I got real curious about this guy. Here’s how I know he’s full of shit:
1) I worked at a shop where we evaluated placing a bridge financing for him. Granted I had left by then but my good friend told me the dude had literally zero liquidity – neither in personal or in business accounts. Kinda weird for someone driving around $2M cars saying they have a treasure trove portfolio of CRE assets.
2) I looked him up and only found a hand full of entities he controlled recorded on title. Doesn’t have a huge portfolio – think 4-5 buildings in Orange County and Texas. I did however find his house in Pelican Hill (Newport Coast) which he surprisingly owned and bought for like $18M. But he took out a 2nd trust deed hard money loan on it from a sketchy “loan to own” type lender lmfao.
Where there’s smoke there’s fire. Who knows what else sits below the surface of a quick public records and title search…
The house and cars definitely gave him public image cred
Life Cos would categorize him as a typical “California Borrower”. In all seriousness though, there are quite a few people that have made fortunes by taking out aggressive cashout refis. I’m sure that those properties probably give him enough cash to pay for his lifestyle and subsequent cashout refis pay for the cars and other large purchases. The issue for those types of people is what happens during a typical downturn. The best dealmakers are able to get out unscathed via workouts.
Anyone selling mentorship programs is in the mentorship business, not the real estate business. Generally speaking people spend the majority of their time on the highest–returning activities. The cars and “net worth” part of it are all part of the show and the act. You can find plenty of publications who will unquestioningly repeat that your net worth = AUM. I absolutely believe a guy like this (or a Grant Cardone) might “own” $300mm worth of real estate. When you consider that it’s 60% levered and these guys probably own a small fraction of the equity, you come out to low 7 figures, which seems about right.
$4mm is more than enough down to get you an $18mm home. I hate to sound rude, but he finds access to cars like that because it impresses credulous rubes. The concept of “he can afford XYZ so he must be rich!” is all too common and generally all too wrong. When you see tons of news about how wealthy someone is, or about their net worth, and not a lot of information regarding the basis of it… that’s a red flag. When someone plugs their “real estate business” by showing off how they own $15mm more of house than they need, and their fleet of supercars…. that’s a red flag. Think about all the hyper wealthy people in real estate you know about. Generally speaking, we know some of the assets they or their company own. Sure, they may be into super cars, but when they’re interviewed, the focus is on what they do, not what they buy with the proceeds of what they do…
Mr Khoshbin, like most snake oil salesmen before him, seems to have realized that the world is full of people asking to be duped, and who can’t distinguish between how to create wealth and how to acquire the trappings of wealth. He’s draped himself in the language and accoutrements of a hyper-wealthy person, and people like you are eating it up. In the 30 seconds of looking, I see he has like 5x as many videos about his cars as he does his real estate, which should tell you something in and of itself. I even listened to one of his videos, which was titled “How I made $12 Million Off One Building” for reference. And… at no point do you hear anything of value. He doesn’t “break down the financials”. He spouts off about how much he’s increased rents by, or how much he claims he has, without giving any context. Sure, he increased the value of the marina slips by $14,000/mo – but it took him 2 years and an undisclosed amount of money to do it. Was some of it vacant? How much did it cost him to build? Did he borrow that money, is it equity? For that matter, how much of his equity is syndicated out? What kind of leverage does he have? He claims to have converted dead space into rentable floor area, but the only business he could find willing to rent it was his own “very lucrative” cigar lounge.
You see what I mean? He’s telling you he has wealth, and showing you what he bought with that wealth, but there is absolutely nothing about his schtick which explains where that wealth is coming from and how it was generated. A bunch of vague platitudes, and a “look at my new car” to distract. I believe foolish people who don’t do their research or who invest in get rich quick schemes deserve to lose their money, so I have no objection to this guy fleecing you or anyone else, but don’t sit there and tell me he’s done it through savvy real estate investing.
Real players in real estate don’t need to tell people how much they own, what custom car they’re driving, or put on a fucking seminar. There are many people and families in real estate that could buy this guy many times over.
Also, if you were a mega big time real estate gajillionaire, you wouldn’t sell the keys to the kingdom for $999 or whatever. You’d keep it close to the vest and work on your real estate portfolio. Not sure why I need to explain why the get rich quick guys are entirely full of shit literally 200% of the time, but for anyone who’s wondering, they are.
Instagram @mannykhoshbin
followers 2.8 Million
Illusions can be really believable
