How to sell a $42 million mall

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…