This is the artificial intelligence voice of Graham Stephan narrating this pod slice summary of the Iced Coffe Hour Podcast.

Speaking candidly on the Iced Coffee Hour Podcast, real estate mogul Ben Mallah shared his profound thoughts on his life journey, lurking fears of mortality, and the integral role of real estate. Admitting his lifelong smoking habit, Ben underscored the negative impacts, attributing any perceived enjoyment possibly to nicotine addiction. He stressed that although he hasn’t faced serious health consequences from smoking, it didn’t mean the habit lacks potential damage. Citing personal examples, Ben noted that even non-smokers can get cancer, emphasizing that the disease is unpredictable.

As the conversation shifted towards age and mortality, Ben confessed his fears around friends aging and dying. His witnessing this inevitable process has triggered contemplation about his own mortality, the imminence of death, and the existential dread it carries. He shared his concerns about his family’s future without him, drawing attention to the importance of setting up solid protective measures for loved ones.

Explaining his career trajectory, Ben recounted his less than privileged beginnings in New York City, where he was surrounded by criminal atmosphere. His turning point came when he joined the army, which provided the structure, discipline, and a way out from his turbulent surroundings. The army experiences, he said, gave him a new perspective on life, work, discipline, and relationships. During his last army year, living off-base in Germany, he began his real estate journey, hustling by linking soldiers in need of off-base accommodations with housing providers.

On returning to the States, he kept the momentum going, starting small – picking up garbage around an apartment building, after which he became hands-on in property management. From rental collections and tenant sourcing to property repairs, he learned valuable lessons about maximizing income and minimizing expenses. He underscored the fundamental simplicity of the real estate – providing a place to live/work in return for rent.

Drawing on his half-billion-dollar real estate experience, Ben urged everyone to have real estate as part of their lives, citing its importance and potential returns. He cautioned that though one might not become a ‘big shot’ in the industry, the effort put into it will reap dividends.

Transitioning from casual interest in real estate to a business mogul, Ben credited his first business partner and owner of his then residence – whose lifestyle of luxury opened his eyes to the potential of real estate. He climbed up the ladder by making himself indispensable, making more money for his partner by finding innovative ways with real estate.

In this part of the podcast, real estate tycoon Ben Mallah demonstrates his shrewd business acumen and understanding of market trends. He reveals how his partner and mentor inspired him, despite coming from a financially comfortable background, to strive even harder and achieve more. Ben recognizes that learning the ropes of the banking sector and smart real estate management were key skills that catapulted this partner to success, irrespective of his inherited wealth.

Diving into the intricacies of the real estate industry, Ben identifies its simplicity at the core. He notes how real estate revolves around basic math and the principle of supply and demand. He argues against building or buying properties in areas of low demand, currently exemplified by office spaces due to the rise in remote working.

Ben lays out his current portfolio detailing his primary investments in ‘necessity real estate’ or ‘essential real estate’, which includes sectors like food, hair and nail services, medical, and some retail stores; all of which cannot be supplanted by online realms like Amazon. He also includes in his portfolio discount department stores like Ross and TJ Maxx, as the discounts lure customers into physical stores.

However, he is cautious about investing in large department stores or shopping malls due to the jeopardy posed by the online market. Strongly advocating for careful selection of assets, he shares his experience of selling a corporate hotel due to empty surrounding office buildings which meant a significant drop in potential consumers.

He further speaks about the modality of his hotel business, focusing primarily on affordable and accessible locations, which are listed on his website Ben’s Hotels. As competition from Airbnb has affected his hotel business, he advises careful consideration before investing in Airbnb’s, alluding to unpredictable changes in local rights to rent.

On the subject of offsetting losses, Ben highlights the importance of realistically assessing the property’s worth and projecting its future. He discusses his own experience selling stocks at a loss in order to offset gains and save on tax payments. Stressing on the importance of logical reasoning in every investment decision, he also hints at his strategies for leveraging high-value assets to acquire loans.

In this segment of the podcast, real estate mogul Ben Mallah delves deep into the practical aspects and complexities of tax strategies, real estate markets, and the impact of interest rates on property values.

Emphasizing the importance of the 1031 deferred tax exchange in amassing his wealth, Mallah explains how improving and increasing the value of a property can lead to refinancing and pulling out money, which is a non-taxable event. He suggests this strategy as a way to still cash flow and have leftover funds for other investments. He acknowledges that while he maintains a cash flow from the properties, the ultimate goal is to maximise value and recoup investments.

Contrary to common belief in the continuous appreciation of property value, Mallah warns against the potential decrease of property value due to unrealized gains and higher taxes if the property is sold without reinvesting the returns into a like-kind exchange, especially when the real estate market is high. In the case of his portfolio, if he sells a property for significantly higher than its basis, he could face a hefty tax bill on the gain which may eventually spur him to finally pay it off.

While Mallah shares how through the 1031s and swapped properties, there is a way to avoid such tax burdens and facilitate growth in his portfolio, he also acknowledges that this might present significant tax burdens down the line if not carefully planned. Recognizing this potential risk, he is considering possible implications and potential strategies to offset these potential losses, including trusts and stepped-up basis at death. He advises listeners to seek advice from the right trust attorneys to navigate these complexities.

Ben Mallah also dwells on the subject of fixed vs. variable interest rates and how it impacted his assets. He spoke about how he opted for an adjustable loan, also known as variable rates, which was advantageous until the interest rates rose. Now, his properties are subject to the current market and have decreased in value due to increased interest rates, which affected his return on investment.

Outlining some of the challenges he foresees for the real estate market, Mallah predicts a significant correction and possible foreclosures, particularly for those who cannot adjust to this shift. He advises listeners to be ready with their cash to seize the opportunities that will inevitably present themselves.

As an experienced industry player, Mallah highlights the need to analyze every single scenario in one’s portfolio and consider the benefits and drawbacks of each move. Whether it’s anticipating market corrections, varying interest rates, or evaluating tax implications, the ultimate aim should be sensible decisions that generate revenue.

The discussion then shifts to discussions about how the Federal Reserve’s policy decisions, particularly on interest rates, might affect property values and investor strategies. The hosts express their concerns about whether anticipated market corrections will materialize and how these changes will affect cap rates and property values. Mallah reassures them that market dynamics, while delayed and unpredictable, will inevitably follow a logical path. He predicts that bleeding in commercial property markets is imminent, and once it starts, the implications could be significant.

As the podcast continues, Ben Mallah dialogues on the cyclical nature of real estate, stressing the importance of timing and market awareness. Currently, he notes an influx of high-value assets appearing on auction platforms, with hotels as a prime example, due to a lack of spending capability. Notably, he spots future opportunities in the Hotel sector as prices are low, although the associated risks are high.

Mallah also provides a perspective on the present political climate and its influence on the real estate market. While refraining from claiming economic expertise, he remarks on perceived differences in the national state before and after the current U.S. president’s term, pointing towards the direction of interest rates and global peace.

Promoting the importance of financial literacy, Mallah advises listeners to run an “internal audit” on their assets. He emphasizes the necessity to scrutinize projected costs and potential profits of properties – an approach he’s adopting on his 25 different assets, which dramatically vary in worth.

The conversation then turns to budgeting and saving during these unpredictable times. Advising the young demographic (18-35 years old) to be smart with their resources, Mallah recommends acquiring a real estate license to gain commissions from potential property transactions, even as a buyer.

Further elaborating on the real estate business, Mallah cites the ongoing class-action lawsuit on commission fixing, voicing his confusion over the alleged conflict as listing agreements and commissions have always been negotiable.

In closing, Mallah’s advice centers on transparency – encouraging property sellers to demand a complete financial breakdown of potential deals from their agents. This enables better negotiation and, ultimately, a transaction that aligns with the seller’s expectations.

However, as Mallah further considers his mortality and the eventual end of a career marked by wealth accumulation, he suggests a shift in focus towards something potentially more significant. The exact nature of this anticipated shift remains undefined, leaving listeners anticipating further guidance based on Mallah’s extensive life and career experience.

In this portion of the podcast, Ben Mallah dives into the complexities of managing wealth and preparing for retirement. He discusses the importance of ensuring that his wealth is not only enough for him to live comfortably, but that it will also be a source of support and growth for his children, all of whom have their own ambitions to foster wealth.

Mallah emphasizes the need to set them up for success, explaining his intention to incorporate them as partners in his best long-term assets. He suggests that the certainty of income from these assets would remain unchanged even after his departure. These plans involve a detailed legal process, which he’s currently conferring with experts on to ensure an optimal setup.

Interestingly, Mallah observes the need for quality insurance, commenting on the doubling of rates in Florida due to the extensive damage from hurricanes. In this high-risk context, he advises aspiring real estate players to carefully consider the costs and risks associated with the sector.

Mallah also laments the state of the legal system regarding insurance claims, pointing out that the speed at which insurance companies settle claims leads to increased fraud and massive payouts. He shares a personal experience of settling a slip and fall claim for half a million dollars, emphasizing the need for genuine claims but argues that the current system is out of control.

The dialogue then turns to the current state of the real estate market, where Mallah notes the stark changes. He reveals that he has been able to secure purchases for 30% less than what the price would have been six months to a year ago due to the absence of a market for the properties he’s purchasing.

He continues to stress the importance of diligence when finding deals to invest in, especially in real estate’s volatile market conditions. Mallah shares his ability to compete with large real estate trusts and corporations because he can make decisions without having to report to any boards or lengthy approval processes.

Addressing recent property tax changes, Mallah discusses how dealing with increased insurance rates and considering whether to keep or sell a property at a discount now contributes to decision-making in the real estate business. Such conditions reemphasize the need for careful strategy and planning in the industry.

In the latter part of the podcast, Mallah turns the discussion towards handling stresses and challenges in life. While admitting that stress often comes with his line of work, he focuses on finding logical solutions to problems, rather than dwelling on the issues.

In dealing with relationships, he illustrates a clear-cut approach – if one is unable to get along with someone, whether in personal or professional life, it’s best to distance oneself from them. Mallah gives an account of doing this quite often when necessary, even with family members, not because he harbors any ill feelings, but to maintain peace in his life.

An interesting part of the discussion arises when Mallah addresses cutting off negative people from his life, a practice he considers mandatory for progress and peace. The focus, according to him, should always be on staying away from negativity and on improving oneself.

Mallah ruminates on a unique idea when questioned about emotions and egos impacting decision-making. He opines that while people make mistakes, the severity of these errors and the willingness of the person to correct their ways matter significantly. This especially rings true for him concerning relationships where the person does not share similar interests or has a detrimental effect on his life. While he values friendships and relationships, money doesn’t factor into who he chooses to befriend or associate with.

Continuing the conversation, Mallah candidly shares experiences from his young days when he was tested by the mob. However, he couldn’t conform to their violent collection methods and chose to sever ties. When asked about any of the mob mentality that might have seeped into his current life, Mallah admits that while the mob taught him how to deal with people across social stratas, he bears no trademarks of a bully. The mob experience ultimately led him to learn the importance of empathy and approaching every disagreement with a mindset of finding common ground.

As the discussion winds down, Mallah talks about the modern world, underscoring the alarming rise in violence. Observing the increasing prevalence of conflict, he expresses deep disbelief about the continued prominence of violence in today’s technologically advanced world. Mallah ends by emphasizing the need to find peaceful solutions and common ground to resolve differences, stressing that aggression has no logical place in our society today.

As they delve deeper into the conversation, Mallah speaks at length about the role of artificial intelligence (AI) in today’s world. He expresses awe at the rapid advancements in AI and talks about its potential for both useful applications and concerning outcomes. Mallah’s conversation underlines the transformative power of AI, acknowledging its potential to replicate human conversation and mimic authenticity, as evidenced by having the entirety of one of their podcasts transcribed and spoken by an AI with surprising clarity.

Additionally, they discuss the intriguing practice of using AI for outlandish applications, like recreating someone’s face and voice in a video when they never actually said the words scripted for them. This notion stirs up a plethora of ethical, professional, and existential questions that they navigate through with tactful humor and lively debate.

Continuing the dialogue, Graham and Mallah move on to discuss relationships. The conversation reveals Mallah’s candid views on dealing with relationship issues logically. His method of addressing problems, however, doesn’t yield the best results when it comes to personal relationships. Drawing from personal experience, he talks of how logical and rational problem-solving often upsets his partner, suggesting that logic and emotion often operate on different wavelengths.

Mallah then delves into his personal relationship with his wife of 20 years, admitting that they are opposites in every way. While his wife lives a younger, activity-filled life, Mallah acknowledges his lifestyle is completely different. Despite their stark differences, they find common ground, enjoying activities like boat trips, dinners, and parties together. They establish a mutual understanding where both respect each other’s realm without intruding, sustaining a harmonious relationship.

In a candid admission, Mallah acknowledges that when it comes to relationships, the easiest way is to “just agree” with his wife unless it’s something serious or could cost him a lot of money. This balance and acceptance of differences seem to be the glue holding their relationship together despite their stark contrast in personalities and interests.

This fascinating conversation reveals insightful details about the intersections of technology, personal relationships, and the constant struggle to strike a balance between logical thinking and emotions.

In this continued dialogue, Ben Mallah shares the story of how he met his wife. His narrative is filled with anecdotes of their shared journey – from toiling together to reach common goals to raising children from previous relationships. A defining moment in their bond was when they revitalised a dilapidated 14-apartment building in Oakland, California, which Mallah purchased in foreclosure. This recount paints a picture of a dynamic duo overcoming steep odds to create and build their legacy.

Mallah’s wife and her family were living as caretakers in this rundown property when he bought it. They became an integral part of the renovation, with every family member participating – fixing roofs, painting apartments, and cleaning. The degree of their joint efforts had implications beyond the renovation; it also fostered a deep connection between Mallah and his wife’s family, culminating in their marriage.

Their shared journey from poverty to prosperity forms the basis of their relationship. Mallah humorously notes that he is the one who acquires wealth while his wife specializes in spending it. They approach their dynamic with humor and understanding, exemplifying a relationship built on give-and-take, mutual respect, and shared experiences.

Regarding disagreements, Mallah says they are inevitable, possibly over whether to buy a $6 million yacht or find a bargain. However, they always manage to find middle ground. This understanding perhaps became more significant when we understand their fundamental differences – she’s a party girl who enjoys margaritas while he’s a teetotaler who prioritizes sleep.

Influence on lifestyle preferences extends to health and diet as well. While Mallah acknowledges he needs to maintain a healthier diet for his sake and his wife’s, their dynamic shows that disparity does not undermine the relationship – it enriches it.

Moving the focus on his professional sphere, Ben presses on the importance of being well-prepared, especially in the field of real estate. He suggests that now would be an excellent time to explore potential deals, propose lower prices, and be ready for any opportunity that comes by. Having highlighted his personal and professional experiences, Ben concludes the chat reaffirming the need to tackle every challenge with readiness and resilience.