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welcome back to another episode of the meat Kevin show we are here in Clearwater Florida with one and only in belir sure get it right Bill oh hey you're about to see me visit a Ben Mala but before we confront a Ben Mala I got to remind you today's the expiration of uh the coupon for the amazing programs on building your wealth so if you like my perspectives check it out via the links down below you get the best price guaranteed need a bundle code send us an email at Kevin meetkevin.com and we'll take care of you thanks so much remember you get lifetime access paying once you get access to me and all of our live streams linked below Daddy I thought the Boy Scouts went bankrupt what are you selling cookies you're actually here in in in the presence of somebody that actually really knows real estate hey how's that flip going that $12 million man not good you today's your lucky day oh you're to buy a $12 million house for only 99999 I'll tell you what 9 million right now cash that's a steal what a cheap skate big fancy Jess he's got the six Dwarfs with him and he won't buy mying house after I took [ __ ] recommendations so some of them the ones that weren't expensive I painted all the crown molding oh nice you left the kitchen no the kitchen was fine what's the matter with the '90s you were born in theing '90s weren't you remember are you here on a undercovered secret mission you now working forestine organization we're the FED boys yeah here to investigate set up Grant Cardone just landed at your airport his plane was there when I took off yesterday oh okay it's broke down is it I don't know how you guys been lousy why fed because you miss the brilliant when you came here how long ago was that me yeah if you would have said Ben if you don't listen to me about anything please fix your [ __ ] rate but you didn't you didn't [ __ ] do it and now I got to pay $6 million a year more in interest on 200 plus million dollar if I would have been happy at three even though I was at two if I was at three that's 6 million a year right 3 * 2 is six shorty that's 6 million a year I was paying I would have been happy even though I was really only paying it about four but I would have been happy at three I could have fixed it now it's 6 Plus per that's $12 million a year in interest I need 500 Grand a month out of my pocket every month to give to the bank but you got tenants can't raise the [ __ ] rents they're in leases they're not going to pay for it they'll pay the extra tax bills on on the property taxes and all the cam they ain't going to pay to [ __ ] bank for me so I'm [ __ ] how is a hotel they coming back but they ain't makeing enough to pay that kind of money to help and then what I got you know High Cost of Living here high maintenance wife big fancy house I'm selling every [ __ ] thing right now I I swear to God today I went to the [ __ ] dealership he's taking my cars to the auction the water car take it to the [ __ ] auction the Batmobile next week There's an auction to you should go there you can buy my Batmobile you can buy my water car and you can buy Bob Hop's car if you remember who he was he was here I'm selling everything I can get rid of it I need money baby can you loow me 200 million right now 3% absolutely hey Jerome I need a cigarette so why are we here today can anybody tell me interview you you guys are just [ __ ] bored hey let's take the jet over to clear water and go visit Ben is that what you guys do all day just wake up say hey what are we going to fly do today last year been okay otherwise outside the market outside the market no I'm sorry my life is tied to cash flow yeah and the cash flow is low low so what's your plan my plan raise cash buy down debt it's the only thing I can think of well start liquidating other assets that I have you know it's not like you know I'm 100% real estate I got stocks I got bonds I got liquidate first and are you going to cover are you going to liquidate the real estate to cover the bonds and stocks or you're going to liquidate the stocks and bonds to cover the real estate a little of both gotta it's called balancing a portfolio look at the assets that are not performing well do you have any go everything is Diversified in my life we have everything so but then that's system we got stuff that was a long shot or we got H where's Minaj he knows about this [ __ ] we got we got Investments that you know are higher risk that are doing very poorly right now we have taxfree munity bonds that took about a 10% hit we've got things that are tied to interest rates uh that have taken a big hit um you know but basically we're looking at everything that does it pay to keep it or does it take automatically if I go and buy down debt that's saving 6% yeah of course yeah so if I have something that's not making 6% of course let me take something at 4% and convert it to something that's going to help me save 6% that makes sense but you have to look at a lot of different aspects of it what am I saving on taxes because if I go and buy down $10 million worth of real estate well yes I'm saving 6% but after you write off the uh the interest yeah the interest it's not really 6% you know getting a savings by writing off the interest it has to do a depreciation right now I'm looking into doing accelerated depreciation cause segregation things that can help me so it's a matter of taking all these pieces and trying to put together a puzzle where all the pieces fit welcome back to another episode of the meat Kevin show we are here in Clearwater Florida with one and only in belir get it right bill it's off on you you do the int where are we we're in we're in Florida and we've got Ben Mala here so Ben tell us how has the last year been since we went tubbing together number one I had empty the water in a tub twice I didn't want to make take no chances basically the last year sucked for me because you know I wasn't smart enough to you know see the future and lock in my rate and every single month your wonderful government has been increasing the rates so they increase the rates I pay more to the bank and get less money so basically the past year has probably been one of the most stressful Worst Years in my career wow how does this compare to 2008 and last session 2008 was uh a rough time but the thing was in 2008 it was a great time if you had money to buy right now see it's okay when you have bad times cuz the bad times actually can be good times 2008 and n and 10 were actually good years for me because I had cash and I could go out and get Bargains now things are really bad but there's no Bargains I'm waiting for the bargains it wouldn't be so bad if I lost 10 million bucks here but I go make 10 million bucks over here but that's not the case I'm just losing I'm not losing and winning now you're watching the market Market every day especially hotels retail strip malls what what are you seeing are you seeing those prices come down but not the bargain levels or what's going on I'm seeing things slowly come down cap rates have increased okay a year ago you couldn't touch a Starbucks unless it was in fours wow yeah now I've seen him in the sixes oh wow yeah so cap rates have slowly come up especially on the uh real trophy assets all the four caps and now five caps the five caps and now six caps six caps now seven and let's not even talk about medical marijuana or it's it's it's what do you call it where you're at um recreational right oh right now yeah exactly here in Florida it's all just Medical but they popped up everywhere so the Market's been flooded I'm looking at them at 10 caps oh wow yeah you get 10% your on your money right now for medical marijuana place and so for the folks watching cap up price down right cap up price down uh and is that because uh are you seeing sellers that are stressed water or even the recreational is the banks can't loan on them and only certain banks will loan on them and the terms I'm sure aren't that great so you know those assets are really paying a high return right now would you buy any no the reason why is because I was going to rent a one but I decided not to because that's going to drive my cap rate up which is going to reduce the value of my property if I take a five cap property or six cap property by having a KFC or something like that in there and I put a medical marijuana place in there and that drives it to a 10 cap then that screws up my whole value so the medical marijuana facilities here are actually devaluing a center yes they devalue if you have one right now wow wow and now what what are you looking for in the market right now I know you're iing it sounds like some properties to others but then you have the tax implication so what where's the world have been we're all buying we're always buying selling you know building stuff my son's building a brand new building in an Al parcel right now you know he's spending about a million and a half bucks it should be worth 4 million after he gets it done and rented uh we got some more rooms we building out at John's Pass uh some you know retail that we had we're turning them into hotel rooms we're selling hotels in Fort laale where you know we're doing we're always doing different stuff so why are you selling hotels right now is it rates every asset is different the reason why we're selling a hotel is because hotels are not real estate hotels are a business and it's very hard to run a business that's 250 miles away now we can easily run the hotels around here cuz we're here okay so I don't want to have a business that's so far far away from me reaching it so we're going to get rid of that one focus on hotels just in our area we got shopping centers that we're improving right now we're doing build outs for tenants um and we're trying to increase the value there by cutting out our Parcels building on on them but if we reach the maximum ability to add value to a property then we look at selling it because we already did everything equ with the property now we're sitting back in okay return well okay return is not just okay for us we want some fat on the bone you know so we can keep growing and making more money of course yeah what uh what's your favorite right now if if you had to pick between residential hotels retail office I mean I'm not seeing any movement in the multif Family Market apartment buildings is still selling at ridiculously low cap rates or offer the debt price right at today's interest rate it makes no sense I'm not going to buy an investment at a six cap if I got to pay the bank six % interest yeah okay especially take it on all that liability and all that responsibility and then multif family should stay strong mainly because we're at an all-time low with homeowners or or Home applications Home Mortgage applications if people aren't buying houses that means the rental Market's going to stay strong interesting so do you think uh but then again you're deal dependent so you're really just looking for where's the right number and and right now you're not really seeing that why would you get into Hotel right now do you see a lot of really expensive hotels are based on location yeah number one a lot of hotels couldn't make it through Co well yeah even though they bouncing back now I was strong enough to withstand the pain during covid a lot of people weren't and now it's all unraveling okay we were looking at uh guy works for me just met he went to New York City which I would never go to but because people are are going Belly Up so bad it's worth looking at I mean you know there are people getting office building are getting crushed crushed nobody else Office Buildings I wouldn't buy an office building would you buy an office building no because it's too hard to convert to anything else and there's no demand you know the one thing Co taught everybody is you ain't got to come to work you know in fact they prefer employees stay at home as long as they get the certain work productivity out of them they going to save a watching overhead expenses so Office Buildings are getting crushed they can't fill them they're renegotiating all their leases for Less space at less rent so I wouldn't touch Office Buildings hotels are strictly based on location if you're in a good location then you'll do well but a lot of guys couldn't make it for two years and they got bled and now they just at the point where they can't make a deal with the bank and they got to throw their hands up so multif family there's no Bargains out there from what I've seen you know still a high price to pay per unit uh homes are coming down now may be a good time to uh come in there and start lowballing everything you know absolutely what are you seeing with employees and construction costs construction cost have come down somewhat materials and shipping okay but labor is definitely staying up and going up so construction you got to be very careful right now we thought we're going to build that building for about a million bucks by the time we're done it's going to cost us a million and a half why do it now why not wait maybe until more pain I mean you know I don't think it's going to get any better with construction wages are going to have to keep going up because when you go and buy a sandwich today and it cost you15 [ __ ] dollars pardon my language people can't afford it of course they want more wages you can't go to a restaurant now it's ridiculous you go to a grocery store I was tell I'm telling my wife as as wealthy as you think we are which we're fairly wealthy I'm actually me looking online how much the [ __ ] price of eggs cost because she spent $7 on a dozen eggs there used to be a dollar I told her no you got to go to Walmart and get them for $3 now it's crazy I don't know how people can afford to live yeah rents are up food is up everything's up how's your partner or except you probably how is your uh the restaurant that's your wife's problem your f you're um you had a good friend that we flew with to the swamp up north he has a restaurant multiple restaurants how's he doing he's doing good you know why because he's made a lot of adjustments and I know I ate in one of his restaurants the other night I had a $500 bill oh Lord okay you know what he did he raised the prices and he cut down the portions but he said it's because the cost of food went up to him his labor cost are up his food cost are up and let me not even talk about insurance my insurance agent is probably going to get physically hurt when he comes to see me the next day or two because and I can't blame him but I got to beat somebody up Insurance prices are gone through the roof especially in Florida you better keep that in mind before you buy anything in Florida if you're going to have insurance you better get a quote because insurance companies you know they take somewhat of a hit when we have a hurricane well now we all got to pay for this hit that they took for the hurricane so insurance companies are trying to double the price of insurance right now goly I I there are some rumors of maybe insurance companies even collapsing here in Florida what's going on with that same thing I don't know luckily the insurance companies ideal with I think are international okay you know so I don't know I don't really deal with anybody on a local level but I'm sure it's happening but you're seeing rates double rates are doubling I mean I I I was you for flood or just even regular homeowners mainly it's just you know all insurance that ensures any real estate yeah you know especially hurricane Insurance Wind you know and hail not hail but wind and uh rain or whatever uh flood that too that goes to a hurricane when you have a hurricane everything floods yeah exactly so are you seeing this just in residential or everything uh all across the board everything residential multif family uh retail centers liability is also up people are suing the [ __ ] out of everybody you know and uh driving the rates up now liability insurance ridiculous do you think maybe more lawsuits with tough economy or yeah whenever the economy is uh whenever we have inflation and people start getting desperate you start seeing lawsuits go up you see crime go up which also causes Insurance uh issues you know when when do you think uh sort of in in if you had a crystal ball where do you see this Market pain ending when when is the pain over Ben it's all tied to rates in my world as long as the interest rates keep going up everyone's going to feel the pain because people live off of lines of credit uh you know they're not going to run and get a he loock on their house now and buy stuff and fix up their house they're not going to go out and buy a house the same guy that qualified for a half a million dollar house a year ago now qualifies for $250,000 house and there ain't no $250,000 houses out there where he wants to live that are worth buying so it's going to be pretty rough you know they need us you know the interest rates can in my opinion control everything so you've really then felt every one of these increases is that because of variable loans in commercial real estate everything I had was a variable rate loan tied to what used to be liore then convert it to sofa then they have a Bisby rates all the same but the point is the banks typically I'm paying the money to the banks but in reality you can't really blame the banks because they get their point spread that you pay them it's still the same point spread in fact I made them lower it yeah it's the FED fund rates and there's a flip side to the banks yes I'm paying 6% plus interest now but when I was getting zero on a money market account account yeah yeah yeah I'm now getting 4 and a half% sure so the banks is it's you know it's a double edge sword you know with them what do you hear from uh or have you heard from any maybe banks that are even do you have tenants as Banks any banking tenants I used to Yeah well yeah I got I got a Chase yeah I got two I got two banks in attendant of M and shopping centers have you heard anything beyond what we're seeing on the yeah maybe even just your connections here have you heard anything about the banking crisis going on today you know obviously Sil Valley Bank yeah I was on the phone today with uh my banker that runs our uh investment account and gets me on my loans he was trying to sell I gave $12 million worth of um what do you call them CDs preferred oh yeah okay yeah Bank preferreds all right yesterday he was able to sell only a few hundred thousand of them at the price that we felt was acceptable to today he calls me says we can't sell anything wow okay because that one bank that got hit today in Silicon Valley it just it affects the whole Market that's the thing even though that bank may have a um what's the word individual problem you know bad balance sheet toxic assets they have their issues but it affects the whole Market yeah so everybody's maybe re underwriting Banks now it's like you know when something bad happens everybody says the sky is falling so everything falls apart what's your take how uh did do you think were we got to wait for it to blow over so this one bank had problems in Silicon Valley which that's where all the money's at but why is it Californians always messing stuff because Californians you were a Californian not by choice I was forced to be in a Califor the Army sent me there I was ordered to go there so One bank had some issues and then you know but the market looks at it as all the banks could be having a problem you know like what happened in 2008 but that's not happening again you don't think so no because everything that people I don't know what assets they were loaning on right but generally ever since 2008 the banks have gotten they've tightened up on their loaning lending and appraisals and and credit uh you know check of people for credit worthiness and you know they're not loaning money out like they were back then you know underwritings gotten here the money dead people getting loans yeah I mean it's a different market now they actually have actually watching who to give the money to one uh would you be uh getting into single family at all smaller deals I I'm it doesn't help or pay for me to do smaller deals yeah because I my it's just I can't I got 1031 that I just satisfied $90 million 1031 if I spend time on a little deal for a few hundred grand you can't get that done in the time frame you need and identifying it's a pain it doesn't really put a dent in my problem know and I'm still 10 million short uh for your 1031 so you still Lu hurricanes extended the time frame oh well that's good so I still got till June I was told to find another1 million deal I just bought a Holly Davidson dealers ship in Orlando for 13 million at a little over a six cap wow okay but I pay cash sure if I leveraged it that would make sense it would be a joke there' be no return I would be buying it I'd still help myself by deferring the taxes but it wouldn't be a cash flow is that your goal right now try to minimize taxes from some of those sales you're making in let's say Fort Lauderdale keep my taxes down by doing 10 31s deferring them and worry about my cash flow so tell us about that how has that changed over last year I mean I mean it's a war I'm fighting a financial War right now I never used to worry about how much I made every month now I have to worry because I'm now paying out a half a million dollars more than I used to have in my pocket wow now you said you're also selling the Batmobile I'm selling everything how much you want I sell that watch I'll buy it and sell it for you you know you can tap here and get all my contact info you call me anytime I don't think I want that but no right now you know you got to change when you're managing a big portfolio and you're managing a life with all kinds of big expenses like planes yeah and uh you know and and you know you got this house is got a I don't know with the mortgages on it but luckily I fixed that the only thing I did fix was my couple of houses I got the residential yeah but what are you going to do what about uh the plane you said you had an engine oil issue did you have to buy a new engine or what happened I don't know I don't know I don't think they have to place an engine but they going have to find out what's wrong with it and they going to be cheap luckily I have Partners I I I didn't have I didn't do it I I'm only one four Partners I like your advice so when a bill comes in I only got to pay 1/4 of it but advice and I haven't had the problem of needing a plane and not being available but you you use your so much now uh no partner is going to put up with you yeah that's how many people who you put up with you anyway that's except the dwarfs over here um so uh what about uh the um would you ever go outside of Florida for Real Estate or I would go out Florida I own the Lowe's in Tennessee okay I only even want to buy it I'm selling it right now how much your portfolio you selling huh how much of your portfolio you selling everything's for sale at everything yeah life is for sale even my so-called Associates I'll sell you if I could but um you know everything has a price yeah you know but I'm definitely trying to sell the assets that really don't serve a strong purpose in the portfolio because today's interest rates if it's not cash flow before I look into selling a property I got to look at hey if I keep it that's option number one and bleed or not have a lot of cash flow okay my return on it used to be let's say 20% because rates are only 2% sure now they're probably down to the 6% okay do I keep it for cash flow a little cash flow you can't refinance that makes no sense right now today's interest rate more environment um do I sell it you know what's the tax ramifications can I replace it if I do sell it you know there's a lot of things you have to think about that's why I'm looking in the cost segregation right now because maybe if I buy down the debt I won't have as much write off but if I do the cost cost segregation that'll increase my write off ability and it might balance out so weren't you doing the cost segs anyway no I wasn't no okay okay I'm just starting to look at that now yeah okay I might have should have been sure well but I didn't but now you have that sort of piggy bank to break so now it's a tool that you might have to be utilized yeah yeah so uh what about um for your Tennessee property I mean do you have a lot out of state or is that just no that's just I think that's the only one out State what motivated you to go there just sort of a deal I was in at 1031 it was a great brand Lowe's I went and visited the town it was in it felt like a good nice income strong workingclass town where people would come there and Shop the place look good the place look busy it's a no tax state yeah uh based on rental income and I was in a 1031 my clock was ticking it was like a $25 million deal or something in that nature and it made sense at the time now if I would have fixed my rate at 3% sure I'd be sitting here golden but I didn't my mistake now is that because uh originally fixing would have cost you maybe an extra half point or something a full point I was at two okay I could have fixed it at three so I would have paid an extra point yeah now I'm paying extra four points I don't know that anybody really predicted that well we should have known based on a political party that's running the country you know do you think that's what shifted all of this so 20 had to 2024 Biden round two they think that low raising the rates is going to reduce inflation what's your take I don't know I'm not a uh what do you call a economist what do you call that type of major in college um econ in math or I'm not an economist I don't know I don't know it's too big a pay grade for me to understand I just know money in and money out yeah and so the goal now is build up as much cash as you can for that potential I'm building up cash to buy down my debt is that to improve the cash flow then on the properties yes okay so that's what I'm doing what about you any money you want to loow me what about uh yeah 3% right take it anybody would right now I feel what about the seller or buyers when you're putting properties on the market what are you seeing how different is it now I just wanted to contract today on a property the reason the only motivation I see in buyers today is because they're trying to defer their capital gains on recent sales they sold something they got a big million multi-million dollar hit they're going to take because their basis was so low so they're 1031 into something else to defer the gains are they going to get a tremendous cash flow on a new deal no but they might be saving millions of dollars in taxes which is very important did you ever mov to Puerto Rico that 4% tax no seor I'm not going to Puerto Rico why not Peter shiff is there there's a lot of stuff on the market right there now I saw some Walgreens to sale some cbs's yeah uh what are the Caps like out there they're higher in Puerto Rico sure okay but unfortunately Puerto Rico might be a territory of the United States but it's still out of the country yeah it qualifies to the 1031 of course but I've been to Puerto Rico many many times and I didn't feel like I was qualified to do business there because even though it's still part of the United States it doesn't run the same way okay when you go to these countries countes or these other types of areas where the culture is very different everything is different all right and I'm not in with the click my wife's Mexican she's not Puerto Rican what what would advice would you give to a first time buyer today like a first-time buyer or a retail investor you know somebody maybe watching our channels I mean you definitely should always try to find out what you qualify for MH but right now is a time to where you really got to St Cas your cash save as much money as you can because the deals are coming you think so they have to it's just impossible but not they just coming slow yeah yeah it's very SL but they have to come because sooner or later everybody that was in these great low rates they're not going to last forever some people took fiveyear loans some people all the ones that took five year loans five years ago are now coming due they got to refinance the property's not going to appraise out for the same price they're not going qualifi for the same price based on their debt ratio and the cash flow so the shit's going to hit the fan you think that uh poop hitting the fan is still ahead of us yes it's starting to happen now we're starting to see a lot of big players take a big hit really and it always starts with the big guys yeah okay and then it's going to start coming down and smaller and smaller smaller and eventually it's going to affect the whole Market are you seeing sort of big player listings come up then or how are you seeing I'm seeing big player bankruptcy okay I was looking at a hotel the bank loan over 100 million on it it's going to bankruptcy court and the they're asking for 60 and don't even think they'll get that wow I've been watching guys take hits Banks and investors take hits in the hundreds of millions range it starts in New York especially the office buildings and the hotels because they got hit the worst but eventually it's going to creep over the whole Market because it's all based on borrowed money and eventually you didn't Barrow that money forever yeah now somebody took a 30-year mortgage a year ago they're golden and they going to stay with that place in 30 years point but most people didn't yeah what did you do I sold my real most of my real estate that around the time when I was here but that was also to start my startup it was lucky but how about stocks still an Apple stocks are a pain ass you know you were buying Apple I remember we were on the plane you're like it's 139 I should buy it it's like 150 think right now I was going to make some positions but I didn't I think it was like apple was at you know you got to catch things on a low yeah when when it's low you got to make a move and I didn't I was playing around with Amazon okay and I made a few bucks but I would have held it I would have made more uh who was do Facebook was a killer when it when they when they dropped down like in the 80s was it yeah yeah yeah it's double Tesla Tesla Tesla dropped down to like the 80s also yeah 101 yeah right right no I'm talking before that oh okay yeah was it maybe it was 10 either way it was a good deal it was a good deal now it doubled wait so when's your Tes it doubled in a matter of like a month or two are you buying a Tesla no why not I did install a bunch of charging stations in all my shopping centers did you uh just regular EV Chargers or did you get a Tesla some bulb some just Tesla you got some Tesla ones Tesla plug it in baby I think Tesla is the only one that does Quick Charge yeah the super charge that's why so in the shopping centers we did we cut a deal with Tesla to put a bunch in cuz they Quick Charge hotels we do them both what did that look like the Tesla deal they got me at first but then we got smart and made a deal with them the first time we offered it as amenity and we don't get any return but they came in and paid for everything right so we felt like it was a good thing for the uh property okay but then I found out they in even when they still come in so the the second and third time we cut a deal we get some residual income from it so uh like a percentage of whatever they're collecting percentage of what they're collecting I think some rent too what would you say what's a typical range like 5 10% I don't know my son ANS that yeah okay okay I don't deal with contracts but we're getting some sort of income on the usage and we get a flat fee rent every month depending on the location you know if it's a really high-profile location like next to Buck Stadium yeah paying us rent and they're paying us percentage and they're paying for all the installation because they want that high-profile location W yeah of course it's an ad for them basically you know real estate location location location that's all it is and a little bit of timing lot of time too yeah what about um so why know Tesla for you were we waiting for the Cyber Tru do you like number one I don't really I have somebody that fills my cars up with gas so I don't worry about it okay and uh somebody comes by here I'm not going that far I don't know I have a guy works every day every day make sure all the cars got gas in them okay take them over you know yeah we got about half a dozen cars part of Matt's job is maintain the cars make sure they kept clean make sure they got full tanks of gas in them make sure they're running right MH got it what about uh for for people watching you right now do you think they should start a business right now or what should they do what should they anything you can do to make money whether it's a business whether it's real estate whatever it is if you can make money at it do it yeah all right but if it doesn't make money only waste a little bit of time on it to find out you know put the time in is it going to make you money or it's not time is money is that a license to change your mind like flipflop if you want flop flipflop I flipflop all the you flipflop all the time I don't want to hear about your personal life um I mean you know it's good to get a real estate license if you don't have any license because getting a real estate license is basically starting your own business you become your own business you're a walking business and every person you encounter in life is a potential client they could be a buyer they could be a seller they may know somebody that's a buyer or seller they could be renting and looking for a home a kid called me the other day he said I got my license like you said but how do I find clients do what you did start knocking on doors and uh so you know what I told him I said is there a big apartment building in your neighborhood where the rents are probably around 1,500 plus a month why because I said every one of those tenants is a potential buyer you go to them number one you go to the Post Office it doesn't cost you nothing for like a 4x8 card put your face on there put your number on there and tell them stop renting start owning or something to that effect yeah and it cost you nothing to deliver that postcard with the post office to those 300 mailboxes the people open up the mail stop renting stop buying give me a call see if you qualified then they call you you hook up with a mortgage broker that you'll get a piece of his commission to get them qualified for first time home buyer with FHA 3 and a half% down find out if they are worth your time helping them look for a house if they qualify find out what their range is find out everything then go go to town find him a house and get the deal done you make a commission you create your buyers my first uh apartment building I got banned from is when I got my real estate license was I uh went into the uh coin laundry rooms and I put a flyer on their corkboard thanks for paying my mortgage want to stop renting call me well there you go you know but you know you can't get in trouble if you do a direct mailing into your mailbox and the post office doesn't charge practically nothing because it's all going to one location and the cards don't cost nothing to print up no it's cheap so you know you got to look for business right what about uh you know this the market out here you're trying to locate your real estate here to Tampa are you seeing a lot more well the Tampa area Tampa's growing you trying to consolidate everything here do you have any concerns about hurricanes insurance issues Problem Like Water Rising I don't know any I mean I got concerns but you know you just have to roll the punches I mean if you go to San Francisco to say oh we got earthquakes yeah not that often they happening they moved to Turkey for some reason yeah but um I mean you know there's a lot of concerns here you got to do your homework and you got to know your risk tolerance I mean there risking everything but this area is a growing area because you give me another bot of water I'm not you know caught a cold I think Co either that a red tide was here red tide red tide that's another concern red tode comes and nobody wants to go to the beach them my hotels lose money is that like a that's like an algae or some kind of uh blo think California oh it's always The Californians uh what else what else Ben I mean Florida is risky like anywhere else you got your risks well you got Ronnie you like Ronnie you know I met him in a Clos small meeeting not too long ago okay I mean you know is he going to beat I don't think anybody's perfect yeah but he's definitely younger yeah you know I don't think he's going to be able to compete with Trump because you know Trump has an effect on people what Trump does is he kind of makes people feel empowered somehow like like you know like they could be in you know I don't know it's it's like he just he motivates a certain type of people you know where you know I don't know I mean you know but he's too old you know and I'm I don't care I mean I'm sorry it's common sense and logic when people get old they don't work so good like a car it's simple it's true it's logic you can't do the same stuff as a 30 or 40 or 50 year old when you're in your 70s and if you're supposed to retire if Social Security kicks in at what 62 or 65 even the government says you're not supposed to be working I don't know I don't like these old guys in in in office because number one old people God bless them all they're set in their ways they come from a different time okay they don't um they don't Advance like everybody like the world's advancing they're not in the same speed they use they have a lot of personal feelings they're getting involved with the uh logical Sense on how to deal with issues and I don't feel good about it I'm sorry and um and you would say that even for Trump even for Trump and Trump you know let's see everybody in the world knows Trump's got a big ego you can't have an ego and represent how many people 400 million in this country almost 33 somewhere you can't have an ego you can't be selective you got to just think about what's right for everybody and I hate the fact that we have Democrats and we have Republicans yeah why can't we just take the the good stuff out of both of them cuz both both of them have good uh agendas you know the Democrats had a lot of good programs programs that I benefited from people benefit from uh you know because everybody needs some help can't everybody can't be successful the Republicans had a lot of uh you know good policies too when it comes to business and taxes and things like that we need to just combine them and we need somebody that knows how to take the best from both sides and find a common ground and do the right thing for the country which pretty much can cater to everyone could Gavin Newsome do it I don't not familiar but he's from California so I doubt anybody from California could do anything I mean you know just santis you know he's been doing a good job as a governor he works very hard I will tell you that he works very very hard I do believe he's a very honest guy but I don't know if he has the experience to start dealing with world leaders M you know that's another problem when you're dealing with world leaders in other countries they don't play by logical sensible rules they play by their own rules I mean let's face it you got to be a certain type of person that can also play the game Trump he knows how to play the game you know but you know he goes too far sometimes what do you think about Ronda santis and Disney for example it seems like I mean Disney I I've owned a lot of property in and Disney I've own property within Disney kiss Orlando yeah I've had property that was under the Disney umbrella uh you know hotels that was actually part of their whole whatever listen Disney uses up a tremendous amount of services not just in their little area in the whole city yes they bring a lot of business to us but they all those the businesses and the money they bringing in also causes the government to spend a lot of money roads Transportation crime every there all kinds of list goes on and on and on I think Disney should pay their fair share and be under our same government and Taxation like guys like me that were when I was there I had a hotel I had a couple of hotels and I was paying tax bills every year property tax bills and hundreds of thousands of dollars I was paying my share they should pay their share too it's all part of doing business they're writing on some rules that they had created back I think 40 years ago mayor of Miami or Dan santis the mayor of Miami is who Suarez who Mr Suare I don't really follow politics I'm too busy running my own goddamn politics well then back to real estate then uh what is um tell me about the different parts of Florida and where would you invest or like we're looking to potentially invest in Florida what where would you stay away from you go Tallahassee Jacksonville south Florida what do you Tallahassee is a is a University Town in my opinion from what I know about Tallahassee is if if it's not related to the school in some kind of connection way with students with teachers with employees with businesses that support the school I'd stay at a Tallahassee okay student housing can be very profitable if you buy for the right price but it's management intense I've had 500 bed student properties and they're very intense and running them yeah a little bit of a hall monitoring and drama Gainesville is the same way okay the pro the thing is in Florida to me is this yes home ownership is slow down but if you can find where have the newest huge big home developments been built you pick like boa or like West follow the money if some big home builder went out and just built three or four or 500 houses somewhere and they all was sold then that's where you want to go you want to go where the money's at you got to trace follow the money you know you know like for instance if Amazon's building something or if a car company or some Factory is being built somewhere they're going to need housing housing is just a necessity it goes along with business or something else what do you say to people who say oh if somebody's investing in real estate they're really like especially single family real estate they're taking away affordability from somebody else if somebody invests in real estate how would he take an affordability away oh well some people say well if you go buy rental homes you're increasing the costs of those homes making it harder for a tenant to become a homeowner sort of it's a little anti- capitalistic the argument but you hear it all the time you're either going to be a renter or an owner yeah you can't be renter forever I mean unless you really have that personality and you want to be fine you want no responsibilities that's your lifestyle I don't know but typically every renter should become an owner in my opinion but they have to do it the right time in their life when they can afford it when they qualify and hopefully I would say the the the most money that has been made in this country for the average person is always through their home yeah yeah I agree with you okay people have gone from nothing to becoming multi or at least a millionaire Z to million through their home ownership coupon down below plus it provides a a roof over your head you know and you can borrow against it I mean you know home ownership is always I think the first key to everybody's you know life in general let's touch on YouTube you've been posting a lot of shorts shorts short videos 60c videos and you're doing very well with them am I I don't getting a lot of views I don't really are they making you money I'm just like you know I don't really get involved with the YouTube thing is outside of trying to get the message across of get off your ass and try to help yourself and better your life I mean everything else is run by the uh the Polish Putin over here how are shorts monetizing for you guys not as good as we hope for yeah they said February 1 they would start monetizing shorts not not really huh all right no no shorts short shorts cuz you guys are killing it it's not not amazing yeah I mean you know we do the YouTube and it does generate enough income to keep him happy in sausage but you know it's doing well you know we getting some sponsors sponsors I saw that hey sponsors baby you did you know right now if you go to mybookie.com and place a th000 bucks on deposit deal match you if you use the code Ben what's bookie tell me gambling oh it's gambling oh gambling you don't bet you were here watching online casino well I think it's more like sports betting right sport better okay Master works you can't invest in real estate right now maybe you could buy some fine art well if I wanted to gamble I could just put it into any bank right now well you know we're doing some uh Masterworks Fine Art we could own a percentage of the artwork yeah we're doing um what do we do we just did something for cooking meat y did you get a butcher block no it's a temperature thing it runs off your phone right Smart M are you diversifying into Masterworks too do you like art I mean I'll dib and dabbing a little here and there I got some artwork in there you know I got at the flea market but um no I mean actually before I before we did I made somebody go visit their office and we do some research and check them out not like you we check people out before we agree to play ball but U we having fun with it I like it you know I enjoy it you know yeah I st sponsors I was in New York I went to New York and uh we went to visit one of the sponsors and they made me these beautiful shirts oh my God for a fat person to get perfectly fit shirts what was it called proper cloth proper cloth custom clothing and you do it online you give them your measurements how they did it I don't know I gave my measurements online I went to New York they would have shipped them here but I was in New York I said hey I'll come by and pick them up oh come on byy we did a video there I couldn't believe it I put these shirts on and they were like the material the fit it was great you used to live in New York unfortunately yeah Hell's Kitchen why'd you go back I had to go back because it was a stopover to catch these really cheap first class flights my wife found to go to Paris oh how was Paris uh oh You' been there yeah I met my wife there oh I'm from Freddy I'm French I do not speak English and my food is so great the food the people were pain in the ass uh we caught co uh and we saw all the sites it was nice to see you know the history and the sites but it's a very busy City people were there was a shooting going on over they got their own issues there they got issues with um I don't know what's prot well the people they got a lot of refugees that came in from the Middle East the problem is all the Europe l in all these people from the Middle East now they don't understand these people weren't raised this type of civilization they got different Customs they got different culture MH and a lot of the things that they practice in their Old Country especially when it comes to women is against the law how they treat women you know just the typical mannerisms and uh they actually had some big problems when I was in Paris wow so I don't know every country's got their problems it was a good trip you know we had a good time and uh we got the hell out did you go anywhere else in Europe went to Paris we just went around Paris I think yeah Paris okay wow it was a short trip that's show the kids take them there's the iil tower there's the Museum of wo wo woo and wo wo woo and and uh right see the Mona Lisa the monisa yeah my son was very uh he was he wasn't as impressed as he thought he would be we waited in line all that time in the museum or whatever it's called and you get in line and see the M Easter and it's only like this big yeah yeah pretty small that's awesome what so what else Ben what else is going on what am I missing I'm fighting a war right now and you're interrupting me how can right now my life is all about making money yeah I'm not making as much money as I normally would and that's my priority okay everything is revolves around cash flow with me yeah of course and that right how I live where I go what I buy everything it's all you know when you're not making as much money you start thinking about not spending as much money do you think this will just be a short maybe you know another year of paying or so and then maybe back to normal or any four I don't think we're going to see the rates that we used to see really that's behind us huh I think it's going to it's I'm hoping and waiting for it to come down a little and just stabilize right there right now yes I grew up in a 7 to 10% interest rate environment when I started in real estate but prices were a lot less right right the cap rates were higher right yeah you know what I used to pay 30 or 40,000 a unit for is now 130 40,000 so and then rents have gone up so I mean it's just the world we live in it's all about finding a deal and lowballing a deal to get the price that make sense for you how are you doing that are you going through the sort of listings yourself or is it agents that are calling you deal or I do it all I look at 300 emails a day I pick out the ones that I think may make sense for me I got people that work for me making offers I go with the listing broker sometimes I got uh you know I'm just I don't care whatever it takes to get whereever the deal is yeah Absolut I'm constantly making offers they get counted back I'm selling property I'm getting offers I'm countering them the back it's all about playing the game until you feel like you won the game that's busy it's a chess game yeah what what what does keep motivating you why do you keep doing it why do you keep playing the game I was ready to quit but then the interest rates went up and screwed everything up for me so now I'm stuck playing more playing hard hard uh what has anything really largely changed in your lifestyle because of that yes I'm selling my Rolls-Royce I used to sit in the garage with a half million dollar car now I'm looking at say what the hell I got a half million dollar car sitting in a goddamn garage for that could save me uh 30,000 a year yeah sure just the interest yeah absolutely almost as much as you've been uh paying yourself yeah well uh does anybody else have a question what did I miss you know mck McKay you got something where where' Tristan go he disappeared okay you you Mikey cigarette break Union rules oh you know why I turned down the hotel in Manhattan I was going to buy it you were going to oh you okay I was going to buy it the guy the little Indian guy went out there and uh he inspected it from me and and he's an expert underwriting he know in real estate when do you guys want to get trist he worked for he he while he was in college even were he worked for really top dollar um big companies and manhatt like you know Wall Street type guy doing gold or whatever doing like a package of 50 hotels at a time underwriting [ __ ] like that sure anyway I sent him out there cuz he lived in New York and man when he came back the unions you can't hire employees unless they're part of they have the housekeepers Union they got a separate Union for maintenance they got a separate Union for the restaurant the [ __ ] housekeepers are making 35 bucks an hour wow wow we pay we were crying about paying them even 12 to 15 can't make the numbers work doesn't work and then you know there's all the taxes oh my God you got Federal you got State you got City you can't make any money in New York Tristan any questions you have for Ben um yeah I mean for commercial do you have an extra mic yeah go ahead for commercial go ahead keep going just for commercial I think what type of commercial real estate uh yeah commercial real estate what type of commercial real EST commercials like um Office Buildings what Office Buildings office building he thinks we T Ted talked about offices a little bit he's a big believer that offices could be converted eventually into something I don't or used for something I think not now but in the next year maybe two years I think it'll get so bad where they'll start selling on Pennies on the dollar I mean is any way you can convert them into maybe I don't know storage units that might be profitable or I thought about storage but I mean you know high-end storage maybe nobody want dragging in a fancy building or a decent building be dragging their old [ __ ] in there but you know you got people coming in and out of one building it's not like storage is spread out you know or I don't know I mean storage might work depending on the layout of the building the problem is every building's different but every single person I know that was brilliant in building and I've seen some guys lose their shirt is everyone told me it would have been cheaper to tear it down then convert it to Apartments that's what I because in the kitchens and the bathrooms and today's code and the fire systems that you might as well instead of gutting the whole thing and be left with a shell cuz that's what you got to do and the windows and the entrances and exits it's just the list is a mile long you might as well tear the building down is what I've Been Told and I've seen a couple of guys go belly up trying to do it oh yeah could you yeah no and utilities you need metering systems it's all run as a Master Meter you know that's a similar problem you have with converting hotels to Apartments any other maybe any other ideas of what you could convert them into any opportunity that you whoever figures that one out be great the only thing I can think of is Data Centers o fill them up with computers yeah but you put those in the KE the new minor I mean you know data centers I think not just for mining they're pry big now filling them up with computers I can't think of nothing else with maybe data centers when you bump up the electric on them get some more power going to them through the electric company and have fill them up a goddamn computers artificial intelligence may require it yeah oh yeah but do that in the desert where power's cheap and I mean build a cheap fact why why take an office building in the middle of a city where electricity is more expensive potentially what interesting I don't know yeah no it's somebody got to run those data centers I don't know you know there was a whole piece in New York about how uh I think uh all the way down not fifth but I think third they've got office on the east side the buildings are from the 60s and they have Windows on the outside but so much of the square footage is away from the windows on the inside of the property and for homes everybody wants windows and so 80% of the square footage is almost useless because it's just interior dark space that was good for fluorescent lighting and cubicles but you can't can't even make homes out of them if you wanted to anymore any go ahead yeah uh I I kind of just thought of Wei work's business model but we learned that that's not a good business model what you know we work that's a bad we work is making a comeback oh no I think in in some places listen it's all about location yeah you know if you have a place where you have a lot of entrepreneurs type people uh and people that have small businesses or startups or whatever and they just want a little space to work at and you know it depends it depends if it's down here in St Pete in that type of neighborhood it might work but it ain't going to work in you know in some other areas it depends on it's all about location you know one more farfetched idea is that you could somehow what you could somehow have low input costs in order to revamp it so that homeless people could live there and then you could try to get subsidies from the government but I mean that's a far stretch that's major yeah the problem with getting involved with stuff like that is it has a lot of social aspects you can't just say here is a decent place to live and say get off the street go live here it's not that simple these people have all kinds of mental issues they have uh all kinds of concerns and hygiene and it's a whole big b of wax trying to deal that's more you know of a medical thing dealing with homeless people too uh but what I was thinking was um how about you know how big shopping malls are now people they don't like them they're dead in fact my son called me up the other day want to hear Countryside hey for sale I said hell no but imagine if you took an office building and every floor you don't have to walk around a whole [ __ ] goddamn wall every floor was a store you could have Macy's you could have this store and then like the old days in New York you took the elevator up there every goddamn floor when I was a kid there was a guy that sat in the elevator in New York and he say okay third floor drapery Linens towels underwear he would tell you and you get off the elevator and Shop that stuff you know but imagine if you had different stores on every floor um I don't know but it's definitely something that you know yeah M you a question it's definitely a problem right now yeah go ah any anybody else uh after that good good good all right McKay go ahead so I'm not 100% sure how filled in you are on Kevin's new startup house hack but what advice would you have or what are some ideas you have in in terms of scaling a real estate business as large as Kevin wants to scale his in ter with single family to give you an idea briefly of what we're looking to do is when the market bottoms out buy 50 to 100 Homes at a time bundle them together securitize them reads Delaware statutory trusts syndicates whatever and do the cycle over and over again take fixer stabilize them and do it over and over again everything with me depends on cash flow cash flow or value yeah yeah it's all to buy if you're buying something at the right price and you're really sure by doing your homework in the market or if you're really sure you know which way the Market's going it's all about are you going to make money on this asset there's no sense in buying something is not going to make money if you're going to break even every month what's the point you're owning real estate for what reason unless you're really sure things are appreciating well unfortunately right now things are de appreciating so you got to go in there and look I think there's a lot of Home Builders out there That Built Homes haven't done the homework yet but I would imagine because these guys planned these home developments years ago MH many years ago in some cases when things were booming prices interest rates were low and everything was great now they're stuck now they got all these houses and they already got all this money invested in plans and land and zoning and and and and they're tied to building they have to build them y all right so I think there could be a lot of opportunity where people that had plans to doing things and now the plan has to change and they may be taking a big discount so it's all in the buy all right do the numbers work are you going to cash flow by buying it or are you going to make some money if you hold it fix it up a little and flip it it's all numbers all numbers yeah what do you what do you say to people who say uh oh you can buy real estate remotely you don't have to be there in person with the agents and see properties are managing them what's what's your take on that I think that's risky yeah I agree I think that's risky to buy anything without if you're buying a physical asset no matter what it is I want to touch it and feel it all right the agent is not going to be responsible once you close the deal he's going to be off on his trip to Hawaii with the commission all right you're the one stuck with the problems you got to do your homework you got to touch the asset you got to kick the tires like a car and know what the hell you're buying and be ready to deal with it yeah Ben anything else you want to add no get the hell out all right shout yourself out I mean you know to Ben malor on YouTube go to ben.com consult withth Ben get me on the phone and you can get advice on your next real estate deal nice awesome do you have any events coming up any events no right now actually I've been so busy honestly this is the busiest time of the year you know what made me start the whole event thing it was because my hotels were empty right because of Co I said well hey people kept saying they want to meet me well fine come stay in my hotel and I'll come meet you and I'll talk to you whatever you want to do well we are starting to do some private Consulting in person I think uh where they could fly down stay in a hotel I have a private meeting with them but we're probably going to start doing some events when the slow season comes in the hotels which I believe is May let's go drinking let's go you drive always man thanks man that was awesome
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