Shark Tank | Life For Sale

Shark Tank | Life For Sale

August 14, 2019 100 By Kailee Schamberger


>>BEN MALLAH: EVERY DAY WE WAKE UP TO DO DEALS. THAT’S WHAT WE DO. THAT’S ALL WE DO. WE WAKE UP IN THE MORNING AND WE FIND THE NEXT DEAL. YOU PUT A DEAL ON THE TABLE, IF IT LOOKS GOOD TO US WE’LL DO IT. ♪ ♪>ADAM: SO TODAY
WE’RE COMING IN, WE’RE GOING TO TALK TO BEN ABOUT JOINING THE FUND THAT I STARTED. I BUY AND SELL HOUSES AT THE FORECLOSURE AUCTIONS. SO I’M GONNA GET HIM TO BUY IN TO WHAT I HAVE TO OFFER. I WANT TO PARTNER WITH HIM ON HIGHER END HOUSES. THREE HUNDRED, FOUR HUNDRED, FIVE HUNDRED THOUSAND
DOLLAR HOUSES. I KNOW HE’S A BIG TRASH TALKER BUT I’M THINK I’M READY FOR THE FIGHT, SO WE’LL SEE WHAT HAPPENS.>DANNY: SO ADAM’S MY NEIGHBOR. AND BASICALLY HE JUST NEEDS UPFRONT CASH TO FRONTLOAD THESE CASH DEALS. I THOUGHT, WHY NOT INTRODUCE HIM TO BEN?>ADAM: LET’S ROCK ‘N ROLL.>DANNY: RIGHT >ADAM: LET’S ROCK ‘N ROLL.>BEN: AND THAT FOOD THAT I HAD THE OTHER DAY IT WAS FANTASTIC. IF I DIDN’T THINK YOU GUYS WERE SERIOUS AND REAL SERIOUS ABOUT YOUR BUSINESS I WOULDN’T EVEN WASTE MY TIME. YOU KNOW, YOU GUYS WERE TRAINED OUT OF NEW YORK, RIGHT? WELL SO WAS I. SO THERE YOU GO. WE KNOW HOW TO GET S— DONE. LET ME GET MY HANDLE ON MY DAY AND I’LL GET BACK TO YOU AND LET’S GET TOGETHER. I’LL CALL YOU BACK AND WE’LL PLAN TO GET TOGETHER. ALL RIGHT. THANKS. SEE YOU LATER. BYE. WHAT DO YOU WANT?>DANNY: I BROUGHT THIS GUY IN TO TALK TO YOU.>BEN: YOU BROUGHT THIS GUY. EVERY PERSON HE’S EVER BROUGHT FOR ME TO MEET HAS BEEN A WASTE OF MY TIME. AND TIME IS MONEY. I GOT NO TIME TO WASTE. ANYWAY, SO WHAT CAN WE DO FOR YOU?>ADAM: SO I PRESENTED… I HAVE A PROSPECTUS THAT I PUT TOGETHER.>BEN: WHAT’S A PROSPECTUS?>ADAM: BASICALLY IT’S A BUSINESS PLAN.>BEN: A BUSINESS PLANS. I DON’T THINK I EVER LOOKED AT A BUSINESS PLAN IN MY LIFE. ARE YOU LISTENING TO THIS, BIGSHOT BROKER? THIS GUY JUST CLOSED ON A $6 MILLION CONDO. $6 MILLION FOR ONE
CONDO HE SOLD.>ADAM: THAT’S INSANE.>BEN: THERE’S A LOT OF STUPID PEOPLE IN THE WORLD. AN OPPORTUNISTIC VALUE-BASED FUND TARGETING
FORECLOSED ASSETS. PREPARED FOR BENJAMIN MALLAH. BRILLIANT! FIRST, TABLE OF CONTENTS. DISCLAIMER. INVESTMENT PROSPECTUS. (BLEEP) LLC IS A REAL ESTATE INVESTMENT COMPANY THAT MARKETS AND ACQUIRES RESIDENTIAL REAL ESTATE AT REDUCED PRICES FOR IMMEDIATE RESALE TO THE MARKETPLACE. EVERYBODY IN THE WORLD’S DOING THIS. HOW DO YOU FIND YOUR INVENTORY?>ADAM: I SCOUT EVERY SINGLE THING THAT’S COMING UP FOR THAT MONTH.>BEN: AUCTIONS. COUNTY AUCTIONS.>ADAM: COUNTY AUCTIONS.>BEN: FORECLOSURE AUCTIONS.>ADAM: RIGHT.>BEN: BUT YOU HAVE NO DIRECT CONNECTIONS WITH BANKS THAT ARE ACTUALLY SITTING WITH FORECLOSURES?>ADAM: I WISH I DID.>BEN: I’VE BOUGHT A LOT OF FORECLOSURES IN 30 YEARS. THEY’RE GONNA DO IT FOR A PRICE THAT THEY CAN SWALLOW.>ADAM: SO I BUY
IT FROM THE BANK.>BEN: YOU GO TO THE BANK.>ADAM: GO TO THE BANK. WELL I DON’T GO TO
THE BANK DIRECTLY. I BUY IT AT AN AUCTION WHICH WIPES OUT THE DEBT.>BEN: I USE TO GO TO AUCTIONS, MAN, WITH MILLIONS OF DOLLARS IN MY POCKET IN
CASHIER’S CHECKS. BUYING S— IN CALIFORNIA. YOU KNOW, IT WAS VERY LUCRATIVE AND YOU CAN DO IT IF YOU HAVE A LOT OF COMPETITION BUT YOU HAVE A LOT OF CASH TO PUT UP.>ADAM: I’VE BEEN BUYING THEM IN THE HUNDRED,
TWO HUNDRED, TWO HUNDRED AND FIFTY RANGE. BUT WHEN YOU GO UP TO THE THREE HUNDRED, FOUR HUNDRED, FIVE HUNDRED, MILLION DOLLAR RANGE YOUR COMPETITION
IS LIKE THAT. SO WHAT I’M SAYING IS IF I PARTNER WITH SOMEBODY LIKE YOU WE CAN COME IN AND WE COMPETE AGAINST ONE OR TWO GUYS INSTEAD OF
AGAINST TEN GUYS. YOU HAVE THE CASH TO DO IT. I HAVE THE EXPERIENCE TO DO IT. IF WE PARTNER UP WE MAKE THIS THING HAPPEN.>BEN: WHAT ARE YOU LOOKING FOR?>ADAM: WHAT I’M LOOKING FOR IS $2 MILLION TO BUY HIGH-END PROPERTIES. TALKING ABOUT STUFF IN BELLEAIR. THE DAVIS ISLANDS. THE STUFF THAT WE CAN PICK UP AT A DISCOUNT. SAY IT’S WORTH A MIL, WE CAN BUY IT FOR SIX. SELL IT AS IS, MAKE 150 GRAND OR RENOVATE IT AND PUT IT BACK ON THE MARKET.>BEN: WE WOULD NEVER TURN OVER MONEY. NUMBER ONE, WE DON’T LOAN MONEY TO ANYBODY. WE BORROW OUR ASS OFF. WE BORROW HUNDREDS OF MILLIONS OF DOLLARS, BELIEVE IT OR NOT. BECAUSE WE WORK WITH THE BANK’S MONEY. THAT’S A SMART WAY OF DOING IT. WE WOULD LOOK AT SOMETHING, IF YOU’VE GOT A BIG ENOUGH DEAL WHERE YOU FELT THERE WAS ENOUGH PROFIT IN IT FOR YOU AND PROFIT IN IT FOR US, WE’D LOOK AT IT AND
WE’D SAY “FINE”. WE WOULDN’T BLAME YOU IF THINGS WENT SOUR BECAUSE WE’D HAVE OUR SKIN IN THE GAME. WE DO OUR HOMEWORK, WE COMP IT OUT. BUT IF YOU WANT TO JUST PARTNER UP AND DO DEALS, YOU DO THE LEGWORK, WE’LL DO SOME LEGWORK TOO. BECAUSE WE’RE NOT GOING TO THROW DOWN ANY MONEY WITHOUT PHYSICALLY TOUCHING IT, LOOKING AT IT, KNOWING WHAT THE HELL WE’RE GOING TO DO WITH IT, HAVE A PLAN. SO YOU KNOW, ALL I CAN SAY IS YOU GET A DEAL, YOU BRING IT TO US. WE SIT DOWN, WE TALK ABOUT IT. WE’RE TOO BIG TO WANT TO STAB YOU IN THE BACK AND GO BEHIND YOUR BACK. WE DON’T DO S— LIKE THAT. WE DON’T BURN PEOPLE. I WOULD’VE NEVER GOTTEN ANYWHERE IN LIFE BURNING PEOPLE.>ADAM: BUT WITHOUT A DEPOSIT AT THE AUCTION WE CAN’T
ACTUALLY TAKE…>BEN: YOU HAVE TIME PERIODS YOU HAVE TO MEET
WITH THE AUCTION. I’M AWARE OF THAT. BUT YOU LOOK AT THE DEAL FIRST BEFORE YOU PUT THE MONEY DOWN.>ADAM: SO LET’S SAY I BROUGHT YOU A DEAL THAT WE COULD BUY IT FOR 800 GRAND. IT’S WORTH 1.2, 1.3. YOU KNOW, AND WE COULD JUST BUY IT AND JUST TURN IT AND MAKE 150K.>BEN: YOU KNOW, IF WE LIKE THE DEAL THE MONEY’S NOT GOING TO BE THE PROBLEM. I HAVE BANKS THAT WOULD LOVE FOR ME TO SIT ON THEIR BOARD AND APPROVE LOANS. BUT I WOULD NEVER GIVE MYSELF THAT EXPOSURE. I KNOW HOW TO LOOK AT A DEAL AND TELL YOU HOW SAFE IT IS. SO THEY’LL EVEN CALL ME, THE BANKS WILL CALL ME BEFORE THEY APPROVE THE LOAN ON A MULTIFAMILY DEAL OR EVEN A HOTEL NOW TO GET MY OPINION BEFORE THEY EVEN FUND MILLIONS OF DOLLARS.>ADAM: I’VE BOUGHT AND SOLD 150 HOMES. FLIPPED THEM ALL. SO, I MEAN, I’M NOT LIKE SOME FIRST TIME INVESTOR COMING TO YOU, TRYING TO FLIP MY FIRST HOUSE. YOU KNOW, I’VE BEEN DOING THIS FOR A LONG, LONG TIME.>BEN: I’M GOING TO TELL YOU RIGHT NOW, WE’RE NOT GOING TO LET SOMEBODY WE DON’T KNOW CONTROL ANY MONEY.>ADAM: SURE.>BEN: HOW MUCH DO YOU GOT TO PUT IN? HOW MUCH CAPITAL YOU GOT TO WORK WITH RIGHT NOW?>ADAM: I’M COMING TO YOU. I’M COMING TO YOU.>BEN: I’M NOT TRYING TO INSULT YOU IN ANY KIND OF WAY. WHADDYA GOT?>ADAM: LIKE 50K.>BEN: YOU MUST BE LIVING ABOVE YOUR MEANS LIKE DANNY THEN. YOU KNOW, STOP SPENDING MONEY ON GIRLS AND FANCY APARTMENTS IN ST. PETE. AND YOU PROBABLY HAVE A MERCEDES SITTING OUT THERE, RIGHT?>ADAM: SO EVEN IF IT STARTS WITH SOMETHING SMALL…>BEN: I WANNA MAKE MONEY.>ADAM: YOU KNOW, ME TOO.>BEN: HEY, I DEAL WITH PEOPLE I CAN’T TRUST EVEN. AS LONG AS I’M MAKING MONEY AND I KNOW THEY’RE GONNA SCREW ME, I GET READY FOR THE SCREWING. YOU KNOW. DOUBLE UP ON THE VASELINE. YOU KNOW, THIS IS MIKE BOUNOS RIGHT HERE. I’M GONNA TELL YOU RIGHT NOW IF IT HAS TO DO WITH A HOUSE, IF IT HAS TO DO WITH A HOUSE OR RETAIL THIS IS THE GUY YOU’RE GONNA BE WORKING WITH.>MIKE: WHO’S THAT?>BEN: COME ON, SIT DOWN. RIGHT HERE.>MIKE: WHAT?>BEN: YOU’RE THE SHARK. NEXT SHARK.>MIKE: FIRST OF ALL, WHERE… WHO…>ADAM: BASICALLY I STARTED BUYING AND WHOLESALING PROPERTY. NOW WHAT I’M SEEING IS THERE IS A BIG OPPORTUNITY IN THE HIGHER END STUFF WHICH I DON’T HAVE FUNDING
FOR RIGHT NOW.>MIKE: ANYTIME YOU GET OVER $250,000 YOU’RE GETTING IN ANOTHER CLASS OF BUYER. YOU HIT THE $300,000 YOU’VE GOT ANOTHER CLASS OF BUYER, MORE PICKY. THEN WHEN YOU GET UP OVER IN JUMBO LOANS YOU’RE DEALING WITH A WHOLE DIFFERENT BUYER. YOU CAN MAKE MONEY ON THEM BUT THEY’RE THE HARDEST PROPERTIES TO MOVE.>ADAM: I’M ALL ABOUT BUYING RIGHT THOUGH. SO IF I’M GONNA BUY IN THE HIGH-END I’M NOT GONNA SIT THERE AND TRY TO BE COMPETITIVE. NO. NO. NO. IF IT’S WORTH A MILLION I’M GOING TO TRY AND
PICK IT UP FOR 650.>BEN: GO, BRING US A DEAL. EVERY DAY WE WAKE
UP TO DO DEALS. THAT’S WHAT WE DO. THAT’S ALL WE DO. WE WAKE UP IN THE MORNING AND WE FIND THE NEXT DEAL. YOU PUT A DEAL ON THE TABLE, IF IT LOOKS GOOD TO
US WE’LL DO IT.>ADAM: I THINK WE CAN REALLY MAKE SOME GOOD MONEY HERE.>BEN: MIKE, GIVE HIM A CARD. HERE’S A CARD.>ADAM: AWESOME. HERE’S MINE TOO.>BEN: ALL RIGHT, GOOD MEETING YOU.>ADAM: YEAH.>BEN: DANNY, GET A JOB. YOU’RE PAST YOUR LIFE EXPECTANCY. WHAT ARE YOU STILL DOING HERE? THIS DOG’S LIKE 12 YEARS OLD. TIMES SEVEN. MAKES IT LIKE 84. EVERY TIME SOMEBODY COMES HERE THEY NEVER WANNA LEAVE. JUST KEEP MOOCHING. ♪ TOMORROW. ♪ TOMORROW. I WANNA SEE TRUMP. TOMORROW. BECAUSE I THINK HE’LL BE A GOOD LAUGH. HOW OFTEN DO YOU GET TO SEE A GUY THAT HAD THE BALLS TO RUN FOR PRESIDENT AND ALL HE DOES IS BUILD SOME HOTELS AND BUILDINGS AND HE’S BRILLIANT. THAT MEANS HE COULD RUN THE WORLD? BECAUSE YOU CALL THE CONTRACTOR UP “HEY, BUILD ME THAT BUILDING OVER THERE ON W. 42ND STREET AND CALL ME WHEN IT’S DONE!” BAM! GETS THE BUILDING BUILT. “HEY, GET OVER THERE AND DECORATE THAT BUILDING AND PUT A FLAG ON IT AND SET IT UP AS A HOTEL.” DONE. ALL HE DOES IS PICK UP THE PHONE AND CALL PEOPLE AND TELL THEM WHAT TO DO. I MEAN, YOU GOT THE MONEY IT’S NOT THAT HARD TO DO. YOU PICK UP THE PHONE, YOU SAY “HEY, I NEED SO-AND-SO. CAN YOU HANDLE THIS? DO THIS. DO THAT. DO THIS. DO THAT.” HE SITS BACK, HE TELLS EVERYBODY WHAT THE HELL TO DO AND HE LOOKS LIKE THE BIG SHOT. THAT’S KINDA WHAT I DO. TERMINATION OF NO WORRIES AGREEMENT. HAS NO LIQUIDATED DAMAGES. THE E-CONTRACT IS SIGNED IN RESPECT TO TERMINATION. I DON’T EVEN KNOW WHAT THE HELL THAT MEANS. WHAT THE HELL IS A NO WORRIES AGREEMENT? YOU GOT NOTHING TO WORRY ABOUT? SURE, YOU GOT NOTHING TO WORRY ABOUT. I AGREE.>BEN JR.: I’M GETTING IT DONE.>BEN: YOU KNOW WHAT A NO WORRIES AGREEMENT IS? I’M WORRIED THAT YOU DON’T HAVE A NO WORRIES AGREEMENT.>BEN JR.: NO WORRIES IS THE LANDSCAPER FOR BOCA. SHE WANTS TO KNOW IF THERE’S LIQUIDATED TERMINATION DAMAGES IF THEY TERMINATE THE NO WORRIES LANDSCAPING AGREEMENT ON THE PROPERTY.>BEN: ALL RIGHT, WE’RE GONNA READ THE COMMENTS. BECAUSE THEY COMMENTED, SOMEBODY’S GOTTA READ THEM. NOBODY ELSE IS GONNA READ THEM BUT ME. MAYBE DANNY. OKAY. VLADISLAV IVANOV. “BEN, I WOULD LIKE TO MEET YOU. REGARDS D.”>BEN JR.: HE GAVE YOU THE ‘D’.>BEN: WHAT’S THE ‘D’ MEAN?>BEN JR.: IT’S A HARD SLOGAN FOR DICK OR… YES, IT IS.>BEN: THEN WHY DID HE PUT THAT?>BEN JR.: I DON’T KNOW. MAYBE HE’S GAY.>BEN: MAYBE IT WAS AN ACCIDENT. STOP.>BEN JR.: I’M JUST KIDDING.>BEN: MAYBE YOU NEED SOME HELP. WHO KNOWS?>BEN JR.: OR MAYBE WE SHOULD SIT HERE AND CONTINUE TO WORK.>BEN: MEANWHILE
HE’S WATCHING… HE’S WATCHING THE SHOW. HE GIVES HIS PHONE NUMBER OUT. NOBODY DOES THAT. MAYBE THE GUY NEED SOME HELP. WHO KNOWS? YOU KNOW, THE PROBLEM IS THAT A LOT OF FOREIGNERS COME TO THIS COUNTRY AND THEY GET CHEWED UP. SO I’M GONNA CALL HIM. (PHONE RINGING) >BEN: HEY, THIS IS BEN. HOW YOU DOING?>VLADISLAV: HEY, HOW ARE YOU.>BEN: FINE. SO BASICALLY, HOW CAN WE HELP YOU?>VLADISLAV: I WAS JUST LOOKING, YOU SAID THAT YOU WERE TRYING TO FIND SOMEBODY WHO CAN FOLLOW YOU OR WHO CAN BUY YOUR LIFE OR WHATEVER, WHAT’S THE NAME FOR IT. I DON’T KNOW IF YOU’RE RETIRING OR WHATEVER. I’M LOOKING FOR… STARTING MY OWN BUSINESS. I’M STARTING MY CELL PHONE BUSINESS AND JUST TRYING TO FIND OUT WHAT YOU’RE DOING, WHAT’S THE LOGIC
BEHIND YOUR WORK.>BEN: WHERE DO YOU LIVE, NUMBER ONE? WHERE DO YOU LIVE?>VLADISLAV: JERSEY. NEW JERSEY.>BEN: DO YOU HAVE ANY MONEY TO INVEST IN YOURSELF?>VLADISLAV: UM, YEAH. I’M STARTING THE
BUSINESS MYSELF.>BEN: DO YOU HAVE MONEY TO BUY APARTMENTS?>VLADISLAV: NO, I
DON’T THINK THAT…>BEN: HOW ABOUT A HOUSE? DO YOU HAVE ENOUGH MONEY TO GO OUT AND BUY A HOUSE AND RENT IT OUT?>VLADISLAV: I’M RENTING APARTMENTS RIGHT NOW. YEAH. I’VE BEEN STARTING THE FUNDRAISING RIGHT NOW.>BEN: OKAY. NEW JERSEY. I GREW UP IN NEW YORK. THERE IS A MILLION GUYS CHASING AFTER THE SAME DOLLAR THAT YOU ARE. BUT IT’S HARD IN THOSE CITIES. WHAT PART OF NEW JERSEY?>VLADISLAV: IT’S JERSEY CITY.>BEN: I’VE BEEN THERE.>VLADISLAV: BUT IT’S CLOSE TO LINCOLN PARK. TALKING LIKE, IF I WERE TALKING TO YOU TWO YEARS AGO I WOULD PROBABLY
ASK YOU FOR A JOB. BUT RIGHT NOW I’M JUST ASKING YOU LIKE, HOW TO BE RICH. HOW TO BECOME RICH. PROBABLY THE QUESTION, HOW TO BECOME RICH, HOW
DID YOU DO IT?>BEN: I STARTED AT THE BOTTOM. YOU BUILD. YOU DO ONE DEAL, IT TURNS INTO ANOTHER DEAL AND ANOTHER DEAL. ANYWAY, THE POINT IS YOU GOTTA GO TO THE BANK, GET QUALIFIED FOR FHA LOAN. YOU ONLY NEED THREE
PERCENT DOWN. THEN YOU GO OUT THERE AND YOU FIND A GUY DESPERATE TO SELL A HOUSE. AND MAYBE HE’LL EVEN PAY THE THREE PERCENT.>VLADISLAV: YUP. YUP. YUP.>BEN: YOU GOTTA FIND THE CHEAPEST HOUSE IN THE MARKET THAT YOU’RE NOT AFRAID TO GO TO AND THAT’S NOT IN TOO BAD OF CONDITION AND TRY TO GET IT FIXED UP. AND THAT’S THE FIRST STEP, SEE HOW MUCH MONEY THE BANK WILL LOAN YOU AND FIND THE CHEAPEST HOUSE. IT’S A START. IT’S BETTER THAN SITTING AROUND DOING NOTHING. IT’S A START.>VLADISLAV: THAT’S TRUE. ABSOLUTELY. ABSOLUTELY.>BEN: WE STARTED IN THE ROUGHEST NEIGHBORHOODS IN OAKLAND CALIFORNIA. OKAY. WE STARTED WITH CRACK HOUSES. WE FIXED THEM UP. WE WEREN’T TOO AFRAID OF THE NEIGHBORHOOD. WE RENTED IT OUT TO THE HOUSING AUTHORITY SECTION 8. OUR MONEY WAS GUARANTEED EVERY MONTH FROM A LOW INCOME FAMILY. YOU KNOW WHAT SECTION 8 IS?>VLADISLAV: I’M NOT SURE.>BEN: LET ME ASK
YOU A QUESTION. NO OFFENSE. HOW LONG HAVE YOU BEEN IN THIS COUNTRY?>VLADISLAV: IT’S
ABOUT THREE YEARS, TWO AND A HALF YEARS. 2013.>BEN: ALL RIGHT. SO YOU’RE PRETTY NEW. YOU’RE PRETTY NEW AND YOU DON’T… YOU KNOW. SECTION 8 IS WHERE THE GOVERNMENT PAYS THE RENT FOR LOW INCOME PEOPLE. ALL RIGHT. FIND A LOCAL GUY TO HELP YOU FIND IT. THERE’S PLENTY OF REAL ESTATE AGENTS OR YOU GO ONLINE.>VLADISLAV: YEAH. ALL RIGHT. ALL RIGHT. I APPRECIATE…>BEN: ALL RIGHT. YOU HAVE A GOOD NIGHT AND GOOD LUCK TO YOU. THANK YOU.>VLADISLAV: ALL RIGHT. THANK YOU. BYE.>BEN: HE’S THE ONLY GUY WHO GAVE HIS PHONE NUMBER.>BEN JR.: YEAH.>BEN: HOW ABOUT THIS, ANYBODY WHO WRITES THE BEST COMMENT AND GIVES THEIR PHONE NUMBER I’M GONNA CALL THEM BACK. IF YOU WRITE A COMMENT AND IT IMPRESSES ME TO CALL YOU, I’LL CALL YOU. BUT YOU GOTTA BE WILLING TO PUT YOUR PHONE NUMBER OUT THERE. ALL RIGHT. ADIOS. ♪