Manny Khoshbin's Real Estate Success Story

ABOUT THE AUTHOR
Manny Khoshbin is a real estate investor,

car collector, mentor to thousands,
philanthropist, published author, social
media influencer, father, and husband. A
true representation of the American Dream,
Manny Khoshbin and his family fled Iran
from the Iran-Iraq war, moving to the United
States at age 14. Speaking no English and
having no connections, Manny and his family
of six lived in a car before finding their
footing in America.
From dumpster diving, working at K-Mart for

$3.25/hr, getting scammed out of his life’s
savings, and coming to the brink of bankruptcy early on in his career, Manny
Khoshbin has since built a private real estate empire from scratch through
hard work, determination, and the “never give up” mentality.
Today he is on a mission to give back and create impact through teaching and
mentoring others on how to achieve financial freedom and build generational
wealth as he has through real estate investing.
Want to get mentored by Manny?
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THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 2

INTRODUCTION
Congratulations! You being here reading this now shows you have an interest
in building generational wealth through the most proven vehicle to do so since
the beginning of societies; real estate.
This short blueprint will provide you with the clear, actionable steps to take
to build a $100M real estate portfolio!
Real estate provides the fundamental need for shelter, transforms

communities, and builds economies. Governments know this, which is why
they provide incredible tax incentives for investors to buy, develop, and
transform real estate. Banks know this, which is why they provide the best
lending terms on real estate compared to any other asset, allowing the ability
to exponentially scale through the use of leverage.
Real estate provides the most consistent and predictable source of passive
income when most other investments provide none at all. It provides more
ways to add value than any other investment. Everyone understands real
estate, making it one of the easiest investments to raise money for. It is one
of the top protections against inflation, an incredible asset for diversification,
provides higher predictability over any other income stream, and brings more
pride of ownership than any other investment.
And while there are many different types of real estate, this blueprint
is focused on commercial. Why? Residential real estate may get you to
retirement, but commercial real estate is where true wealth is created. The
reward is much bigger, the competition is much lower, and the scalability is
much higher.
Many times, residential investors need to buy and sell more than twenty
homes to make the same returns that just one commercial deal can bring. And

INTRODUCTION
the best part? The amount of time and energy that goes into one residential
deal is similar compared to the efforts of one commercial deal (and sometimes
even greater depending on the investment strategy).
This is why commercial investors can become extraordinarily wealthy from

buying only 1-3 deals per year, while many residential investors are chasing 50
deals or more to make the same returns.
Not to mention the many added headaches that comes from being a
residential landlord such as dealing with unprofessional tenants, more
intensive property management, less tax benefits, higher risk of tenants not
paying rent, increasingly strict eviction memorandums and regulations that
continue to worsen for landlords, and the list goes on.
In addition, residential real estate is largely valued by sales of comparable

properties in the same market. This severely limits your upside as a value-
add investor, as it both limits the amount of ways that you can add value to
properties, as well as puts a lower ceiling on the resale price!
Versus, commercial real estate is valued by the positive cash flow it creates.
This is why I commonly say that residential real estate is two dimensional, vs
commercial real estate is six dimensional. Because there are countless more
opportunities and strategies for adding value in commercial real estate, and
therefore creating even larger returns.
And when it comes to commercial real estate, I follow an unpopular contrarian

belief. My belief is this: office and retail are the most lucrative value-add
asset classes in today’s real estate market.
If you pay attention to the news and social media, multifamily and industrial
are on fire. Everyone is chasing it and everyone is talking about it. This has
caused a large rise in speculation, a huge spike in competition, a dramatic
inflation in prices, and an accelerated shrinkage in margins. Historically, these

INTRODUCTION
are all bad signs.
As the famous phrase by Warren Buffet goes, “Be fearful when others are
greedy, and greedy when others are fearful.” Following this philosophy is why I
have been referred to as a contrarian investor throughout my 30-year career.
While others are running away from a burning building, I’m sprinting towards
it, as all I see is opportunity. This is exactly what I see happening in office and
retail today, and I believe the opportunity will continue for the next 3-5 years.
This contrarian philosophy, combined with timing the markets, is precisely

how I started from nothing, made my first million from a small neighborhood
retail center, and then privately scaled that first million to a $100M real estate
portfolio in just six years.
While many investors today are buying assets at all time highs, I’m
consistently finding deals in the office and retail market at 50% discounts and
more. Buying properties this far below replacement cost dramatically reduces
your risk while also substantially increasing your profit potential. When you
combine that with proven strategies on how to reposition and add value to
office and retail properties in today’s market, you have a recipe for great
success!

INTRODUCTION
Majority of the time, perception of risk simply comes down to a lack of

knowledge. The more knowledge you have, the more opportunity you can
spot. Throughout my career, I have gained the knowledge to confidently
find, acquire, add value, and repeat (while building substantial wealth in the
process), and that is precisely what I plan to share with you in this short,
simple, and actionable blueprint.
And you may be asking yourself, “Can I really do this?”
The answer is YES.
If I can do it, coming to the United States at age 14, speaking no English,
having no connections, no money, and knowing nothing about the country,
then you can do this too. All it takes is hustle, determination, and willingness
to learn!
I have found that when it comes to success in business and life, mindset
trumps all else. The most successful people I meet simply think bigger than
most and have the belief in themselves that they can accomplish anything
they set out to!
As with any industry, real estate has its own language and terms that will be
important for you to know.
Pro tip: When working in a new industry, it is vitally important to learn and
internalize the lingo upfront, as not knowing will identify you as a rookie which
creates more hurdles and slows down success.
For this reason, I have included a short glossary of important real estate terms
below that will also be used throughout this blueprint.

GLOSSARY
• Broker - A person or organization that buys and sells properties for others.
• Capital Expenditure (CapEx) - Funds used to upgrade or replace

infrastructure of the property such as roof, elevators, lobby, exterior as well
as cosmetic renovations.
• Capitalization Rate (Cap Rate) - A formula used to indicate the rate of

return as a percentage of your investment if you buy it all cash that is
calculated by dividing net operating income by property asset value.
• Credit Tenant - A commercial tenant with extremely good credit, typically

a regional or national company with multiple locations or a major
corporation.
• Deferred Maintenance - Repairs to infrastructure and assets that get

delayed and backlogged because of budget limitations and lack of funding
or mismanagement of the property.
• Gross Lease - A type of commercial lease where the tenant pays a flat
rental amount, and the landlord pays for all operating expenses regularly
incurred by the ownership, including taxes, utilities, insurance, and
maintenance.
• Lease Up - The act of finding and acquiring tenants for your building.
• Letter of Intent (LOI) - A non-binding document declaring the intentions

to purchase or lease a property including the price and terms of the deal.
• Modified Gross Lease - A type of commercial lease where the tenant pays
a flat rental amount, and it takes on a proportional share of some of the

GLOSSARY
other costs associated with the property, such as property taxes, utilities,
insurance, and maintenance.
• Net Operating Income (NOI) - A calculation used to analyze the

profitability of income-generating real estate investments. NOI equals
all revenue from the property, minus all reasonably necessary operating
expenses.
• Occupancy Rate - The percentage of the rentable square feet that is

occupied by the tenants.
• Triple Net Lease (NNN) - A type of commercial lease where the tenant
pays a flat rental amount plus their share of the other costs associated with
the property, such as property taxes, utilities, insurance, and maintenance.

STEP 1: FIND
It all starts with finding a great deal. And this can be broken down into three
components: Pick your market, Identify criteria, and Build deal flow.
PICK YOUR MARKET
There is a popular saying in real estate: Location, location, location. Picking

the right market and location for any real estate deal is very important. And
when doing so, I’ve found it most helpful to take a top down approach. What I
mean by that, is every market has submarkets, and those submarkets all have
hot and cold areas!
Paying attention to economic factors in a city is very important. I typically

want to invest in cities with lower crime, rising population growth, high
density, and median household income above the national average. This
implies there will continue to be an upward growth trend in the future, and
higher household income leads to more spending which drives more demand
and economic growth in an area, therefore adding more value to your
properties!
The good news to us as investors is that it’s very easy to identify this
information. Most commercial deals that are sent to you will have a marketing
flyer called an offering memorandum (OM). The OM will typically include all of
this information on the surrounding area of the property amongst the other
criteria I look for in deals which will be discussed in the next section.
I also like to invest in markets with multiple drivers to the economy. For
example, I have always stayed away from Las Vegas since the primary driver of
the economy is gambling, which creates large swings in either direction during
the economic cycles, therefore creating more risk.

STEP 1: FIND
Compared to a market like Dallas which has a diverse range of economic

drivers such as defense and security, transportation and logistics, business
and financial services, energy, medical and more (you can find this information
with a simple Google search).
Additionally, I like markets with an average occupancy rate of 85% or more

for the asset class I’m looking at (which in this case is office and retail). This
shows that there is still a high demand for that particular asset class in that
particular market.
And now let’s talk about where YOU live. It’s always a bonus if you can invest
in your own backyard (meaning your local market), but this may not always
be the best option depending on where you live. There is added comfort in
having your property local to you, but with the right knowledge, guidance, and
a great deal, it is very manageable to invest in a property outside of your local
area, and I find myself recommending this to other investors often!
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To summarize, what I look for in a market is low crime, rising population

growth, higher than average median household income, high density, and a
diverse economy.
And to keep it simple, here are the demographic criteria I look for included in
most property OM’s:
• Population density: 20,000+ in 1 mile radius, 70,000+ in 3 mile radius,

100,000+ in 5 mile radius.
• Median household income: $70,000 or more (higher than the US average

STEP 1: FIND
household income).
Now that you know how to pick your market and location, the next step is to
simplify your review process by identifying the main criteria you look at when
evaluating a deal.
IDENTIFY CRITERIA
A crucially important key to becoming a successful investor is developing a

simple set of rules and criteria that you follow when reviewing any deal that
comes your way. This helps in refining your search, eliminating distractions,
communicating with brokers, and building targeted deal flow. It allows
you to quickly identify great opportunities, while mitigating your risk and
streamlining your operations.
Overtime, having a simple set of criteria you follow when evaluating deals will
train your eye to identify whether or not you should pursue an opportunity
further in as little as 3 minutes or less. This is what sets top investors apart
from others. Over the last 30 years, I have developed a set of criteria through
many costly mistakes and trial by fire that I now look for in every deal. Here
are my top five:
1. Price Per Foot
This is the most important metric I follow. In today’s market, I look for
properties at a minimum 30% discount of replacement cost and average
market price for the asset class. This creates much more upside, and also
manages your downside risk as most properties in good markets will not
drop more than 30% in value during a recession. Overtime, as you research
and review more deals in a specific submarket, you will quickly pick up on the
average price range for each asset class, and it will immediately stand out to
you when you see a deal below replacement cost and average market value.
You can also find this information quickly by simply speaking to active brokers

STEP 1: FIND
in that submarket, and/or finding it through commercial real estate (CRE) data
companies such as LoopNet, CoStar, Reonomy, or Crexi.
2. Cap Rate
Capitalization rate (‘cap rate’ for short) is a very common and important
formula in real estate that takes the Net Operating Income (NOI) of a property,
and divides it by the sales price of that asset.
A lower cap rate means that the asset is more stabilized, and therefore is
looked at as “less risky” and is sold for at a higher price. As a value add
investor, you want to find mismanaged properties at a higher cap rate,
stabilize them, and sell them at a lower cap rate, making large profits in the
process!
The ideal cap rate that I look for in a value-add property is 7-8% or more.
3. Below Market Occupancy (Mismanaged)
As we have discussed, commercial real estate is valued by the positive cash

flow it creates. Therefore, if you increase the occupancy of a property by
leasing it up with more tenants, it creates more positive cash flow, which
adds significant value to the property. This is one of the simplest value add
strategies in commercial real estate, and why I look for properties that are
between 35-70% occupancy.
An ideal scenario may be finding a mismanaged property with 60%

STEP 1: FIND
occupancy in a market that has a 90% occupancy rate in that asset class. This
immediately shows me that the property has great upside potential. And to
add a cherry on top, many times when you find these types of properties,
they still have positive cash flow, which avoids you having to go in the red and
can even pay for the lease up improvements to bring new tenants into the
building.
This is also why I almost never buy 100% occupied buildings as they are
already stabilized and simply don’t have as much meat on the bone.
4. Multi-Tenancy
My rule of thumb is that I don’t want to see a single tenant occupy more than
20% of the property, as having a higher tenant mix substantially mitigates
your risk (‘you don’t want to put all your eggs in one basket’).
For example, let’s say you acquire a property at 70% occupancy, with a single
tenant that occupies 40% of the building. Now, let’s say that tenant vacates
or files for bankruptcy. Overnight, your building just went from 70% to 30%
occupancy, and most likely put you in negative cash flow. And to add fuel to
the fire, it usually costs more to lease up a large single tenant vacancy as you
will have to subdivide the space and add more improvements to lease it up to
smaller tenants.
5. Quality of Construction
I look for properties with good quality of construction and low deferred
maintenance (postponed repairs and capital expenditures needed such as new
roof, plumbing, electrical, etc.), as these can be very costly and eat into your
margins without providing a lot of upside.
I also prefer 1980’s construction or newer, as this look is much more of what
is in demand today, and usually comes with less capital expenditure. Versus

STEP 1: FIND
1970’s construction and older typically has lower ceiling heights, less parking,
a dated look, more deferred maintenance, and sometimes asbestos in the
materials, which all can create difficulties on leasing up the property or
making it a profitable deal.
And with that, you have just learned the five most important criteria I follow
when evaluating deals. With this information, you now know how to identify
incredibly profitable value-add opportunities while mitigating your downside
risk. These criteria alone have the potential to take you to a $100M portfolio.
But we’re not done yet. The final step on consistently finding great value-add
properties is to build your deal flow.
BUILD DEAL FLOW
Real estate is a numbers game, just like anything else. This component
depends on a few factors such as your risk tolerance, how active you’re
looking to be, and how fast you plan to scale. But if you have the goal to build
a $100M real estate portfolio, you need to consistently find great value-add
deals. And in order to do this, you need to build a large amount of targeted
deal flow, where dozens of deals are coming to you every day.
The fastest way to start is to go to listing sites like LoopNet, Crexi, and CoStar,
put in your search filters using the deal criteria I shared above, and set up
email notifications to alert you anytime a new deal hits the market that fits
your criteria. This will quickly build a pipeline of properties being emailed to
you so you can train your eye, build the muscle of evaluating deals, and find
those diamonds in the rough.
But I don’t recommend you use this as your only or even primary source of
deal flow. You should have the goal of the majority of your deal flow come
from building relationships and networking with brokers.
Brokers represent almost every property that is listed and sold. And building

STEP 1: FIND
relationships with brokers is how you will find the best deals before they ever
hit the market or go on any listing sites like the ones I mentioned above.
It comes down to the 80/20 rule. About 80% of all the properties I’ve
purchased have been brought to me by brokers, with about only 20% being
found on listing sites.
Here are some tips on building broker relationships:
1. Connect with the most active brokers in each market you choose.
I’ve found that the 80/20 rule also applies to brokers. About 20% of the
brokers in a market represent about 80% of the properties sold. This is why
you want to find and connect with the most active brokers in the markets you
choose.
There are plenty of sites that can be found through Google that provide
databases and lists of brokers and their contact information. Many of which
will also show their total transactions, total sales, and overall activity.
You can also find them by going on listing sites like LoopNet and spotting the
names of brokers who come up again and again with multiple listings.
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properties in 1 year.
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2. Give value to get value.
A lot of people assume it takes years of building relationships with brokers for
them to start sending you their good deals. I think this is a limiting belief that

STEP 1: FIND
just comes down to a lack of creativity.
Give value to brokers you connect with, and in turn, they will start sending you
deals and you will build a great relationship with them quickly. A great way to
do this is simply by making it easy to work with you (it’s common sense but
most people don’t do it).
Create a nice flyer to send them that showcases your investor profile
(discussed further down below) and investment criteria. Be responsive.
Quickly respond to all deals they send you, thanking them for including you
and responding with feedback on the deal, regardless of whether it fits the
criteria. If it doesn’t fit the criteria, let them know, as it will help educate them
on what you’re looking for. Answer their calls or give them a call back as soon
as you can. Get on the phone with them and touch base at least once a month!
These practices come down to putting your seller hat on. When you’re selling
a property, you want a buyer who is fast to respond, quick to submit an offer,
and shows confidence in closing. The seller wants this and therefore the
broker wants this. So who do you think the broker is going to reach out to
for their great deals: The investor who never responds to their emails, or the
investor who quickly responds to every email they send?
Let brokers know that you will give them the relist on a property after you add
value and turn around to sell it. Don’t negotiate over peanuts in the deal and
cause friction with the seller; it’s a small world, and both the broker and the
seller will not forget this.
But most importantly, build a friendship with them. Show interest, get them to
talk about themselves by asking questions, find commonalities, get to know
them on a personal level, and don’t always make the conversation just about
business. Everyone loves doing business with a friend, and this will make you a
go-to contact. Plus, it will be more rewarding to you as there is nothing better
than creating a new friendship.

STEP 1: FIND
3. Get on their email list.
Most brokers and firms have an email blast list of investors they send deals
to. Make sure you get on their email list and communicate your investment
criteria by sending them a nicely designed PDF flyer with your deal criteria like
I mentioned above.
At this point, you now know how to pick the best markets, the top criteria to
follow when looking for deals, and create an abundance of deal flow so you’re
now that investor who always “finds those diamonds in the rough”. Put these
together, and you will be a master at finding deals. So what’s the next step?
Well, after you find the deals, you’re never going to make a profit unless you
acquire them!

STEP 2: ACQUIRE
Acquiring the property is where the game gets real, and the more cojones and
experience you have in negotiations, the more you are going to outbid your
competitors and win offers! In this section, we’ll go over how to submit and
win offers, conduct due diligence, fund, and close on the deal.
But before we get into it, this bears an important emphasis:
Find a great deal first and everything else will fall into place!
Don’t get ahead of yourself. You don’t need to know everything to get started.
Your only focus when first getting started is simply to find a great deal!
Once that happens, THEN you can focus on what you need to do to acquire
the property which starts with submitting your bid and winning the offer.
WIN THE OFFER
The great thing about taking the contrarian approach is that you typically
have much less competition than other “hot” asset classes which is exactly
what’s happening in office and retail today.
As I write this, most buyers (including institutional capital) are all chasing
multifamily and industrial, creating fierce competition and driving up inflated
prices. While the tips I’m about to give you will help you win offers no matter
the amount of competition, it does make it much easier when you’re bidding
against 5 buyers rather than 20.
The first step to acquire a property is to submit your offer by sending the
listing broker a Letter of Intent (LOI) stating your purchase price and offer
details (this is a simple document which you can find templates for online).

STEP 2: ACQUIRE
Then it all comes down to winning the bid! Here are the best practices I’ve
found throughout my career on winning offers:
Make a buyer’s profile
» This is a profile you will send to the broker and seller that shows history
of transactions, references from other brokers and vendors you’ve worked
with, and really, any other information that will show you and/or your
partner are an experienced investor in the broker’s and seller’s eyes.
» And if you’re new to this and don’t yet have this track record, don’t get
discouraged! My top recommendation for your first few deals is to find an
equity partner or partners who will not only fund the deal, but who will also
have this kind of track record you can use for your buyer’s profile. And trust
me, finding this equity partner will not be hard when you find a great deal!
Show you’re knowledgeable on the subject property
» When speaking with the broker and seller of the property, you want to
show you’re knowledgeable on the submarket, the property itself, provide
your budget and plans for the property, and tour it as soon as you can!
Overall, it’s all about showing confidence that you know what you’re doing,
you’ve done your homework, and how you plan to perform.
Be likable
» Yes, I have to include this. While it’s common sense, many investors fall
short on this! It goes back to what we discussed in the section of building
relationships with brokers. Ask questions, show interest, be personable and
develop rapport, have great energy, be responsive, find commonalities, and
build that relationship with the broker and seller. You would be shocked at
how far this goes!

STEP 2: ACQUIRE
Don’t ask for a fee
» This is for those of you who are a licensed agent or broker. Many times,
you’re used to taking a fee in a transaction. In my opinion, this is a bad
practice. Why would the selling party want to work with you when you’re
asking for a fee vs the other guy who’s not? Real estate is a long game built
upon relationships. I’m a big believer in leaving some money on the table
for the selling party. They won’t forget it, and this goes a long way!
And for those of you who are more experienced with bigger cojones…
» You can offer a non-refundable deposit and/or shorter due diligence

period. This is only recommended when you have experience under your
belt, but I have done this many times throughout my career to win offers.
Follow these suggestions, and you will have no problem winning offers over
your competition. Once your bid is accepted, you will sign a Purchase and Sale
Agreement (PSA) and officially start your due diligence period!
The due diligence period for a commercial property is typically 30-45 days
(if you have experience and have done your homework on the property and
submarket, maybe you shortened it to win the deal), and this is where you
really dig in to see what’s under the hood!
Following proper due diligence is extremely important as this is your

responsibility as an investor to ensure everything you’ve been told and
represented about the property checks out to be true.
To avoid pulling you in the weeds on each step of due diligence, I have
provided a simple checklist on the essential steps to follow during due
diligence here: Due Diligence Checklist

STEP 2: ACQUIRE
FUND THE DEAL
When it comes to funding, unfortunately this is the #1 roadblock I see people

let get in their way and keep them from ever getting started in real estate
investing (especially commercial). Many people overcomplicate this process,
and think they need massive amounts of capital to get started investing which
is not the case!
I acquired the property that made me my first million (a small neighborhood

retail center in Santa Ana, CA that I bought from the bank) by putting down
$60,000, and believe it or not, I didn’t even have $10,000 in my bank account
when I initially submitted the offer! Once again, start by putting all your focus
on finding a great deal. And once you find one, you will be surprised at how
everything else seems to fall into place.
So how do you fund commercial real estate deals?
A commercial property typically requires a 25-30% down payment, and then

you can leverage the rest through a loan. If you own a business, you can also
acquire a property for only 10% down utilizing an SBA loan (this is how I got
my start), granted you must qualify for the loan.
If you already have the capital to fund the property yourself, then fantastic!
And if you do not, don’t get discouraged. In this case, you want to find an
equity partner (ideally someone with experience in commercial investing) to
partner on the deal with you. A common structure for this is an 80/20 split,
where the equity partner takes 80% of the profits for putting up the funds,
and you take 20% in exchange for “sweat equity” and finding the deal (sweat
equity is a term that stands for hard work and time put in). If you go this route,
make sure you put a package together that shows costs, renovations, and
potential profits with recent comps!
I know many investors who got their start by doing this, and today are now

STEP 2: ACQUIRE
very wealthy.
You can find equity partners by surrounding yourself with investors through
joining different groups, masterminds, local meet ups, forums, and tapping
into your own network! (I even partner on deals with members in my programs
if it checks out and has enough upside!)
Never forget: there is an abundance of money in the marketplace with the

hands that hold the money looking to put it to work through investments, but
they either don’t have the time, or don’t have a good deal (or both). By going
out and finding a great deal yourself, you are solving both of these problems,
which is incredibly valuable, and therefore is an easy sell to raise money.
Now that you know how to find great deals, submit your offer, win bids,
conduct due diligence, and fund your deals, you have everything needed to
close on properties. After you close, now comes the real fun… adding value!
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STEP 3: ADD VALUE
Not only am I a contrarian investor, but I am also a value-add investor. This is

the main component I credit to building the level of wealth I have today. If I
can’t add value to a property, then I’m not interested. I will also go so far as to
say this is what separates great investors from average investors.
The more ways you know how to add value, the more opportunity you are able
to spot that others miss. This is also why I am always finding those “diamonds
in the rough”. Many times I am simply able to spot opportunities that most
other investors don’t see. Creating even less competition for myself! And the
best part is, many value add strategies in commercial real estate cost little to
no money…
In this section, I will share with you six of my top value add strategies for
office and retail in today’s market.
1. Repurpose
There are countless incredible opportunities for repurposing real estate! Do

this often, and you will become very wealthy. Some examples are taking an
office building with a larger parking ratio (5/1,000 or more) that has some
medical tenants, then leasing to more medical tenants and renaming the
building to a medical plaza, as medical offices demand a large premium!
You can take a retail center with big bulk vacancy and demise it into smaller
spaces, changing the tenant type to higher-paying rent trades. You can take a
patio or atrium area and convert it to a building amenity such as a deli, coffee
shop, tenant lounge, etc. And the list goes on!
2. Re-Tenant
In commercial real estate, there is a term referred to as a “credit tenant”, which

STEP 3: ADD VALUE
is typically a major corporation with a reputable history that signs longer-term

leases and has the lowest chance of defaulting. Leasing credit tenants in your
property adds incredible value because it mitigates the risk of the property
as an investment to the next buyer. Many times, you can add significant value
to your properties by working with a national retail broker and re-tenanting
lesser-known tenants on shorter-term leases with credit tenants.
3. Lower Operating Expenses
As mentioned, the value of a commercial property is largely determined by

the property’s positive cash flow, and there are two ways to increase this:
Increase the cash flow and/or lower the operating expenses. It’s very simple
to lower the operating expenses on your properties by bidding out the
contractors for each property expense to multiple other companies to see if
you can get a better price (most of the time you can). This is an easy way to
add value that costs you no money to do!
4. Change Lease Types
Many times, commercial tenants are on what’s called gross leases, which is
when the landlord pays all the property expenses, therefore decreasing the
profitability of the property. A great value add strategy I have deployed many
times is to change the lease types of your tenants from gross to modified
gross or triple net leases, which is where the tenant pays either a portion or
the full amount of all property expenses, therefore increasing the profitability
of a property and adding value. When it comes to negotiations, I’m a big
believer you have to give to get. So a great way to change the lease types
with your tenants is to offer complimentary cosmetic improvements, signage
or rent concessions in exchange for signing the new lease.
5. Lease-Up
Leasing up your properties is one of the best, obvious ways to add value and

STEP 3: ADD VALUE
increase the cash flow (especially if you’re leasing to credit tenants)! This is
why I typically never buy a property that is fully occupied because there is
little room to add value and if any of the tenants leave, it actually decreases
the value of your property and creates more risk! Once again, you want to
work with reputable and active leasing agents in your area to do this for you.
6. Remeasure
This is a little-known favorite of mine! Building Owners and Managers

Association (BOMA) is an organization that gives guidance to the real estate
sector on how to measure properties, and every few years, they update their
guidelines. Many times this can pick up free additional square footage in
your properties! If your building hasn’t been remeasured in the last 5 years,
it’s always a no-brainer to get this done. On a recent property, I paid a few
thousand dollars to have it remeasured and was able to pick up an additional
3,000 sqft, and I ended up selling this property at $1,500 per sqft, making me
an extra $4.5M! I bet you can’t find an ROI like that anywhere else 😉
Each of these value-add strategies have made me many millions in profits

throughout my career. Even following just these six value-add strategies will
put you well ahead of the curve against many other commercial investors, give
you a clear game plan when going into properties, and help you spot great
opportunities that others miss!
Now that you have learned how to find, acquire, and add value to commercial
properties, the last step to building your $100M portfolio is to repeat the
process over and over!
Suraj acquired a commercial property within 3 months.
BOOK A CALL TO LEARN MORE

STEP 4: REPEAT
When it comes to real estate investing, my top focus has always been on
exponentially growing my capital and wealth. To do this at an accelerated rate,
it comes down to quickly and repeatedly finding, acquiring, and adding value
to properties at an increasingly larger scale. Following this philosophy has
paid off in dividends, creating more wealth than I could’ve ever imagined.
The most effective strategy I’ve found to do this is to cash-out refinance your
property before selling it, pulling out your equity in the property tax-free. Then
I sell the property and 1031 exchange (rolling over my capital gains tax-free)
into a larger value add deal, and simply repeat this entire process at a larger
scale. Do this enough times, and you will become extraordinarily wealthy.
Ready to scale your commercial portfolio?
SCHEDULE YOUR PERSONALIZED REAL ESTATE ADVISORY SESSION

CONCLUSION
You have now learned how to build a $100M commercial real estate portfolio.
You have learned how to create deal flow to consistently find great deals,
acquire properties, add value, and grow your wealth at an exponential
rate. This process is not easy. It requires hard work, knowledge, dedication,
resourcefulness, a viable network and confidence in yourself. But the good
news is, that’s ALL it requires. If you have the ability to check those boxes,
then I promise you can do this too.
And I want to help you.
I’ve reached the stage of my journey where I now find more fulfillment and
purpose in mentoring others and giving back the knowledge that has created
extraordinary results for my own life.
For that reason, I have created a set of mentorship programs teaching

individuals such as yourself precisely how to implement this process, break
down many more strategies in detail, and build a commercial portfolio with a
guided, step-by-step approach, regardless of your experience or capital.
If you’re serious about implementing this process and achieving similar results
for yourself as I have through real estate investing, the next step is to book a
complimentary Strategy Session with a Real Estate Advisor on my team.
Each of my Real Estate Advisors have been trained and mentored by me

personally, and in addition to breaking down the details of each mentorship
program, they will walk you through the top opportunities in today’s market,
answer all of your questions, and help you build a game plan to achieve your
goals.
CLICK HERE TO BOOK YOUR COMPLIMENTARY STRATEGY SESSION

CONCLUSION
Regardless of whether or not you choose to implement this information, all I

ask is that you give your full effort, passion, and commitment to whatever it is
you choose to do in this life.
To your success,
Manny Khoshbin

TESTIMONIALS
“Manny gave us his processes and

templates. He didn’t hold anything
back, he told us exactly; “this is my
process for due diligence,” “this is
my process for research,” “this is my
process for sourcing properties.”
To have the exact things right
there, nothing left to chance, just
the ability to know what to look
for, what to do when you find the
thing.”
Nicholas Kusmich
Owner, Ad Agency
“One of the most pivotable things

that I could have done is to be
here for my investments and
future lucrative things I want to
do with my husband. Taking that
information and then being able to
pass it onto my clients and to all of
our investors. There’s some really
awesome information, like reverse
1031s.”
Avisha Kassir
Real Estate Broker

“I’ve been in real estate for a
long time and I’m getting tired of
residential. I wanted to go to the
next level but all that was holding
me back was knowledge, and he is
providing that. He’s answered any
questions I’ve had. He is not selling
you a dream, but a reality.”
Boris Bangiyev
Restaurant Owner
“The relationships I’ve built here

are priceless. I am saving myself
30 years of time, stress and pain.
Manny’s a genius at his craft and he
doesn’t hold anything back. He has
really opened my eyes to what is
possible.”
Alex Saenz
Real Estate Investor

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ABOUT THE AUTHOR

Manny Khoshbin is a real estate investor,

From dumpster diving, working at K-Mart for

Want to get mentored by Manny?

BOOK A CALL TO LEARN MORE

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 2

Real estate provides the fundamental need for shelter, transforms

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 3

This is why commercial investors can become extraordinarily wealthy from

In addition, residential real estate is largely valued by sales of comparable

And when it comes to commercial real estate, I follow an unpopular contrarian

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 4

are all bad signs.

This contrarian philosophy, combined with timing the markets, is precisely

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 5

Majority of the time, perception of risk simply comes down to a lack of

And you may be asking yourself, “Can I really do this?”

The answer is YES.

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 6

• Capital Expenditure (CapEx) - Funds used to upgrade or replace

• Capitalization Rate (Cap Rate) - A formula used to indicate the rate of

• Credit Tenant - A commercial tenant with extremely good credit, typically

• Deferred Maintenance - Repairs to infrastructure and assets that get

• Letter of Intent (LOI) - A non-binding document declaring the intentions

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 7

• Net Operating Income (NOI) - A calculation used to analyze the

• Occupancy Rate - The percentage of the rentable square feet that is

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 8

PICK YOUR MARKET

There is a popular saying in real estate: Location, location, location. Picking

Paying attention to economic factors in a city is very important. I typically

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 9

Compared to a market like Dallas which has a diverse range of economic

Additionally, I like markets with an average occupancy rate of 85% or more

CLICK HERE TO SPEAK WITH A REAL ESTATE ADVISOR

To summarize, what I look for in a market is low crime, rising population

• Population density: 20,000+ in 1 mile radius, 70,000+ in 3 mile radius,

• Median household income: $70,000 or more (higher than the US average

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 10

A crucially important key to becoming a successful investor is developing a

1. Price Per Foot

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 11

3. Below Market Occupancy (Mismanaged)

As we have discussed, commercial real estate is valued by the positive cash

An ideal scenario may be finding a mismanaged property with 60%

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 12

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 13

BUILD DEAL FLOW

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 14

Here are some tips on building broker relationships:

Learn how agents like Jorge acquired 3 commercial

SPEAK WITH A REAL ESTATE ADVISOR

2. Give value to get value.

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 15

just comes down to a lack of creativity.

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 16

3. Get on their email list.

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 17

But before we get into it, this bears an important emphasis:

WIN THE OFFER

THE $100M REAL ESTATE BLUEPRINT: 4 STEPS TO GENERATIONAL WEALTH 18

Make a buyer’s profile

Show you’re knowledgeable on the subject property