How to Start and Expand Your Investing Empire? Mike Gorius

Standing out in a competitive real estate market is no easy feat. Mike, a seasoned investor with an entrepreneurial mindset, has found success by adopting a diverse investment strategy. He has expanded into multiple markets while managing his business virtually. In this interview, we dive deep into his approach, lessons learned, and the key ingredients for building a thriving real estate investment business.

What made you take the leap into real estate? How did you overcome fears and doubts?

I have 10 years of corporate America experience. I've been in B2C sales and have provided recruiting services for engineering companies. Sales and getting on the phone were second nature to me. I used to work full-time, 60 hours a week, pre-COVID.

After COVID, work shifted to 30-40 hours, which gave me spare time to focus on other things. I knew I wanted to be wealthy one day. Financial security was on my mind. I did stocks, day trading, and bitcoins, but real estate investment stood out to me. I started investing in real estate through my 401(k). I lived in Phoenix but did all the property investment work remotely.

Interview Notes: Up until one month before recording this interview, Mike did everything remotely. He has now moved to Louisville, Kentucky, and is working with his partner, Kevin, and four employees. In his first year of investment, he completed 50 flips.

What habits and mindset helped you scale so quickly?

My first deal ever (June 2022) was an on-market duplex, and I did everything wrong with it. I hired the wrong mentor, and the property didn’t cash flow for a long time. However, I still own it, and things are now getting better. It set the foundation for what not to do in a real estate investment scenario.

I learned that property management can make or break the deal, especially when you’re working remotely. In 2024, we did 18 wholesales, 20 wholetails, 2 buy-and-holds, and other full-blown flips. We completed a total of 50 deals. Our goal for 2025 is to double the number of deals from the previous year.

For most of our properties, we only do one walkthrough. This helps us scale our business while creating hype around the property. During one such walkthrough, 19 people typically visit the house, so they must put their best foot forward with their best offer.

What mistakes do investors/wholesalers make, and how can they be avoided?

Real estate is a numbers game, and you lose money when the numbers aren’t right. I’ve seen investors overestimate rehab expenses and underestimate ARV, which leads to securing fewer deals. On the flip side, doing the opposite can put you in debt.

How Do You Find Off-Market Home Seller Deals?

We’ve done direct mail and PPC. PPC brought a 6X return, while direct mail yielded a 6X return for probate and inherited homes. Facebook brought a 4X to 5X return. So, it was all great, but these efforts made up only 50% of our total revenue. The other 50% came from non-paid marketing channels, like referrals, joint ventures, and MLS.

Mike and his teammate Kevin endorse the franchise business model. Through this model, Mike has connected with investors running multi-million dollar operations who’ve been in similar situations. Their advice has helped him avoid costly mistakes.

Mike emphasizes that the value of a supportive community and experienced mentors cannot be overstated. It’s one of the reasons he’s been able to navigate the complexities of wholesaling, flipping, and buy-and-hold investing with relative ease.

What are your key systems and processes for handling remote operations?

We have an SOP document for both acquisition and disposition, which is constantly evaluated and updated. Our morning meetings focus on different scripts, updates, and improvements. We cover all the details, like how to put a lockbox on a house, and discuss various business strategies.

What is the role of your network?

Social media marketing has worked well for us. We are transparent and authentic on social media, so people aren’t surprised when they meet us in person. We’re constantly failing forward, learning, and growing.

Going forward, we want to focus more on wholesaling because it allows us to make more money with less risk. We've also raised over $2 million in private money.

How are you wholesaling deals?

We can flip anything if we want to. We ask our investor partners to convince us not to flip a property. If a flip will generate a $50k profit, I’m not going to wholesale it for $10k, but I’d consider wholesaling it for $25k. Otherwise, I’ll rehab the property.

Why is Louisville an emerging market? What trends or opportunities have you witnessed?

The Midwest offers long-term rentals that cash flow well. We always follow the 1% rule, meaning the monthly rent should equal 1% of the purchase price. For example, for a $100k purchase, the monthly rent should be $1,000.

The weather in Louisville is favorable. While there may be 1-2 weeks of extreme heat or cold, the rest of the year is pleasant. Louisville is also conveniently located 2-4 hours from major metros. The food scene is great, especially the Mexican food.

Louisville is a major hub for UPS, and there's a Ford plant within the city. Just outside of Louisville, there’s another Ford plant, so there’s significant corporate investment happening here.

What is your differentiating factor?

Not many people here use the franchise model. I was hesitant at first, but this franchise has provided tremendous support through its network.

We handle everything, and not all investors do that. We focus on wholesaling, wholetailing, flipping, and buy-and-hold strategies.

Do you enjoy passive investments or active investments?

I’ve invested money through my 401k, so I don’t have retirement savings yet. I’m 33 and focused on working hard to build my portfolio. The goal is to have 20+ rental properties. I’m still considering my options, but perhaps an industrial property with a single tenant on a 3N lease would be a good fit. The general goal is to continue buying properties and building businesses.

Why Mike is Eyeing Cincinnati and Knoxville

While Louisville remains a key focus, Mike and Kevin are also looking to expand into nearby markets like Cincinnati and Knoxville. Their strategy is to concentrate on the Midwest, where they have a better understanding of local dynamics and fewer barriers to entry.

“We love the Midwest—it’s familiar, affordable, and there’s room for growth,” Mike explains. “We’re not trying to jump into Miami or LA. That’s a battle we’re not ready for yet. But Cincinnati, Knoxville, and other nearby cities are a natural extension of what we already know.”

How Is Mike Navigating the Ups and Downs of this Industry?

Mike shares one of his more recent deals—a $24,000 wholesale flip. The property was acquired for $170,000 and resold for $194,000 just 16 days later. However, not all deals are as straightforward. One property, bought for $45,000 and sold for $60,000, took 77 days to close and ended with a modest profit of around $6,000 after expenses.

It’s not always smooth sailing. In a more challenging deal, Mike acquired a property for $159,000, expecting it to be a profitable flip. Unfortunately, it sat on the market for 205 days and ultimately sold for $194,000. Mike lost over $2,300 due to holding costs and interest.

“There’s always risk involved, and we’re okay taking calculated risks. Losing a few thousand isn’t ideal, but it’s part of the game.”

What is One Piece of Advice that Had the Most Impact on You?

I found this advice when I was asking myself whether I should quit my W-2 job and jump into real estate. I don’t remember the exact source, but the message said, “Sit down and think about the realistic worst-case scenario. What will happen if I try investing and everything goes wrong?”

For me, it was about losing my 401k and getting into debt ($50k-$100k), but I knew I could still get a job and start living a normal life.

The fear is always much worse in our heads than in reality. Imagine the worst-case scenario and come up with a solution. You might not succeed with every attempt, but there is no success without action.

You can connect with Mike on Instagram (@REI.Mikeg), where he loves connecting and answering questions.