In search of $47M of Real Estate

Happy New Year. We just sold some big deals. So, me and Vincent are out here. We're going to drive around and we're going to go shopping for real estate to find the next deal. We're out here for you, not for us. Cuz I want to explain something to everyone. Houses are not made for rentals. This house, I know, was a foreclosure not too long ago. Now, somebody bought it, they fixed it up, and they're trying to sell it. But let me tell you what a value ad is. This house was a three bedroomedroom, one bath. If you got three bedrooms and you got a family living somewhere, YOU NEED TWO BATH. SEE, THE problem is this. If it only has one bath, it has no demand. Nobody wants it. So, you come in and you lowball it, baby. And it's been sitting on the market. They want to get rid of it. You come in, you buy it, right? You budget for that bathroom. You make it a 32. And now you have a marketable product that's in demand. You add the value, you flip them, you make a nice chunk of money, and you move on to the next deal. But single family houses, I'm not a fan of them being rented out. Why? Because the money you got tied up in them or if you mortgage them, you're not going to really cash flow. What do you think this house will rent for right now? This house, just off the top of my head, without any market research, but I did live out here and this neighborhood's gotten way better and it's continuing to get better. This house should rent for about $1,500 or more. Okay, $1,500 a month. The point is this. If you spend even $150,000 on this house, you're not getting no return by the time you pay your mortgage, your taxes, your insurance. It's no cash flow. Don't waste your time renting out single family houses. Single family houses are made for families to live in. Vincent has picked up several foreclosures in his career. Don't tell me you own this. — I own this. — Oh my god. and he's flipped them and he's made money. The house we got right now in Fort Lauderdale, it's worth a million dollars more than he paid in foreclosure. When you do construction, typically you're going to double or triple your money if you add on to a property like this because that's how do you make money in construction. Okay? — It cost you what? $50 a square foot to build. — More like a hundred now at least. 100 a square foot. You look at the market. What are houses selling price per square foot? — Two 300. There you go. You double or triple your money when you do construction. That's why you look for houses you can add on to. Add a bath, add a bedroom. That's how you make money on houses. Stop looking at houses for rental income because you and be stuck with a bunch of houses. You're not going to go nowhere. Look at this brand new construction they got behind it, maybe a couple years old. They got some beautiful town houses across the street that's probably been here the early 2000s. This is the direction you can tell the neighborhoods are going in. When you see growth, grow with it. Ride on their coattail. Get on the train. The train to making money, baby. — Uh, we're not sure. Just looking. You have a wonderful day. — Thank you. And you guys as well. Be safe. — Do we be safe? You got to worry around here. Look at this newer houses. See, they see what they do is a lot of these people tore down these old little city houses and they built a nice little simple house, which is what the neighborhood needs. I think things got to go. Wish was a way to disable it. — That's what I'd like to do. Look at that. You take a whole street, stack them all the way up. — Okay, look at that. You want to buy that for a cap rate right there? We could buy up this whole neighborhood that it's like two shops that and a real estate office and they want like a five cap. We can call them up and offer them a seven cap. I have a feeling a liquor store is the owner. And I don't know, you got to be careful with those type of deals. When you buy a retail property from the owner, typically it's called a sale lease back. Why is the seller selling the property? Why? Typically, they're looking to exit. You got to be careful with that because first they sell you the building, they're still a tenant and they plan on leaving down the road. Then you're stuck with a vacancy. He's being chauffeered around. That's what you call Uber Detroit. 50,000 square foot of space available. Brand new Sprout. — Brand new Sprout. Sprouted up. — Look at all those apartments back there. — Yes, sir. I'm out here looking around trying to find the next deal. — You're not going to find anything better on a Fedora basis. It's 140 units. You know, you can pick it up for just under 150 a door, which in brows is I think as good as you're going to find anywhere. If you even come across or hear anything about, you know, another deal, even if it's not your listing, then um, you know, don't be hesitant to call me and then I'll make sure you get compensated as my broker or whatever. I don't care. If you bring me a deal, then it's your deal. All right, we're at stop number two. Good, affordable housing for the workingass people. But the one thing I noticed about this property right away is you can always tell how the doors and windows are. This at one time had some kind of hotel component to it. It's nice. It's a mixture of some new

apartments that were built later after a hotel. The place is maintained very well, but it could use a little love. You got to buy something that has some kind of plan to add value. Raising the rents and lowering your expenses is how you add value. That's the ticket. And Vincent can move back to Fort Lauderdale and he can manage all this stuff just like the old days. Back in the 70s and 80s, there was a demand for hotels everywhere in Florida. But these old mom and pop hotels have been deutilized because all the big shot new ones came in and all the brands came in. So basically people convert them. You take two rooms, you put them into one or you take one room and you make it a nice efficiency. Same thing as a studio. Okay? and it creates affordable housing for the people that work in the neighborhood or people that are on a limited income. — Okay. Well, they say they're getting $1479 for the studio, 1642 for the onebedroom, 1642 for the two. There's not many two bedrooms. — There's not many twos here. The problem is you got to look at expenses because a lot of times if they didn't already uh submeter it, then you might be responsible for all the utilities, okay? Which could definitely can drive your cost up. But there are all kinds of technologies now and systems where you can come in and you can submeter the utilities to where the tenants will pay their share of utilities. That's value add. You're reducing your expenses. So you're creating value, but it's definitely somewhere I could see us coming in sprucing it up a little, fixing up the landscaping, cleaning up a little. See, there's a pool right there. And there's dog areas and benches. Two pool. you have to pull. If you're looking at buying a deal like this and you need a second pair of eyes to be put on it, consult with Ben. Get me on the phone and we can talk about it quickly and get right down to the real nitty-gritty and find out if it's a deal for you. See, back in the 1950s, everything was small. People, you know, the war just went over and people just built a lot of small little places. People didn't have a lot of money. Oh boy. — Oh [ __ ] What you say? What you say for making him to beat your ass right now? — She going to beat his ass. — Oh boy. This is rough. This is where Vincent wants to take us. This episode is brought to you by Prize Picks. Whether you're starting a new routine or making player picks for the first time, trying something new can be hard, but in life and on Prize Picks, it always feels good to be right. With high pressure playoff matchups every weekend and elite hoops action almost every night, the action never stops, baby. And prize picks let you take control. All you have to do is pick more or less on two or more players. LAST TIME I PICKED ANTHONY JOSHUA AND DAK PRESCOTT AND ONE, BABY. This week, my picks are Christian McCaffrey for more and SAM DARNOLD FOR LESS. NEW FEATURE ALERT. Prize picks now has EARLY PAYOUTS. Your player gets off to a hot start. You now have the option to cash out those winnings before the game even finishes. Download the PRICE PICKS APP TODAY and use code Mala to get $50 in lineups after you play your first $5 lineup. That's Prize picks. It's good to be — All right. It's Saturday. Okay. Nobody's working at Saturday. — This is the property, right? — Yeah. This is all lit on the left. — All right. Drive that. So, this wonderful property is across the street from school. — But this is what 150 adore gets you. So now you compare an old fixed up hotel in a better area to a real apartment complex in a real area. — And he ain't getting 50 a door out of me. They put in new ACs. — This is the park where they let all the kids play safely. But — thank god there's a park and a school here. But — no, that park gets live. We had some car shows over there. — Oh, there's the leasing office now renting. All right. I mean, listen, if you buy this stuff, it's definitely not dirty, but listen, it's a poor area, and I highly recommend you go with section 8 if you can. And um it is what it is, but it's all about the numbers. Actually maintaining it. I will give them credit for that. They're maintaining the property, but I cannot invest $150,000 a door. This is 140 units that Vincent found on the market. The area is not that desirable, but it could still make money. We got to look and see how much rents are bringing in and maybe we can buy it down cheap. Just because they're asking uh 140 a door doesn't mean they're going to get 140

door. That's their ask. We got to come in and offer them something that's reasonable. They have done some stuff some painting here recently. It's concrete. It's older. I'm seeing new windows here. I mean, you know, listen, it could be a good investment, but you got to buy it for the right price. It's being maintained. — Housing authority [clears throat] is right around the corner. You know, he definitely put some freshening into it with paint and windows. Parking lots in about bad shape. There's no landscape in here. It's a lowmaintenance building. It's all about supply and demand. If there's a demand for this type of housing in this area, then there you go. Now, do the numbers make sense? What can you get for rent? And how much how cheap can you buy the place? That's all that matters. What's that? That's 95 right there. 95. There's the freeway. You got sports here. You got schools here. You know, it's affordable housing for people with lower incomes. And there's nothing wrong with that. All right. That's how we started our entire career in this type of properties. But you got to buy it, right? — Look at this. They're going to build some big project here. — You want to look at a 10 cap. That's when you know they're really trying to change an area. When they do this, out with the old, in with the new. Vincent's old stomping ground. Look at that. — We're not stopping here. — Yes, we are. It's up for sale again, I heard. Look at the plants are dying in front. — Oh my god. — Let's stop by and look at a blast from the past. You remember this place, Vincent? — I remember this place. — Let's see how they're doing. Look at that. Spotless. This is the way you should have ran it. — Everything looks the same as what I did. Don't start yelling at me to fix stuff while we're here. Looks good. It looks like just how I left it to him. This is how I sell someone a property. Okay. Turn key. Look, you yelled at me over here. — Somebody clean up around the [ __ ] pool areas. — You yelled at me over there. — The is this? — Plants are still dying. I told you that wasn't my fault. Irrigation. — This was a great project for us. He went in there. He gutted 260 approximately bathrooms. We fixed up all the rooms. We fixed up the whole place. We did everything the franchise wanted us to do. We found a buyer. They took it over and we all lived happily ever after. That's what we do. And you can do it, too. Go to benmmail. com. Get me on the phone and let's talk about your next deal. — All right. You want to move back? I'll buy it back. Buy back the hotel. What have you done to thising hotel? — us? You ruined us. — You tried to get me stuck here for the rest of my life. — Watch your language. There's customers around. Then you need to quit. — Let me tell you, while you were here, you stuck it to me. — You guys are going to — with your crazy contractor. — If I was here, this [ __ ] job would have been done already. Especially during CO. So, you're full of [ __ ] and — and not having materials. We survived through CO with this place. This place could have hurt us. Go away. Just go the [ __ ] away, OKAY? CUZ NOW YOU'RE CROSSING the line. But it turned out CO went away. We got the business back up and we sold it. We made a profit and we moved on to the next deal. — This building's better than all the buildings we looked at today, though. I'll tell you that. — All right. Now, let's go find the next project for you to move into. We're thinking out the box today. Typically, I don't look at office space. But I will tell you that when it comes to specialty office space, there could be opportunity. In this case, it's aviation office space. We are standing right now on the grounds of a real airport. I got a call from a broker that I know. He said, "Hey, this guy's got a bunch of aviation office space. He's willing to sell it. " And the cap rate that he was offering was very interesting. So, at least I got to come out and look. Are we going to buy it? We don't know. But we came out here to look at it, to feel it. We're going to go back. We're going to look at the rent roll. operating costs. And we're going to see, does it make sense? The only question about I know about airports is typically airports are owned by the municipality. So that means you got a land lease. And when you buy properties with a land lease, you got to make sure that land lease goes out a long time. We've owned hotels on land leases, but the leases go out 50 plus years. So you don't have to worry. You might be going into the airplane office business. I mean, you know, all I know is when you say airports and airplanes, big money. Now you're saying private airports and airplanes. That's some good money. But what the heck kind of offices? Aviationmies, maintenance places. — They got everything. They got everything here. They got to fix the planes. They got to ship stuff here through schools here. They got everything that has to do with aviation. And we fly into this airport all the time, don't we? So, we know where we're at. I'll take a look at it cuz you never

know, baby. You never know. SHUT UP WITH THAT GODDAMN CAR. — Rental car. — Yeah, they have rentals here. It might be room for rental. You're right. But there's a lot of tenants here. I'll tell you that. We ain't got time for no big fancy lunch today for a hot dog, baby. I want I don't want none of that Chicago stuff. I want New York, man. I want a hot I want the best hot dog you got with mustard and sauerkraut. See, he knows. He knows he's been kicked out of New York. — Want a jumbo? — Sure. Make it a jumbo. — What are you having? — Uh, chili cheese dog. — What are you having, Pock Diego? He started out on the grill. Now he made it up to management. He's the big dog at Heavenly Hot Dogs. — Sitting in the sun having a hot dog, baby. Nothing but the best for my son, Vincent. — This reminds me of when I was a kid. We used to eat hot dogs every [ __ ] day. — Yep. That's all we can afford. — No kidding. Every day whether we went out and got them or whether we ate them at home. — I used to go to this place called Caspers. I knew the guy that worked there. And at the end of the day, he told me, he says, "We're going to throw them away anyway. " So he just gave us a bunch of free hot dogs. We take the hot dogs home when he was a little kid. Him and little Ben. I'd go home with a bag of hot dogs. I'd feed them for two days. We had a microwave, too. He gave us the hot dogs, but he didn't give us no buns, so I just had to buy a loaf of bread — from the uh — no fro store in Lies. — No, he used to go to the Wonderbread store. — Oh, yeah. Get the second day. — He used to go to the freaking Wonderbread store. It was all bread is all they sold in the store. — Cakes and stuff like that. — And then he would look for the oldest date and it would be the cheapest. You get a whole loaf of bread. I remember for like 90 cents or 99 cents. You get a whole loaf of bread, but you have to use it in like two days. — That's it. that we used to shop for bargains. — Then he would go home. — I hate these cars. — Then he would go home and he would either, it depends on what type of day he was having. Sometimes he would microwave the hot dog. Sometimes he would uh pan fry the hot dog. — Sometimes he would boil the hot dog. And that's how you know if he had a good day or not. — We found Vincent his own shopping center, baby. This is perfect for him. He's got a smoke shop, a pawn shop, and his astrology, so he can see his future. Look at this. Perfect for you. This is what I could see you owning right here. — Triple net. Not bad. — Honestly, I don't know about astrology, but necessity. People need money, they got to go to a porn shop. People need uh stuff to smoke, they got to go to smoke shop. — Well, I need black and Miles. — You need black and look at that. — I really do. I'm going to go ahead and see if they got them. New York hot dog. Mustard and sauerkraut. That's all you put on a hot dog. All that crazy stuff that are birds. — What the hell is that? Polish. That looks Polish. — That's a good hot dog. — He knows well he cannot have the dessert. — That's a great hot dog. — Welcome to Fort Lauderdale, baby, — where you got hot dogs and hot pursuit. And he said Ben Mala is here and I'm like oh my god I got to go was watching the president on the press conference. I was like — oh she turned off the president to come — president to come see you. — Look at that. What else could you ask for? — Tell him to go to Mara Lago and tell him — hey what are you going to do when Liz Taylor finds out you stole the glasses. — All right we're going to stop by another hotel. This hotel. Wait, where the hell is the hotel? Oh my god. Shut up. This is where the old hotel used to be. This is what happens when you don't fix your hotel. Nice. — We're going back in time. Things happen with properties. They go through all kinds of changes. When we first came to this property, it was a closed down student housing, which originally it was a hotel. There was a couple of hundred rooms, I think. And we bought it, closed down, bought it up, and all the kids got involved. They got it fixed up. They lived in it. We bought two condos so some of the kids could live in it, walk across the street and work on a hotel. They ran it. They had a flag on it. They did a great job. They got it running and we sold it. The next guy, he didn't want a flag. He thought he was going to make it a boutique. Well, I don't know what happened, but it looked like things didn't work out with him. The last time I checked, there was a fire and now the whole place is gone. Maybe we can buy this land if they don't already have a plan for it and we can build apartments. This could be a great area for apartments. That dealership wasn't even here when we bought it. Things change. You got to get with the change. So, that's the story behind this place here. They scraped the whole goddamn thing.

Sometimes you got to repurpose the real estate and find a good purpose for it. It's because this area, this area is hot. They do get a chance to build some condos here. They would definitely do good. — Somebody probably came in here and did was a developer made a deal with the city of Fort Lauderdale and the Broward County and they got tax credits probably to come in here and build with this development company. So, everybody came together. They raised some bonds. They're going to give tax credits and they're going to build housing that is going to provide collaborating to provide luxury living for our workforce. They're going to provide housing for the workers in the area. This is something that the county is getting involved with helping with them building it so they can have a restriction on the rents so people can have affordable rents. Okay, this is a very common process you're going to see going on in every city right now because people need affordable housing. places need to be brought up. If they fill this place up with all kinds of tenants, it's going to help all the retail. everything and drive up taxes, okay? Sales, tax, businesses, everybody will do well and people will have affordable housing. So, it's a win-win for everybody. SHARE THE VIDEO. DON'T FORGET ABOUT OUR SPONSOR, Prize Pick. Adios, amigos.