Investing in Real Estate and Private Businesses for Financial Freedom

In this episode of The Richer Geek, we welcome back Bronson Hill, founder of Bronson Equity, who has now raised over $50 million for real estate investments and is a general partner in deals worth over $150 million.

Bronson shares how he left a high-paying career in medical device sales to gain more control over his time through real estate investing. We talk about passive income, how investment strategies are shifting with the economy, and what true freedom really means beyond just money.

In this episode, we chat about…

• Real Estate and Economic Shifts: Bronson discusses how rising debt costs and inflation are impacting real estate cash flow, despite strong housing demand and slower rent growth.

• Diversifying Beyond Real Estate: His company now invests in private businesses, oil and gas, and real estate debt funds to improve cash flow and tax benefits.

• Passive Investing Explained: Passive investing isn’t hands-off—it requires upfront due diligence on teams and deals. It's ideal for professionals with more capital than time.

• Buying High-Cash-Flow Businesses: Bronson looks for scalable businesses with $1M–$4M in annual cash flow, often overlooked by larger firms. He shares an example of a nearly acquired e-commerce company with $5M in yearly profit.

• Own Everything, Operate Nothing: Bronson focuses on owning equity while partnering with operators, allowing him to step away from day-to-day management and focus on investor relations.

Key Takeaways:

• Time Freedom Over Financial Freedom: For Bronson, true freedom is about having control over your time, not just being financially well-off.

• Networking and Education are Crucial: Bronson highlights the quote, "You'll be the same person five years from now except for the books you read and the people that you meet". He believes that education and networking are the "rocket fuel" for both passive and active investors.

• The "Cigar Butt" vs. "Wonderful Business" Approach: Initially, Bronson studied Warren Buffett's "cigar butt" strategy of buying struggling businesses with one puff left. However, he now prefers Buffett's later approach of buying "a great business at a fair price".

• Bigger Can Be Better: Bronson explains that larger deals, whether in real estate or business, can offer advantages like better teams, superior loan terms (such as nonrecourse debt), and a more attractive exit for private equity buyers.

• Self-Made Millionaires are the Norm: A Fidelity Investments study shows that 86% of millionaires are self-made, demonstrating that wealth-building skills are learnable and not solely dependent on being born into money.

• The Importance of a Strong Network: Jim Rohn's quote, "You're the average of the five people that you spend the most time with," underscores the need to intentionally seek out rooms and masterminds where you can surround yourself with people who are ahead of you and provide new insights.

   

Resources from Bronson

LinkedIn | Bronson Equity 

**Get a free copy of Bronson’s eBook “How To Use Inflation To Your Advantage” by texting the word “Inflation” to 33777

Resources from Mike and Nichole

Gateway Private Equity Group |  Nic's guide