I Was Homeless… Now I’m Worth $250 Million

Manny Khoshbin’s journey to success

• Manny Khoshbin grew up in Iran during a time of war with Iraq.
• His father had brothers who were injured and one who died in the war.
• To avoid being drafted into the army at age 14, Manny and his father decided to leave Iran and come to the US.
• They didn’t have much money and ended up living in a car for a few months.
• Despite the challenges, Manny was motivated to be successful and provide for his family.

“I know there’s a lot of immigrants that come to this country for the American dream and they get discouraged after a couple of failures and that was exactly me but look at me now.”

Manny’s early struggles and failures

• Manny dropped out of college after two weeks because he wanted to make money rather than pursue higher education.
• His decision disappointed his parents, especially his mother.
• At age 18, Manny started his first business selling nuts door to door, which did well until he got fined by the Health Department for not having a food repackaging license.
• He then invested his savings in buying a gas station but ended up losing all his money due to a con artist.
• Manny had to go back to working for someone else, saving money, and eventually getting his real estate license.

“So, back to zero because there’s one thing you’re not having money and not making it, but once you make it and then you go back to zero, it’s a hard landing, you know?”

Finding success in real estate

• Manny got a job as a loan officer after getting his real estate license and eventually opened his own mortgage company at the age of 22.
• He achieved success in his mortgage business and made a substantial amount of money at a young age.
• However, when interest rates went up, Manny’s mortgages failed, and he faced financial challenges again.
• Despite this setback, Manny remained determined to succeed in real estate and started building his real estate empire.

“I found a mortgage group, I made 290,000 bucks first year, and that was my first taste of success, real money right at 20 to 23 years old having that kind of money.”

Overcoming challenges and haters

• Manny faced discrimination and challenges as an immigrant starting his own businesses.
• He dealt with haters and people who doubted his abilities.
• Despite these obstacles, Manny persevered and continued to learn and grow in the real estate industry.

“You know, Americans are born into this country, they have all of that which I didn’t have, so I had a pretty rough start if you want to call it, but yeah, as a matter of fact, when we first moved here, we went to a Motel 6 in Costa Mesa, and then after a few nights, my Dad figured that we’re gonna run out of money, so we moved into a car.”

Importance of asking questions and being curious

• Asking questions and being curious is crucial for learning and success.
• Always seek knowledge and understanding by asking questions and being open-minded.
• Noah Kagan praises the habit of being a “sponge” and constantly learning from various sources.

“Always ask questions and be curious.”

Achieving Success in the World

• To go into the world without having to worry about bills, one needs to have the drive, hunger, and persistence to never give up.
• Anyone can achieve success if they want it badly enough and are patient.
• It’s important to be prepared for dead ends and obstacles along the way, but with determination, it’s possible to find a different route to success.

“If you really want it bad enough and you’re patient, anyone can do it.”

Manny Khoshbin’s Journey to Success

• Manny Khoshbin believes that he has achieved success, although his wife sometimes thinks he is in denial.
• Accumulating wealth and material possessions can sometimes prevent people from truly enjoying their success because they are constantly hustling.

“Yeah, I think I have. Sometimes my wife still tells me that I’m in denial.”

Making the First Million in Real Estate

• Manny Khoshbin made his first million in real estate through a commercial property deal. He qualified for an SBA loan with a 10% down payment and remodeled the property before selling it within a year for $1.6 million.
• He used the cash from this deal to start investing in apartment buildings in Long Beach, buying multiple units and office buildings.
• Taking calculated risks and being able to perform quickly in negotiations can lead to significant profits in real estate.

“That was my first million bucks on a single flip.”

The Feeling of Making a Million

• Making his first million dollars in real estate was a great feeling for Manny Khoshbin, as it was a significant milestone in his journey.
• However, the concept of money can change once you start buying expensive assets like multi-million dollar cars.

“It was a good feeling. I felt like I made it.”

Advice for Making a Million in Real Estate

• Manny Khoshbin believes that anyone can make a million dollars in real estate with hard work and persistence. It may not happen overnight, but with the right research, networking, and value-add opportunities, it is achievable.
• The availability of technology and online resources makes it easier to research and find opportunities in real estate.
• Networking with investors who have equity and presenting a well-researched investment opportunity can lead to successful partnerships and profit.

“Whoever says they can make a million bucks, that’s just an excuse. They haven’t tried hard enough.”

Real Estate Portfolio and Success

• Manny Khoshbin had multiple offers on an 18 million dollar high-rise without potential buyers even seeing it. He sold his portfolio in 2007, made a lot of money, and bought shopping centers and industrial properties in Houston.
• Manny understood the importance of choosing tenants with strong balance sheets to weather economic storms, which turned out to be a wise decision during the recession.
• He bought back five high-rise buildings from the bank three years later.

“If you take out the risk and you know you’re on the right cycle, your timing’s right. Real estate is pretty predictable.”

Manny’s Real Estate Investments

• Manny estimates that he has spent over a billion, maybe even 2 billion dollars, in real estate.
• He has bought hundreds of properties, including a recent deal where he purchased a property for 22 million and is opening a store worth 72 million.

“Over a billion, maybe 2 billion.”

Successful Real Estate Strategies

• Manny emphasizes the importance of mitigating risk and understanding the real estate market cycle for successful investments.
• He advises being patient and waiting for the right opportunity, especially during recessions when buying opportunities are abundant.

“I’m waiting for a recession to buy because I made all my money in recessions.”

Putting in Offers and Swinging the Bat

• Manny evaluates around 20 properties each day, though he physically visits fewer of them.
• He makes an offer every three to four months, indicating that he writes offers for around 150 deals per month.

“On a good day, I look at probably 20 properties… I right [write] and then I make one offer.”

Learning from Failures and Biggest Loss

• Manny shares his biggest loss, which was a 6-story building he bought for 17 million. The single tenant, a subsidiary of Boeing, vacated the property, resulting in a loss of 5 million cash.

“My biggest loss was a 6-story building I bought for 17 million… 5 million cash down, gone.”

Successful Real Estate Portfolio

• Manny manages six companies actively and has invested in several others as a limited partner.
• His businesses generate cash flow, along with his real estate investments, covering his lifestyle.

“Well, my businesses make money plus real estate cash flow… I have shopping centers… I have a mortgage company… pay me a lot of money…”

Contrarian Opportunities in Real Estate

• Manny highlights the importance of being a contrarian during times of fear and panic.
• During market downturns, opportunities arise as people panic, creating favorable conditions for purchasing real estate.

“Fear and panic always create opportunity… whether it’s real estate, cars, or stocks.”

Future Strategy and Opportunities

• Manny anticipates that the next 18 months will present excellent buying opportunities in commercial real estate, driven by potential defaults.
• He aims to double or triple his portfolio value by taking advantage of the upcoming cycle.

“Next two years… the mother of all buying opportunities when it comes to commercial… I’m looking to double, triple that portfolio value.”

Manny Khoshbin’s Daily Routine

• Manny wakes up between 4-5 in the morning to respond to emails.
• He manages his businesses in different states, which requires him to prioritize his day early in the morning.
• He follows his to-do list, works out, and takes a sauna and cold shower.
• By 8 am, he gets his third cup of coffee from Starbucks before heading to the office.

“I don’t sleep much. I drink a lot of coffee. I respond to all the emails because I got properties in four different states.”

What Manny Khoshbin is Cheap On

• Manny mentions that he does not spend a lot of money on certain items.
• He jokes that his wife would be the best person to ask about his frugal tendencies.
• He mentions that he does not appreciate spending a significant amount of money on expensive wines or watches.
• High fashion is also something he does not spend a lot of money on.

“I don’t like to spend $10,000 on a bottle of wine because I honestly don’t appreciate it. To me, a $30 bottle of wine does the same thing.”

Manny Khoshbin’s Splurges

• Manny mentions that he enjoys vacationing and considers it his biggest splurge.
• He specifically mentions taking his entire family to Lake Como, where he plans to rent a villa for a couple of weeks.
• He also acknowledges the cost of chartering a private jet, which is approximately $12,000 per hour.
• The total cost of a trip, including hotels and other experiences, can range from $40,000 to $50,000 for a three-day trip.

“Vacationing is the best money spent because you know, you can get time back. This one hour we spent, it’s not gonna come back, it’s gone.”

Manny Khoshbin’s Car Collection

• Manny talks about his collection of Rolls Royce cars.
• He mentions owning four different models, including two drop heads, a Dawn, and a brand new Ghost that he bought for his wife.
• He shares that driving luxury cars has become normal for him since he started driving Rolls Royce vehicles in 2004.

“I have four Rolls Royces. I got two drop heads, a Dawn, and a brand new Ghost I bought for my wife. I’ve been driving Rolls Royces since 2004 when the Phantom came out.”

Manny Khoshbin’s Regret and Lessons

• Manny admits that his biggest regret in life was being irresponsible in his younger days.
• He mentions that he used to party and drink while driving, leading to a tragic accident that resulted in the death of his friend.
• He emphasizes the importance of responsible behavior and the consequences of poor choices.

“Young, dumb, you know… that’s my biggest regret in life, being irresponsible.”

Manny Khoshbin’s Definition of Success

• Manny defines success as having the freedom to choose what you want to do when you wake up and being able to give back.
• He mentions that it is not about the amount of money in the bank or net worth, but rather the ability to have freedom and make choices.

“Success is having the freedom to choose what you want to do when you wake up and being able to give back.”

Building a successful brand

• Patron tequila and Paul Mitchell hair care are mentioned in relation to building a successful brand.
• These brands have been successful and have made a significant impact in the market.

“Patron tequila and Paul Mitchell hair care have built successful brands that have made a significant impact in the market.”