Creating Generational Wealth: Pro Tips from the Property Flippers

Spring Valley, The Investor's Bank
Jun 26
4 min read

Updated: Jun 27

Debron, founder and operator of RJB Acquisitions, dipped his toe into the real estate game in 2008 just as the housing bubble burst. At a time when many were confused and unprepared for the market decline, Debron took advantage of the market instability and owner-occupied incentives by acquiring a 4-family where he rented 1 unit as a daycare, lived in one unit and rented two units as residential apartments to cover the mortgage and expenses. This strategic choice allowed him to establish a foothold in the market, reinvest capital he would otherwise be spending on housing expenses, and get firsthand experience in property management.

Since then, Debron has successfully executed a variety of real estate transactions in the fluctuation of the last 2 decades of the market, resulting in an expanded portfolio and honed skills. These transactions have ranged from traditional buying and selling to more innovative approaches such as seller financing, and lines of credit to produce a portfolio of both residential and commercial assets.

Recently, Debron partnered with Spring Valley to complete a mixed-use rental property at 8363 Vine Street in Springfield, Ohio. He secured a 10-year loan to renovate the residential spaces and hold the property to maximize his investment. He recognized the Vine Street property as a strong investment opportunity by negotiating a favorable purchase price. Realizing the previous owner was covering expenses with rents well below market value, he knew adjusting the rents through improvements would make the property highly profitable. He was also drawn to its mixed-use setup, prime location and manageable size for lower-maintenance and easy of upgrading. Ultimately, it has provided him excellent residual income and has become a solid asset for the community.

Debron's narrative serves as a testament to the potential that exists within the real estate market, especially for those who are willing to be innovative and adapt to changing circumstances. He carries his strategic approach to the next generation by using real estate as an anchor to help his adult children start investing.

I began my real estate journey in 2008 with the purchase of my first property, a four-unit building. I lived in one unit, converted another into a daycare, and rented out the remaining two units, which covered the mortgage.

In 2011, I purchased my first property in cash during a favorable market, a property I still own today. Recognizing the opportunity in the downturn, I leveraged both cash and lines of credit to acquire as many properties as possible—at one point owning up to 10 properties simultaneously. Since then, I have successfully acquired 17 residential units and four commercial properties.

My approach to real estate has been built on quality and efficiency. Every property I’ve flipped has gone under contract within three weeks or less, a testament to my commitment to high-quality work. This same commitment has resulted in long-term tenants, many of whom were the first and only occupants of their units. I fully renovate each property, which minimizes maintenance issues, increases property value, and attracts reliable tenants.

I am now focused on scaling my business at a faster pace while keeping my team consistently employed. A strong, reliable team is essential in this industry, and I am committed to maintaining my workforce by ensuring a steady pipeline of projects.

In addition to my investment properties, I sold homes to each of my three children, setting them up with low mortgages and gifting them $30,000 per unit. This provided them with immediate equity and reduced their mortgage costs while also allowing me to reinvest in my portfolio and pay down my lines of credit.

Tips from the Flipper

1.) In a downturn, leverage both cash and lines of credit to acquire as many properties as possible.

2.) Hold units for enough years to recoup your purchase and rehab costs. This allows you to sell them for 100% profit.

3.) Fully renovate each property minimize maintenance issues, increases property value, and attracts reliable tenants.

4.) A strong, reliable team is essential in this industry, and I am committed to maintaining my workforce by ensuring a steady pipeline of projects.

The Financer

Sage advice from an investor who recognizes the importance of knowing when to sell and when to hold properties. Real estate is cyclical and involves constant monitoring and reevaluating strategy to maximize your investment.

Perhaps the most valuable take away for me is Debron's provision for his adult children through real estate and how that gift has advanced the generational wealth path in his family. His choice to pass down real estate at a pivotal point in their young adult life, versus through inheritance after death, gives them a gift that Debron can appreciate for years to come.