Summary of "The Iced Coffee Hour" Episode: “I’m Selling Everything!” Why Ben Mallah Is Cashing Out Of Real Estate

Release Date: June 1, 2025

In this compelling episode of "The Iced Coffee Hour," hosts Graham Stephan and Jack Selby engage in an in-depth conversation with real estate mogul Ben Mallah. The discussion centers around Mallah's unprecedented decision to exit the real estate market, providing listeners with valuable insights into the current housing landscape, investment strategies, and personal philosophies on wealth and success.

1. Current Real Estate Market Standstill

Ben Mallah opens the conversation by addressing the turbulent state of the real estate market. Highlighting a surge of homes for sale in the U.S., he states, "We're at a standstill. You can't even sell it or break even. All these newer buildings right now, homes." ([00:06]).

2. Rising Interest Rates and Loan Challenges

The discussion delves into the impact of rising interest rates on real estate investments. Mallah emphasizes the strain higher rates place on profitability: "Because your four is now a seven plus and they can't handle that. And then who wants to own real estate where you have no cash flow anyway?" ([07:17]).

3. Ben Mallah's Investment Strategies

Mallah shares his approach to navigating the challenging market, focusing on diversification and strategic investments. He explains his shift towards municipal bonds, comparing them to real estate: "I'm always looking at a property. Is this place making me money or if I sell it...put it in tax-free muni bonds?" ([17:19]).

4. Institutional Investors and Market Trends

The hosts and Mallah discuss the influence of institutional investors, who tend to favor low-cap rate investments: "Who wants to own a 50 or $100 billion asset and have all that responsibility... it's stupid, okay?" ([05:11]).

5. Homeownership vs. Renting: Advice for the Average Person

Addressing the general public, Mallah offers pragmatic advice on homeownership: "Rent a property right now for less money... I would suggest you wait." ([08:26]). He underscores that homeownership should align with individual financial stability and risk tolerance.

6. Impact of Tariffs on the Housing Market

When questioned about the effects of tariffs, Mallah dismisses their significance in real estate: "Tariffs is just political... It's a way to play a card." ([11:55]). He suggests that while tariffs may influence the cost of goods, their direct impact on real estate remains minimal.

7. Leveraging YouTube Presence for Real Estate Deals

Mallah discusses how his YouTube visibility aids in securing real estate deals. He notes, "If people know who I am, then I can get a lot more transparency in the deals really." ([22:55]). This exposure enhances his credibility and facilitates smoother negotiations.

8. Family Involvement and Succession in Business

A significant portion of the episode explores how Mallah involves his family in his business operations. He describes training his children to manage large properties: "My kids run everything... they'll take over that and they'll take over that and they'll take over that and they'll make money." ([25:01]). This strategy ensures business continuity and instills a strong work ethic in the next generation.

9. Philosophies on Wealth and Happiness

Mallah reflects on the relationship between wealth and happiness, asserting that financial stability significantly enhances quality of life: "It's a lot easier living with money... you don't have to worry about paying your bills." ([30:19]). However, he remains cautious about excessive wealth, emphasizing moderation and practicality.

10. Tax Strategies: The Importance of 1031 Exchanges

A critical element of Mallah's strategy involves utilizing 1031 exchanges to defer taxes and reinvest profits: "The tax system that we have forced me, pushed me to never touch the money and roll it into the next deal." ([72:21]). He staunchly defends the 1031 exchange, viewing it as a cornerstone of his real estate success.

11. Negotiation Tactics in Real Estate

Mallah shares his aggressive negotiation techniques, often offering significantly below asking prices to secure deals: "On average, I'm offering about 25% less than what they're asking." ([22:28]). He believes that effective negotiation is purely a numbers game, devoid of personal emotions.

12. Wealth Inequality and Capitalism

The conversation shifts to broader societal issues, with Mallah expressing strong support for capitalism and the potential for wealth accumulation: "If people are getting wealthy legally, that's what it's all about." ([73:15]). He argues that individuals have the power to improve their circumstances through strategic investments and hard work.

13. Legacy and Educating the Next Generation

Mallah emphasizes the importance of leaving a positive legacy by educating and mentoring others. He shares stories of individuals whose lives were transformed through his guidance, underscoring his commitment to impacting lives beyond his own financial success: "Teaching people is very important... I get the satisfaction I get when I can entertain and help people." ([74:26]).

14. Final Reflections and Future Outlook

In concluding remarks, Mallah contemplates the future of real estate and his personal strategies amidst changing market dynamics. While he acknowledges past opportunities he might have leveraged differently, he remains focused on practical, informed investment decisions: "You can't beat me down. But could I have done more? I could have leveraged a lot more stuff that I did." ([94:11]).

Notable Quotes:

• Ben Mallah ([00:00]): "We've been delaying. We've been praying. Eventually, the music has to stop."

• Ben Mallah ([07:17]): "Because your four is now a seven plus and they can't handle that. And then who wants to own real estate where you have no cash flow anyway? That's stupid."

• Ben Mallah ([08:26]): "Rent a property right now for less money... I would suggest you wait."

• Ben Mallah ([22:28]): "On average, I'm offering about 25% less than what they're asking."

• Ben Mallah ([30:19]): "It's a lot easier living with money... you don't have to worry about paying your bills."

• Ben Mallah ([72:21]): "The tax system that we have forced me, pushed me to never touch the money and roll it into the next deal."

• Ben Mallah ([73:15]): "If people are getting wealthy legally, that's what it's all about."

• Ben Mallah ([94:11]): "You can't beat me down. But could I have done more? I could have leveraged a lot more stuff that I did."

Conclusion

Ben Mallah's candid discussion provides a multifaceted view of the real estate industry's current challenges and opportunities. His strategic shift away from traditional real estate investments, emphasis on tax-efficient strategies, and dedication to mentoring the next generation underscore his adaptability and forward-thinking approach. Listeners gain valuable perspectives on navigating a stagnant market, the importance of diversification, and the enduring value of real estate as a reliable investment. Mallah's insights serve as a guide for both seasoned investors and newcomers aiming to thrive in an evolving economic landscape.