You'd have to be crazy to want to buy a mall.
Malls are dead.
One mall near me is 90% empty with only Macy's and Kohl's hanging on.
What would you do if your business partner bought a $42 million mall before you could do your due diligence?
That's what happened to Oren Klaff.
Oren never invests in real estate until he does his research and reaches out to potential buyers to gauge their interest.
If he can buy a property at a decent price and there's interest from investors, he can easily flip the property.
In this case, his business partner jumped the gun and offered to pay $42 million in cash within 30 days.
If they backed out of the deal, their reputation would suffer.
The property is called The Mahalo Marketplace in downtown Honolulu.
There are dozens of small vendors selling Chinese goods.
At first glance, the deal looks promising.
The marketplace is full, with a year-long wait list for vendors.
Rent increases 5% per year and the landlord gets 2% of all sales.
In reality, 90% of the vendors aren't making much money and they have a terrible credit rating.
When Oren reached out to some potential investors, they saw big red flags.
Oren and his partner had to get creative to flip this property.
They did a lot of research and found that malls that were still selling in today's market were themed malls.
One big mall deal in Canada was for a pirate-themed mall.
There is a mall in Dubai with its own ski slope.
An outdoor bazaar-themed mall in Los Angeles recently sold for big bucks.
What did Oren and his partner do?
They positioned The Mahalo Marketplace as a unique opportunity.
Flip the Script: Getting People to Think Your Idea is Their Idea by Oren Klaff is this month's book in The Mastermind Book Club.
We're getting our monthly calls back on track this Friday, December 16th at 10 AM Pacific/1 PM Eastern.
You can apply these same principles to your business.
We have to have a unique offer to stand out from our competitors in this crowded market.
We're still offering similar services as our competitors, but we want our prospects to perceive our offer as new and/or different.
Join Tom Ruwitch and me on Friday to discuss Flip the Script: Getting People to Think Your Idea is Their Idea.