The Coming Economic Collapse | Confronting Ben Mallah in Person.

welcome back to another episode of the

meat Kevin show we are here in

Clearwater Florida with one and only in

belir sure get it right Bill oh hey

you're about to see me visit a Ben Mala

but before we confront a Ben Mala I got

to remind you today's the expiration of

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below Daddy I thought the Boy Scouts

went

bankrupt what are you selling cookies

you're actually here in in in the

presence of somebody that actually

really knows real

estate hey how's that flip going that

$12 million man not good

you today's your lucky day oh you're to

buy a $12 million house for only

99999 I'll tell you what 9 million right

now cash that's a

steal what a cheap skate big fancy Jess

he's got the six Dwarfs with him and he

won't buy mying house after I took

[ __ ] recommendations so some of them

the ones that weren't expensive I

painted all the crown molding oh nice

you left the kitchen

no the kitchen was fine what's the

matter with the '90s you were born in

theing '90s weren't you remember are you

here on a undercovered secret mission

you now working

forestine organization we're the FED

boys yeah here to investigate set up

Grant Cardone just landed at your

airport his plane was there when I took

off yesterday oh okay it's broke down is

it I don't know how you guys been lousy

why fed because you miss the

brilliant when you came here how long

ago was that me yeah if you would have

said Ben if you don't listen to me about

anything please fix your [ __ ] rate

but you didn't you didn't [ __ ] do it

and now I got to pay $6 million a year

more in interest on 200 plus million

dollar if I would have been happy at

three even though I was at two if I was

at three that's 6 million a year right 3

* 2 is six shorty that's 6 million a

year I was paying I would have been

happy even though I was really only

paying it about four but I would have

been happy at three I could have fixed

it now it's 6 Plus per that's $12

million a year in interest I need 500

Grand a month out of my pocket every

month to give to the bank but you got

tenants can't raise the [ __ ] rents

they're in leases they're not going to

pay for it they'll pay the extra tax

bills on on the property taxes and all

the cam they ain't going to pay to

[ __ ] bank for me so I'm [ __ ] how is

a hotel they coming back but they ain't

makeing enough to pay that kind of money

to help and then what I got you know

High Cost of Living here high

maintenance wife big fancy house I'm

selling every [ __ ] thing right now I

I swear to God today I went to the

[ __ ] dealership he's taking my cars

to the auction the water car take it to

the [ __ ] auction the Batmobile next

week There's an auction to you should go

there you can buy my Batmobile you can

buy my water car and you can buy Bob

Hop's car if you remember who he was he

was here I'm selling everything I can

get rid of it I need money baby can you

loow me 200 million right now 3%

absolutely hey

Jerome I need a cigarette so why are we

here today can anybody tell me interview

you you guys are just [ __ ] bored hey

let's take the jet over to clear water

and go visit Ben is that what you guys

do all day just wake up say hey what are

we going to fly do today last year been

okay otherwise outside the market

outside the market

no I'm sorry my life is tied to cash

flow

yeah and the cash

flow is low low so what's your plan my

plan raise cash buy down debt it's the

only thing I can think

of well start liquidating other assets

that I have you know it's not like you

know I'm 100% real estate I got stocks I

got bonds I got liquidate first and are

you going to cover are you going to

liquidate the real estate to cover the

bonds and stocks or you're going to

liquidate the stocks and bonds to cover

the real estate a little of both gotta

it's called balancing a portfolio look

at the assets that are not performing

well do you have any go everything is

Diversified in my life we have

everything so but then that's system we

got stuff that was a long shot or we got

H where's Minaj he knows about this [ __ ]

we got we got Investments that you know

are higher risk that are doing very

poorly right now we have taxfree munity

bonds that took about a 10% hit we've

got things that are tied to interest

rates uh that have taken a big hit um

you know but basically we're looking at

everything that does it pay to keep it

or does it take automatically if I go

and buy down debt that's saving 6% yeah

of course yeah so if I have something

that's not making 6% of course let me

take something at 4% and convert it to

something that's going to help me save

6% that makes sense but you have to look

at a lot of different aspects of

it what am I saving on taxes because if

I go and buy down $10 million worth of

real estate well yes I'm saving 6% but

after you write off the uh the interest

yeah the interest it's not really 6% you

know getting a savings by writing off

the interest it has to do a depreciation

right now I'm looking into doing

accelerated depreciation cause

segregation things that can help me so

it's a matter of taking all these pieces

and trying to put together a puzzle

where all the pieces fit welcome back to

another episode of the meat Kevin show

we are here in Clearwater Florida with

one and only in

belir get it right bill it's off

on you you do the int

where are we we're in we're in Florida

and we've got Ben Mala here so Ben tell

us how has the last year been since we

went tubbing together number one I had

empty the water in a

tub

twice I didn't want to make take no

chances basically the last year sucked

for me because you know I wasn't smart

enough to you know see the future and

lock in my rate and every single month

your wonderful government has been

increasing the rates so they increase

the rates I pay more to the bank and get

less money so basically the past year

has probably been one of the most

stressful Worst Years in my career wow

how does this compare to 2008 and last

session 2008 was uh a rough time but the

thing was in

2008 it was a great time if you had

money to buy right now see it's okay

when you have bad times cuz the bad

times actually can be good times 2008

and n and 10 were actually good years

for me because I had cash and I could go

out and get Bargains now things are

really bad but there's no Bargains I'm

waiting for the bargains it wouldn't be

so bad if I lost 10 million bucks here

but I go make 10 million bucks over here

but that's not the case I'm just losing

I'm not losing and winning now you're

watching the market Market every day

especially hotels retail strip malls

what what are you seeing are you seeing

those prices come down but not the

bargain levels or what's going on I'm

seeing things slowly come down cap rates

have increased okay a year ago you

couldn't touch a Starbucks unless it was

in fours wow yeah now I've seen him in

the sixes oh wow yeah so cap rates have

slowly come up especially on the uh real

trophy assets all the four caps and now

five caps the five caps and now six caps

six caps now seven and let's not even

talk about medical marijuana or it's

it's it's what do you call it where

you're at

um recreational right oh right now yeah

exactly here in Florida it's all just

Medical but they popped up everywhere so

the Market's been flooded I'm looking at

them at 10 caps oh wow yeah you get 10%

your on your money right now for medical

marijuana place and so for the folks

watching cap up price down right cap up

price down uh and is that because uh are

you seeing sellers that are stressed

water or even the recreational is the

banks can't loan on them and only

certain banks will loan on them and the

terms I'm sure aren't that great so you

know those assets are really paying a

high return right now would you buy any

no the reason why is

because I was going to rent a one but I

decided not to

because that's going to drive my cap

rate up which is going to reduce the

value of my property if I take a five

cap property or six cap property by

having a KFC or something like that in

there and I put a medical marijuana

place in there and that drives it to a

10 cap then that screws up my whole

value so the medical marijuana

facilities here are actually devaluing a

center yes they devalue if you have one

right now wow wow and now what what are

you looking for in the market right now

I know you're iing it sounds like some

properties to others but then you have

the tax implication so what where's the

world have been we're all buying we're

always buying selling you know building

stuff my son's building a brand new

building in an Al parcel right now you

know he's spending about a million and a

half bucks it should be worth 4 million

after he gets it done and rented uh we

got some more rooms we building out at

John's Pass uh some you know retail that

we had we're turning them into hotel

rooms we're selling hotels in Fort laale

where you know we're doing we're always

doing different stuff so why are you

selling hotels right

now is it rates every asset is different

the reason why we're selling a hotel is

because hotels are not real estate

hotels are a

business and it's very hard to run a

business that's 250 miles away now we

can easily run the hotels around here

cuz we're here okay so I don't want to

have a business that's so far far away

from me reaching it so we're going to

get rid of that one focus on hotels just

in our area we got shopping centers that

we're improving right now we're doing

build outs for tenants um and we're

trying to increase the value there by

cutting out our Parcels building on on

them but if we reach the maximum ability

to add value to a property then we look

at selling it because we already did

everything equ with the property now

we're sitting back in okay return well

okay return is not just okay for us we

want some fat on the bone you know so we

can keep growing and making more money

of course yeah what uh what's your

favorite right now if if you had to pick

between residential hotels retail office

I mean I'm not seeing any movement in

the multif Family Market apartment

buildings is still selling at

ridiculously low cap rates or offer the

debt price right at today's interest

rate it makes no sense I'm not going to

buy an investment at a six cap if I got

to pay the bank six % interest yeah okay

especially take it on all that liability

and all that responsibility and

then multif family should stay strong

mainly because we're at an all-time low

with homeowners or or Home applications

Home Mortgage applications if people

aren't buying houses that means the

rental Market's going to stay strong

interesting so do you think uh but then

again you're deal dependent so you're

really just looking for where's the

right number and and right now you're

not really seeing that why would you get

into Hotel right now do you see a lot of

really expensive hotels are based on

location yeah number one a lot of hotels

couldn't make it through Co well yeah

even though they bouncing back

now I was strong enough to withstand the

pain during covid a lot of people

weren't and now it's all unraveling okay

we were looking at uh guy works for me

just met he went to New York City which

I would never go to but because people

are are going Belly Up so

bad it's worth looking

at I mean you know there are people

getting office building are getting

crushed crushed nobody else Office

Buildings I wouldn't buy an office

building would you buy an office

building no because it's too hard to

convert to anything else and there's no

demand you know the one thing Co taught

everybody is you ain't got to come to

work you know in fact they prefer

employees stay at home as long as they

get the certain work productivity out of

them they going to save a watching

overhead expenses so Office Buildings

are getting crushed they can't fill them

they're renegotiating all their leases

for Less space at less rent so I

wouldn't touch Office Buildings hotels

are strictly based on location if you're

in a good location then you'll do well

but a lot of guys couldn't make it for

two years and they got bled and now they

just at the point where they can't make

a deal with the bank and they got to

throw their hands up so multif family

there's no Bargains out there from what

I've seen you know

still a high price to pay per unit uh

homes are coming down now may be a good

time to uh come in there and start

lowballing everything you know

absolutely what are you seeing with

employees and construction

costs construction cost have come down

somewhat materials and shipping okay but

labor is definitely staying up and going

up so construction you got to be very

careful right now we thought we're going

to build that building for about a

million bucks by the time we're done

it's going to cost us a million and a

half why do it now why not wait maybe

until more pain I mean you know I don't

think it's going to get any better with

construction wages are going to have to

keep going up because when you go and

buy a sandwich today and it cost you15

[ __ ] dollars pardon my

language people can't afford it of

course they want more wages you can't go

to a restaurant now it's ridiculous you

go to a grocery store I was tell I'm

telling my wife as as wealthy as you

think we are which we're fairly wealthy

I'm actually me looking online how much

the [ __ ] price of eggs cost because

she spent $7 on a dozen eggs there used

to be a

dollar I told her no you got to go to

Walmart and get them for $3 now it's

crazy I don't know how people can afford

to live yeah rents are up food is up

everything's up how's your partner or

except you probably how is your uh the

restaurant that's your wife's

problem your f you're um you had a good

friend that we flew with to the swamp up

north he has a restaurant multiple

restaurants how's he doing he's doing

good you know why because he's made a

lot of adjustments and I know I ate in

one of his restaurants the other night I

had a $500 bill oh Lord okay you know

what he did he raised the prices and he

cut down the

portions but he said it's because the

cost of food went up to him his labor

cost are up his food cost are up and let

me not even talk about

insurance my insurance agent is probably

going to get physically hurt when he

comes to see me the next day or two

because and I can't blame him but I got

to beat somebody up Insurance prices are

gone through the roof especially in

Florida you better keep that in mind

before you buy anything in Florida if

you're going to have insurance you

better get a quote because insurance

companies you know they take somewhat of

a hit when we have a hurricane well now

we all got to pay for this hit that they

took for the hurricane so insurance

companies are trying to double the price

of insurance right now goly I I there

are some rumors of maybe insurance

companies even collapsing here in

Florida what's going on with that same

thing I don't know luckily the insurance

companies ideal with I think are

international okay you know so I don't

know I don't really deal with anybody on

a local level but I'm sure it's

happening but you're seeing rates double

rates are doubling I mean I I I was you

for flood or just even regular

homeowners mainly it's just you know all

insurance that ensures any real estate

yeah you know especially hurricane

Insurance Wind you know and hail not

hail but wind and uh rain or whatever uh

flood that too that goes to a hurricane

when you have a hurricane everything

floods yeah exactly so are you seeing

this just in residential or everything

uh all across the board everything

residential multif family uh retail

centers liability is also up people are

suing the [ __ ] out of everybody you know

and uh driving the rates up now

liability insurance ridiculous do you

think maybe more lawsuits with tough

economy or yeah whenever the economy is

uh whenever we have inflation and people

start getting desperate you start seeing

lawsuits go up you see crime go up which

also causes Insurance uh issues you

know when when do you think uh sort of

in in if you had a crystal ball where do

you see this Market pain ending when

when is the pain over Ben it's all tied

to rates in my world as long as the

interest rates keep going up everyone's

going to feel the pain because people

live off of lines of credit uh you know

they're not going to run and get a he

loock on their house now and buy stuff

and fix up their house they're not going

to go out and buy a house the same guy

that qualified for a half a million

dollar house a year ago now qualifies

for $250,000 house and there ain't no

$250,000 houses out there where he wants

to live that are worth buying so it's

going to be pretty rough you know they

need us you know the interest rates can

in my opinion control everything so

you've really then felt every one of

these increases is that because of

variable loans in commercial real estate

everything I had was a variable rate

loan tied to what used to be liore then

convert it to sofa then they have a

Bisby rates all the same

but the point is the banks typically I'm

paying the money to the banks but in

reality you can't really blame the banks

because they get their point

spread that you pay them it's still the

same point spread in fact I made them

lower it yeah it's the FED fund rates

and there's a flip side to the banks yes

I'm paying 6% plus interest now but when

I was getting zero on a money market

account account yeah yeah yeah I'm now

getting 4 and a half% sure so the banks

is it's you know it's a double edge

sword you know with them what do you

hear from uh or have you heard from any

maybe banks that are even do you have

tenants as Banks any banking

tenants I used to Yeah well yeah I got I

got a Chase yeah I got two I got two

banks in attendant of M and shopping

centers have you heard anything beyond

what we're seeing on the yeah maybe even

just your connections here have you

heard anything about the banking crisis

going on today you know obviously Sil

Valley Bank yeah I was on the phone

today with uh my banker that runs our uh

investment account and gets me on my

loans he was trying to

sell I gave $12 million worth

of um what do you call them CDs

preferred oh yeah okay yeah Bank

preferreds all right yesterday he was

able to sell only a few hundred thousand

of them at the price that we felt was

acceptable to today he calls me says we

can't sell anything wow okay because

that one bank that got hit today in

Silicon

Valley it just it affects the whole

Market that's the thing even though that

bank may have

a um what's the word individual problem

you know bad balance sheet toxic assets

they have their issues but it affects

the whole Market yeah so everybody's

maybe re underwriting Banks now it's

like you know when something bad happens

everybody says the sky is falling so

everything falls apart what's your take

how uh did do you think were we got to

wait for it to blow over so this one

bank had problems in Silicon Valley

which that's where all the money's at

but why is it Californians always

messing stuff because Californians you

were a Californian not by choice I was

forced to be in a Califor the Army sent

me there I was ordered to go

there so One bank had some issues and

then you know but the market looks at it

as all the banks could be having a

problem you know like what happened in

2008 but that's not happening again you

don't think so no because everything

that people I don't know what assets

they were loaning on right but generally

ever since 2008 the banks have gotten

they've tightened up on their loaning

lending and appraisals and and credit uh

you know check of people for credit

worthiness and you know they're not

loaning money out like they were back

then you know underwritings gotten here

the money dead people getting loans yeah

I mean it's a different market now they

actually have actually watching who to

give the money to one uh would you be uh

getting into single family at all

smaller

deals I I'm it doesn't help or pay for

me to do smaller deals yeah because I my

it's just I can't I got 1031 that I just

satisfied $90 million 1031 if I spend

time on a little deal for a few hundred

grand you can't get that done in the

time frame you need and identifying it's

a pain it doesn't really put a dent in

my problem know and I'm still 10 million

short uh for your 1031 so you still Lu

hurricanes extended the time frame oh

well that's good so I still got till

June I was told to find another1 million

deal I just bought a Holly Davidson

dealers ship in Orlando for 13 million

at a little over a six cap wow okay

but I pay cash sure if I leveraged it

that would make sense it would be a joke

there' be no return I would be buying it

I'd still help myself by deferring the

taxes but it wouldn't be a cash flow is

that your goal right now try to minimize

taxes from some of those sales you're

making in let's say Fort Lauderdale keep

my taxes down by doing 10 31s deferring

them and worry about my cash flow so

tell us about that how has that changed

over last year I mean I mean it's a war

I'm fighting a financial War right now I

never used to worry about how much I

made every month now I have to worry

because I'm now paying out a half a

million dollars more than I used to have

in my pocket wow now you said you're

also selling the Batmobile I'm selling

everything how much you want I sell that

watch I'll buy it and sell it for you

you know you can tap here and get all my

contact info you call me anytime I don't

think I want that but no right now you

know you got to change when you're

managing a big portfolio and you're

managing a life with all kinds of big

expenses like planes yeah and uh you

know and and you know you got this house

is got a I don't know with the mortgages

on it but luckily I fixed that the only

thing I did fix was my couple of houses

I got the residential yeah but what are

you going to do what about uh the plane

you said you had an engine oil issue did

you have to buy a new engine or what

happened I don't know I don't know I

don't think they have to place an engine

but they going have to find out what's

wrong with it and they going to be cheap

luckily I have

Partners I I I didn't have I didn't do

it I I'm only one four Partners I like

your advice so when a bill comes in I

only got to pay 1/4 of it but advice and

I haven't had the problem of needing a

plane and not being available but you

you use your so much now uh no partner

is going to put up with you yeah that's

how many people who you put up with you

anyway that's except the dwarfs over

here um so uh what about uh the

um would you ever go outside of Florida

for Real Estate or I would go out

Florida I own the Lowe's in Tennessee

okay I only even want to buy it I'm

selling it right now how much your

portfolio you selling huh how much of

your portfolio you selling everything's

for sale at everything yeah life is for

sale even my so-called Associates I'll

sell you if I could but um you know

everything has a price yeah you know but

I'm definitely trying to sell the

assets that really don't serve a strong

purpose in the portfolio because today's

interest rates if it's not cash flow

before I look into selling a property I

got to look at hey if I keep it that's

option number one and bleed or not have

a lot of cash flow okay my return on it

used to be let's say

20% because rates are only 2% sure now

they're probably down to the

6% okay do I keep it for cash flow a

little cash flow you can't refinance

that makes no sense right now today's

interest rate more

environment um do I sell it

you know what's the tax ramifications

can I replace it if I do sell it you

know there's a lot of things you have to

think about that's why I'm looking in

the cost segregation right now because

maybe if I buy down the

debt I won't have as much write off but

if I do the cost cost segregation

that'll increase my write off ability

and it might balance out so weren't you

doing the cost segs anyway no I wasn't

no okay okay I'm just starting to look

at that now yeah okay I might have

should have been sure well but I didn't

but now you have that sort of piggy bank

to break so now it's a tool that you

might have to be utilized yeah yeah so

uh what about um for your Tennessee

property I mean do you have a lot out of

state or is that just no that's just I

think that's the only one out State what

motivated you to go there just sort of a

deal I was in at 1031 it was a great

brand Lowe's I went and visited the town

it was in it felt like a good nice

income strong workingclass town where

people would come there and Shop the

place look good the place look busy it's

a no tax state yeah uh based on rental

income and I was in a 1031 my clock was

ticking it was like a $25 million deal

or something in that nature and it made

sense at the time now if I would have

fixed my rate at 3% sure I'd be sitting

here golden but I didn't my mistake now

is that because uh originally fixing

would have cost you maybe an extra half

point or something a full point I was at

two okay I could have fixed it at three

so I would have paid an extra point yeah

now I'm paying extra four points I don't

know that anybody really predicted that

well we should have known based on a

political party that's running the

country you know do you think that's

what shifted all of this so 20 had to

2024 Biden round two they think that low

raising the rates is going to reduce

inflation what's your take I don't know

I'm not a uh what do you call a

economist what do you call that type of

major in college um econ in math or I'm

not an economist I don't know I don't

know it's too big a pay grade for me to

understand I just know money in and

money out yeah and so the goal now is

build up as much cash as you can for

that potential I'm building up cash to

buy down my debt is that to improve the

cash flow then on the properties yes

okay

so that's what I'm doing what about you

any money you want to loow me what about

uh yeah 3% right take it anybody would

right now I feel what about the seller

or buyers when you're putting properties

on the market what are you seeing how

different is it now I just wanted to

contract today on a

property the reason the only motivation

I see in buyers today is because they're

trying to defer their capital gains on

recent sales they sold something

they got a big million multi-million

dollar hit they're going to take because

their basis was so low so they're 1031

into something else to defer the gains

are they going to get a tremendous cash

flow on a new deal no but they might be

saving millions of dollars in taxes

which is very important did you ever mov

to Puerto Rico that 4% tax no seor I'm

not going to Puerto Rico why not Peter

shiff is there there's a lot of stuff on

the market right there now I saw some

Walgreens to sale some cbs's yeah uh

what are the Caps like out there they're

higher in Puerto Rico sure okay but

unfortunately Puerto Rico might be a

territory of the United States but it's

still out of the country yeah it

qualifies to the 1031 of course but I've

been to Puerto Rico many many times and

I didn't feel like I was qualified to do

business there because even though it's

still part of the United States it

doesn't run the same way okay when you

go to these countries countes or these

other types of areas where the culture

is very different everything is

different all right and I'm not in with

the click my wife's Mexican she's not

Puerto

Rican what what would advice would you

give to a first time buyer today like a

first-time buyer or a retail investor

you know somebody maybe watching our

channels I mean you definitely should

always try to find out what you qualify

for MH but right now is a time to where

you really got to St Cas your cash save

as much money as you can because the

deals are coming you think so they have

to it's just impossible but not they

just coming slow yeah yeah it's very SL

but they have to come because sooner or

later everybody that was in these great

low rates they're not going to last

forever some people took fiveyear loans

some people all the ones that took five

year loans five years ago are now coming

due they got to refinance the property's

not going to appraise out for the same

price they're not going qualifi for the

same price based on their debt ratio and

the cash flow so the shit's going to hit

the fan you think that uh poop hitting

the fan is still ahead of

us yes it's starting to happen now we're

starting to see a lot of big players

take a big hit really and it always

starts with the big guys yeah okay and

then it's going to start coming down and

smaller and smaller smaller and

eventually it's going to affect the

whole Market are you seeing sort of big

player listings come up then or how are

you seeing I'm seeing big player

bankruptcy

okay I was looking at a hotel the bank

loan over 100 million on it it's going

to bankruptcy court and the they're

asking for 60 and don't even think

they'll get that wow I've been watching

guys take hits Banks and investors take

hits in the hundreds of millions range

it starts in New York especially the

office buildings and the

hotels because they got hit the worst

but eventually it's going to creep over

the whole Market because it's all based

on borrowed money and eventually you

didn't Barrow that money forever yeah

now somebody took a 30-year mortgage a

year ago they're golden and they going

to stay with that place in 30 years

point but most people didn't yeah what

did you do I sold my real most of my

real estate that around the time when I

was here but that was also to start my

startup it was lucky but how about

stocks still an Apple stocks are a pain

ass you know you were buying Apple I

remember we were on the plane you're

like it's 139 I should buy it it's like

150 think right

now I was going to make some positions

but I didn't I think it was like apple

was at you know you got to catch things

on a low yeah when when it's low you got

to make a move and I didn't I was

playing around with Amazon okay and I

made a few bucks but I would have held

it I would have made more uh who was do

Facebook was a killer when it when they

when they dropped down like in the 80s

was it yeah yeah yeah it's double Tesla

Tesla Tesla dropped down to like the 80s

also

yeah 101 yeah right right no I'm talking

before that oh okay yeah was it maybe it

was 10 either way it was a good deal it

was a good deal now it doubled wait so

when's your Tes it doubled in a matter

of like a month or two are you buying a

Tesla no why not I did install a bunch

of charging stations in all my shopping

centers did you uh just regular EV

Chargers or did you get a Tesla some

bulb some just Tesla you got some Tesla

ones Tesla plug it in

baby I think Tesla is the only one that

does Quick Charge yeah the super charge

that's why so in the shopping centers we

did we cut a deal with Tesla to put a

bunch in cuz they Quick Charge hotels we

do them both what did that look like the

Tesla

deal they got me at first but then we

got smart and made a deal with them the

first

time we offered it as amenity and we

don't get any return but they came in

and paid for everything right so we felt

like it was a good thing for the uh

property okay but then I found out they

in even when they still come in so the

the second and third time we cut a deal

we get some residual income from it so

uh like a percentage of whatever they're

collecting percentage of what they're

collecting I think some rent too what

would you say what's a typical range

like 5 10% I don't know my son ANS that

yeah okay okay I don't deal with

contracts but we're getting some sort of

income on the usage and we get a flat

fee rent every month depending on the

location you know if it's a really

high-profile location like next to Buck

Stadium yeah paying us rent and they're

paying us percentage and they're paying

for all the installation because they

want that high-profile location W yeah

of course it's an ad for them basically

you know real estate location location

location that's all it is and a little

bit of timing lot of time too yeah what

about um so why know Tesla for you were

we waiting for the Cyber Tru do you like

number one I don't really I have

somebody that fills my cars up with gas

so I don't worry about it

okay and uh somebody comes by here I'm

not going that far I don't know I have a

guy works every day every day make sure

all the cars got gas in them okay take

them over you know yeah we got about

half a dozen cars part of Matt's job is

maintain the cars make sure they kept

clean make sure they got full tanks of

gas in them make sure they're running

right

MH got it what about uh for for people

watching you right now do you think they

should start a business right now or

what should they do what should they

anything you can do to make money

whether it's a business whether it's

real estate

whatever it is if you can make money at

it do it yeah all right but if it

doesn't make money only waste a little

bit of time on it to find out you know

put the time in is it going to make you

money or it's not time is money is that

a license to change your mind like

flipflop if you want flop flipflop I

flipflop all the you flipflop all the

time I don't want to hear about your

personal life

um I mean you know it's good to get a

real estate license if you don't have

any license because getting a real

estate license is basically starting

your own business you become your own

business you're a walking business and

every person you encounter in life is a

potential client they could be a buyer

they could be a seller they may know

somebody that's a buyer or seller they

could be renting and looking for a home

a kid called me the other day he said I

got my license like you said but how do

I find

clients do what you did start knocking

on doors and uh so you know what I told

him I said is there a big apartment

building in your neighborhood where the

rents are probably around 1,500 plus a

month why because I said every one of

those tenants is a potential buyer you

go to them number one you go to the Post

Office it doesn't cost you nothing for

like a 4x8 card put your face on there

put your number on there and tell

them stop renting start owning or

something to that effect yeah and it

cost you nothing to deliver that

postcard with the post office to those

300 mailboxes the people open up the

mail stop renting stop buying give me a

call see if you qualified then they call

you you hook up with a mortgage broker

that you'll get a piece of his

commission to get them qualified for

first time home buyer with FHA 3 and a

half% down find out if they are worth

your time helping them look for a house

if they qualify find out what their

range is find out everything then go go

to town find him a house and get the

deal done you make a commission you

create your buyers my first uh apartment

building I got banned from is when I got

my real estate license was I uh went

into the uh coin laundry rooms and I put

a flyer on their corkboard thanks for

paying my mortgage want to stop renting

call me well there you go you know but

you know you can't get in trouble if you

do a direct mailing into your mailbox

and the post office doesn't charge

practically nothing because it's all

going to one location and the cards

don't cost nothing to print up no it's

cheap so you know you got to look for

business right what about uh you know

this the market out here you're trying

to locate your real estate here to Tampa

are you seeing a lot more well the Tampa

area Tampa's growing you trying to

consolidate everything here do you have

any concerns about hurricanes insurance

issues Problem Like Water Rising I don't

know any I mean I got concerns but you

know you just have to roll the punches I

mean if you go to San Francisco to say

oh we got earthquakes yeah not that

often they happening they moved to

Turkey for some reason

yeah but um I mean you know there's a

lot of concerns here you got to do your

homework and you got to know your risk

tolerance I mean there risking

everything but this area is a growing

area

because you give me another bot of water

I'm not you know caught a cold I think

Co either that a red tide was here red

tide red tide

that's another concern red tode comes

and nobody wants to go to the beach them

my hotels lose money is that like a

that's like an algae or some kind of uh

blo think California oh it's always The

[Laughter]

Californians uh what else what else Ben

I mean Florida is risky like anywhere

else you got your risks well you got

Ronnie you like Ronnie you know I met

him in a Clos small meeeting not too

long ago

okay I mean you know is he going to beat

I don't think anybody's perfect

yeah but he's definitely

younger yeah you know I don't think he's

going to be able to compete with Trump

because you know Trump has an effect on

people what Trump does is he kind of

makes people

feel empowered somehow like like you

know like they could be in you know I

don't know it's it's like he just he

motivates a

certain type of people you know where

you

know I don't know I mean you know but

he's too

old you know and I'm I don't care I mean

I'm sorry it's common sense and logic

when people get old they don't work so

good like a car it's simple it's true

it's logic you can't do the same stuff

as a 30 or 40 or 50 year old when you're

in your 70s and if you're supposed to

retire if Social Security kicks in at

what 62 or

65 even the government says you're not

supposed to be working I don't know I

don't like these old guys in in in

office because number one old people God

bless them

all they're set in their ways they come

from a different time okay they don't um

they don't Advance like everybody like

the world's advancing they're not in the

same speed they use they have a lot of

personal feelings they're getting

involved with the uh logical Sense on

how to deal with issues and I don't feel

good about it I'm sorry

and um and you would say that even for

Trump even for Trump and Trump you know

let's see everybody in the world knows

Trump's got a big ego you can't have an

ego and

represent how many people 400 million in

this country almost 33 somewhere you

can't have an ego you can't be selective

you got to just think about what's right

for everybody and I hate the fact that

we have Democrats and we have

Republicans yeah why can't we just take

the the good stuff out of both of them

cuz both both of them have good uh

agendas you

know the Democrats had a lot of good

programs programs that I benefited from

people benefit from uh you know because

everybody needs some help can't

everybody can't be successful the

Republicans had a lot of uh you know

good policies too when it comes to

business and taxes and things like that

we need to just combine them and we need

somebody that knows how to take the best

from both sides and find a common ground

and do the right thing for the country

which pretty much can cater to

everyone could Gavin Newsome do it I

don't not familiar but he's from

California so I doubt anybody from

California could do

anything I mean you know just santis you

know he's been doing a good job as a

governor he works very hard I will tell

you that he works very very hard I do

believe he's a very honest guy but I

don't know if he has the experience to

start dealing with world leaders M you

know that's another problem when you're

dealing with world leaders in other

countries they don't play by logical

sensible rules they play by their own

rules I mean let's face it you got to be

a certain type of person that can also

play the game Trump he knows how to play

the game you know but you know he goes

too far sometimes what do you think

about Ronda santis and Disney for

example it seems like I mean Disney I

I've owned a lot of property in and

Disney I've own property within Disney

kiss Orlando yeah I've had property that

was under the Disney umbrella uh you

know hotels that was actually part of

their whole

whatever listen Disney uses up a

tremendous amount of

services not just in their little area

in the whole city yes they bring a lot

of business to

us but they all those the businesses and

the money they bringing in also causes

the government to spend a lot of money

roads Transportation crime every there

all kinds of list goes on and on and on

I think Disney should pay their fair

share and be under our same government

and Taxation like guys like me that were

when I was there I had a hotel I had a

couple of hotels and I was paying tax

bills every year property tax bills and

hundreds of thousands of dollars I was

paying my share they should pay their

share too it's all part of doing

business they're writing on some rules

that they had created back I think 40

years ago mayor of Miami or Dan

santis the mayor of Miami is who Suarez

who Mr Suare I don't really follow

politics I'm too busy running my own

goddamn politics well then back to real

estate then uh what is um tell me about

the different parts of Florida and where

would you invest or like we're looking

to potentially invest in Florida what

where would you stay away from you go

Tallahassee Jacksonville south Florida

what do you Tallahassee is a is a

University

Town in my opinion from what I know

about

Tallahassee is if if it's not related to

the school in some kind of connection

way with students with teachers with

employees with businesses that support

the school I'd stay at a

Tallahassee okay student housing can be

very profitable if you buy for the right

price but it's management intense I've

had

500 bed student properties and they're

very intense and running them yeah a

little bit of a hall monitoring and

drama Gainesville is the same way okay

the pro the thing is in Florida to me is

this yes home ownership is slow down

but if you can

find where have the newest huge big home

developments been

built you pick like boa or like West

follow the money if some big home

builder went out and just built three or

four or 500 houses somewhere and they

all was sold then that's where you want

to go you want to go where the money's

at you got to trace follow the money you

know you know like for instance if

Amazon's building something or if a car

company or some Factory is being built

somewhere they're going to need housing

housing is just a necessity it goes

along with business or something else

what do you say to people who say oh if

somebody's investing in real estate

they're really like especially single

family real estate they're taking away

affordability from somebody

else if somebody invests in real estate

how would he take an affordability away

oh well some people say well if you go

buy rental homes you're increasing the

costs of those homes making it harder

for a tenant to become a homeowner sort

of it's a little anti- capitalistic the

argument but you hear it all the time

you're either going to be a renter or an

owner yeah you can't be renter forever I

mean unless you really have that

personality and you want to be fine you

want no responsibilities that's your

lifestyle I don't know but typically

every renter should become an owner in

my opinion but they have to do it the

right time in their life when they can

afford it when they qualify and

hopefully I would say the the the most

money that has been made in this country

for the average person is always through

their home yeah yeah I agree with you

okay people have gone from nothing to

becoming multi or at least a millionaire

Z to million through their home

ownership coupon down

below plus it provides a a roof over

your head you know and you can borrow

against it I mean you know home

ownership is always I think the first

key to everybody's you know life in

general let's touch on YouTube you've

been posting a lot of shorts shorts

short videos 60c videos and you're doing

very well with them am I I don't getting

a lot of views I don't really are they

making you money I'm just like you know

I don't really get involved with the

YouTube thing is outside of trying to

get the message across of get off your

ass and try to help yourself and better

your life I mean everything else is run

by the uh the Polish Putin over here how

are shorts monetizing for you guys not

as good as we hope for yeah they said

February 1 they would start monetizing

shorts not not really huh all right no

no shorts short shorts cuz you guys are

killing it it's not not amazing yeah I

mean you know we do the YouTube and it

does generate enough income to keep him

happy in sausage

but you know it's doing well you know we

getting some sponsors sponsors I saw

that hey sponsors baby you did you know

right now if you go to mybookie.com and

place a th000 bucks on deposit deal

match you if you use the code Ben what's

bookie tell me gambling oh it's gambling

oh gambling you don't bet you were here

watching online casino well I think it's

more like sports betting right sport

better okay Master works you can't

invest in real estate right now maybe

you could buy some fine

art well if I wanted to gamble I could

just put it into any bank right

now well you know we're doing some uh

Masterworks Fine Art we could own a

percentage of the artwork yeah we're

doing um what do we do we just did

something for cooking meat y did you get

a butcher block no it's a temperature

thing it runs off your phone right Smart

M are you diversifying into Masterworks

too do you like art I mean I'll dib and

dabbing a little here and there I got

some artwork in there you know I got at

the flea market but um no I mean

actually before I before we did I made

somebody go visit their office and we do

some research and check them out not

like you we check people out before we

agree to play ball but U we having fun

with it I like it you know I enjoy it

you know yeah I st sponsors I was in New

York I went to New York and uh we went

to visit one of the sponsors and they

made me these beautiful shirts oh my God

for a fat person to get perfectly fit

shirts what was it called proper cloth

proper cloth custom clothing and you do

it online you give them your

measurements how they did it I don't

know I gave my measurements online I

went to New York they would have shipped

them here but I was in New York I said

hey I'll come by and pick them up oh

come on byy we did a video there I

couldn't believe it I put these shirts

on and they were like the material the

fit it was great you used to live in New

York unfortunately yeah Hell's Kitchen

why'd you go back I had to go back

because it was a stopover to catch these

really cheap first class flights my wife

found to go to Paris oh how was

Paris uh oh You' been there yeah I met

my wife there oh I'm from Freddy I'm

French I do not speak English and my

food is so great the food

the people were pain in the ass uh we

caught co uh and we saw all the sites it

was nice to see you know the history and

the sites but it's a very busy City

people were there was a shooting going

on over they got their own issues there

they got issues with um I don't know

what's prot well the people they got a

lot of refugees that came in from the

Middle East the problem is all the

Europe l in all these people from the

Middle East now they don't understand

these people weren't raised this type of

civilization they got different Customs

they got different culture MH and a lot

of the things that they practice in

their Old Country especially when it

comes to women is against the law how

they treat women you know just the

typical mannerisms and uh they actually

had some big problems when I was in

Paris wow so I don't know every

country's got their problems it was a

good trip you know we had a good time

and uh we got the hell out did you go

anywhere else in Europe went to Paris we

just went around Paris I think yeah

Paris okay wow it was a short trip

that's show the kids take them there's

the iil tower there's the Museum of wo

wo woo and wo wo woo and and uh right

see the Mona Lisa the

monisa yeah my son was very uh he was he

wasn't as impressed as he thought he

would be we waited in line all that time

in the museum or whatever it's called

and you get in line and see the M Easter

and it's only like this big yeah yeah

pretty small that's awesome what so what

else Ben what else is going on what am I

missing I'm fighting a war right now and

you're interrupting me how can right now

my life is all about making money yeah

I'm not making as much money as I

normally would and that's my priority

okay everything is revolves around cash

flow with me yeah of course and that

right how I live where I go what I buy

everything it's all you know when you're

not making as much money you start

thinking about not spending as much

money do you think this will just be a

short maybe you know another year of

paying or so and then maybe back to

normal or any four I don't think we're

going to see the rates that we used to

see really that's behind us huh I think

it's going to it's I'm hoping and

waiting for it to come down a little and

just stabilize right there right now yes

I grew up in a 7 to 10% interest rate

environment when I started in real

estate but prices were a lot less right

right the cap rates were higher right

yeah you know what I used to

pay 30 or 40,000 a unit for is now 130

40,000 so and then rents have gone up so

I mean it's just the world we live in

it's all about finding a deal and

lowballing a deal to get the price that

make sense for you how are you doing

that are you going through the sort of

listings yourself or is it agents that

are calling you deal or I do it all I

look at 300 emails a day I pick out the

ones that I think may make sense for me

I got people that work for me making

offers I go with the listing broker

sometimes I got uh you know I'm just I

don't care whatever it takes to get

whereever the deal is yeah Absolut I'm

constantly making offers they get

counted back I'm selling property I'm

getting offers I'm countering them the

back it's all about playing the game

until you feel like you won the game

that's busy it's a chess game yeah what

what what does keep motivating you why

do you keep doing it why do you keep

playing the game I was ready to quit but

then the interest rates went up and

screwed everything up for me so now I'm

stuck playing more playing hard

hard uh what has anything really largely

changed in your lifestyle because of

that yes I'm selling my

Rolls-Royce I used to sit in the garage

with a half million dollar car now I'm

looking at say what the hell I got a

half million dollar car sitting in a

goddamn garage for that could save me uh

30,000 a year yeah sure just the

interest yeah absolutely almost as much

as you've been uh paying yourself yeah

well uh does anybody else have a

question what did I miss you know mck

McKay you got something where where'

Tristan go he

disappeared okay you you Mikey cigarette

break Union rules oh you know why I

turned down the hotel in Manhattan I was

going to buy it you were going to oh you

okay I was going to buy it the guy the

little Indian guy went out there and uh

he inspected it from me and and he's an

expert underwriting he know in real

estate when do you guys want to get

trist he worked for he he while he was

in college even were he worked for

really top dollar um big companies and

manhatt like you know Wall Street type

guy doing gold or whatever doing like a

package of 50 hotels at a time

underwriting [ __ ] like that sure anyway

I sent him out there cuz he lived in New

York and man when he came back the

unions you can't hire employees unless

they're part of they have the

housekeepers Union they got a separate

Union for maintenance they got a

separate Union for the restaurant the

[ __ ] housekeepers are making 35 bucks

an hour wow wow we pay we were crying

about paying them even 12 to

15 can't make the numbers work doesn't

work and then you know there's all the

taxes oh my God you got Federal you got

State you got City you can't make any

money in New York Tristan any questions

you have for Ben um yeah I mean for

commercial do you have an extra mic

yeah go ahead for commercial go ahead

keep going just for commercial I think

what type of commercial real estate uh

yeah commercial real estate what type of

commercial real EST commercials like um

Office Buildings what Office Buildings

office

building he thinks we T Ted talked about

offices a little bit he's a big believer

that offices could be converted

eventually into something I don't or

used for something I think not now but

in the next year maybe two years I think

it'll get so bad where they'll start

selling on Pennies on the dollar I mean

is any way you can convert them into

maybe I don't know storage units that

might be profitable or I thought about

storage but I mean you know high-end

storage maybe nobody want dragging in a

fancy building or a decent building be

dragging their old [ __ ] in there but you

know you got people coming in and out of

one building it's not like storage is

spread out you know or I don't know I

mean

storage might work depending on the

layout of the building the problem is

every building's different but every

single person I know that was brilliant

in building and I've seen some guys lose

their shirt is everyone told me it would

have been cheaper to tear it down then

convert it to Apartments that's what I

because in the kitchens and the

bathrooms and today's code and the fire

systems that you might as well instead

of gutting the whole thing and be left

with a shell cuz that's what you got to

do and the windows and the entrances and

exits it's just the list is a mile long

you might as well tear the building down

is what I've Been Told and I've seen a

couple of guys go belly up trying to do

it oh yeah could you yeah no and

utilities you need metering systems it's

all run as a Master Meter you know

that's a similar problem you have with

converting hotels to Apartments any

other maybe any other ideas of what you

could convert them into any opportunity

that you whoever figures that one out be

great the only thing I can think of is

Data Centers o fill them up with

computers yeah but you put those in the

KE the new minor

I mean you know data centers I think not

just for mining they're pry big now

filling them up with computers I can't

think of nothing else with maybe data

centers when you bump up the electric on

them get some more power going to them

through the electric company and have

fill them up a goddamn computers

artificial intelligence may require it

yeah oh yeah but do that in the desert

where power's cheap and I mean build a

cheap fact why why take an office

building in the middle of a city where

electricity is more expensive

potentially what interesting I don't

know yeah no it's somebody got to run

those data centers I don't know you know

there was a whole piece in New York

about how uh I think uh all the way down

not fifth but I think third they've got

office on the east side the buildings

are from the 60s and they have Windows

on the outside but so much of the square

footage is away from the windows on the

inside of the property and for homes

everybody wants windows and so 80% of

the square footage is almost useless

because it's just interior dark space

that was good for fluorescent lighting

and cubicles but you can't can't even

make homes out of them if you wanted to

anymore any go ahead yeah uh I I kind of

just thought of Wei work's business

model but we learned that that's not a

good business model what you know we

work that's a bad we work is making a

comeback oh no I think in in some places

listen it's all about location yeah you

know if you have a place where you have

a lot of entrepreneurs type

people uh and people that have small

businesses or startups or whatever

and they just want a little space to

work at and you know it depends it

depends if it's down here in St Pete in

that type of neighborhood it might work

but it ain't going to work in you know

in some other areas it depends on it's

all about location you know one more

farfetched idea is that you could

somehow what you could somehow have low

input costs in order to revamp it so

that homeless people could live there

and then you could try to get subsidies

from the government but I mean that's a

far stretch that's major yeah the

problem with getting involved with stuff

like that is it has a lot of social

aspects you can't just say here is a

decent place to live and say get off the

street go live here it's not that simple

these people have all kinds of mental

issues they have uh all kinds of

concerns and hygiene and it's a whole

big b of wax trying to deal that's more

you know of a medical thing dealing with

homeless people too uh but what I was

thinking was um how about you know how

big shopping malls are now people they

don't like them they're dead in fact my

son called me up the other day want to

hear Countryside hey for sale I said

hell no but imagine if you took an

office building and every floor you

don't have to walk around a whole

[ __ ] goddamn wall every floor was a

store you could have Macy's you could

have this store and then like the old

days in New York you took the elevator

up there every goddamn

floor when I was a kid there was a guy

that sat in the elevator in New York and

he say okay third floor drapery Linens

towels underwear he would tell you and

you get off the elevator and Shop that

stuff you know but imagine if you had

different stores on every floor um I

don't know but it's definitely something

that you know yeah M you a question it's

definitely a problem right now yeah go

ah any anybody else uh after that good

good good all right McKay go ahead so

I'm not 100% sure how filled in you are

on Kevin's new startup house hack but

what advice would you have or what are

some ideas you have in in terms of

scaling a real estate business as large

as Kevin wants to scale his in ter with

single family to give you an idea

briefly of what we're looking to do is

when the market bottoms out buy 50 to

100 Homes at a time bundle them together

securitize them reads Delaware statutory

trusts syndicates whatever and do the

cycle over and over again take fixer

stabilize them and do it over and over

again everything with me depends on cash

flow cash flow or value yeah yeah it's

all to buy if you're buying something at

the right price

and you're really sure by doing your

homework in the market or if you're

really sure you know which way the

Market's going it's all about are you

going to make money on this asset

there's no sense in buying something is

not going to make money if you're going

to break even every month what's the

point you're owning real estate for what

reason unless you're really sure things

are appreciating well unfortunately

right now things are de appreciating so

you got to go in there and look I think

there's a lot of Home Builders out there

That Built Homes haven't done the

homework yet but I would imagine because

these guys planned these home

developments years ago MH many years ago

in some cases when things were booming

prices interest rates were low and

everything was great now they're stuck

now they got all these houses and they

already got all this money invested in

plans and land and zoning and and and

and they're tied to building they have

to build them y all right so I think

there could be a lot of opportunity

where people that had plans to doing

things and now the plan has to change

and they may be taking a big discount so

it's all in the buy all right do the

numbers work are you going to cash flow

by buying it or are you going to make

some money if you hold it fix it up a

little and flip

it it's all numbers all numbers yeah

what do you what do you say to people

who say uh oh you can buy real estate

remotely you don't have to be there in

person with the agents and see

properties are managing them what's

what's your take on that I think that's

risky yeah I agree I think that's risky

to buy anything without if you're buying

a physical asset no matter what it is I

want to touch it and feel it all right

the agent is not going to be responsible

once you close the deal he's going to be

off on his trip to Hawaii with the

commission all right you're the one

stuck with the problems you got to do

your homework you got to touch the asset

you got to kick the tires like a car and

know what the hell you're buying and be

ready to deal with it yeah Ben anything

else you want to add no get the hell out

all right shout yourself out I mean you

know to Ben malor on YouTube go to

ben.com consult withth Ben get me on the

phone and you can get advice on your

next real estate

deal nice awesome do you have any events

coming up any events no right now

actually I've been so busy honestly this

is the busiest time of the year you know

what made me start the whole event thing

it was because my hotels were empty

right because of Co I said well hey

people kept saying they want to meet me

well fine come stay in my hotel and I'll

come meet you and I'll talk to you

whatever you want to do well we are

starting to do some private Consulting

in person I think uh where they could

fly down stay in a hotel I have a

private meeting with them but we're

probably going to start doing some

events when the slow season comes in the

hotels which I believe is

May let's go drinking let's go you drive

always

man thanks man that was awesome