Class is in session: Howie Mandel turned 2 acres of dirt into his 'best investment' besides showbiz. Here's how
Class is in session: Howie Mandel turned 2 acres of dirt into his 'best investment' besides showbiz. Here's how.
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While you might remember Howie Mandel best for his many talk show appearances or his time on America's Got Talent , the Canadian comic recently revealed that his best investment has nothing to do with entertainment.
On the podcast In Depth with Graham Bensinger , the host asked Mandel about his best investment outside of show business (1).
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"I would have to say this building that we're sitting in," Mandel said. "I made this little man cave that happens to be inhabited by other people who are creative, and tech companies, and other creations which cohabitate together."
He said that this commercial property, which he rents out to other creatives, "happens to be a good investment from a real estate point of view," while also being a positive career and creative investment.
But that building is just one of many Mandel owns, and he noted gas stations really "became the big business" in his portfolio.
Mandel told Bensinger about the real estate empire he built in Las Vegas, starting in the 80s, when Vegas was still growing at a rapid pace. Initially, he invested in warehouses, but soon realized there was a larger opportunity in front of him.
"I couldn't build fast enough to sell them out because all this building was going on, and because of the tax benefits of Nevada, people started moving there," he said.
Noticing that home developers in the area were buying dirt to build on, but that the surrounding area wasn't developed, he decided to focus on commercial real estate in the same area.
"I'd go see where the land was subdivided before the houses were built," Mandel said. "I'd buy two acres of dirt that would lead into whatever the main artery into this new subdivision was — and people would say, 'For what?' And I'd go, 'These are 2,000 families. Where are they going to get gas? Where are they going to buy their groceries?'"
"So, I'd put a little strip mall of a gas station, a little AMPM store, a car wash, and this became — I knew that I was going to be serviced by 2,000 homes."
After developing eight successful gas stations in the area, he was eventually bought out, but real estate has remained an essential part of his portfolio ever since.
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If you find Mandel's gas station empire interesting and want to make real estate a bigger part of your portfolio, there are ways to do so without the complications that come with being a landlord.
Rental income can provide a steady cash flow that adjusts to inflationary pressures, offering a hedge against the declining value of fiat currency.
