Ben Mallah On The 2024 Housing Bubble, Getting Rich, & Going Broke

Added: Nov 27, 2023

Mallah talks about his experience with cigarette smoking and the addictive nature of nicotine. He shares that he has been smoking for 45 years and has clear lungs, despite the health risks associated with smoking. He also discusses the fear of death and the impact of aging on his mindset, as well as the importance of protecting and providing for his family in the future.

The conversation then shifts to Mallah's real estate investments, including his focus on necessity real estate such as retail, food, and services that cannot be easily replaced by online alternatives. He also discusses his experience with hotel investments and the impact of the COVID-19 pandemic on the hospitality industry. Mallah emphasizes the importance of timing and strategic decision-making in real estate investments, as well as the use of 1031 deferred tax exchanges to grow his portfolio.

The discussion also touches on the topic of inheritance and tax planning, with Mallah sharing his thoughts on the potential tax burdens and strategies for passing on wealth to future generations. He also discusses the impact of variable interest rates on his investments and the importance of making informed financial decisions to mitigate risks.

Mallah emphasizes the importance of making adjustments in the face of challenges, but acknowledges that many people are unable to do so. He highlights the reluctance of individuals to make capital calls or invest more money into deals, which can make it difficult to navigate through tough times, especially when involved in a group.

He predicts that there will be an increase in bankruptcies and foreclosures in the coming year, as many loans are not performing well. Mallah explains that commercial loans typically have shorter terms, which means that borrowers are exposed to the current market conditions when their adjustable rates kick in. This can lead to a decrease in property values and make it difficult for owners to sell their properties at the prices they had anticipated.

Mallah also discusses the impact of the current administration on the economy, expressing his belief that the economy was in a better place before the current president took office. He attributes the previous economic stability to lower interest rates and tax cuts, which he feels were beneficial for businesses and the overall economy.

He also touches on the challenges of the insurance industry, particularly in states like California and Florida. Mallah explains that insurance companies are facing increased costs due to natural disasters, property damage, and rising construction costs. This has led to higher insurance rates, making it more challenging for individuals in the real estate industry.

In terms of the rental market, Mallah notes that rents are staying steady, but they are also expensive. He observes that many sellers are choosing to rent out their properties instead of selling, as they are able to generate income and cover their expenses while waiting for better market conditions.

Mallah also discusses the impact of institutional investors, such as Black Rock, on the real estate market. He mentions that many of these investors are now selling off their properties, as they are not generating the expected cash flow. This has created opportunities for individual investors like himself to acquire properties at discounted prices.

He remains focused on finding solutions and making strategic decisions to improve his position. He emphasizes the importance of being proactive and making logical decisions to address the issues at hand. He also highlights the need to protect the interests of his children and ensure that they are set up for success in the future.

Mallah discusses the significance of maintaining peace and getting along with others. He suggests that if someone is causing problems, it is best to distance oneself from that person. He emphasizes the need to focus on positive aspects of life and to avoid associating with individuals who disrupt peace. Mallah also shares his views on the mob mentality, stating that he does not condone violence and prefers to stay away from criminal activities.

He also talks about the importance of money in solving problems and making decisions. Mallah believes that money can be used to resolve personal matters, such as disagreements or conflicts. He gives an example of using money to settle a dispute or to provide financial support in certain situations. He also discusses the role of AI in modern technology, including its use in creating content and solving problems.

Lastly, Mallah shares his personal experiences, including his time in the mob and his approach to managing relationships. He discusses how he met his wife and the challenges they faced together. He emphasizes the importance of finding common ground and working together to overcome disagreements.