Understanding the importance of keeping your profit positive is critical for any real estate investor.
David Richter is a speaker, author (Profit First for Real Estate Investing), CFO and an active real estate investor who has been essential in closing over 850 deals. He started his profit advising company (SimpleCFO) to help owners make more money, keep more money, and have more time to spend with their loved ones. In this exclusive webinar, you’ll learn the secrets to how to transform your real estate investing business from a cash-eating monster to a money-making machine.
You may have used other methods to keep your books, but once you understand Profit First, you may be surprised how easy the method actually is. Listen to this podcast to learn more about the basic principles of Profit First and how those principles can help real estate investors build wealth with their businesses.
Key Talking Points of the Episode
03:03 The wrong formula to use to run your Business
04:12 The Profit First formula: Sales - Profit = Expenses
08:12 Reasons why businesses are hurting
10:25 Why do we have financial insecurities
11:39 What inspired David to start his business
Quotables
“Profit First is about your owners' benefit; you getting the maximum benefit from your business.”
“Make sure your company is healthy and then whatever's left over is the expenses.”
“Sales minus profit equals expenses means the business lives off of the leftovers from your profit.”
“If you can internalize the formula of taking your profit first and making it a habit and not in a nebulous event at the end of the year, that's what's truly going to help you.”
“What is Profit First? It's really that mindset. It's the mindset of “I’m going to make sure I know that I'm profitable.”
“Profit First is really about internalizing the concepts of “My profit does come first” and there's nothing wrong with that.”
“I started my business because I wanted to make sure that I could help other people get over the same insecurities I had about money.”
Links