Bob Evans SVP, Industry Relations | realtors.com
Ben Mallah, a self-made real estate mogul known as the "$500 million man," has shared insights into his successful property investment strategy. Raised in Queens, NY, Mallah now resides in a $16.5 million mansion in Belleair Shores, FL, which is part of his extensive portfolio.
Mallah's investments span residential homes, apartment buildings, commercial shopping centers, and hotels. His journey began 30 years ago with the purchase of a former crack house in Oakland, CA. In an interview on "The Iced Coffee Hour" podcast, Mallah outlined his approach to building a robust real estate portfolio.
Central to his strategy is investing in "necessity real estate," which includes properties that offer essential services like grocery stores and hair salons. Mallah emphasized that these investments are less vulnerable to competition from online businesses such as Amazon. He stated, "I like retail that Amazon can’t hurt. Food, medical services, hair salons, strong restaurants."
Mallah avoids risky ventures like shopping malls and instead focuses on grocery-anchored properties and medical facilities for reliable cash flow. He explained his preference for retail that cannot be replaced by online alternatives: "I like food. I like necessity services like hair, nails, food, good strong restaurants."
His method for acquiring properties involves the BRRRR strategy—Buy, Rehab, Rent, Refinance, Repeat—which allows him to improve properties and refinance them after increasing their value. This process enables him to recover his initial investment tax-free while maintaining cash flow.
Mallah also highlights the importance of improving properties for business owners by making aesthetic enhancements such as fixing parking lots and roofs. Despite owning an eight-bedroom home valued at over $30 million on Realtor.com (though he estimates it at $25 million), Mallah claims he purchased it only because it was a good deal at half its original cost.
He revealed that he never intended to buy the house but did so because it was priced attractively due to the seller's circumstances. Although not on the market currently, Mallah mentioned receiving an offer from the Church of Scientology for approximately $29 million.
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