Profit First for Real Estate Investors with David Richter
Real estate investors work hard, make great money, and still feel broke, but it’s not your fault. Without a simple system, cash slips through the cracks and every next deal feels like a lifeline instead of a step toward freedom.
That’s why David Richter, author of Profit First for Real Estate Investors with a foreword by Profit First founder Mike Michalowicz, created this podcast to reveal how real investors flipped the script and started paying themselves first. Each episode shares honest stories from investors who used Profit First to eliminate stress, build stability, and reclaim their lives.
If you’re ready to stop surviving and start thriving, this is where your financial clarity begins.
Profit First for Real Estate Investors with David Richter
Zach Richards: How Private Lenders Actually Structure Deals Differently Than Banks
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
Zach Richards is a private lender and co-founder of REI Capital Guys, who made his first private loan in July 2020 using $100,000 of his own savings while still working a software job. He now runs a lending fund with his business partner, doing loans across the country while living rurally in New England, keeping bees, and volunteering with mountain search and rescue.
This episode covers how to break into private lending, how lenders structure deals differently than banks, and how to put idle capital in your Profit First tax and reserve accounts to work. If you have money sitting on the sidelines in a savings account, an old 401(k), or an IRA and you want it working harder, this conversation is for you.
Timeline Summary
[1:43] – Zach's background and why private lending appealed more than managing tenants
[2:28] – The nightmare tenant in his duplex that soured him on rentals for good
[3:10] – Three to four months of books, attorneys, and local meetups before ever lending a dollar
[3:37] – His first deal in July 2020, a $100,000 loan to an experienced flipper that paid back in six months
[4:44] – Why a good attorney on your loan documents is the difference between safety and disaster
[5:29] – Zach admits the $100,000 was the bulk of his savings and how he talked himself into it
[6:31] – How private lenders beat banks on speed by lending against the asset, not your tax returns
[6:52] – His actual terms: 80% of purchase, 100% of repairs, up to 65% to 70% of ARV
[7:43] – Why relationships matter so much that repeat borrowers get a yes over text
[8:46] – The mental shift from a stable W2 paycheck to lumpy business owner cash flow
[10:38] – The software engineer who had to force himself to build relationships instead of hiding in numbers
[11:37] – Why he and his partner merged two separate lending companies to launch a fund
[13:17] – The partnership secret: a disagreement is usually a different route to the same goal
[18:17] – Whether you should move Profit First tax and reserve money out of low-yield bank accounts
[19:13] – The liquidity rule: don't buy property with tax money, but shorter-term lending can work
[21:04] – Why a borrower with a Profit First system looks more organized and more likely to execute
[22:17] – What he's seeing in the market with properties sitting 30 to 45 days instead of selling overnight
[24:08] – When to get into private lending and how to lend from a self-directed IRA or HELOC
5 Key Takeaways
- Preparation Beats A Track Record — Zach underwrote his first deal with zero lending history because he spent months on books, attorneys, and meetups first. The prep work is what made his first loan a win instead of a lesson.
- Private Lenders Win On Speed — Banks want tax returns, pay stubs, and 30 days. Private lenders underwrite the asset, which is why a flipper will pay more for a fast close and a real relationship.
- Know Your Stress Tolerance — Going from a W2 paycheck to business owner income means great months and dead ones. Learning to sit with that swing is a skill you have to build on purpose.
- Idle Capital Is Costing You — Money parked in Profit First tax and reserve accounts earning 1% could be lent out instead. Just respect liquidity so the cash is back when you need it.
- Build The Business Around The Life — Zach designed a business in a backpack so he could live rurally, keep bees, and run search and rescue. Putting first things first is the Profit First mindset applied beyond money.
Links & Resources
- REI Capital Guys Self-Directed Rollover Guide — https://reicapitalguys.community/rollover-guide
- Simple CFO — https://simplecfo.com • Email Zach Richards — zach@reicapitalguys.com
Enjoyed This Episode?
If Zach's story about turning $100,000 in savings into a private lending fund got you thinking about the money sitting idle in your own accounts, don't let it keep collecting dust. Share this episode with an investor who's been curious about getting on the lending side of the table, and follow the show and leave a rating and review so more real estate investors can find these conversations.
