Real estate mogul and YouTube personality Ben Mallah has a remarkable story of going from rags to riches. Raised in the projects of Queens, New York, Mallah defied the odds to build a $500 million real estate empire. His journey began with a keen eye for overlooked opportunities, starting in tough neighborhoods where he invested in properties that nobody else wanted. Today, Mallah’s empire has expanded beyond those humble beginnings.
During a recent appearance on The Iced Coffee Hour podcast, Mallah discussed the backbone of his current portfolio, which he refers to as “necessity real estate” or “essential real estate.” He emphasized his preference for retail properties that cannot be easily disrupted by e-commerce giants like Amazon. He focuses on essential services like food, hair and nail salons, restaurants, dentists, and medical facilities – businesses that people can’t simply go online to access.
Mallah admitted that he had opportunities to invest in shopping malls but chose to steer clear due to the risks involved. Instead, he opted for necessity-based real estate, which he finds more appealing and resilient. His strategy of investing in businesses tied to basic needs has helped him build a strong portfolio that withstands the changing consumer landscape.
One key aspect of Mallah’s strategy is investing in grocery-anchored real estate, which offers stability for savvy investors. These properties, anchored by grocery stores and essential services, attract long-term tenants and provide a predictable cash flow. Platforms like First National Realty Partners (FNRP) offer access to grocery-anchored properties for accredited investors with a minimum investment of $50,000.
Additionally, investing in residential properties, particularly in the current housing shortage in the U.S., presents a unique opportunity for investors. Crowdfunding platforms like Arrived enable everyday investors to own shares in rental properties without the hassles of traditional property ownership. Investors can select properties vetted for appreciation and income potential and start receiving rental income deposits from their investments.
For accredited investors, Homeshares provides access to the U.S. home equity market with a minimum investment of $25,000. This approach offers exposure to owner-occupied homes in top U.S. cities with target returns ranging from 14% to 17%. REITs like American Homes 4 Rent and Equity Residential also offer avenues for investors to gain exposure to the residential real estate market.
In conclusion, Ben Mallah’s focus on necessity-based real estate and essential services serves as a blueprint for resilience in the ever-changing real estate landscape. By following his proven strategy and exploring opportunities in grocery-anchored properties and residential real estate, investors can build a diversified and stable portfolio for the future.
