The Art of the Deal with Ben Mallah
Negotiating, finding creative deals, and building wealth in real estate
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This week’s article is a deep-dive into the $500 Million man Ben Mallah, distilling years of his insights on real estate, business, and adding value to people’s lives.
At first glance, Ben Mallah is one of the loudest and most abrasive personalities you would ever meet – but if you spend a little time listening to him, you’d realize that beneath the tough exterior, there’s a burning desire to add value to people’s lives and share his extensive knowledge of real estate. Ben’s rags-to-riches story is truly fascinating: Starting from a rough neighborhood in Queens, New York, and with little formal education to his name, Ben created a $500 Million real estate empire armed with street-smarts, creativity, and the grit to attack hard problems.
I recently got to sit down with Ben and unpack his journey. He had a lot to say about finding great deals in real estate, negotiating with people, and finding the opportunities that could take you to the next level. In this deep dive, you’ll get access to years’ worth of real estate wisdom and insights that could get you thinking, regardless of whether you’re a veteran or a beginner.
Let’s get started.
People are everything
Ben grew up in a terrible neighborhood that was under the influence of the mob. Coming from a broken household, his schooling experience was also disjointed, and he never set foot in a high school. Things got so bad around the age of 12 that he ran away from home and started living with friends. All this misery had a silver lining because it forced Ben to grow up very fast and get an education on his own. He had to hustle for a living and he began to understand what made people tick.
This included people of every kind and background:
Ben was a foot messenger passing messages and orders around for Wall Street traders in the 60s and 70s. (“There were no computers back then!” he growls)
He learned how to stay safe and out of trouble, around the Mob.
He got a job as a telex and fax operator for a design firm that worked with Ralph Lauren. Hanging out with designers, he started a side-hustle selling them what they needed.
He got into real estate when he was recruited by the army – GIs needed places to live, and he saw the need and fulfilled it.
At every turn, Ben studied what people’s incentives were, how he could help them, and how he could add value. What he missed at school, he learned on the streets.
How to negotiate right
Making deals is all about negotiating with other people – and if you learn it wrong, it’s a big setback regardless of what your career is. The wrong way to think about negotiation is that you are tricking or convincing the other person into believing that what you want is actually good for them. Ben discovered the right way to negotiate: Discover what the other person really wants, and what they are willing to compromise on. Then craft a deal they can’t say no to.
The first place Ben negotiated was in the courtroom. Hauled up for a misdemeanor at the age of 17, he had to prove that he intended to change or get locked away in jail. Instead of putting on an act or bargaining, Ben understood that what the State really wanted was for him to be productive and not a nuisance – If he could show that he was setting his life straight, he wouldn’t have to debate the judge. He called an army recruiter to his courtroom appointment and confirmed that he was joining the army if the judge let him go. The show of intention convinced the judge.
Even in his first few gigs as a real estate agent, Ben would always make the deal irresistible. His boss was a wealthy man who needed someone to manage his properties, make him money, and save him time. Ben on the other hand had all the time in the world and a hunger to learn and build a track record. It was the perfect fit because there was never any conflict of interest.
Always find what’s most important to the other person and frame your deal to appeal to those interests.
Where to find opportunities
If Ben has a killer YouTube channel at his age, it’s because of his drive to learn continuously and better himself. One thing that Ben discovered early on is that the real opportunities are found where most people are not willing to go. When Ben was posted in Germany through the army, all GIs wanted a place to live, but nobody saw the opportunity. Ben studied the area, found landlords willing to rent their place, found a middleman with whom he struck a deal, and started making money. He continued this track record when he was posted in Oakland, California, where he stayed on even after leaving the army.
The next step was to leverage his past experience – like Ben says “When something works in life, keep doing it.” Using his track record of finding real estate deals for the army, he got close to a real estate manager who owned a lot of property reserved for Section 8 housing. The manager found it difficult to deal with the tenants and do the legwork of inspecting and fixing up houses, but because of his experience on the streets of New York and in the army, Ben was able to handle all the work that his boss found unpleasant. As a bonus, he also got to accompany Section 8 housing inspectors on their visits and became an expert by studying them and asking questions.
Ben made himself indispensable to his boss. Later, when Ben went into business himself, his manager was his first partner, and his expertise in Section 8 housing let him find and buy deals that nobody else was willing to touch.
Scarce information, on-the-job experience, and long-term relationships go a long way.
In the 2000s, when real estate crashed, Ben really came into his element, finding deals and doubling down at a time when nobody else was willing to touch real estate. Read on to find out:
How Ben manages his money to minimize his tax liability.
How he pivoted from residential real estate to other innovative areas.
How to select the right kind of deal based on the location.
What a young real estate agent can do to get started in real estate.
Why he looks for deals even when treasuries are the safest option now.
Some of these insights were revelations even to me, despite my decade of experience with real estate…