"Don't Buy A Home!" Ben Mallah's Final Warning For The 2026 Real Estate Market

August 2, 2026

AI Summary

5 min read

Ben Mallah sold a significant chunk of his real estate portfolio expecting the market to turn. Instead, banks have been "on the fence," delaying writedowns and keeping distressed properties from hitting the market. Now he is sitting on roughly $70 million in gains that he must reinvest through a 1031 exchange—or write a check to the IRS for millions—and he admits he may have been wrong to sell. "Maybe I shouldn't have," he says. "I thought that the market was gonna turn and the banks are keeping it from turning."

The Distress the Banks Are Hiding

Mallah describes a market that looks stable on the surface but is rotten underneath. During the COVID years, many buyers overpaid for commercial and multifamily properties and locked in five-year loans at roughly 3 percent. Those loans are now maturing into a world of 6 percent rates, and the properties cannot cash flow at the higher debt service. "They're going on the cash flow," Mallah says, meaning the loan's value has fallen because the property can no longer support it.

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What you'll learn

1 (02:41) **Why Ben Sold $70M in Real Estate (And Now Regrets It)** - Ben explains he sold major assets because he thought the market was about to turn, but banks have been preventing the correction, leaving him with a massive 1031 exchange obligation.
2 (03:07) **The COVID Overpay Wave Is Breaking** - Mallah describes how inexperienced buyers who overpaid during 2021-2023 are getting crushed as their low fixed-rate loans expire and rates double.
3 (04:54) **The Bank Standoff: Why the Market Isn't Crashing Yet** - Ben explains that banks are stuck because admitting losses would tank their stock value, so they delay while properties deteriorate.
4 (06:56) **Real Distress Examples: Empty Buildings and Flood Ruins** - Ben describes specific distressed assets he's looking at, including a 200-unit empty building and a 16-story building shut down by a flood.
5 (09:43) **The 1031 Exchange Trap: Why He Bought a Tesla Dealership** - Ben explains the mechanics of his forced buying spree, including why he bought a $22M Tesla dealership yielding a 6% cap rate.
6 (14:15) **When It Makes Sense to Pay the Tax Instead** - Ben admits he paid a massive tax bill last April (under $10M) and found it painful, but sometimes it's better than buying a bad deal.
7 (17:57) **How Ben Borrows at 5% When Everyone Else Pays 7%** - Ben explains that his banking relationships and proven track record make him a zero-risk borrower, getting him the best rates and terms.

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Show Notes

Northwest Registered Agent: Start Your LLC Today at https://www.northwestregisteredagent.com/ich Even Realities: Go to https://evenrealities.bio/icedcoffee and use code ICEDCOFFEE for 10% off Even R1 and/or Even Clip when you add them to your Even G2 order ZipRecruiter: Post jobs for free at https://ziprecruiter.com/ICH FanDuel: Join All the Action at https://fanduel.com Follow @BenMallah Here! Consulting Here: https://benmallah.com/ *𝗖𝗢𝗡𝗡𝗘𝗖𝗧 𝗪𝗜𝗧𝗛 𝗨𝗦* 𝗜𝗚: https://www.instagram.com/icedcoffeehour 𝗝𝗔𝗖𝗞: https://www.instagram.com/jlsselby 𝗚𝗥𝗔𝗛𝗔𝗠: https://www.instagram.com/gpstephan 𝗖𝗹𝗶𝗽𝘀 𝗖𝗵𝗮𝗻𝗻𝗲𝗹: https://www.youtube.com/c/TheIcedCoffeeHourClips 𝗫.𝗰𝗼𝗺: https://x.com/TheICHpodcast 𝗧𝗶𝗸𝗧𝗼𝗸: https://www.tiktok.com/@theicedcoffeehour 𝗦𝗽𝗼𝘁𝗶𝗳𝘆: https://open.spotify.com/show/5c2uoXBQkOjIiCOf60jJj7 𝗔𝗽𝗽𝗹𝗲: https://podcasts.apple.com/us/podcast/the-iced-coffee-hour/id1515070058 For sponsorships or business inquiries reach out to: [email protected] Apply for The Index Membership: https://entertheindex.com/ For Podcast Inquiries, please DM @icedcoffeehour on Instagram! Timestamps: 00:00:00 - Intro 00:00:57 - $70 Million To Spend And Why The Banks Won't Budge 00:08:46 - Selling The Harley Dealership, Buying A Tesla Dealership 00:13:20 - Sponsor: Northwest Registered Agent 00:14:26 - When It Makes Sense To Just Pay The Tax 00:17:48 - A $10 Million Offer Sight Unseen, And Why He Consults So Cheap 00:23:00 - Diversification And Why His Son Moved Into The Building 00:28:03 - Sponsor: Even Realities & ZipRecruiter 00:31:03 - Big Deals vs Portfolios, And Starting With A Fourplex 00:33:40 - Inside The $31 Million Mansion He's Trying To Sell 00:37:20 - How Much You Need To Buy A $30 Million House 00:40:21 - What The House Costs Yearly, And How Contractors Rip You Off 00:46:11 - The $40,000 Rolls-Royce Repair He Did For $4,000 00:49:06 - Best Sectors Right Now, And Why Owners Beat Management Companies 00:55:36 - Sponsor: FanDuel 00:57:10 - Spotting A Motivated Seller And Lowballing The Deal 00:59:12 - The 16-Story Flood Building And His Fastest Ever Flip 01:02:40 - AI, The 50% Rule, And Why Single Family Doesn't Cash Flow 01:06:30 - Should You Buy A House Right Now? 01:10:17 - Your Banker Comes Before Your Wife 01:15:07 - Where Beginners Start And Climbing The Lending Ladder 01:18:39 - Get Your Real Estate License In College 01:24:14 - Taxes, Politics, And The Clearwater Ferris Wheel 01:29:46 - Is It Easier Than Ever To Get Rich? 01:34:00 - Car Pool Tables And What He Does All Day 01:38:36 - The Boat, His Health, And Graham's Spending Anxiety 01:45:07 - Why He Lets Merrill Manage His Money 01:47:39 - The SpaceX IPO He Missed 01:51:53 - Muni Bonds And Building A War Chest *Some of the links and other products that appear on this video are from companies which Graham Stephan & Jack Selby will earn an affiliate commission or referral bonus. Graham Stephan & Jack Selby are part