Episode 49 | Nick Breffitt | Military Millionaire Podcast

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Nick Breffitt on The Military Millionaire Podcast

00:00 - 05:00

David:

Hey what's up everybody it's Dave military to millionaire just got done recording an episode with Nick Breffitt an Air Force pilot gone reserves does spec homes and flipping houses. S

Super cool episode I learned a little bit about spec homes I think you will too and he gives some really good advice. So if you're new to the show thanks for joining us if not welcome back. Show notes are found at Frommilitarytomillionaire.com/podcast Now relax and enjoy the show.

Intro:

You're listening to the military millionaire podcast, a show about real estate investing for the working class. Stay tuned as we explore ways to help you improve your finances, build wealth through real estate and become a person that is worth knowing.

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David:

Hey, what's up everybody? It's Dave From military to millionaire and I'm here with Nick Breffitt, who was a, he did what 13 years in the Air Force as a fighter pilot. And he's gotten out and done some spec homes, some house flipping and just having some fun out in Florida. So I just wanted to welcome him to the show.

And you know, Nick, tell us a little bit about yourself.

Nick:

Hey, Dave, thanks for that. And first of all, thanks for what you do, man, I think it's really awesome that you're putting yourself out there to help out all these military guys to let them know exactly what is available to them as they transition out or even as they transition out while they're in, in the military. And then later on when they inevitably do get out of the military. Everything that they can do. So I really appreciate you doing that.

But, but for me, like Dave said, I'm, like you said there Dave, I'm an Air Force guy graduated from the Air Force Academy in 2003, went to pilot training and then flew fighters with the Air Force for 13 years. I was all over the states. My first assignment was at Eglin Air Force Base in the panhandle of Florida. Then I went to be actually in a low working with the army for about three years ago, and stationed at Fort Hood. I lived in Georgetown for a bit, which is just north of Austin. And then and then after that I went to Kadena Air Base in Japan, which is on the island of Okinawa there. And, and I finished out my active duty Air Force career, they're flying F15 again.

So at the end of my assignment in Japan, I was coming up on the end of my commitment, which is, you know, 10 years after pilot training. And so it's coming up in the end of that and you know, just ask myself like, hey, do I want to stay in the military and do this, potentially get, you know, a one year on a company tour, you know, to career, something like that, you know, be separated, you know, keep moving with the family or don't want to get out and start something new.

You know, so it took a lot of soul searching, a lot of talks with my wife and then we decided to get out and start a business.

05:00 - 10:00

Nick:

You know, there were some other things that I could have done as well. You know, being a pilot, I could always go to the airlines, of course. But, but again, it's not something I really wanted to do. We can well, so back this up a bit, I kind of grew up in the real estate business, my dad's a GC. And so you know, I'd go to go to different jobs with him all the time and, and do some work and, and just just learn a bunch of him and move around a little bit.

So we bought our first house when we moved to, to Eglin at my first assignment there. And that was right at the height of, of the market. So the end of 2006 is when we, when we bought that house.

David:

Perfect timing!

Nick:

Perfect timing, right.

So at the end of that assignment in O 9, when we were looking to move, we could either sell the house and I could come to closing with about 50 grand, which I didn't have at the time, where I could keep it and run it. And we're lucky enough that is a great area for that for that type of home. Or for that type of investment. So we have Eglin right there and Duke fields, right there as well. And then and then. And then Hurlburt. All in that same area. So there's a ton of people that are always moving in and out of there.

So luckily, we never had a have never had a problem. Bring that home. But so we had that house, we moved to Georgetown, Texas, there we bought a home, it was a foreclosure, what is it actually in great shape. So we got into that house and picked it up a bit. And we lived in that for three years. And then at the end of that assignment, again, we're looking to move to Japan. And we decided to keep that house murdered out as well.

And of course, in Japan, we don't we didn't buy anything there. So we just slipped on base, but during this whole time. And this is kind of what I really want to talk about. I got married right out of the Academy, hence, and kind of a funny story.

You know, before we got married, you know, my wife's asking me, so how much you're gonna make as a 10. I'm like, oh, about 3000, 3200 bucks, something like that, you know? And she's like, Okay, great. And, of course, you know, when I graduated, we got married, we moved out, we moved to a place. And I had my first assignment there for pilot training, you know, paying all bills, and after all the bills are paid. She's like, So where's all this money? You said, You're making? Like, well, it's, it's all these bills.

So, um, so she kind of took, she kind of took that and said, Well, I think I think we're going to start working. Just so we can have a little bit of a little bit of extra cash, you know, and she's super smart. And she and she said, Okay, so what, what can I do that's going to be competitive everywhere, wherever we go. And in, you know, she took a look. And she went, and she went to nursing school, actually, while I was at pilot training, and it took her about a year, which is about as long as pilot training is, and she came out with a nursing degree, which is awesome.

And so when we moved to Texas, that's all she did, she worked at different hospitals, and different clinics or whatever and just just to help supplement our income. After a little bit, you know, she got tired of doing that, you know, just being on her feet. And, she decided to open up her own business of doing beach weddings down over here in the Panhandle area near Panama City, in the Destin area of Florida.

And, and she has been doing that ever since. And that's, that's been about 14 years now that she's been in that business. And she's super great at it and, and there have been years where she's made more money than I have, which is super great. I'm so proud of her for doing that. But, but like so.

So I say all that because what I was able to do or what we were able to do is you know with my income, you know paying off all the bills like the house, you know, the cell phones, the cars, all that all that stuff and maybe going out some entertainment but ever, almost all of the money that she made in her business we used as as investment money and so we would go and we'd buy buy a rental somewhere, you know, fix it up and and rent it out. And so we did that for years and years until we got to you know towards the end of this assignment at Kadena.

10:00 - 15:00

Nick:

And so at the end at the end of that assignment when I decided to get out I decided to start a business in real estate but you know we need some capital for that right and so what we ended up doing was was liquidating most of the properties that we had to pull all their cash out and so that we can invest into my business.

And so once I got out started the business the business was mainly building spec homes to start and a spec home is just for your listeners out there you basically have two types of homes that you build or a contractor builds one for an owner or one that's a spec or speculation so if you're building for an owner you know somebody comes to you and says hey I'd like you to build me a house and you go under contract and they get all the money for you and at the ends once you get that certificate of occupancy then you hand over the house to the to the new owner.

When you run the spec home it's a little bit different little bit a little bit more risky I would say but what you're doing is as a contractor I'm going in I'm finding a lot I am designing a house and I build it with my own money or money that I find with other investors and then once I get the certificate of occupancy then then I'd throw it throw it on the market for sale and then hope I get hope I get a buyer.

But that's that's spec home so I started doing that and then.. David I was telling you earlier but the market right now is really good for contractors pretty much everybody but what that means is that the cost of land is also going up and so when we're looking at at new properties is just getting tougher and tougher to to make an offer and build a home over that six months and make anywhere more than you know 10 or 20 grand and you know over that six months that's kind of hard to do a little bit riskier doesn't give a lot of room for the market to change or the price of the homes to go down or anything like that so so we decided to move on at that point to go to and start doing some flips and we've been doing that ever since

David:

That's cool.

Teaches me to tell you what my first question is gonna be you went ahead and answered it already I told her I started recording I was like I'll make sure that I asked as soon as you're done tell your story more about I know it's not a very common investing strategy and I gotta figure it out.

Okay so you did some speckles I liked the fact you mentioned that A you guys were able to save essentially half your income which is huge you know that's something that well hopefully we'll be able to do here in san diego we were doing it in hawaii but you know when you move your finances get like thrown up in the air for a month or two so I'm waiting on it all to settle and all my new allowances to come to fruition so I know what I'm actually making here but that's a huge force multiplier when you can put an entire income salary you know whether it's salary or even if it's just $1 you know an hourly wage a couple bucks here and there I mean it adds up quickly and then you basically went all in you burn the ships you got out of the military sold everything you owned asset wise and jumped in on spec homes and then house flipping and it sounds like you're doing quite well with the house flipping you did well in spec homes.

I'd be curious to hear so I know you know they're they're both active sources of income right both flipping and spec homes and assuming the margins were all right I'd be curious to hear like which you would prefer to do and why like was one more fun was more profitable what are some of the pros and cons between the two that you've dabbled with?

Nick:

Hmm that's a good question, I like doing both, both are a lot of fun and both absolutely have their challenges right?

What would I prefer if ever if all else being equal the money's all the same everything I think I would prefer doing flips the reason for that is because I love the you know intrinsically I love going into a neighborhood and seeing this this huge eyesore you know that that all the neighbors are passing by going man they need to tear that down and I love going in there and fixing it and then once everything is all done watching people will go in for an open house and go wow this is great this is fantastic and even beyond that when when somebody does finally buy that property that they go in there, and they're, they're living in that house and they're building, building a life for themselves in, in something that, that that I created basically.

15:00 - 20:00

Nick:

And so I love doing that and you know and in spec home building homes is almost the same thing and when you're taking up an empty lawn with a bunch of trees or bushes, whatever and and you're building the house on it and the same thing you know, somebody's going to live in that and go life and, you know, have kids and, and make family and all that. And it's and that to me is really, really cool. So.

David:

Housekeeping is also Insta sexy.

Everybody likes to post before and after pictures of their flip and pretend that the whole middle part was just wonderful.

I got a picture. Yesterday, I got a buddy. So I won't shout out the name but bought a house the other day, you know, flipping a house in Oahu. And he posted a picture today. And it was a hoarder house, obviously, but a full 40 foot dumpster, totally filled to the brim. He's on this thing for like two days. And then like no room to walk in the yard around it and hallways still packs, you know, still stacked like chest high. And he was like, yep, go to the other dumpster and holy smokes. Like it looked bad. But it did not look that bad. And so you know, I've had some not so fun experiences and some fun experiences with place and stuff.

So it's definitely challenging, but I definitely you know, as much as everyone jokes about the before and after pictures, I really think that is fun to see, you know, a house that's 60,70,100 years old, crumbling that someone already lived a full life and, and to turn it into something else that somebody else gets to live a full life in, which is just really cool.

Nick:

Yeah, I agree totally.

And the other thing I was thinking about as well with the flips, is the timeframe that goes along with it, right. So. So that's when you're doing a spec home and you buy a property, you're spending one to two months on plants getting it engineered, and everybody's busy right now. So you had you had a packet to an engineer, and he goes, alright, it's gonna be for six weeks, you know, and then you're, you're just, you're taking all this time. And once you finally start, then even then it's four to six months, you know, depending on the size of the home, until you're starting. But with the flip, I mean, you could walk in there and you know, demo in a few days, if you can get it down to the studs if you need to even and then and then build a backup in a matter of a month or two.

And one good thing that does for you so today's August 14 for your listeners, but today was a really bad day in the markets, right. And so that's one thing we always like to take a look at. But if you're doing a spec home, you know that that timeframe is always much shorter in it, and it doesn't allow the market to go absolutely nuts. You know why you're? Why are you doing that? Versus versus a spec home, if you're taking six months, and you hit like right, right? The right at the front end of a market crash or something, then you might be losing some money. And I think that's how people got into trouble in that last market downturn as well.

David:

There were definitely some builders that lost their shirts. In fact, I was talking to someone on the show a couple weeks ago. And essentially so she started she got in with some builders and some developers and they said the other and watched them all burn like she was in it for I think it was like less than six months when the market just started going south and all these guys got caught just we're halfway through a development. And now what? Which is rough.

I think that's another Yeah, the time the time issue, I think is I would imagine that. I wouldn't say, you know, I don't know, though I would be curious about scalability, right? Because these guys who build entire neighborhoods, and you know, the full development subdivision, I would imagine that once you get to that level, it's almost faster to do the spec home maybe because it's you know, you can only find it, in fact, find and flip so many houses at a time. Whereas if you're doing that you can like pay for a bigger crew and all the design can be done at once. And I wonder at what scale, does it does the time thing kind of catch up would be curious. I don't know.

Nick:

Yeah, I'm definitely not there yet. You know, I don't have the crews or the resources to, you know, to do any of that. So hopefully I can answer that question someday.

David:

We both got to get to where we're trying to do 50 flips and spec homes in a couple months and try to see which one takes longer. Make a reality show.

Nick:

Alright, let's do it. Let's meet back up here in about a year and let each other know how it goes.

20:00 - 25:00

David:

Yeah.

I don't know that this is right when I want to be buying spec homes at all. I mean, I guess it depends on your market, right?

Nick:

It all depends.

David:

I bought my patchalan for 4000, $5,000, maybe 7, $8,000 in the market tanks, and I lost like $2,000 land value.

Nick:

Yeah.

David

So that's a little different than you buy an acre in Hawaii for a million dollars in the market tanks. So it's a whole different world. So. Ayway.

Nick:

Well, that's one thing. That's one reason why we chose Jacksonville as well for the business. Because, you know, if the market does ever, ever tank really bad, then I think we'd be fairly safe because home values out of the beach, you know, when you're near the beach, always go back up a little bit quicker than then other homes what we found anyway. So there's something to think about for everybody else that's out there.

David:

Yeah, that's true.

Yeah. I mean, there's pros and cons to both. I think the spec home world is cool, though, because you get to, I don't know, that's, that's part of the risk, though, right? You get guys who build spec homes, and they look like you know, your typical home in the area. You got guys build spec homes, and they're quite extravagant, and super, like maybe a super modern design. And there's some really cool ones out there. And you're like, that's really cool. But I really hope the right buyer comes by cuz otherwise you're stuck with it.

Nick:

Yep. Absolutely.

But you know, we try to watch a lot of HGTV, just to make sure that we're doing all the right things, you know, the right finishes.

David:

Didn't you know that they show everything on that show? Knock out a whole property in a week.

Nick:

Instagram is good for that as well.

David:

Yeah, you're right, right. Like, I'll post this before the picture. But I'll do it the week before I post the after picture just so it looks like I was really busy. But I sat in the house for nine months.

Or, or this is the one I went really good on, not the one that took me seven months, and I made $1,000. So I was talking to someone the other day made like four grand on a flip was super mad. And I was like, Well, I mean, at least you still made four grand now I'm like, man, if I only make 4000 on a flip, I totally understand why they're upset. But it's all perspective.

Nick:

Yeah.

David:

What do you think the future looks like?

Nick:

You know, you bring that up?

David:

I'm sorry?

Nick:

Sorry.

You bring that up. But one thing I forgot to mention is when I got out and you know, created this business, I think I heard when your podcast, she was an agent, I forget her name. But she said the same thing. She made her first purchase or sale and she's paying all this money towards these to the agents, right. And so one another thing that my wife did is she went out and she got her real estate license. And now she's my realtor, which again, helps out a ton because she's making money on the front end, it's almost like cash back on a deal, right? And then then again, on the back end, she's making another two and a half to 3%.

So now that's another huge, huge thing that she's done for, for us and for my business as well. So.

David:

She has a definite bonus to not have to pay your own commission when you're selling. I mean, if you flip and you sell quite a few houses in a year, it adds up quickly.

Nick:

Oh, yeah, big time.

David:

So as I was rudely asking, while you were trying to talk, what are they? What does the future look like for you guys? Like what are the plans with this going forward?

Nick:

So one thing we've tried to do is, is use our own money, you know, and, and there are some challenges with that too.

But we were able to liquidate all those properties, like I told you about before and come out with a bunch of cash that we can use to build all these homes. The problem with that is, is growth is a little bit slower. But to answer your question, My plan is to grow. And I would love to do about, you know, 20 to 30 homes a year. So that'd be probably about two homes a month, right? In flips. And that's where I would love to be you know, and that would allow me to, you know, to get a staff to get a project manager that I could have that can go out and do some of these things that I do on a daily basis right now. So that will give me the time to do the things that I want to do in life like travel around with the kids and my wife and just to have fun now instead of work all the time. But that's about kind of where I'd like to be.

25:00 - 30:00

David:

You bring up a really interesting point there. And you said it and you know to you it's an easy point and to a lot of people it makes sense. But a lot of people would never think this way. And that's that you said, I want to scale to 20 or 30 flips a year, so that I have more time. And I think that's huge.

So I was listening to you, I don't know if you know who Bill Allen is. So he's a, he's pretty big I mean, he's, he runs a, I think he just took over house flipping HQ, and seven, seven figure flippers or whatever. So he's a, he's a big house flipper. He's a Navy pilot. I can't remember what his aircraft was. But he's a Navy pilot. He's in the reserves right now.

And he scaled, I mean, he's doing I want to say he's like, around 200 houses a year, something in the last few years. Yeah. And he just released a podcast as a two part podcast, because I talked forever. But he released a podcast like two days ago, three days ago with his COO, basically talking about how Bill is able to do X number of flips, and only worked like three hours a week, which is just mind boggling about it. And then you realize, well, yeah, he's got like a staff of 15 people. And he's got a Operations Officer and a finance officer and contractors and systems and, and that's so that, I like that you're already thinking that way, because so many people would see, oh, man, it took this much work to do a flip, and took this much more work to do two flips. And they forget that once you get to a point where you can hire people, you can pull yourself out of the equation, and it might take half the work to do twice as much, which is just awesome.

Nick:

Four hour work week, great.

That's kind of what sounds like to me.

You're absolutely right. And you know, and that's, that's the goal, right? I mean, we all want to be able to retire someday, right? I don't work till I'm 90, that would suck. So that's the goal is just to get to some point where I can do that, or I can have the time to, to go and travel and to take my daughters to their little sporting trips, or, you know, do all that stuff with them. So that, you know, 20 years down the road, they're not saying dad just worked nonstop. You know, I don't want to do that. I want to be around and enjoy life. I think that's kind of what everybody wants. Anyway, you know.

David:

I was gonna ask you, because you transition from the Air Force into the Air National Guard. And I'm sure some people on the show have heard me mention it, but that's kind of my plan. At this point. I'm 11 years old on Sunday, which is not when you're supposed to get out of the military, you're supposed to just say I’m here, I'm stuck.

Nick:

20 years, right, I'm gonna retire.

David:

Yeah. And so my contract ends October 10 2021. So I will be at 13 years and two months, or whatever, some change somewhere in there. And I'm looking at going into the reserves, because really a lot of the same reasons. You said, I want time, like the big one for me is controlling my time as I start to scale and grow everything that I'm doing online, as well as the real estate, the military, just not that the military is getting in the way. And there's nothing wrong with that. I love the military. But you know, I'm starting to miss opportunities that potentially be very lucrative and very time freeing.

So anyway, I would love to hear your thoughts on the transition, and any, anything that you think would be useful information to someone who may be at that point where they're debating one way or the other in life.

Nick:

Sure.

So like I said, I'm in the Air National Guard, and I work out at Tyndall Air Force Base. And in that decision, to me, I'm a part time guide, drill status guardsman, so I work you know, on the weekend warrior, you know, one week, one weekend, a month, two weeks a year, but were they go on set, so that was a no brainer for me. Because, you know, I'm getting now that there's a ton of uncertainty, I'm starting a brand new business, you know, I'm spending all this money and I'm not gonna see any of it until, until I, you know, complete this project, and, you know, get all that money back.

So, so, like I said, no brainer for me, you know, I work, I made a deal with the unit and I really work basically four days, every two months is when I come out here. And, and what that gives me is, is a little bit of security, right? So, so I'm out here I get a little bit of income, it's not much because I'm only working two days, right, but we're getting a little bit of income. And on top of that, I only paid $200, 200 something dollars for that health care, you know, And that, to me, is worth coming out here for two days a month.

You know, and it's more on my terms, you know, active duty, it's, you are going to do this, you're going to go over here and you're going to wait. You know, it's very structured, right. But with the National Guard, the reserves the same way it's it's it's much much more on your terms.

30:00 - 35:00

Nick:

So, you know, guys, guys, so you are on active duty, you have to move every three or four years, right? I say I'm not to promote the Marines, but yeah, that's how it was for us, you know, every three years we're up and working on removing, but it's not uncommon for guys to stand guard in a guard unit for 15 or 20 years. In fact, I just met a guy, he just came into my unit, but he was with the same unit for 28 years before he came out. And that, to me, is awesome. You know.

I mean, it's all about what kind of lifestyle you want to live, of course, you know, but, but I was getting to the point, you know, I kind of want my kids to stay at one place, so they can kind of grow up in the same school, same friends on that, and, and that's about where I was in my life. And so I said it made sense to me, too, to join the National Guard.

And the other thing it helps out, that we're that could help out is, you know, if the market does tank, or if if I totally jacked up my business or something like that, I've got a backup plan, you know, I can always come to you and say, Hey, let me pick up some orders for for two or three months, you know, well, well, things are going bad back home or something, you know, and that way, that way, I'm getting paid still, you know, and it's a great job and, and it, it really helps out, it really helped me out and in love it. And, and just to have that in my hip pocket. It just makes me really, really comfortable. That I've done it. So.

David:

Yeah, yeah, no, I totally agree. The healthcare, the security, the fact that, you know, and I haven't decided yet fully, if I'm going to do Marine Corps reserves, or look into one of the other reserves services, I love the Marine Corps. So there's a huge pride piece there. But then there's other options for, you know, I could be a helicopter pilot in the army without going OCS, they do the warrant officer pilot. That could be fun.

So anyway, the options are all out there. But I did some math the other day, and aside from the healthcare, which is huge. Depending on how high up the chart, you make it, it's really not much of a difference in pension, if you drop out active duty at like 10 to 15 years.

For me, if I get promoted to maybe three more times, I can only get promoted three more times as a commission. I mean, I was looking at five to $800 a month less, which is not that significant. Now, granted, I don't see my pension for 20 years later. So that's the significant piece. But you know, if you plan on working to your 55 or 60 anyway, not getting your pension to your 59 and a half or 60, depending on deployments is not that big a deal.

So anyway, I don't know. I realized, like, I had no idea until I started looking into reservist and pension stuff that like, Oh, it's actually still a pretty good deal.

Nick:

No, you're absolutely right. And you hit the nail on the head there too, that you don't get it until you're 62 or 63, or something, but but there are options in the reserves and the guard to if you are if you're full time dude, then then you can still that then you're still getting time towards towards an active duty retirement. And there are a bunch of guys in my unit that do that, that they you know, they come in as a drill status, guardsmen, and they, you know, they throw their name out there to get yourself known a little bit, you know, let the commanders know who they are so that when a full time job does open up, and if that's what you want to do that you can you put yourself in for that position.

Once you're in that position, then you're getting time back towards that normal active duty retirement, which is pretty sweet.

David:

Yeah, that's actually really cool.

So if you did that, and you ended up being active status, if you hit so even if you're a reservist by trade, and you get activated enough to hit the full 20 years, does it become an active duty pension? Or is it still the 60 year?

Nick:

So if you, you'd have to make up that time you missed, right? And so if you say you missed like two years in the middle, you'd have to, you'd have to add that two years on. As, as a full time, reservist. That's AGR active Guard Reserve is what it's called, but, you're still getting time towards that normal retirement. As soon as you hit that 20 or whatever you decide to say alcohol quit, then then you'd be getting that, that retirement.

David:

That's pretty cool.

Yeah, I didn't even think about that.

So one of the reasons I looked at where I like the idea of the marine reserves is that I was a recruiter, and the way that our recruiting works, they're always interested in it. We call it EAD extended active duty and they'll take reservists and put them on recruiting duty for like a well it's not to your orders. It's really it's Hey, you're on recruiting duty. And if you are successful, we'll make you a career recruiter, and you'll go full active duty until retirement.

35:00 - 40:00

David:

And if you're not successful, then you can just basically turn it into reserves.

Nick:

Back into the reserves?

David:

Yeah, back into the reserves. And I've seen both sides of the spectrum. And so that's kind of like my, well, you know, if I do the reserves, and then I'm like, oh, man, I really do miss this crap. But this was a mistake. There's an option, although I'd really prefer to just burn the ships and go for it. So I'm going to not tell myself that option at first.

Nick:

We know what the military is hurting right now. You know, they're manning shortfalls all over the place. So if you were to go to the reserves or the guard there are plenty of opportunities out there for you to go back. If you needed to. There are routes available for you to do that.

David:

You mean, you mean the world providing medication as solutions for everything and legalizing marijuana is hurting recruiting? What? Anyway, sorry, we're not gonna get into all that. There's some crazy stuff that I saw. Recruiting is only getting better as rules are getting easier.

Man, it's weird.

Nick:

Our job in Colorado, please.

David:

Yeah. Well, that's what's crazy about it is all those rules still apply? Right? For DOD.

Nick:

Yeah.

David:

Like eventually, the military is either going to have to bend its rules, because what happens once it's federally legalized, right? They can't just say, oh, you're not allowed to smoke pot in the military, Well, maybe they can, but they can't say you're not allowed to have ever smoked pot before. Or you require a drug waiver. Because it's totally legal. So that's kind of a weird spot some of my buddies are in recruiting right now is like, well, we're not allowed to, like these are all still drug waivers, but they're not doing anything illegal.

So anyway, but yeah, it's a weird spot. We'll have to see the military to adapt a little bit on some of that stuff, I think as it becomes more providence.

Nick:

Sure.

David:

I don't think that was the right word. But you know what I mean? Common. There we go. We use a simple word common. There we go.

Alright, so let's, uh, I got a couple questions here that I always like to ask. And I know it's, well, it's much later for you than it is for me, but it's got to be getting past both of our bedtimes I'm getting old.

So if an E one, E two, you know, an 18-19 year old for those of you who are listening to a military podcast and don't know E one, E two is, walked up to you asking for advice, you had a few minutes to give it to them. What do you think you'd tell them?

Nick:

You said one thing, but, but if I have two, and then they kind of piggyback off each other. But the first thing, let me think here.

The first thing, don't be afraid to take risks. All right.

That doesn't mean to do whatever you want. It means to go out there, do some research and to and to, to actually put your foot out there and, and do what you want to do.

The second thing is, is don't ever get too comfortable. And that's a quote that one of my old bosses told me a long time ago and to be honest, it took me a few years to even know what he was talking about. And like, What do you want? or What do you mean, not get comfortable? That's not the goal we want, we want to get comfortable, right? But don’t get too comfortable. And so I'm reading a book right now, you've probably heard of it. It's called the subtle art of not giving a you know.

David:

It’s one the shelf up there somewhere. Orange book.

Nick:

It's super cool. I'm actually listening to it, actually a cheat.

David:

I listen to audible mostly.

Nick:

But it's fun. It's a fun read that you know, the author did pretty well with that book. But we get to this part and he calls it the he calls it Manson's law of avoidance. I don't know if you remember that from that part of the book. But he says the more something threatens your identity, the more you will avoid it.

And that to me it kind of goes hand in hand with that don't ever get too comfortable peace. So basically, what he's saying is, you know, if you're comfortable, if you're living comfortably, you're not putting yourself out there you're not you're not taking the risks you're not you're not making yourself better. You might not be making yourself any worse either. But you're not. You're not learning anything and so don't ever get too comfortable with me means you gotta keep doing stuff that's out of your comfort zone. So that you can learn so that you so that you can so that you can succeed and so that you can fail.

Failure is a huge part of what we do as human beings. You know, we go out there, we try stuff we fail if it doesn't work, we learn from it and we move on. So that's that's basically what I would tell them. Don't get too comfortable.

40:00 - 45:00

David:

No, I like it. That's good. It's good. And it's different than, you know, some people say the same thing. And then that, I'm just kidding. No, that's good, though. It's very true because complacency kills, as we say in the military.

So, Alright, so what is a resource, book, course, website, whatever that you would recommend anybody looking to get started in real estate?

Nick:

So I look at that question. And if they're just getting started, I've listened to a couple of your podcasts and one book that comes up.

David:

Purple one behind me?

Nick:

Probably.

Robert Kiyosaki. Rich Dad, Poor Dad.

David:

Yeah.

Nick:

So I read that a few years ago. And as I'm reading that, that was my epiphany, you know, or I'm reading it and I'm going, Man, this is exactly what I'm doing with, with my properties right now without even knowing it, you know? And so definitely the book doesn't get into very, very many specifics, as you know, I mean, he's got a whole plethora of books out there. But, that's the one that got me started. That's the one that got me excited about what I'm doing and about. Basically, how he talks about retiring, right? So he, he says to it's been many years since read this, but but getting that getting that income in that what's the word I'm looking for?

David:

Residual passive.

Nick:

Passive income, yeah, in that passive income, so that you can go and live your life and do whatever you want to do with it. So it's anyway, that's the book that got me started in this whole process.

David:

Yeah, that's a good one. All right. But now I'm gonna ask you, if you got any books that you would recommend that aren't specific to real estate, because I don't do that enough. Ones out there.

Nick:

To be honest, all the books I'm reading right now are like code books.

David:

Oh, yeah?

Nick:

I don't think anybody wants to read those.

David:

Like, like HTML, like coding type stuff, or?

Nick:

Like Florida building code.

David:

Oh, yeah.

Nobody wants to learn about Aria zone, whatever for this to that, actually. But that's really cool, though, as you're learning as you do spec stuff, because there's some huge opportunities inland, and we don't need to dig too deep into that. But I mean, there's some opportunities where you can just flip the zoning and make a killing.

Oh, yeah, for sure. And..

David:

Not that it's as easy as flipping the zoning.

Nick:

It's not, I mean, you need it, there's some deals out there where you need, you know, a bunch of lawyers, you know, and you need to just start to spend some money, but the dividends are there. But you're absolutely right, you can definitely get creative with some of these things.

I mean, the city wants to help you out. The cities and counties, they want to do just what you want to do, you know, they want to make the neighborhoods look nice. They want to make the buildings look nice, they're there to help you out. And so if you just go into the county, and you've got an idea, as long as it's all legal that they're more likely to help you out.

David:

Yeah, so I agree completely.

Alright, so before we wrap this up, is there anything you'd like to add any parting advice or big ideas?

Nick:

One thing I was thinking about with this one was when I was separating from active duty there's a mandatory thing it's, I think it's mandated by law but if you have to go through this it's like a Boots to Business or something like that program. And there's parts of it where you build a resume, you you start a LinkedIn profile, and then as a part of it where where it takes your your MLS your APSC in it in a translate in translates into into the civilian world, right? It hasn't gone through this. You know, mine was easy, airline pilot. That's it. Okay. That's all I get to do.

David:

I'm good at driving a truck. So.

Nick:

But there was one kid next to me, you know, to be honest, I don't know what I can't remember what his job was. But his biggest gripe was there was nothing that his job translated to like, I'm looking at him like, dude, we are managers of people. We are managers of equipment. We were super disciplined. We took some we took a job that we learned over just the course of a few months and we became experts at it.

You add a budget along with that and you're a project manager for something you know and so that's my big thing is it might not feel like it and it might not sound like you're learning much in the military. But you are that discipline that you're learning that can translate to a ton of things in the outside world.

45:00 - 49:10

Nick:

And, and, and to be honest, all these outside agencies and businesses, they love that. And so and so don't get bogged down if you know, if you think that it's not going to whatever you're doing is not translating it will you just gotta stay positive, and want to learn how to do whatever you want to do.

David:

Absolutely.

Yeah, I think it's funny because like, for example, you know, one of my good friends is he was a recruiter with me, which probably helped with this, but I mean, he was a infantry guy, which he talked about, it's not really translating very well, unless you want to get into security law enforcement and he's a like head of HR for Lowe's, and he's doing very well for himself. Now, part of that's recruiting. But I mean, the other part of that is the leadership that comes with being on the front lines and that people just forget, they focus on the tangible, which is great now, but that's ultimately you can learn tangible, it's the intangibles that really benefit you in the long run.

Nick:

That's a great way of saying it. That's awesome. You're absolutely right.

David:

Or at least I'm hoping I'm right. Because otherwise I say all that I could translate to logistics and stuff. I've been high enough up on the logistics realm now that I could get a good job, but I don't want to do that. So.

Nick:

Yeah.

David:

I'll get fat and have my like, big cola cup in one hand and arm wrestling and the other hand, the old Grandpa.

Nick:

Turn the head around like that?

David:

Yeah. And then you got to go over the top of the hand. Whatever movie that was Sylvester Stallone, I'll be all buff and known for Rambo, but arm wrestling.

Alright, so hey, Nick, if people want to reach out, where's a good place for people to get a hold of you?

Nick:

So I’m on Instagram, we just we just started that really it's a coastal flip is us. My wife and I and anybody out there they have any questions on anything that I've talked about. You can email me direct at [email protected]

David:

Make sure I didn't mess it up. 904 Eagle?

Nick:

[email protected]

David:

Awesome. Sounds good.

Nick, I really appreciate you joining me on this show. There's a lot of fun. I learned a little bit about spec homes. I really knew what they were but I hadn't really thought about some of the struggles that you come into as you're building a I mean, there's just it's just such a different world than what I've been doing for investments. So it's cool to hear a little bit about that from someone who's actually done it rather than people who just heard what spec homes were and ran the other way.

Nick:

Yeah.

I'm glad I can come out, man.

Thanks so much for having me too. That was a lot of fun.

David:

Yeah! Absolutely.

Nick:

This is the first one.

David:

Oh, pop the cherry.

Nick:

Yeah.

David:

That's I think that's a cool thing about the niche right.

So a lot of service member guys like we don't, we're not there. As you get into the podcast realm. There are some guys who are there like podcast junkies, they just hop around, which is great. I mean, good marketing is a good strategy, you get to talk to a lot of people.

But I have had a lot of service members and veterans that I get to be the first person ever talked to him on the podcast, which is fun, because it's like, Hey, no one's ever heard your story on like, on, you know, through through a radio show, in essence, which is just it's a cool, it's a cool theory, because, I mean, I remember my first one and it was, man, I was nervous. But it's been a good time. So I've started to enjoy doing this.

So I really appreciate you joining us.

Nick:

Yeah, and I appreciate it. Thank you so much Dave.

David:

Talking to us when it's just me over here, but you know, they know what I mean.

Nick:

Yeah.

David:

Have a great night.

Nick:

Yeah, you too, man.

End:

Thank you for listening to another episode about my journey From military to millionaire. If you liked it, be sure to visit Frommilitarytomillionaire.com/podcast to subscribe to future podcasts. While you're there, we'd love for you to rate the show. Give us a review on iTunes. Now get out there and take action.

Episode: 49

Nick Breffitt

Nick Breffitt is an Air Force pilot, spec-home builder, and house-flipper!

After 13 years as an active duty F-15 pilot, Nick transitioned into the Air National Guard to spend time with his family, and pursue real estate investing. Since then he has been building spec-homes and flipping houses in Florida!

His advice to an E-1/E-2 (18/20-year-old) is:

Don’t be afraid to take risks, and don’t let yourself become too comfortable!

the resource he recommends is:

Rich Dad Poor Dad, which can be found at the link below

https://www.amazon.com/shop/frommilitarytomillionaire

His big idea/parting advice is:

The intangible traits you learn in the military translate very well into the civilian world. Leadership, management skills, discipline, etc.

If you want to reach out to Nick you can find him on Instagram @coastalflip or through Email at [email protected]

For more information about their program send an email to: [email protected]   Again, that is [email protected]. Tell David and Stu you heard about them through the Military to Millionaire Podcast and they will get you going down the right path.

SUBSCRIBE: https://bit.ly/2Q3EvfE

Blog: https://www.frommilitarytomillionaire.com/start-here/

Instagram: https://www.instagram.com/frommilitarytomillionaire/

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Audible: https://amzn.to/2K0wzxL

Join me in the BiggerPockets Pro community! https://www.frommilitarytomillionaire.com/we-recommend-BP-Pro/

Books I recommend

First read: https://amzn.to/2KcTEww

Real Estate Investing: https://amzn.to/2ltPRNm

Real Estate Investing: https://amzn.to/2yxFBNf

Real Estate Investing: https://amzn.to/2IhQ1QI

Building Wealth: https://amzn.to/2ttiwpf

Efficiency: https://amzn.to/2K1eRdy

Efficiency: https://amzn.to/2yvuu7K

Negotiating: https://amzn.to/2tmCyT7

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David Pere

David Pere

David is an active duty Marine, who devotes his free time to helping service members, veterans, and their families learn how to build wealth through real estate investing, entrepreneurship, and personal finance!

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