doing the same thing over and over, you need to build a system and make it repetitive. So you don’t have to do to brain damage, quote unquote, every time I know how I am. So how I am you asked me a question. If I don’t answer it, I’m gonna give you a different answer, depending upon what my mindset is, at the time when you asked me, if we do it over and over again, we need to have a system and process that’s repetitive, and I ain’t got to touch it. I don’t have to be there. I don’t have to respond anything. It just gets done automatically. So I love the fact that you have done that in your business. But now your strategy is now to more larger commercial type projects, apartments and storage. What is your basis for that? What is your reasoning on that?
MIKE:
Systems and processes is so important. So I took that same while I was at McDonald’s, I was building the hamburgers, and McDonald’s has the best processes in the world. You go to get a Big Mac anywhere in the country is gonna taste the same, it’d be built the same everything. So I brought that into our fix and flip business. So my father was a contractor and on our first flip that one I was like, Hey, how much do you think it’s gonna cost the rehab? He’s like, Oh, 15,000 I’m like cool. Then the house works. And then it came up to $45,000 I was like, what? Like, he’s like, Oh, I’m sorry, I missed this. I forgot about this, I’m like, You’re the contractor, you’re not like, Oh, I’m like, okay, so this isn’t scalable if we’re guessing. So what I’ve done in our business, this allows me to live anywhere we go to Aruba and Florida and travel the world now allow me to see my house. Because this, there’s 350 lines of everything we do on this Excel spreadsheet to a house, doors, windows, trim, cabinetry, LVP, flooring, everything is broken down price per square foot, or per item. And we have the material and we have the labor. And we always use the same products over and over and over again. So there’s no thinking, there’s no change orders, contractors don’t have to ask us which products we’re going to use. Because the same agreeable gray we’ve used for the last 80 houses, it’s the same white shaker cabinets that we’ve used for the last 80 houses, same LVP flooring reviews for the same like last eight houses. So when you do that, it takes a lot of the guesswork out. Because I now have a database of how much it’s cost us to renovate, let’s say 1000 square foot house, I know the material the labor, exactly to the penny, how much it costs. So then when we look at a house for 100, I know we’re going to be into it for 40,000. And I can sell it for 200,000. And we just do that over and over and over again. So systems and processes into any business is extremely important.
CORWYN:
Exactly. So I teach, preach, speak all of that, you know, I had an investor some years ago. And that’s where I picked it up from number years ago in my career. I had a gentleman that I worked for, and funnily enough, he was an agent, but he didn’t like the business part. He didn’t like the paperwork and all that other stuff. He didn’t like having to deal with consumers. So he focused on buying and renovating. And he called me to sell them. So I would help him buy something I’d find something for him to buy. So I worked for him on both sides of the deal. And what he did the same thing. When he walked into a house, he bought the same type of house that was important to him. So he bought the same type of usually three bedroom one and a half. Sometimes they were ones that he knew how much it will cost him to add a bathroom, how much it would cost to to make a half bath into a full, he put the same carpet in the same light fixtures, same plumbing fixtures, everything cabinets, countertops, whole words systematize the entire thing. So that when you walk in, you automatically know what your numbers are going to be you buying the same type of house, he stayed away from a house with crawl spaces intentionally. So he knew Okay, well, I gotta go under it. So I gotta worry about here up. So being able to do that is amazing, man. Kudos to you for knocking that out on such a large scale. But Mike, look man, I got to talk about so what you guys are doing the Real Estate Wealth builders, man, we got to get that plugged in and spoken about because y’all planning to do a conference. I’m super stoked for you. You got a slate of people. But as far as our speakers for that conference, man I looked at I’m like, Oh, my goodness. So tell us about it, man, what is it? Who needs to be there and outside of the people that quote unquote, who need to be there, who should come to thinking about that and the place for them?
MIKE:
Thank you for that. So yeah, we’re doing a live event in Key West Florida, January 10, through the 11th, which is gonna be awesome. We have people who like I’m gonna be there speaking about my business. My partner I brought on last April is going to talk about how he does like the boots on the ground for the business, we got people who’ve made a quarter million dollars on a wholesale fee selling a self storage facility, people who went zero to six flips. In the first six months, I have like the best like investors in the country, and even maybe one from Canada, so in the world coming to this event. So you can go to Rew, R-E-W builders.com, or rewbuilders.com. And you can see about the Key West event that we’re hosting. And I also have a free gift for your audience as well. If you are interested in learning how to buy fix and flip houses, and you want to see like, I created this video how to make $55,000 on a house like I’m going to show you like how I identified the house, how I use my pricing sheet and how you can like copy it, and how you can like really just see how I’ve built this business. That website is 55kdeal.com. So it’s 55kdealcom d-e-a-l and it’s free 20 minute video about how we buy fix and flip houses. And if you want to learn more about real estate investing and get more into our world, I think we have our free Facebook group inside of that link as well. And we’re going to be promoting our Key West event which you have to come it’s going to be really the best event and we have 100% money back guarantee. So if you come and you take notes and you’re like Mike this wasn’t worth it. I’m gonna give you your money back no questions asked because I’m just here to really provide value and make everyone’s lives better.
CORWYN:
So I’m super excited because one I mean US South Carolina now. So for our listeners guys, look, you know, Mike and I had had to just about this a little bit. You know, he He’s up on a lake, I’m a little bit lower down to the coast, but we talking about dropping straight down to Florida. That’s a pretty easy. Oh, I don’t know if I want to drive it anymore. But that’s a pretty easy, like, quick way to get there, you know, take a flight and get on in. So I’m super excited. And who is this conference for? Like this event? Who is it for?
MIKE:
It’s perfect. Honestly, if you are, like just new at real estate, because then you get to learn from the best investors in the country. Instead of having to learn all the mistakes, you can just skip 20 steps, and just go like, boom. And this is also for people who are doing flips. Like, if you are the person who’s like running to Home Depot, like I used to be, I used to be running to Home Depot and mowing the lawn at the flip. I go to Home Depot three times a day. And I’m like, okay, you know what, we need to put some systems and processes in place because I hate Home Depot at this point. I don’t want to go there anymore. And I’m sick of babysitting contractors. So how to really run this like a business, not a hobby, not a high paid hobby, but like a true business. Something you could even sell if you wanted to. I’ve had offers over over a million dollars for my business, I’ve turned them down, because I’ve systemized this thing. So it’s like a true actual business.
CORWYN:
Yeah, that’s what it’s supposed to be. Now, you guys, you train people? Is that the proper? Or the right understanding of Mike as far as what you guys do?
MIKE:
Yeah, so we’re really best fit for people who have at least like bought some real estate, like one or two, I’m really good at scaling. So if you have done at least one or two deals and need help with like, Alright, how do I pull comparables accurately in the renovation costs? I’m like, How do I really build this thing out, and then even grow a team around you so that you’re not the one having to do all this, that’s who I’m best for. That’s what we’re our community’s best for, not for the person who’s like, never put in an offer, or never bought a piece of real estate, we’re really more for like the people who have they’ve done one or two. Because if you’ve done one or two flips, you’re in the top 90% of real estate investors. Seriously, I’ve heard this, if you own three rentals, you’re in the top 95% of all real estate investors 95% just owning three rentals. So that’s where we’re for
CORWYN:
interesting. And so my indecisiveness never heard, I’m sorry, I’m like that kind of caught me a little bit flat footed just now. Because oftentimes, I know probably, at least on my side, and thought process is that in order for you to be in that, quote, unquote, that top tier, you got to be doing a whole lot more than that. That’s impressive man to even even consider. And especially in light of, and you gave a website. So you know, for our listeners, guys, thank you all for writing that down. If you didn’t write that down, you need to go back and write that down. Make sure that you guys hit the websites 55k- 55kdeal.com. Guys, and just get connected. So my you know, we quickly get into the end of our show today. But how can people get in contact with you? Or how will you find people reach out to you?
MIKE:
Honestly, if you want to reach out to me, if you go to that website that 55kdeal.com Once you watch the video, there’s gonna be a way to join our free Facebook group. And I’m inside of there, I post them there daily. So if you want to ask me real estate questions, I’m in there every day, I’m answering questions. I’m documenting our journey, because now we’re buying multifamily and self storages and flipping houses and I’m just documenting the whole thing for everyone. And I’m in there answering questions. So that’s really the best way to get a hold of us is through that Facebook group.
CORWYN:
Okay, perfect. So for our listeners, guys, look, today has been a great show, we’ve got some very good information. You know what we talked about here, it’s about mindset. It’s about making sure you’re taking in the right information. And I can’t go without, you know, kind of bringing this back around to what Mike started with, is sharing his story. So again, my man, thank you so much for that. But Mike, I have this question, or a question that I call my mic drop question. And it’s always a good one. And the response is always incredible. I know you’re not going to in any way, shape, form or fashion fall short of that mark, if there was something that you could go back and change that you believe would have completely changed the trajectory of your life of your business, or what have you. What would that thing be?
MIKE:
Very good question. Yeah. I wouldn’t say I would really change anything. But I will say when I’m very blessed for that experience in the beginning of being sick really helped light a fire underneath my butts, realize we don’t have a lot of time on this earth. But I tell people, you really have 70 good summers in your life if you’ve lost. Um, once you break it down to that you realize time is you know, I’m 30 now and it it’s like a roll of toilet paper. It goes faster and faster. The closer you get to the end, I blink and it’s like another month goes by. So I guess one of the biggest things that helped me was finding people who are where I want to be and then either hire them as a coach network with them partnering with them or whatever it is my first real estate coach. I paid him a lot of money, because he was flipping houses and he didn’t have to see them. He had a great system. So that’s what I did, then when I got into the multifamily, and you’d think like, I’ve done 40 homes up to this point when I got into the multifamily, and I was buying a six unit, and I was scared, because I don’t know, like, I don’t know what I don’t know. And then what I did is I partnered up with someone who had like 40 units. So to him, it was nothing, to me, it was a big deal. Whenever I’m doing something new, like find someone who is where you want to be, and then whatever it is, just be next to them, and they’ll help you get to where you want to be.
CORWYN:
I love that. Thank you so much for that. So Mike, my man, thank you so much from the bottom of my heart, man for being on the show with us today. Thank you for sharing your incredible story. But thank you for being the inspiration that you definitely are our listeners. Guys, look, I need to register for this conference. I’m pretty sure I’m gonna see maybe I’ll see some of you guys down there. Because y’all need to be there too. All right. So Mike, again, thank you so much for being on the show. Thanks for being part of the Exit Strategies Radio Show for our listeners. Guys. Y’all know how I feel. Y’all know what I say? God no, always put the two of them things together. And I say it to you this way. Which is I love I love. I love. We got to see you guys out there in those streets
