Real Estate Guru With $500 Million Portfolio Reveals His Top Tips for Amassing Major Wealth Through Property Investment
A self-made real estate mogul who has built a $500 million property empire has lifted the lid on the secrets behind the staggering success of his portfolio, explaining how anyone can build assets that will withstand economic factors such as changing tastes and the boom of other industries.
Ben Mallah, aka the “$500 million man,” was raised in the projects in Queens, NY—but now lives in a $16.5 million megamansion in Belleair Shores, FL, a property that makes up just a tiny portion of his expansive portfolio.
Today, he owns all manner of properties, from residential homes and apartment buildings to commercial shopping centers and hotels—all of which he has amassed over a 30-year period, beginning with a former crack house in Oakland, CA.
In a recent interview on “The Iced Coffee Hour” podcast, Mallah, 59, shared his top tips for real estate investment, explaining how others can build a near-impenetrable portfolio, no matter how much money they have to begin with.
The most essential aspect of his strategy? Focusing on what he calls “necessity real estate”—essentially properties that house everyday in-person services, from grocery stores to hair salons—with Mallah joking that these kinds of real estate investments cannot be “hurt” by the rise of big online businesses like Amazon.
“I like retail that Amazon can’t hurt. Food, medical services, hair salons, strong restaurants,” he explained. “Today, we’re sitting on a very large portfolio of what I like to call ‘necessity real estate’ or ‘essential real estate.’”
Specifically, Mallah said he avoids risky ventures like shopping malls, which tend to sit empty. Instead, he looks for grocery-anchored properties (e.g., supermarkets) and essential service providers, as well as medical facilities like dentist offices, which he says equal a reliable cash flow. These types of rentals tend to attract long-term tenants.
“I like retail, but I like retail that the internet can’t hurt, Amazon can’t hurt,” he said. “I like food. I like necessity services like hair, nails, food, good, strong restaurants, dentists, medical, things that people can’t go online and accomplish.”
As for how he locates the perfect properties to snap up and sell, Mallah said he has a specific formula.
The real estate investor relies on something called the BRRRR method, which stands for Buy, Rehab, Rent, Refinance, Repeat. He buys a place, improves it, and refinances it after its value increases. Then he recoups his initial investment tax-free while still continuing to generate cash flow.
“I’m buying up grocery store shopping centers or, you know, essential shopping centers,” he explains. “Find them with some empty [properties] that are mismanaged, or [have some] old mom and pop type places, put a little lipstick on them, make them look like a nicer place for people to shop.”
Mallah also notes that focusing on the business owners themselves is essential when it comes to buying this kind of real estate.
“Make it look better for the business owners. Fix the parking lot, fix the roof, put a little paint on it, and fill the empty spaces,” he said.
“Once I refinance and get my money back, I have no money in the property, but it’s still cash-flowing. What kind of return is that? Infinite.”
As for his own home, Mallah lives in a staggering eight-bedroom, 7.5-bathroom property that he says is worth “over $30 million,” although Realtor.com® estimates the value to be closer to $25 million.
The waterfront home, which he purchased from former MLB star Ryan Howard in 2019, sits on 2.36 acres with incredible views of the Gulf of Mexico.
However, despite the spectacular amenities that the property affords Mallah, he insists that he never actually wanted to buy it. He did so only because he knew he could get a good deal, noting that Howard’s career was “over” by the time he came to sell his home, so he was likely looking to turn it over as quickly as possible.
“I never wanted to buy that house. I hated that house,” Mallah said, before noting that he essentially got the house for half price, paying $16 million for the structure, which had cost $32 million to build. “But it was 50 cents on the dollar! It was a brand-new house. It’s irreplaceable, you can’t find a [new] lot in Belleair Beach. It’s impossible in the Gulf of Mexico.”
Though he prefers his old house, which he owns, he admitted that the “nice gadgets” in his new property have prevented him from returning to the home that he used to live in.
He could fetch around $30 million for the property, “even in a bad market,” he said, claiming that he has already had an offer from the Church of Scientology for around $29 million—even though the mansion is not actually on the market.
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