Heroes in Business - Ron Breitenbach, Interview with a Seasoned Real Estate Investor

Episode Date: November 24, 2022

Interview with a Seasoned Real Estate Investor. How an Aerospace Mechanic Switched careers and become a successful Real Estate Investor, Ron Breitenbach in this episode. Join Ron and learn more in his

All right, guys, so I got to tell you that we are here today with Ron Breitenbach. Ron, welcome to the show. I'm so happy to have you here today. I've got tons of questions for you. Well, not tons. We've got limited time, you know, but so we'll try to be sustained and to the point with it all. But I wanted you to real quickly just introduce yourself, share a little bit about the name of your company, and let's dive right in, sounds good Ron Brightenbach full-time real estate investor 11 years company name triple RRR investments located in Tempe Arizona oh the desert no all right good deal so you said real estate investments right correct awesome so I mean there's tons of people right who

want to dive into real estate and get into it. How did you get into real estate, man? So kind of the old thing was you kind of observe situational awareness around you. My dad had a rental property when I was in high school. Aches and pains with that. And then, of course, grandfather always said you can never go wrong with a piece of real estate because the old mindset, right, is you buy a property property it's going to appreciate okay okay so basically it sounds like you had some influence from your family that got you into real estate yes so what was the day like how long how long have you been in it what like what was the day you were like okay that's it because i know that

you've had a job before you went into real estate you didn't just weren't born into real estate right technically right yeah i got out of high school went to college got my A&P airframe and powerpoint license was in the aerospace industry for 14 years as a mechanic okay but uh medical reasons I had to switch careers my hands started going numb hard working as I am uh just constant you know hand movement and drilling and fucking rivets and wrenching so i said i need something that's going to either you know keep the same income level that i'm at or supersede it right so i thought i thought real estate let's let's look into this a little bit a little bit more so between the transition in 08 and nine you know i I found an opportunity with a piece of dirt and

went after it. Okay, so a piece of dirt, so raw land I'm saying. Correct. I'm assuming is what you're saying. Yes. So that's how you got started is a raw land deal? Yes. You want to give us the real quick one, two, three on that? One, two, three. See it was ranch property out in Tonopah. It was $4.95 an acre. I said, well, I'm going to use the old mindset of my granddad. If you don't buy now, it'll probably go up in value. So about three years later, I had an investor call me, offer me $80,000 for all 40 acres.

And I said, no, I want to keep some of it. So he disappeared for a couple, two, three weeks. Came back and said, look, I'll subdivide it. I'll pay for the survey I'll still give you 80 grand and I'll take 25 and you keep 15 I'm like so that'll pay off my loan put 27,000 in my pocket yeah let's do the deal who would say no to that and you got to keep some land yeah keep 15 acres free and clear so 15 acres free and clear you made 27 000 correct and you paid off the loan yep dude my goodness that's so you made almost an annual

salary of a low level employee off that one deal correct and you got some land out yeah man that's amazing dude yeah so obviously you know you mentioned you've been been at this a while right over 10 years yes i think 11 years correct okay so 11 years i know you're not doing raw land deals only no right so tell me all the different types of deals you've walked into all right so um mobile home because it because it's a way to not hurt your pocketbook if you're going to use your own money so is that buying hold it is a buy and hold pocketbook if you're gonna use your own money so is that buy and hold long term rental you know mobile home you get someone in there and you know they're just you know low income level but you know they need help so you're solving a problem but you're also still making you know money with

the mobile home so what other deals have you done I've done six fix and flips okay I started that around 2018 I've done six of those and then I've done eight wholesale deals and I'm working on some big commercial stuff that's amazing so so out of all those I mean you said raw land mobile home fix and flips wholesale commercial stuff if somebody wanted to get started in real estate like obviously you didn't you started in raw land, right? Correct. But knowing what you know now, if you were to kind of go back to that 11 years prior version of yourself and say, yo, here's step one, step two, step three, what would you say now?

You know, hindsight's 20-20, right? Hindsight's 20-20. Yeah, so tell me what you think. money yeah so so i mean i made money on the raw land but with the education that i have and found the community of investors that teach practitioner instructors what they do i would have took that 40 acres divided at 40 times have one acre lots and probably made 10 times of what i made at 27,000 well i mean even 10 times twenty seven thousand right that's adding an extra zero basically so two hundred seventy thousand dollars you know that's amazing that's over a quarter of a million dollar deal you

know they mean just off that first wall and deal so that's amazing and so so going back to the question of all the different types right so again you got raw land mobile home fix and, you've got a wholesale commercial deals. Where would somebody start who's just looking to get started with real estate, man? Yeah, absolutely. Definitely can reach out, you know, to me. We'll leave a link below for you guys. But, you know, my favorite way to make money in real estate is definitely wholesale. And I think that's where someone would probably want to definitely get started. I mean, you know, no money or time.

We get it. We understand. I was there. But if you're going to get into something, you've got to take action. You've got to get off the couch. Start up and down the street. Knock on people's door. Hey, you're thinking about selling your home.

You can contact me or another investor. You know, OPM other people's money you don't just stroke a check to buy your house right you go to the bank to get a mortgage no one's got three or four hundred thousand dollars laying around unless yeah maybe you do but but anyway so uh you know it doesn't take a lot of hours out of your uh week or day you know what i mean maybe maybe one or two getting started uh you know after work during your lunch make some calls uh even saturdays you know grab the kids throw them in the car and just just pre-game halloween you know uh festivities but you know walk around and look for

homes that got lights on during the day weeds growing up around the windows you know what's going on with this house it's after the neighbors you remember knowing you might you might drop you know eight to ten grand in your pocket just for wholesale an assignment of a contract so earlier you and i were talking and i know we don't again we don't have tons of time to get into detail um but i i just want to kind of reiterate this for the people that are listening that that wholesaling fundamentally is simply and tell me if I'm wrong, basically going, you find a deal, or excuse me, you have a deal, a house that either is abandoned or just in need of some TLC, some lipstick and rouge, you know? And then basically you put that under contract under a pre-negotiated price, right? So let's say it's a $100,000 home, you pre-negotiate $65,000 is what you're going to pay for it.

Right. Then you put your, what, $5,000 to $10,000 finder's fee on there. Right. what you're going to pay for it right right then you put your your what five to ten thousand dollar finders fee on there right so you're selling that to the end investor correct for 70 to 75 000 correct and then they're making the spread on after the repair value exactly right so they're they're making 30 000 or so which is why they're interested in it you're you're the finder you're the kind of the matchmaker or if you will you're making that five to ten thousand dollars and meanwhile the homeowner gets out of a distressed property that's causing them a headache yeah that's the deal yeah it's usually it's a problem solver right

someone someone died in the family someone lost a job they just can't keep up with the mortgage payment yeah if you're going to go in and talk to someone uh you know just still what would it mean to you if I can make a next mortgage payment you may find yourself in a contract very easy peace of mind for keys oh wow interesting interesting so um you know we we're kind of at the end of our ten minutes right you know we've got to kind of constrain that so before before we wrap up and then man like you know earlier you mentioned about a link.

But if somebody wants to get started, they're like, man, I don't know where to go. But obviously, Ron knows what he's talking about. How do they get in touch with you, man? How do they get a hold of you? How do they get connected with you and the rest of the community that you're connected with? Right. Because, you know, you've got a whole pool of investors that got money they're waiting to do stuff with. And if somebody's willing to go out and do what you're talking about with this wholesale stuff essentially you know there's

opportunity there right i would definitely just call my office 60249 cash one that's 60249 cash one i got it awesome 60249 cash one and um ron it's been an absolute pleasure to have you today man and and i look forward to seeing the big things that are going to continue to come about absolutely awesome buddy yeah thank you yeah no problem man