Navigating Property Expenses and Financial Strategies in Real Estate

In this chapter, the speakers discuss a recently visited unique property, emphasizing its architectural features and the necessary interior design work. They introduce essential financial strategies in real estate, including the profit-first approach and the 'golden trio' concept for efficient fund allocation, while encouraging listeners to engage with their bookkeepers for better financial practices.

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The Profit First system was revolutionary when introduced by Mike Michalowicz. In simple terms, Profit First allowed small business owners to take home bigger paychecks, reinvest in their business, and scale with ease, oftentimes while doing even less. The age-old adage of “do more work, make more money” was turned on its head by simple accounting practices. In reality, the business owners who were doing the most work were making the least, while business owners who truly knew their numbers worked less, made more, and had more money to invest.

After reading Profit First, David Richter knew that this same system could be applied to real estate investing. David grew a rental portfolio himself by learning from a local mentor. This mentor had a growing team, a scaling business, but was making less and less with every deal done. As David investigated more real estate investors’ businesses, he found that this wasn’t an isolated case. Most investors were making low wages, working far more than at the jobs they had quit, and had inflated businesses, to say the least.

With some simple accounting practices, which David describes in this episode, real estate investors can turn their business into Profit First powerhouses using very simple steps. If you’ve been feeling burnout from a barrage of deals, but aren’t seeing the profit you’ve worked so hard for, you’ll want to pick up David’s new book, Profit First for Real Estate Investing!

In This Episode We Cover

The Profit First formula and why most real estate investors calculate profit all wrong

The biggest mistake that real estate rookies make when starting their businesses

Why more deals doesn’t automatically equal more money in real estate

The rockstar team member that can make or break your business

The “golden trio” of accounts that every investor should have set up

Redefining the “pay yourself first” method of making money

And So Much More!

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