Ben Mallah, the $250,000,000 man

2023-04-17

As many of you know, I'm an avid YouTube connoisseur. Even though I've only been making videos on YouTube for about 24 months, I have been on here as a loyal viewer since about 2010.

Every now and then, someone comes across your screen that gets your attention - someone who really stands out, someone who is extremely entertaining. When it comes to captivating an audience, no one quite does it like the loudmouth real estate mogul, Ben Mallah.

He's a high school dropout who grew up in the projects of Queens, New York. He's not the typical profile you would think of, someone who now owns over $250 million worth of real estate. He's bought shopping centers, apartment buildings, and most recently, a $16.5 million, 11,000 sq ft mansion for himself and his wife - the most expensive home in Tampa, Florida.

So, without knowing any information on how to contact him and without any direct connection to him, I resorted to asking the Almighty Instagram for some help, and it worked! Within one hour, I was connected to Danny Jones, who runs the YouTube channel "Concrete"  which films and produces the content for Ben Mallah. Not too much longer after that, I booked a plane ticket to go from Los Angeles, California, all the way to Clearwater, Florida, so we could meet this larger-than-life personality firsthand. I wanted to learn from someone who built up a real estate empire without so much as a high school diploma. This is what happened. Enjoy.

"My life was horrible. I mean, my childhood was the worst. If you can imagine a child growing up with a horrible, crazy, lunatic mother in the worst neighborhoods of Far Rockaway, New York, in the slums surrounded by criminals and the worst elements of society that you could imagine, in a shitbox bungalow that was only made to live in during summertime. My father had us live there all year round because he was a cheapskate. That's why I live here. Everything my parents did, I'm the opposite. My mother used to beat the hell out of me as a kid for no reason. I never raised a hand to my kids. My father always wanted to be a cheapskate by living in dumps, saving every little penny he could, and sacrificing a decent living. I'm the opposite."

"When I was a kid, I always dreamed of making a lot of money. When I moved to Manhattan, I used to walk past the Plaza Hotel and see all the dignitaries and big shots staying there, and I'd say to myself, 'One day, I'm gonna stay there too.' You know the old one near Central Park? Eventually, I made enough money to stay there, but when I did, I thought, 'This place is a dump!'"

"I really got to know real estate when I got out of the army and started working for a guy who was already in the business. That's when I realized, 'This is it. This is what I like to do. This is where there's a lot of opportunity, and you don't need a lot of education. If you're willing to work hard and think smart, you don't need a lot of money either.' Once I got the nicest house and the nicest car, I felt like I had made it to the top level I wanted to be on. I could retire now, and my kids can try to climb the ladder too."

Having money gives you power and the ability to compete with the big shots in cities like Chicago and New York. Unlike publicly traded companies, I don't answer to anyone, which means I have the freedom to put my money where my mouth is. When it comes to buying property, I may not offer as much money as other buyers, but I make up for it by giving the seller a hard, non-refundable deposit. This lets them know that if I don't close the deal, they still keep my deposit.

Timing is key when it comes to making deals. If you can offer good terms and quick timing, you'll have a better chance of closing a deal than someone offering more money but taking longer to close due to appraisals and other subjects. When I buy a property, I come in with a solid offer, pay immediately, and close the deal quickly. This is how I get deals done.

"Welcome to our bar entertainment room. We have a company that manufactures these pool tables, and we hold licenses from both GM and Ford for their Camaros and Mustangs. Additionally, we customize Corvette pool tables, and we ship our products worldwide. In fact, we ship many to Dubai, where they are popular among wealthy Arabs. To be successful in real estate, you have to fully immerse yourself in it. It has to become your life, not just a side project. When I started out, I often stayed up all night painting apartments myself because I couldn't afford to hire anyone. I had to prepare for inspections, which were crucial to my success. You have to be willing to cross the line in life, work the long hours that others won't, and go where others won't go. When I was younger, I even neglected my kids at times, but I knew it was necessary for their future. While they may have missed out on some activities, it ultimately paid off. They are now financially secure."

"The first house I ever bought was purchased using my VA loan. It was a no-money-down deal that was available through a program offered by the VA. I recall saving money to buy dilapidated houses that nobody else wanted for $20k or $30k. Since I was only putting down 20%, which amounted to $4k, $5k, or $6k, I didn't need to save up much. After buying these properties, I fixed them up and made a profit. I then used the profits to refinance and purchase other properties."

"It's not a good idea to purchase a property that requires extensive repairs. I tried to avoid major structural work and focused on the foundation and roof. If the foundation was good and the roof was a good deal, I might take it. My approach was to put in new carpets, repaint the interior, and work on windows and doors. I didn't get involved in construction, and I don't consider myself a builder; instead, I refer to myself as a 'rebuilder.' My focus was to restore old buildings, make them habitable, and restore them to their original condition."

"The first real estate deal I ever did was a duplex that cost me about $27.5k. It had two units, one on the ground floor and one on the upper floor. Both were three-bedroom units. After cleaning and fixing everything up and passing inspection, I rented each unit for $800, which was a good rental rate in the late 1980s or early 1990s. I used to buy whatever it took to make the property livable. I would buy used carpet and clean it up, purchase cheap materials from second-hand places, and use the cheapest stuff I could find to make it work correctly. I didn't spend much money fixing them up, but I made them safe and decent. With a little help from my friends to paint, I put about $5k to $7k into the property. With a total investment of $35k, the duplex generated $1,600 per month in income. The value of the property increased to $150k since it looked decent, had two rental contracts, and was generating income. The tenants only had to pay a low income of $20 or $30 a month. I went to the bank and refinanced it, and I got a loan on it for about $100k back then."

To find a good investment property, look for something that has potential to add value through sweat equity or renovations. This is called a "value add" property, and there are always opportunities to find them, such as when someone dies or retires. Student housing can also be a lucrative investment. Instead of renting the whole house, rent each bedroom individually to students for $500 to $600 a month. A property with four bedrooms could bring in $2,000 a month instead of the usual $1,000. If you're near a university, look for student housing opportunities. Senior housing can also be a good investment, as seniors typically don't move often and don't cause much damage. There are many different areas of real estate that you can invest in.

In student housing, it's important to make sure the parents guarantee the lease so that if the student doesn't pay, you can go back to the parents. For senior housing, it's easy to run the building since seniors don't use much and rarely break anything.

Did you ever think you would have a house like this one day?

I work for a guy to had one really and I knew that I worked harder than him yeah and I knew I could have everything he had an even more and he built house like this and a place called Lafayette California which is near orinda a very high-end area yeah near San Francisco he built like castles he was a very big builder yeah I knew that if I said kept doing what he was doing and kept working at it and put my time in and flipping properties I knew eventually I get to a level where I could afford to have pretty much almost any house I want. You'd know it because you feel your life accumulating you feel your life growing you feel your bank account growing you feel your essence growing but you got to get out there and earn it it ain't gonna happen by sitting around  doing nothing yeah you gotta get at the end find those places and fix those places and rent those places and sell those places yeah  

At the time, there were many opportunities in the rough neighborhoods where I was located. So, I invested in various properties across town, including single-family homes, duplexes, triplexes, and four-plexes. Eventually, I started working with a guy who was managing properties, and we began doing bigger deals using his money and credit along with mine. This allowed us to grow very large in the apartment business, focusing mainly on affordable housing.

However, when the California market became too expensive, I decided to move to Florida. I found an area in the middle of the state that had a lot of growth potential, as Miami was too expensive and North Florida was too cheap. After moving, we expanded into the hotel business, renovating rundown hotels and making them more attractive. But, about five years ago, I decided to limit my involvement in management-intensive properties like hotels and apartments. Instead, I shifted my focus to retail properties.

Retail properties require less management because the tenants are business owners who are responsible for running their own stores. I simply collect rent and maintain the exterior and roof of the shopping center. Unlike apartments and hotels, the tenants in retail spaces don't move around as much, and their livelihood depends on the success of their business. While retail properties typically don't have as much potential for high profits as other types of real estate, there is the possibility of finding a run-down property to fix up and develop.

When properties are far away it's very hard to deal with them. You don't want to hire management companies because then you're not in control of your own investment. They can do things you don't want them to do. It's not their investment so they're not gonna protect the investment like you would. So the biggest thing was not being so spread out because I don't want to be a big giant company. I was happy just being a good strong family business with kids coming in and helping me and just all of us working together.

The worst thing in the world is working for free. You don't want to work for free.It's like I went out this week. The market is ridiculous. The prices make no sense right now in apartments. Basically we sit down and look at the numbers. We might say "wait a minute we're gonna invest millions of dollars in this deal and we're not gonna get no return or very little return?" We're working for free. You don't want to do that. You want to make sure that there's some upside in that deal. Whether it's on the sale or whether it's on the monthly income. You don't want to work for free then you're not didn't you just you're not going to where you like that uh you like that hamster in the wheel and  you're just constantly pedaling when you're not going aware you got to make sure there's a there's a plan you gotta have a plan you got up goals.

To be successful in life, you need to make tough decisions. If you want to achieve wealth, you have to work harder than the average person. Sometimes, you need to put in 18-hour workdays to make it happen. From my experience in the army, I learned that with determination and a team behind you, anything is possible. You need to push yourself to your limits.

If you want to invest in real estate, start by finding a reputable real estate agent. They work for free for buyers since they get paid by the seller. A good agent will help you find a property that meets your needs and budget. Search online on the MLS and other websites to find affordable properties in your area. The key is to have good credit, so make sure to work on improving your credit score. Save up for a down payment, but remember that your credit report is more important than the down payment. If you have a bad credit report, don't worry. You can fix it by calling or meeting with the person responsible for the negative mark. Even people who filed for bankruptcy can still succeed. Bankruptcies typically only last for seven years. After that time, you get a second chance to start fresh. Banks are willing to lend you money to purchase and renovate a property, and there are different loan programs available. Remember, the bank is your friend, and they make money by loaning you money.

When it comes to someone you could learn from and look up to Ben Mallah is it. He speaks from a place of authenticity without a filter and without any hidden agenda. He is truly a selfless person at heart who enjoys teaching and spreading the gospel of real estate. He should serve as an incredible first-hand example that anyone can make it in his business. Anyone can achieve what he has as long as they have the determination to succeed and the willpower to always be learning.