In today’s episode of Real Estate Investing With Jay Conner, Jay is joined by David Richter.
David is an active real estate investor who has been essential in closing over 850 deals over the last 7 years which include wholesale, turnkey, brrrr, owner finance, rentals, lease options, and any other exit strategy you can think of.
While growing and building a real estate business from 5 deals a month to over 25 deals a month, he realized that as much money was coming in, it was going right out the door.
With the unique opportunity of being in every seat like a real estate investor, he found a calling in the company’s finance seat to help businesses see where their money really went.
David has helped real estate companies completely turn around from going out of business to building cash reserves by using the Profit First cash flow system.
He is in the process of writing Profit First for Real Estate Investors. This book is a derivative of the original Profit First by Mike Michalowicz that is tailored specifically for Real Estate Investors.
His goal is to completely transform the Real Estate Investing industry when it comes to how real estate investors view their finances. He wants to bring investors true financial clarity and freedom and help every investor stop living deal to deal.
Jay’s new book “Where To Get The Money Now”: www.JayConner.com/Book
Timestamp:
0:01 – Teaser
0:31 – Intro
1:29 – Jay’s New Book: “Where To Get The Money Now”
2:45 – Free book: www.JayConner.com/Book
3:07 – Today’s Guest: David Richter
6:17 – What is your business model?
9:32 – What is Profit First For Real Estate Investing?
21:10 – How important is it for the new real estate investor to understand this type of system and strategies?
27:40 – For an established real estate investing company, where will be the first place that you will take a look to get an analysis of where problems might be?
32:18 – Wholesaling as it relates to Profit First.
35:01 – Free gifts: LessStressMoreProfit@gmail.com
35:20 – Connect with David: www.ProfitFirstREI.com
Real Estate Cashflow Conference:
https://jaysliveevent.com/live/?oprid=&ref=42135
Free Webinar:
https://www.jayconner.com/training/wtgtmn-webinar-rev2-podcast/?oprid=&ref=42135
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.
What is Real Estate Investing? Live Cashflow Conference https://youtu.be/QyeBbDOF4wo
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Jay Conner:
If you want more funding as in unlimited funding for your real estate deals. And it's got nothing to do with hard money lenders, nothing to do with banks, mortgage companies, or any kind of institutional money, don't go anywhere because I'm getting ready to plug you into the money.
Jay Conner:
Well, hello there. And welcome to another episode of Real Estate Investing with Jay Conner. I'm Jay Conner, the Private Money Authority, giving you a very special welcome if this is your very first time to the show. And if you're coming back welcome to you as well. What in the world do we talk about here on real estate investing with Jay Conner, well, we talk about all things that relate to real estate investing. We talk a lot about single family houses, how to find those deeply discounted deals, how to get them funded with none of your own money, how to rehab houses, how to sell them fast, how to automate your business to where you're only working in the business less than 10 hours per week and making huge profits. And since we launched the show, I've had some amazing guests come on the show with me, and today is no exception, but before I introduce you, our special guests today, I've got a free gift for you just for being here on the show with us. And that is, I want to offer you for free. My brand new book.
Jay Conner:
Just released, titled where to get the money now. Now, the subtitle is how and where to get money for your real estate deals without relying on traditional or hard money lenders. So if you're brand new to the show, I want you to know that back in 2009, I was cut off from all of my credit deadlines and I had to find a better end Kirk, a way to fund my deals. I was introduced to this wonderful world of private money. And since that time have not missed out on a deal for not having the money. In fact, in the first 90 days of using private money, I was able to attract over $2 million. And this book will tell you and show you. Step-By-Step exactly how to duplicate the process of exactly how I have more money ready to go than I can ever find deals for.
Jay Conner:
In fact, my book will show you how to get a big check every time you buy a house and bring none of your own money to the closing table. So to get your free copy of where to get the money now, simply go on over to www.JayConner.com/Book. Okay. To get your free copy of the book again, that's www.JayConner.com/Book. Well, as I said, today is no, I'm no different than all the rest of my shows of having experts come on here that really know what they're talking about. Put your seatbelt on because you're getting ready to be impressed today. My special guest is an active real estate investor and he has been essential in closing over listened to this over 850 deals since 2012.
Jay Conner:
So these deals that he's been involved in include all types of deals, including wholesale deals, turnkey owner, finance deals, rentals, bird deals. And I'll let you tell you I'll let him tell you what those are, lease options. In fact, any other exit strategy that you can think of now, why am I guess was growing and building this real estate business from going from five deals a month to over 25 deals a month, he realized that he had a lot more money going right out the door, or at least as much going out the door as he had coming in. So with a unique opportunity of being in every different type of position, responsibility and seat as a real estate investor, my guests found a calling and the company's finance seat to help businesses see where their money was really going out the window. You see he's helped real estate companies completely turned around themselves from going out of business to building cash reserves by using what's called the profit first cashflow system.
Jay Conner:
Now, actually my guess is in the process of writing the book profit first for real estate investors. Now this book is a derivative of the original book titled profit first. And that's title specifically, this book that he's written is specifically titled for real estate investors. Now, my guests goes was to completely transform the real estate investing industry. When it comes to seeing how real estate investors view their finances. He wants to bring investors from helping every investor to stop living from deal to deal, to actually experiencing true financial clarity and freedom. And with that, welcome to the show, my good friend and fellow mastermind member, Mr. David Richter. Hello, David, welcome to the show, David. I think you are muted and.
David Richter:
There you go. Thanks for having me today Jay.
Jay Conner:
Absolutely. David and aware are you at today, David? That you are speaking from.
David Richter:
I am living in Maryland right now. So that's my home state as of right now.
Jay Conner:
Gotcha, Wow man. Now 850 deals. That's a lot of deals, man. So these deals, I mean, have you been in partnership with other people? I mean, what, what have your businesses or business models look like to where you've had this, you know, kind of success and these amount of deals?
David Richter:
We, my journey started, you know, like in college, that's where I read rich dad, poor dad, like a lot of investors. So I started buying my own deals and doing that. And then, then I started to looking for an investment companies like in my local area. So like to be able to work with, so I started like interning at a company. Then I started working with them and we basically helped grow that company to about 25 or 30 deals a month while I was buying my own rentals, doing my own flip. So that's where I got to see a big operation. Cause we went from like five employees to like 25 employees. I, it was, it was crazy. And then after we did all of that and did all those deals, and then I moved to Virginia because that was in Northwest Indiana and started investing in Virginia with another investor and saw a lot more deals done in Virginia.
David Richter:
And that was where I really saw. I was able to take all the skills and experience that I learned there and then come and bring them to this other investment company and then saw like the finances was one of the key areas we focused on first and saw like the transformation and where that investor basically said, like you've changed my life. And that, like, to me struck a chord because we were able to help him, not only just realize where his finances were, but like actually build cash reserves. And like this was even before I he had the cash reserves going until I COVID. And when that first all started too. So like, it was a really good period there where, you know, like I saw the power of using the financials in order to get get where we want it to be, you know, like can get where we want to be as individuals and as a company.
David Richter:
So that's really what my journey was. And that's what sparked me to start the company. I have now two simple CFO solutions to help real estate investors with their finances and give them an advocate, you know, like to say here's some basic financial literacy, you know, and the information and how to really get, you know, and to get a better net profitability, like cash profit in your bank account. So that's what like spurred from the deals and everything to where I am now. But yeah, it was, I remember there would be days where, or there was one stretch where we did like a hundred deals in a hundred days. Like that was one of the time, one of the years there, where we did like a string of like, it was a, literally a deal a day for a hundred days in a row. So we've I've definitely been, privileged to see a lot of the ups and downs of real estate, but then to see it at a high volume, low volume and you know, everything in between, it's, it's been a great experience so far.
Jay Conner:
So your, your background. So, somehow you came along to be exposed to the book, the original book profit first,
David Richter:
Yeah.
Jay Conner:
And then in your study of that book, you started using those principles first to actual real estate investors businesses. So let's go back to the original book and and share with us what are some of the, what are the core principles and profit first and then share with us how you are able to take those core principles and apply it to the real estate investing business.
David Richter:
Yeah, no, I love talking about this for sure. Because Profit First is first and foremost, a mindset it's literally profit first. And what do we mean by that? The most of us and the real estate investing world don't have a background in finance. We're the deal kill, you know, like we're the deal hunters, we're the ones that want to go out there and make the deals happen. And like the numbers to us are usually a foreign language. It's it's that accounting is that a foreign language? So that's where I was like, there has to be a simple system to make sure that entrepreneur, that business owner, the real estate investor knows simply how to manage their finances. And honestly, I saw too many people in the real estate investing world get into the rat race that everyone else had gotten out of, you know, like that or that they originally got out of their W2 job or whatever to get out of that rat race.
David Richter:
But then everyone builds their own real estate rat race. And that's where I was like, okay, this, there has to be a better system, a better way, you know, for it. Cause a lot of people make money in real estate when they start doing deals, they're buying the rentals, you know, it's, at that point, it's managing the cash and making sure that they have the right mentality because a lot of people get into real estate and they start making that money and they have no idea what to do with it once they start making it. And it's like that scene in rain man, you know, like he's really good at, he's really good at the one piece of gambling. Like he can count the cards really good or he's no, I'll equate that to like the deal hunting but then he goes to the roulette wheel and he's like, okay, let's put 3000 on 20.
David Richter:
And it's like, then it's Poof! It's gone. And that's what a lot of investors do like with their marketing or like with their, you know, like with something that they might not be as good at. It's like, okay, you know, like hopefully this marketing returns of something or hopefully I invest in this and I get something back on, I'm pouring money back into my business. Isn't that good? You know, like, isn't that what I'm supposed to do? And it's like, yes, but we have to have a plan around that. Like there has to be a systematic way you to manage that. And profit first and foremost is a mindset where the original like gap accounting or like anyone, any accountants, you know, that you talk to, which you know that, well, I could go off on a tangent there on accountants, but the traditional accounting says sales minus expenses equals profit.
David Richter:
Meaning you make a sale, you wholesale a deal or you have rental income coming in. You pay all of your expenses. What's left over at the end of the year or end of the month, you take as a draw or you get, you know, you hopefully have a profit, but the profit first mentality is sales. And the formula is sales minus profit equals expenses. Meaning you make a sale, you take your profit first with the system and then what's left over is what you have to grow scale and pay your operating expenses. And that is like a huge mental shift, making sure you're healthy because so many business owners, like I read in Ink magazine, this was like in 2018 or something, they said 51% of entrepreneurs do not pay themselves anything. They don't take anything out of the business. They're not making sure their healthy.
David Richter:
And that's why so many go out of business because they can't sustain that. They can't sustain that in their lifestyle. And honestly, in real estate investing, you could be making a lot of money. Like we were like doing 25 deals a month, but spending just as much or more, you know, like making a million a year, but spending 1.1. And that's where we have to get into the mindset of profitability, right from the beginning. So that is the mindset of Profit First. There's some actual mechanics around it too. And because we have to sense profit, we have to take it first. And there was a great statement in the book. It says, profit is a habit, not an event, meaning that you may have to make profit and bake it into every deal. Every transaction, every single moving of your money, you has to be of the mindset of taking that profit first.
David Richter:
You have to make sure that's baked into your company and that you make it a habit and not an event. So how do you make it a habit? The actual mechanics around this and paying yourself first, just like Robert Kiyosaki says and his rich dad books and every single one of his books about paying himself, paying yourself, or like the richest man in Babylon, all the books that you may have read as a real estate investor or someone who's interested in entrepreneurship, they all say pay yourself first. So how do you pay yourself first and how do you make profit a habit? The best way I've seen is with the Profit First system is to make your bank accounts like a modernized envelope system, setting up accounts specifically for your profit. There's three accounts. I call them the Golden Trio, just like in those movies, like I'm a big movie nerd and I love, you know, like Harry Potter and I love star Wars and they've gotten, you know, the three main heroes like Han, Luke and Leia that are always pushing for good.
David Richter:
They're always pushing for the good side to win. They're moving the story along well in your business, you need bank accounts set up to make profit a habit. And one, the first bank is a profit account. The second one is an owner's compensation. And then the third is like an owner's tax. Like all of those accounts are specifically for the owner, making sure number one, that you're healthy as a company, you have profit, cash profit in an account too. You got like money to pay yourself. If you're working in the business still and still doing functions of the real estate investing business, you need to pay yourself something. And then number three, that owners tax, making sure if you actually owe taxes at the end of the year, and you don't have a ton of rentals that you are, you've saved for your taxes and making sure that those are paid from the business.
David Richter:
So that's like some practical things that you can do to make profit a habit. There's other accounts that you can set up that I suggest in that come from the original book too an income account. So as income comes in, it just hold stays there until you allocate it to those other accounts. And then you have your operational expense account, the Op Ex account, making sure that you can pay bills from an actual account to then Jay, like you had asked about how does this apply to real estate? I like also adding some accounts to an OPM account. Like if someone has private money or they get private money from someone, or they have an account that they don't co-mingle with their operational expenses or with their profit or whatnot, because that gives a lot of real estate investors, a very false sense of security saying, I have this one bank account, all my money goes into it.
David Richter:
And now I've got like private money in there for my rehabs. I've got my operational expense, my profit everything's in this one account. So they're like, man, I'm sitting pretty today. But then as they pay out their rehabs, as they pay out things and as they think they have money for marketing, that account starts to dwindle down and it's giving the false sense of security until they might run out of money. And then that's like, then you, you're not able to pay for the projects, you're not able to do just the normal functions of the business. So I like separating out accounts specifically for like rehabs or whatnot. So that way, you know, okay, this is money designated for projects and should not be mixed in with my operational expenses. So that's one way to apply directly to real estate. And then also in real estate, especially if you're on the rental side, you're going to have mortgages.
David Richter:
You're going to have mortgages. That's going to pass through your, you know, like as you collect rent, you're going to pay mortgages out until you have free and clear rentals. So having an account for like your PITI, making sure that your Principal Interest Taxes and Insurance cause taxes and insurance will never go away. Even if you pay off, if you pay off the principal and interest. So setting up an account specifically for that and making sure as a rental company, you know, I brought in this much, I have to make sure my mortgages are taken care of. Then what's left over from that is my real revenue, making sure that I can be, I can transfer to my profit account. I can transfer to my owner's comp and you know, the accounts that actually benefit me as a business owner. So that's like the practical steps behind it.
David Richter:
But what I tell people is like, if you can't set up all those accounts or like whatnot, or you're like good grief, there's no way I've already got a million bank accounts. I just tell people, set up a profit account and like transfer 1% into there. What do we need to do is make profit a habit in our business. So like start with where you can start getting in that habit and start making it a part of your business. So that's like the overview or the overview of profit first without getting even more down the road of percentages and whatnot too. But that would be the mindset and has a practical thing that someone could take from this and start implementing inside of their business.
Jay Conner:
Well, David, it sounds like your system helps ensure the business owner that they continue to have more chunk of coming in than chunk of going out. Right.
David Richter:
That's exactly right. And making sure they know they don't have that false sense of security. Like what is my money versus other people's money? You know, like, do I actually have enough to operate my business? And is that where we truly are like, am I actually making a true profit? Like something that's in an account just because my accountant tells me, Oh yeah, you made six figures at the end of the year and you look at your account and there's like $12 in there. And you're like, where did that go? You know, like what in the world is going on? So that's where making sure that you are baking that into your business. So yeah, exactly. But more is coming in than going out and then having a true system to track it.
Jay Conner:
So I'm sure resonating with this idea of man, can I relate to that? It's like, I'm hoping and praying. I got the next deal coming along tomorrow. That's going to be like a big profit deal. And it's going to like, you know, infuse my checking account. And so, you know, I'm just going to hope and pray, all this works out. Right?
David Richter:
Yup. That's how most people come there. That's exactly the mindset that most people have. They haven't been taught that side of the business, you know, like it's fun to learn about the wholesaling and it's fun to like, learn about like, Oh, how to make the money, but then no, one's made it interesting enough to of how to keep it when people hear how to keep the money, they're thinking like, Oh, tax strategies, this or that. And you know, like as you get down that road, but no one's teaching people just how to manage it, you know, like as they get that, those deals in, how do you actually manage the money? So yeah. Like everyone comes with that mindset. Hopefully it works out and it's like putting it on black and hoping it works out. You know? Like I'm hoping that I hit the jackpot, you know, and I have more deals coming in my pipeline, then the expenses and my marketing expenses going out the door. So yeah, I, that totally resonates with a lot of the people that come to us, work with us. They're in that position of like, I don't know, hopefully we have enough coming in and then we can cover everything.
Jay Conner:
So in other words prayer by itself should not be a strategy, right?
David Richter:
By itself should not be a strategy It's pray like it all depends all upon God, and work like it depends upon you, you know, like I heard that, that saying a long time ago. And I think it's very, very true.
Jay Conner:
I like it. So as I said, seasoned real estate investors can definitely resonate and understand what you're saying because they feel it, they have felt it, they are feeling it. How important is it for a new real estate investor? That's just starting out to understand what you're talking about and to put these types of strategies and systems in place up front.
David Richter:
So I have a great story on that. I have a podcast, the profit first REI podcast of people who have implemented the system and just some general info. And I was interviewing someone who's very well known in the real estate industry. And he said he had implemented Profit First, later on in his business. And he had gone back through all of his deals that he's done. And he calculated like if he would've started profit first two years ago, when he first started his businesses, he said, I'd have 5 million in cash, more in my bank account right now, if I would've started this system at the very beginning, from my first deal, you know? And he said, anytime I set up a new entity, a new structure, a new business profit first goes in right from the beginning. So it doesn't matter if you've done zero deals and you're doing your first deal or if you're doing a thousand deals, this system can help you at no matter what your stage you're in. So that's the importance of starting even starting it out right from the beginning.
Jay Conner:
So for the new real estate investors that are tuning in here to the show what's the best way for them to start learning about these strategies and implementing them before they get too far down the road.
David Richter:
Right? That I would highly recommend picking up the Profit First book, getting the original book. So you can at least get the mindset. There are, we have resources at, I've got a Facebook group profit first for real estate investors. And it's all information in there. We are sharing documents and stuff like that. So you can find that on Facebook, we've also got the Profit First REI podcast for real estate investors specifically. And then, you know, like making sure that you've got resources like that. So if you go exactly, there you go. Profit first rei.com is where we're hosting our podcast. We're where the book launch will happen to. Like we mentioned at the beginning, I'm writing Profit First for real estate investors specifically. So that'll launch later this year. So that'll be another resource that people can use, but there's a lot of different resources that we're coming out with.
David Richter:
I post every single day on my, on, you know, I'm just trying to post as much information on this system and this mindset as possible because it's too valuable for this to just be locked up any paywalls, you know, like you can start paying for more of the information. Like if you need to work with someone, we've got simple CFO that helps implement about like, I want to get this out. And these types of things, these lives, I want to get it out with, you know, the book that's coming out, we're going to have like a mini course too, so to help DIY it for yourself. So right now we're just working. We have a lot of different avenues, the main one I would say is www.ProfitFirstREI.com. That's how you can connect with us on the podcast. And then also that's where the book launch will happen. And it's also going to be where we have, you know, that connects you to the Facebook group too. If you just want some practical information on profit first, as it relates to real estate investing,
Jay Conner:
Oh, that's www.ProfitFirstREI.com.
David Richter:
Yep.
Jay Conner:
There you have it folks, that's where you can connect. And you also told me, David, that you got some free gifts and education that people can get by sending you a, an email, right?
David Richter:
Yep. If you send an email to LessStressMoreProfit@gmail.com, love that, there it is. If you send it to this email address, put Jai is awesome and the subject line. And that way I know it came from here and you get automatically back like profit first friendly banks, meaning like ones that won't have a bunch of fees for setting up a bunch of accounts and the ones that are easier to work with. So there's a list of that, that you get, you get the first two chapters of profit. First, you get a short book that I wrote, Lest Stress, More Profit for the serious real estate investor, kind of documenting my journey for the last, you know, nine years since 2012 that's where then you can get that information. And then also it's got some other bonuses inside of there too, like an ebook that you know that with the book.
David Richter:
And there's some other things, if you email LessStressMoreProfit@gmail.com, that's some free gifts that I always want to give away. Because like I said, just trying to get the message out there, the tools out for people to be able to start thinking about taking their profit first, the biggest thing when we work with people is just that, that mental hurdle of like, I need to be a profitable company, and here's how I think about that. And like, I need to work for it, not just to reinvest in the business, which is great. I love reinvesting in the business, but with a plan, with a purpose, making sure you put your profit first, because profit unlocks your why it unlocked, why you're in business. It lets you build whatever you want, that lifestyle that you want. If that helps you build the re if you have deeper reasons behind starting your company, like if you want to give and you want to do things like that, that's why I'm so passionate about it. So LessStressMoreProfit@gmail.com sends you that information and gets you some of that free stuff to get you on your, started on your journey into the profit first for real estate investing.
Jay Conner:
Well, David, you just said a writer, downer and a writer downer is a also known as very valuable quote that you just said, and I love it. You said profit unlocked your why. In other words, you can have the biggest why, or if people don't understand why we're saying it, you can have the biggest purpose,
David Richter:
Right.
Jay Conner:
And meaningful reason for being in this business and being a real estate investor. But if you're not profiting there ain't no fulfillment of the why.
David Richter:
Exactly, It's just the, it's the amplification of who we are. So profit unlocks your why. So the more, if you are actually profitable, if you're not profitable, you're probably stressed and running around like a chicken with your head cut off. And it's really hard to focus on what really matters in life when you're putting out fire to fire all the time. So if you have profit and you're able to take that step back, it amplifies who you are. I love that profit unlocks your why it unlocks that purpose behind why you started your business.
Jay Conner:
So let me ask you this question, David, let's say that you are, let's say you have a new client, and let's say that it's an established real estate investing company and you know, the acquisitionist are in place and the funding's in place. And this boat load of marketing is in place. All the direct mail is going out. You got texting going out, you got outbound calling, going out, you got dispositions. You got you, you know, you got this great big wheel, you got this machine, right. And as you said, you can have a million dollars coming in and a million 0.2 going out. So, let's say you've been hired and then they're like stressing out. They don't, you know, they don't know what the profit's going to be until the end of the year when the P and L is printed or whatever, what's an example of two or where would be the first place that you would take a look at their profit and loss statement or statements and, or their balance sheet to start to get an analysis of where some problems might be that they could fix. What do you look at?
David Richter:
That's what we look at. But the first thing that we're looking at are their spending habits, you know, like, are they, so it is a lot of the profit and loss, making sure what our expenses, what are truly that, Oops, sorry, my wife's coming in. So that's where we have to make sure from the balance sheet and from the profit and loss, anything that's going out the door, like any cash out the door. So it's really more of like the cash outflows, what's going out. So we do the holistic picture and there's an actual profit first like instant assessment that we first do we say, how much did you make? How much did you keep last in the last 12 months? And what did you spend? Like, what was your total outflow of that? We're just trying to get those three numbers first to establish a baseline right off the bat. So we'll grab it from any statement we need, but those are the three things we're really looking for to establish, like, are they really getting anything from their business right now? Or are they just spending basically every dime on the business and just trying to, trying to grow it. But obviously there's probably a lot in there that could be streamlined and put to better use. So that's what we look at right from the beginning.
Jay Conner:
That's awesome. Well, David, this is really, I mean, you know many of us have heard of Profit First, but you're the first one that I'm aware of. That's really taken that overall concept and have, you know, really brought it home to the real estate investor and how to apply it.
David Richter:
Yeah, And that's why I've got this burden, this passion to get it out because I've seen it work in real estate investors lives and have people tell us over and over again, you've changed my business. I mean, we're seeing dramatic increases in people's net profitability, their cash profit, like 197% with one person. One person was crazy. It was like 1400%, you know, like year over year in their net profit, you know, just being able to see that and show like this system works, you don't have to do any more deals or buy any more rentals to make more money. You just have to take your profit first. You have to manage that. So that's where a lot of people get into that mindset. I have to do more. I have to do more and more and more. It's like, well, no, start where you are now.
David Richter:
Make sure you're as profitable as possible. And then let's add on to that because if you're already like at 95% OPEX, you know, like that's where, you know, you're going crazy with your spending. If you add to that, you're just adding fuel to a plane that's going down. So I make sure before you start scaling and growing, you've got that mentality. You've got a system in place. So yeah, that's what I wanna, yeah. I, that's why I'm so passionate about getting this out there too many people lost their shirts, their businesses, their everything in 2008 and 2009 and a system like this helps you with that. Make sure that you have money in your accounts, helps you be an actual business owner and say, I'm not just living deal to deal because a lot of people live, deal to deal now. And they don't even know it.
David Richter:
They just are in this bubble where, you know, like, especially if you're living during the time of a bubble, where it's like great real estate prices, you could be living deal to deal and not know it because something could come over the next week and wipe out the real estate prices. And then you're like, okay, do you have enough to sit on to be able to pivot to where you need to go? So that's where a lot of people are living deal to deal and they know it and they need to get out of it. And then a lot of people are living deal to deal and they don't even know it and are trying to get in and they have to have a system like this. So that way they can weather the storms as they come.
Jay Conner:
Before we go. David, there's been a couple of questions that have come in about wholesaling. So let me ask you about wholesaling as it relates to profit first. So Profit First, the principles of Profit First clearly relate to, if you've got a business that's looking for motivated sellers, borrowing private money, rehabbing deals you know, staying in deals from start to finish. Does profit first apply to just being a wholesaler?
David Richter:
It applies to honestly, any type of business. This is not even real estate specific. I've chosen to go the real estate path and bring it to the real estate investing world. But the Profit First is more of that mindset, getting it, making it a habit, helping it, see how it unlocks your purpose, your why in life, that's where it doesn't matter. If you're wholesaling. We work with wholesalers fix and flippers, private lenders, we work with, you know rental companies, we work with people with multiple entities. It works for all of that because it's more than mindset and making sure that you've got a practical application behind it. And it's like, we implement that after we make sure you understand the principles of Profit First, making sure you're profitable. It is a habit inside of your business. So yes, it doesn't matter what type of business you have in the real estate investing world. It applies to all.
Jay Conner:
Well, you know, the purpose in being in business, regardless of your, regardless of having a servant's heart regardless of wanting to make a difference in people's lives, regardless of wanting to provide a place for your friends and your family to work and make money, putting all that aside. The number one reason for being in business is for the business to pay the stockholders dividends, right, and return. And if you, Mr. Business owner are the only stock holder, your business is in business to make you money. And if you're not making money, all those other reasons don't make any difference, because if you're making no money, you ain't gonna make no difference. Right? So that's what I love about Profit First is that it puts principles in place David, that you brought here to the world of real estate investing that helps ensure that the real purpose of being in business is accomplished. And that is, I love it. Unlocking your why.
David Richter:
Yup, Exactly.
Jay Conner:
One more time, David, how can everybody get in contact with you? Stay connected and get the free gift.
David Richter:
So LessStressMoreProfit@gmail.com. That's how to get started on your journey for like Profit First REI. And that gives, you know, links to the Facebook everything that we talked about before. Also, if you want to connect with me like our business, cause we implement Profit First, we're fractional CFOs. So we have a business where we implement Profit First and then we help people get into the right financial shape and are their accountability partner. And we also have some services. If you become one of the clients that we do specifically as a client, as simple as CFO, like bookkeeping and whatnot, we're not a bookkeeping company, but like we offer some other services if you're a part of our company. So we do some of that. But that's where if you go to www.SimpleCFO Solutions.com, that's where you can get, if you are interested in working with us and implementing profit first and having a Profit First professional company implement Profit First that knows real estate investing and knows that can get you from point a to point Z from this whole model and help you increase your net profit by three digits or more. I mean, that's what we're seeing over and over again with people that we work with.
Jay Conner:
David, thank you so much for joining me on the show.
David Richter:
Awesome. Thank you, Jay. Thank you for having me and letting me spread this. The message.
Jay Conner:
Got it. And thank you our audience for being here on another episode of real estate investing with Jay Conner, we're here to serve folks and this is all about helping you take your business to the next level. I'm Jay Conner, the Private Money Authority, and I'll see you on the inside. And the next episode of real estate investing with Jay Conner.
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