How to Turn your Business into a Money Printer | Money Management in Real Estate with David Richter

Steve Trang: Hey, everybody. Thank you for joining us for today's episode of Real Estate Disruptors. Today, we have David Richter with Simple CFO Solutions, and he flew in from St. Cloud, Florida talk about why most investors aren't profitable and how to turn your business into a money printer. If this is your first time tuning in, I'm Steve Trang sales trainer, and every month, we help hundreds of people buy more houses at deeper margins.

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David Richter: I'm ready.

Steve: Alright. Cool. So, first question is what got you into real estate?

David: Well, I think it was like a lot of real estate investors. A good friend of mine in college gave me the book Rich Dad Poor Dad. So Yeah. I read that book and it was just like totally different way of thinking because up till then, you know, my dad had just had normal jobs and, you know, hadn't even thought about being an entrepreneur or buying real estate. And that book definitely unlocked a lot of that mindset for me.

Steve: Yeah. It's crazy how many people. Like, that was the book. It it was for me too. Yep.

When was this?

David: Let's see. 2011?

Steve: So 2011? Yeah. So this is college. Yep. So you read the book while in college.

Yep. Alright. And then I'm assuming you still finished your college.

David: Finished the degree. I got married during that time too. Also start I bought a house, like, while I was in college too. Like, my first one off the MLS, it was a HUD foreclosure, and I'm like, I'm not just gonna read. I'm gonna do this.

So I bought that first house, like, almost immediately after reading Rich Dad Poor Dad.

Steve: It's an action taker.

David: Yeah. Exactly. I just want to jump right into it. And that deal was awesome. Like, rented out for a little bit.

Actually, lived in there for a couple years, then lease optioned the property, and the lease option tenant turned out to be super tenant, paid early, and then cashed me out six months later. So I'm like, I I wanna do this a lot more. So I got the bug. Well, you gotta kinda

Steve: had the wrong expectations set up on your own.

David: Yeah. It was it was pretty, different expectations upfront, but I got around good people too. Good mentors that helped me along that path too. And I started working with a company, a real estate investing company, where I was, like, working nights and weekends for, like, eight months for free just, like, trying to learn, download, bring value to them. And then in return, I got to work with them, and we scaled that from five deals a month to 30 deals a month and got to see a whole small business.

And so I got a lot of good people pouring into me too.

Steve: Sure. So 2011 Yep. Read the book. What were you studying at the time?

David: To be a teacher.

Steve: To be a teacher.

David: Secondary education.

Steve: Which you are now. Yes.

David: We'll get

Steve: to that. Exactly. Alright. So you're studying to be a teacher. Read the book.

When did you graduate?

David: Graduated 2013. 2013.

Steve: So you still even reading the book and even buying properties, you still went all the way through to finish

David: Yeah.

Steve: The degree?

David: Yep. I finished the degree.

Steve: Okay. And then right after that Yep. You jumped into

David: Working with the real estate investing company because I just was at at that time, I was doing a side, you know, a side job while I was in college, you know, going to school during the day and then working at night. And that's where I got to read a lot too because I was a machinist. So I would just punch in the numbers and then sit down and read for three, four hours at a time.

Steve: Pretty nice.

David: Yeah. It was pretty nice.

Steve: Sounds like management was a little suspect.

David: Well

Steve: Wasn't really around.

David: Right. Well, it's the middle of the night. They didn't care. There's cameras everywhere. It was just like, you know, do it.

You know, make sure the machine doesn't go down.

Steve: That was their big thing.

David: Well, that's awesome. Yeah. It was really awesome. So that's where I dove into reading more books on real estate. That's what got me interested in seeking out a mentor because Yeah.

I at first asked my dad, like, do you know anyone in real estate in this area? And he's like, yeah. I talked to these couple people. So kinda what got me started right after college going

Steve: Well, now, it's slightly unusual because most people don't jump in in mentorship or you hire a mentor or work for anybody. Yeah. Like, a lot of people kinda wanna do this on their own.

David: Right.

Steve: And so whether they fail on their own or they go out there and they were killed, either way, like, it's kinda like, I'm gonna be a lone wolf at first. And sometimes there's some scarcity mindset as well, like, I don't wanna share my secrets. Mhmm. What prompted you to go work for somebody first before going off on your own?

David: It might have been all the books that I was reading combined with, like I said, I've had good people in my life. The two best people that I could even say were the parents that raised me as well too. Like, I owe a lot to them and their their mentality of seek help if you need that. So it was like, for me, it was a natural progression of I'm reading all these books, I'm taking action on this first property, but I wanna either I wanna buy more deals and I also want to learn business too. Mhmm.

So that to me was like, what skill do I have? What can I bring to the table to trade off basically, like, for mentorship or for learning the business? Or can I add to this company and have, you know, help it scale and grow? So that was kind of the the mentality that I was going through when at that time.

Steve: I was very fortunate that you had the mindset to to learn from somebody else. And it was pretty fortuitous who you ended up connecting with. Yes. You wanna talk about who you ended up connecting with?

David: Yes. So Wayne Shafer, Tom Olson, and Gary Harper. So, if you know Gary Harper, he runs Sharper, and he's helped, I believe, with your companies and whatnot. And so worked for five years there underneath those leaders and got to see Gary when he first started and was building out his first systems and processes for Mhmm. For Sharper and, you know, seeing his genius at work and we did.

It's it scaled the company from five deals a month when we first started when I first started working there to about 30 deals a month when I left and, you know, doing 300 deals a year. It was, you know, a lot of a lot of that leadership. So, yes, I was very fortunate with who I linked up with Yeah. At that time.

Steve: And for those guys that didn't watch our episode with Gary Harper, definitely go check that out episode out later on. We'll put a link in the YouTube. But he's my coach. Right? And he's come out here multiple times to help me with my business, help us, scale and grow.

So awesome and pretty fortunate you got to work with him.

David: Yes.

Steve: And you also, got to work with another peer, Josh.

David: Yes. Yeah. Josh Culler. So he was another person at that company, and that's when he was, you know, he stood in the marketing department. He was doing all that stuff there for the properties and whatnot.

So getting to see him before he went off on his own too with Color Media and really exploding his business. So there was a lot of people that have come out of that one business there that now have their different enterprises.

Steve: Yeah. It's really fascinating to see to see that kinda spot out just like we just finished watching, you know, the playoffs. Right? Like Yep. If you're a good team, like, all the assistant coaches or whatever players that go off and do other bigger things on their own, starting with the right leadership, from the get go.

So what were you responsible for when you were working under Wayne's team?

David: So I was kind of a utility man. I could go in there, fix something, and then move on. Mhmm. So I'd always be working myself out of jobs. So I did I did acquisitions, dispositions, project management, property management, transaction coordination, and the finance seat.

So I got to see almost everything.

Steve: All the same time or were you constantly moving roles?

David: No. I constantly move roles. I'd be in a role for about six months to a year, set a process. Okay. Who can we put inside of that seat?

Mhmm. So that was my I was kinda like I said, that utility man and, you know, managed a 100 properties, put a property management in place, you know, like that whole system. And, you know, one of the last seats I sat in for the last year was the finance seat.

Steve: Got it. So which makes a lot of sense. Yes, it does. So there's something I learned. This is from a strategic coach, which was like, you know, there's there's project managers and there's process managers.

David: Mhmm.

Steve: And then the process managers are great because they can do that role forever. Right. Project manager can do something really well once. Right? And they'll crush that role, and they can explain or whatever and and help other people do it, but they can't do it over and over again.

David: Right.

Steve: Is that kinda like your situation here?

David: Yeah. I would say so. That it was like, let's get it started, and then I would wanna move on to something else or, like, what's broken in the company and go in there and fix it.

Steve: Okay. So, you know, someone that's because you're very, you know, you're finance oriented. Right? Teacher.

David: Yep.

Steve: This is not the traditional closer.

David: Right.

Steve: No. So how was that situation?

David: I think when I first started doing that that job, it was more difficult for me because I wasn't that person at that time. But it was a lot of training and teaching, and, like, going to masterminds. Like, that was the first time they took me to a mastermind, and it opened my eyes. Like, okay, I need sales training or I need, you know, this follow-up system. Like, just being exposed to all of that to be like, okay, this is, you know, this is how we're gonna build this department or this is how we're gonna build it out and then being able to actually put the right people in place too.

So it was a mind blowing experience for me and then it was also a big experience for me to say, you know, if this is the skill that I need, where do I go and get it and how do I acquire that and just train myself? Because that was the thing too because now, you you know, I could talk to a seller, talk to you, talk to any it's like, it's just talking to people. Mhmm. It's asking good questions. It's really getting to know them.

What are their you know, what are they really going through? And after that process, it was just very eye opening that, you know, a lot of good people around us helped us get there. So you found your,

Steve: opportunities. You were closing a higher percentage after that sales training.

David: Oh, yeah. Big time. Yeah. No question. I mean, there was sales training, and then they helped us with our follow-up processes and systems and stuff, and then then it was like game over.

Just we knew that we had that dialed in at that point.

Steve: Got it. Okay. And then the last seat you sat in was the finances. Yes. And we're gonna spend a lot of time talking about that here.

Tell me about what that was like and what were you responsible for repairing?

David: Sure. So at that time, the person who was in that seat moved on to a different role, and I took that over. And basically, from entering transactions to managing the budgets for the company to just learning everything about it. And I have I know I look like it, but I don't have any accounting background. So, I know that's what I typically get.

So I totally get that that perception, but I don't have that background, so I sat down basically and would call the CPA all the time, like, what does this mean? Where does this go? What does it, you know, to teach me about the financial statements. Like, I wanna deep dive into this. And to me, I had already sat in acquisitions, dispositions.

I had sat in those different seats. This one now, the finance seat, put it all together of here's what really happens with the money. When we're marketing the property, when we're acquiring it, when we're selling it or turning it into a rental, like, I got to see the whole story and picture then of what was happening in the business. So to me, it was like, I'd my eyes had already been opened in all these seats. And then now, this was like the total picture of now I know how the money's flowing through the company.

And now I know what is broken or what really needs fixed. You know, like, not just what our perception is, but like the data that's right there telling me what is wrong with the company or what how can we make this better. So

Steve: So that

David: was another eye opening experience.

Steve: So how was the company when you took over that seat?

David: So at that time, it sounds really sexy to say we're doing 25 or 30 deals a month. Yeah. But as much as was coming in the door that much or more was going out, you know, it was like $6.07 figure months sometimes and $6.07 figure months with the expenses too because we had a lot of overhead, a lot of people.

Steve: Right. And I think that it's it's hard to to say it, but I think at the same time, a lot of people experience it. I mean, I can say, you know, there've been multiple times in my business throughout all the years where I'm saying to myself or saying out loud, making a lot of freaking money. Right. Where the hell is it?

Yep. And I imagine you've dealt with a handful of clients. I felt the same way.

David: Oh, man. Handful is not strong enough. I I have seriously just this year, what is this? This is February 16.

Steve: Of the second month. Right.

David: Of the second month. And I've already had over a 100 calls of people that that Really? Want to either use our service or like have gone down this path. Mhmm. And like 93 of them are in that scenario of where's I'm making money.

Where is it? I need help. Mhmm. You know, and I feel like that it's just I hear it all the time now. Yes.

With the clients we work with or just people getting on the call just exploring it of like, what is going on? I I've I'm making money, but I have no idea where it's going. I'm not paying myself what I deserve. I just I hear it all the time now, and just with the seat and with the the company that we have currently.

Steve: We're gonna talk about that for sure. I'm a just write that down, not paying myself. So let's say, you know, someone's, on the call you know, listening right now, and they they reach out to you. Yeah. Right.

Hey, David. Like, this situation describes me exactly. Right? I'm making a lot of money. I'm closing double digit.

Right? Because everyone wants to do double digit. That's like there's there's there's the two figures I hear a lot, you know, for our our coaching applications is I wanna do 10 deals a month or I wanna do a 100,000 a month. Like, those are the two over overarching themes. Right?

That's why I'm calling you. David, I'm doing 10 deals a month, and I'm making a 100,000 plus a month. But I have nothing to show for it. What's the first thing you typically say say to them?

David: The first thing I typically say is that it's okay. Thank you for at least reaching out. That's usually the first thing. People are embarrassed. They're ashamed.

They're taking coaching from amazing people that got them to those 10 deals because they are the deal maker. Mhmm. They're the closures. They're the people that love the deal. And now they're sitting there embarrassed that I'm making a 100,000 like, I've hit the goals.

The thing that I told Steve I wanna become this 100,000 person or 10 deals a month and I have nothing to show for it. And so the first thing I'm usually saying is, hey, you're okay. No need to be embarrassed. Thank you for at least coming on this call. Yeah.

Because it's just that first interaction of saying, I'm tired of not seeing the money. That is usually the big indicator of like, they're ready. They're ready to make that shift to not just making the money, but keeping it as well too. Yeah. So that's really the first thing I'm telling them is, like, don't be embarrassed because we don't.

This is not something that you're going to call Steve for, you know, like, it because you do the sales. You do the making, the 10 deals a month. And there's not a ton of people out there that say, I have this course and guess what? You're gonna do the 10 deals a month, but I'm gonna help you keep the money. Or I like Right.

You know, we hear the count ins and bookkeepers and like, we start running. Like, even those words get me just like, well, on the inside. Mhmm. So it's like there's not a lot on this side of actually keeping it. And I'm not just talking about CPAs in a tax perspective.

I'm talking about true business money management. Like actually being able to say, I'm making this money, but I also know where it's going. I know how I'm spending it. I know how I can increase it or decrease this or whatnot in order to make more and put more in my pocket and in the people that that I care about, my employees, and making sure that they're taken care of too. So that's where I feel like a lot of people know how to make the money and do the deals.

They have great mentors, great coaches, great trainers, but they don't have someone with the opposite skill to say this is how you keep it. Yeah. So it's really talking about a lot of that.

Steve: Well, Jason Medley, who runs Collective Genius Yep. Which you and I are both part of.

David: Yep.

Steve: He says all the time. Right? Like, making money is a skill. Keeping money is a discipline. And I think that I mean, there's two things here.

First, you know, there's kinda like I wanna say that in the last ten, fifteen, maybe twenty years, we've become more used to saying, like, I'm not okay. Right? Like, mental illness for a very long time Right. Is, is something that was frowned upon. Like, people look down on you and so on.

And I think now it's okay to say, like, hey, guys. Like, I'm not okay. I need help. Right? Right.

So I think the second step probably is the financial component. Right? Like, there are a lot of people killing it, crushing it, but not showing not having a lot to show for it. So I think, you know, I, I admire you know, you say you got 93 people so far that you're already, saying that because that's the first step Right. In in terms of turning that around.

David: Exactly. That's why that's why I'm doing what I do now. Because a lot of people have told me, like, this is not the popular thing. This is not the sexy thing, you know, or whatnot. And I'm, like, I'm saving businesses or I'm guiding these businesses.

Like, these these are lives, you know, like, that with their families, their significant others, or with their business partners and like, just spinning their wheels. And I'm like, this is a system. This is a simple way to get out of that rat race. You know, like to get out of your real estate rat race that you've built for yourself with these 10 deals a month and with this 100,000 a month. So that's why the company, the book, it was the the 25 deals a month that we were doing, 30 deals a month, and saying where the heck is all the money?

Like Right. Why are we why are we doing this? Why do we have this many people? Why are we doing this many deals if we're not gonna all show something for it? So

Steve: Right.

David: It was just born from a lot of that pain and frustration and seeing it in the people that were close to me too. And that's where I wish back then, you know, would have had a system like this or something. That's why now that's why this mission. That's why I'm very glad that you're having me out here just being able to talk about this because it is something that I feel like a lot of people don't want to talk about or feel ashamed or whatnot. And it's like, it's okay.

It's okay to talk about it.

Steve: They're okay. It's actually more commonplace than you think.

David: Way more commonplace than you think. It's those people that have reached out that, yes, are taking that first step. But for those 100, there's a thousand other entrepreneurs that are starting with those five deals, you know, 10 deals, you know, they're first starting out. And they're like, where the heck is all the money? Like, I've just done 10 deals for, like, at least 10,000 a pop, and I have no idea where my money's going.

Steve: And I can say, you know, so you and I, we we we both presented. SGG, you presented on the main stage, I presented in the room, but I kinda shared my own personal story. Right?

David: Like Yep.

Steve: The, you know, the the doing the deals and, like, literally, like, having nothing like the, the you can get a $39.99 a month to death. Right? You can get $900 a month forever. Right? You get the this tool, that tool, and you get all these overhead.

And it's really hard because, like, you don't know which one to cut. If you're not tracking your marketing, you don't know which one to cut. Right. Right? A.

And then, b, you're like, if I cut this and this hurts my business, like, you kinda like in this, what do they call it?

David: Is it Hedge 22?

Steve: Is it the the the the the debtor's prison

David: Yeah.

Steve: In a way? Where are you? Like, you are obligated to pay this. And if you quit this, like, you don't know if the case is gonna get a little bit smaller.

David: Right. So

Steve: alright. So we talk about, you know, the first thing is, like, hey, you know, the, talking to you and and and acknowledging it. What's the next step?

David: So from there, it's actually diving in on the money side and being able to talk about, okay, where are we right now? And the first thing that we do is what do you need as a business owner? You know, like, do you know that number to take care of your family?

Steve: Yeah. So it's take home. Exactly.

David: What do you need to take home? So that way there's not the struggle. So that way your wife's not saying, why are you doing this? You know, or why or your husband or whatever, you know, like, why are you doing this? You know, so it's getting that and really knowing what that number is because a lot of people don't even start there.

They don't, you know, in the business, they've even been doing it for a while because they think, I've got enough. I'm cushioned, you know, and it's like they've never taken the time to sit down and say, what do we really need? Let me involve my significant other or business partner or spouse or whatever in these conversations to say, what do we really need? Then we like to have conversations from there along the same track of what do you want? You know, like, okay, a $100,000 a month.

What does that mean to you? You know, like, how much of that do you want to take home? So now, if we're building margin in here, what do you really want and need? You know, so having those conversations and being real with yourself of what do I need and then what is gonna make me super excited? What's gonna get my wife out of bed in the morning too saying, you better go to that real estate investing job, so that way you can keep bringing this home?

You know, like, what are those numbers that get everyone in your family excited?

Steve: Yeah. I mean, you hear people in their, potentially, in their worst spot. Mhmm. So I'm really glad that you wrote wrote this book, Profit First or Real Estate Investor investing. Right?

David: Yep.

Steve: So I read Michael Michalowicz's Profit First many, many years ago. And, man, that was such an eye opening book. You know, kinda like, there's, like, three there's a handful of books. Right? There's the Rich Dad Poor Dad.

Yep. Like, opens all our eyes on that. There is the, Miracle Morning. Like, oh.

David: Yep.

Steve: Right? You can actually wake up early and get more done. Right. Crazy. Right?

And another one is profit first. Like, wait a minute. I'm allowed to pay myself first. Right. So Exactly.

Let's talk about that. Right? Because you talk about, you know, how much you need to take home. Why is that so important in in in line with profiting profit first?

David: So there's two big parts to profit first. And it's first that mindset. So We love our formulas, right, as real estate investors. So the formula we're fed, the BS formula that we're fed, is sales minus expenses equals profit. Meaning, I make a sale, I pay everyone else and their mother, and whatever I have left over is my profit.

At the end of the year, most likely, is when we're trying to wait for that payday.

Steve: Whatever show whatever is still in the bank account.

David: Exactly. Whatever is still in the bank account. And then that's when your CPA accountant person says, hey, you made a 100,000. Then you look at the bank account, there's $10 in there. You're like, where the heck did all that money go?

So that's where you're always thinking about expenses first. Profit First, the formula flips it on its head to think about the things that we need to think about first. It says sales minus profit equals expenses. Meaning, I make a sale, I take my profit off the table, I take that profit first, then I have the expenses left over. You know, that's the the last thing to think about.

Okay. Because we need to make sure we're building an actual business. An actual business is profitable. A for profit business should be profitable. It should be profitable from the perspective that the business is giving you a return and paying you Alright.

And the business owner. Because so many people get burned out. They get, you know, stuck in that real estate rat race of living deal to deal, living month to month. They're making, you know, the decisions from their fear because they're like, I have to have that next deal because I have no margin and I have to go out if even if it's a slim deal. They're making all these decisions from, you know, like the perspective of I'm paying my expenses first and hopefully I'll have something at the end of the day versus we're gonna make sure we have our oxygen masks on.

We're gonna make sure that the business is healthy. We're gonna make sure that we're running a true business here that supports why I even started real estate investing before we get into the rat race trap of like, okay, I gotta just reinvest every single dollar back in. Because I am not against reinvesting. Mhmm. I am against it though.

If you are struggling, you're on life support, you've got debtors coming after you, you've got your wife or spouse or significant other business partner coming after you like, what when are we gonna get paid? You know? For example, Sam. Exact Yeah. Exactly.

So anyway, it's just every single person. So it's like anyone that you is in your life, you know, like making sure that you're taking care of yourself. So that's that first step in profit first is switching that mindset and that focus to building good habits in your business. Good financial habits, good profitability habits, making profit a habit in your business. That's the first thing that first thing to unlock.

I will say though, we as real estate investors, we have already on this show talked about Rich Dad Poor Dad. Mhmm. And we've already talked about that mindset in other good books like The Miracle Morning or The Richest Man in Babylon. Portion of All I Have is Mine to Keep. And Rich Dad Poor Dad says, pay yourself first.

We've heard that. That message is communicated to us Mhmm. As a real estate investor. But with all the calls I'm taking, it doesn't sink in until there's a true system So

Steve: for it. So I think this is something that I experienced as

David: well. Yeah.

Steve: And so, like, you know, growing up, I did learn financial discipline from my parents. Yep. Right? And, you know, save money, put money aside, put money in your four one k. You know, that's a whole different conversation.

David: Yes.

Steve: Disagreeable. But, you know, put your money in your four zero one k, IRA, and save so you can retire later on. But there was a lot of saving. Right? You know?

Mom would say, you know, like, a dollar a penny saves a penny earned, you know, quoting Benjamin Franklin. But for whatever reason, once you go from w two to ten ninety nine, that all goes out the windmill. Right? So we all know it from richest man of Babylon, Dave Ramsey, and these other places. Right?

Yeah. To save money and pay yourself first. But when we go to business, something changes. Right. Right?

And it's like, I gotta reinvest. I gotta reinvest. I gotta reinvest. So I think that one thing, maybe, you know, maybe as mentors or whatever, this podcast is for is that letting people know it's okay to pay yourself first. Because there's so many people that are like, I gotta hustle.

I gotta grind hustle. I gotta hustle. I gotta hustle. I gotta put it all in, and then you have nothing to show for it.

David: That's I love that you brought that up because there's literally people that we're working with that have told us, I have this money in an account and I'm scared to touch it. Like, can I touch this? Like, I don't know what I don't know from the business side. No one taught me the business financial management. Sure, I've got the Dave Ramsey or I've got this, you know, like, the richest man in Babylon type stuff, but I don't know if that does that transfer to business?

Mhmm. You know, like do I still do the same thing? So I love that you brought that up because sometimes it's just giving that permission of, you know what? Yes. It's okay.

Cause we're setting up this system. That's exactly what it's for and we're going to know. This money here is for you. This money over here is to invest in the business. Like Yeah.

And to grow it and to invest in people. So that's where just that freedom of saying, we're working with someone who understands what I need as a business owner and tells me, it's okay. I've gone through that. In this business that I have now currently, I have a CFO on the team where it's like, we're helping more people. Is this okay?

You know, like, I I have never made this much before. I feel bad a little bit. And it's like, the same thing for a real estate investor. They start making all this money like doing 10 deals a month, doing the $100,000 a month like you brought up. And it's like, is it okay to take this?

Mhmm. You know, like, I feel like I have to pour everything back in or I'm I'm doing someone a disservice out there or like people can't know, you know, or whatever. I've gotta reinvest everything. It's like, well, no. It's okay.

We need you to be healthy. We need you, if no one else on the team to be healthy, we need you to be healthy because you've got the vision. You've got the mission. You're the one telling the you're the one bringing on acquisitions people. You're the one bringing on the team members.

You're the one supporting all these people. And it's like, you have to be healthy. So, yeah. It's like

Steve: You're steering the boat.

David: You're steering the boat.

Steve: And if you're not And if you're not And if you're not safe, you're not healthy, we're all in trouble.

David: We're all in trouble. And that's where sometimes, you just need that permission to say, yeah. It's okay. You can take this out.

Steve: And I think that people can get comfortable with the idea of bringing in a 100,000 a month due to a million dollars in a year revenue. But I think, kind of, to your point, something I haven't thought about before was that even though you had all that money coming in, you've never made this much money before. Right. And you don't know, like, is am I allowed to pay myself 250,000 a year? Like, it sounds crazy.

David: It does. Doesn't it?

Steve: There is that we do have our own baggage that we've been, you know, we've walked around with our whole lives with.

David: Yes. That is so good. Because if you think about it, you're leveling up yourself too. Your company as your company levels up, you are leveling up as well. So that does mean you can pay yourself more.

You're going or you're once you get to that level and you're like, should I be paying myself this much? Yes. You need to be growing your net worth. You need to be taking care of your family. Do you remember when you first got into real estate investing and you were like, I can't wait to make $200,000 a year or Right.

$500,000 a year and it's like, you need a plan to get there. And along the way, you're going to have mental roadblocks because if you've been an employee before, you've got some golden handcuff shackles, you know, like on your mindset of like, you know, like, I need to be doing everything all the time as of, you know, like, even if I'm the business owner, I need to be in everything or I still have to have my claws into some of these different areas. And it's like, as you are growing as an entrepreneur, business owner, and from the leadership perspective, you also need to go from a financial perspective of it's okay to make more. It's okay. And now, I'm going to be making more.

What do I do with it? It then it raises a whole lot more fun questions. Right. Because now, I'm making more than I've ever made. What can I spend in my personal life?

And what do I need to reinvest in other areas and make sure I'm, you know, taking care of what has been entrusted with, you know, that I'm taking home. So And

Steve: I think something is, you know, you kinda talked about earlier was that, you know, the hustle and grind in investing. Right? And I think, kinda, to the point, I think you're you're kinda going that direction was that it's okay to reinvest in it reinvest back in business if it's a conscious choice.

David: Right.

Steve: Right.

David: Exactly. As long as you still have the habits of paying yourself. Because like with this system, you're setting up accounts to be for your benefit, for the business owner's benefit. So as long as you are still making sure that you're paid what you need, that the business is profitable, that you've still got those percentages or whatever that might be. Even if you're like, you know what, I want to take a couple percents from my profit in order to reinvest back in the business and grow.

As long as it's a conscious choice and you're still keeping the same habits of good financial management, making sure you're still paid what you're needing, that the company is still profitable Mhmm. And that you're growing from that perspective and not from, you know what? We're gonna cut all this off. I'm just gonna dump everything back into this and then we're gonna hopefully scale out of our, you know, scale into profitability. And where it's like I love how Keith Cunningham puts it in his books.

He's like, if you've got a growth and a tumor, you know, adding more to a cancerous business only grows the tumor, you know, like, versus a healthy business where you're like, let's invest into this healthy business. So, yes, a conscious choice and keeping the same habits that got you to be profitable.

Steve: Now, I think a lot of what we're talking about sounds really commonsensical. Right? If if someone's listening to this, they're like, what the heck are these guys talking about? Like, this is all common sense. Now, those that are experiencing it know Right.

What we're talking about. Yeah. But let's talk about the why. Right? So Parkinson's law, you wanna talk about why that's a why why the formula is wrong in Parkinson's Law?

David: Right. So Parkinson's Law says, the amount of time I have to do something, I give myself to do something, is the time that it will take. So if I give my three week you know, three weeks for a project, it'll take me three weeks. If it's three days, it'll take three days. And it's the same thing with your money.

If you give yourself too much money, like, if you have this one big bank account Mhmm. Where everything goes in and everything goes out and you're just tossing the cash out all the time, one day, you feel like a kine or queen because you've got a million dollars in that account. And you're like, I could spend on this marketing or this mastermind or hiring this new person and what, you know, like and then the next day, payroll runs, all your other marketing channels run, and like, now that account is like way down and it's drained and you're like, oh, shoot. Where did all that money go? Mhmm.

And it's like, because you have that one account, you feel like you feel like if I have a bunch of money, I can spend it. And if I don't have a bunch of money, I'm gonna be more frugal with it. And that's what this whole point and this whole system is about. It's about taking your profit first off the table, so that way you're not mingling it and the way what you should be paying yourself with what the expenses are of the business. So that way you've got that a different bank account just for the expenses.

So that way you see, these are the expenses for the business so I can run it but it's not touching what I'm paying myself or what I want. What I want, what I choose the profitability to be for the business. Mhmm. So that way you're separating out that because that's where now, if you've got those good habits, you're setting that up, then you're truly becoming a profitable business and giving yourself control. You're controlling your money now.

You control of if I have money in that account, I can spend it in the Yeah. In the OPEX account or my operational expense account. If I don't have the money there, then I'm either gonna have to figure out how to do more deals or I'm gonna have to figure out something in order to fill that bucket back up.

Steve: Right.

David: So it's like making you and forcing you to be a savvy business owner just from knowing that if I give myself less to work with, I'm going to be more savvy in order to make sure that I keep this this profit over here secure and safe, and make sure that our family and our, you know, like, our personal needs are taken care of.

Steve: So Ryan Penida, he was on the show, a couple years ago.

David: Yep.

Steve: And he shared a story of, like, when he borrowed some money, as a second loan, right, to put as a down payment on another house. Yep. And, or no. He had gotten a loan for repairs for a flip. Right?

Mhmm. So that money was in that same account. So he spent it as a down payment for another house. Oh. And then when it was time to make those repairs, that bank account was not looking so good.

So you had to figure something out, but that's the risky run when putting everything through one account.

David: One account. Exactly. And that's where even in the book, Profit First for Real Estate Investing, I dedicate a whole chapter to reserves, number one. And then number two, I talk about OPM, how that should be an account for that you set up. Other people's money that isn't mingled with your expenses and with what it takes to run the business.

Because if you're a real estate investor and growing that way, you can go out all day long and secure private money or hard money or whatever because you've got assets and you've got real things that people want to invest in. But now, you are needing to be so responsible for that money. Even

Steve: more responsible.

David: Even more responsible. That's why I always encourage people. Open up a separate account. Call it OPM. Don't mingle all that money together because you are.

You're gonna feel like a a freaking keen one day or queen. And, like, now now you don't just have all your money in there. You have other people's money in that one big account. So it's like, please separate for the love of God. Separate that out so that way you know this is the money I have for my projects.

This is the money I have to run the business. Because if you start dipping into this project money, you know that's already a big red flashing light inside your business or vice versa. So it's like, that's the other thing too. You run out of project money and have to start eating into your OPEX, you know, your operational expenses. That's gonna be a red light for you too.

You're like, now I'm having to contribute to this? What happened? Like, did we go over budget or whatnot? It's another warning light for you as the business owner. So

Steve: Yeah. So hopefully, we've sold people on step one of just changing the formula.

David: Yes. What's the

Steve: second step?

David: So the second step in the system is actually setting up bank accounts. So it's like actually physically setting up, like, the JAR system or, like, the envelope system that you might have heard from, you know, like, Dave Ramsey or whatnot. Not that I agree with everything that any teachers, but for He's right.

Steve: Most of the things.

David: For most of the things. There's a

Steve: few things he's just really wrong about.

David: Exactly. So in real estate investing and for what we do with our money, those envelopes are a great thing. Because now instead of one of the big mistakes we see is having that one big bank account where everything goes in and out, tossing the cash out, but having separate bank accounts specifically for you. Now, in the book, I call the first three accounts to open the golden trio. I because I love I know.

Come on. Look at me. I love Harry Potter. I love Star Wars. You know, like, I love these big epic sagas.

So I love I absolutely love those where they have the three main heroes. You've got Luke, you know, Luke, Han, and Leia, or Harry, Ron, Hermione, you know, always making sure that good wins in the end. Mhmm. And your business is your epic saga. It is your you are living out your epic saga with your business, with your story that you're creating right now.

So you need three main heroes inside of your business. You need these three accounts that are always working for you to make sure you win in the end, whatever that end is. If that's selling the business, passing it on to your kids, passing it on to employees, leaving a legacy, whatever it might be. Setting up those three accounts is one of the first big steps of taking that step in the direction of being a true business owner and saying, we're gonna be profitable. Drawing a line in the sand and saying, we're gonna be profitable now because we're gonna actually fund these accounts and they're gonna be truly our business is gonna be profitable.

So that first account, open up a profit account. Second account, owner's compensation. Third account, owner's tax. We call that the golden trio or for the owner's benefit. Those three accounts are all for the owner's benefit.

Because the difference between profit and owner's comp because I get this question all the time for those two accounts. Profit is something you take quarterly, where you're either paying down bad debt that's keeping you up at night, or you're taking that, like, half of what's in that profit account and celebrating Mhmm. And say, this is why I freaking started my business. You know, like, what to be profitable and to actually take this money out and say and not feel guilty about taking money out of this and saying, I'm actually getting a return for my hard work, my sweat equity, or the equity that I have in my company. The owner's compensation is for you, the business owner, to be paid consistently for what the work you do in the business.

So that way, you actually have an account. This is why if you're just getting into real estate, that's you start funding that owner's compensation bucket until you have, like, consistently enough to walk away from your w two. So it's like that that one account is for making sure you're paid consistently. Then owner's tax. Like, how many times have I heard, like, shoot, it's it's almost April 15 or October 15.

I've gotta do three more deals right now just to cover my tax bill. Or I've gotta, like, be on a payment plan and pay them back, you know, like, over this time. This account is to make sure, especially if you're wholesaling or doing an active business, that you're saving for the taxes throughout the year. So setting up those three accounts will be revolutionary to your business. If you do that, I promise, if you listen to this episode, take action, a year from now, you'll be like, I have more money than I've ever had in my business before.

That's a guarantee. Like, if you can just open those accounts and start funding them with just 1%. So those are the three accounts. The fourth account would be like an income account where everything comes in and it sits for you to be able to then push it to those other accounts. Yeah.

So, like, that's another big one too. We all want to feel in control of our money. And if you if you have been listening so far, I haven't talked about the financial statements or any accounting jargon. Like, this is all something you could do as a business owner. Right.

You could set up these accounts. You can transfer. So this income account is for you, the business owner now, to move your money. Because now you'll be in control of where your money goes versus just having that one big pot where transactions come in, transactions go out. What the heck is happening?

Steve: Well, I like this because even this is something like, you know, you could explain to a third grader and maybe go do this right now. It's the envelope system.

David: It's the envelope system for business. So there's that income that you already have that fifth account, the OPEX. You're already paying the expenses. You already have the villains of your business, you know, like to go out the door. So those five fundamental accounts are what make up the opening up the bank accounts of Profit First.

And I tell people, you don't wanna go with the whole system or you're just worrying about it on the first time. If all you did from this thing was open one bank account, call it profit, and transfer 1% in there, you're building the muscle. You're building the habit, that habit of profitability. That's what the system's about. Don't worry about, like, okay, how much percentage should go in this account?

Or, like, should I open a different account for this or whatnot? Do all that. That's great. That's as you get more advanced. But if you're just starting out, the whole point of the system is to be profitable and make it a habit.

So, like, just set up that one account, and I promise a year from now, you'll have multiple accounts and they'll all be funded and you'll be like, holy crud, why have I not started this sooner? So that's the second step is opening up those accounts.

Steve: So the the taxing is is you know, it's funny you bring that up because I have known multiple people. They're like, holy crap. I need to close three deals we see now and April 15 Yep. So I can pay Uncle Sam. Yeah.

Right? Another thing too was you talk about the wage account. So I might have upset some people in the past. But what I've always said was that if you're not paying yourself a regular wage, you don't have a real business.

David: Oh, I a 100% agree with that statement. A 100%. If you can't pay yourself, you don't have a real business. What's the definition of a business?

Steve: So let's talk about this. Right? Like, the people that aren't paying themselves. I mean, like oh, I guess we kinda talked about it. Like, you know, this is the the the set way.

So you talked about you said you wrote a chapter about reserves. What how much should someone have in reserve? I've I tried looking this up, you know, on Google and other things. So I was like I said, screw it. Six to twelve months.

If we have six to twelve months of OPEX, we should be fine. So what is the right answer?

David: So the right answer. There's so many right answers. Right? It depends on who's watching this and what they're comfortable with.

Steve: The one that's got the David Richter stamp.

David: The David Richter stamp. I would say at least three months of reserves. So one quarter. A lot of people can have a bad month in real estate. They'll be okay because they make it up for the next month.

Closings get pushed back. If you have a bad quarter in real estate, sometimes it's harder to recover. Yeah. That's when you feel because so many people reach out and they're like, I'm on the real estate roller coaster here. You know, like, income up and down just like all the time.

Having at least a quarter will give you that security and peace of mind. And I do. I dedicate a whole chapter of the book to reserves because I know. I have I'm I've done 850 deals. Like, I get it that where I don't wanna have lazy money.

I want everything out there on the street.

Steve: I want to

David: deploy it. And that's where I did. I had to do soul searching. And after talking with and implementing with real estate investors, like, write a whole chapter and say, this is what reserves will do for you. So I give a lot of examples in there.

You know, like, OPM, other people's money. It'll be way easier to attract other people's money and grow your business without your cash if you have some of your cash Mhmm. To be able to show those lenders. You know, like, banks too. Banks, institutional finance, you know, funding, private lenders, hard money lenders, like, they love that stuff.

So, like, that's one huge reason, like, if you're wanting to scale your company and not use your own money. But then also, people don't realize the psychological effect on them if they have reserves. Not having to half that next deal, not having to close it. Just because you're like, I'm not living deal to deal. I've got money in my reserve account.

I've got the money to be able to weather a storm. Like, I don't need to take the slim deals. I don't need to do these things. You know, like, it just gives that peace of mind to the business owner to say, I don't have to live from fear and, like, make these decisions from that fear, but instead, from my purpose. You know, like, that's what the reserves really do.

It gives you the better opportunities to make better decisions of how to really do the things that are gonna move the needle and move your revenue needle too.

Steve: So, ideally so it was at least three months?

David: At least three months. Ideally. I love six to twelve. So, yes. That's where a lot of people we work with, we wanna get them to six to twelve months of reserves.

So that way, they could take off a year. That's the other thing about reserves is you don't know when the next market crashes or whatever. Like, everyone always says that. So obviously, this is for you to be able to weather those storms and to capitalize on them, those opportunities. But also, what about personal storms?

What if you have a personal crash and you're that could be a sickness of yourself or a significant person in your life, a mom, dad, spouse, child, like, what if you had to take six to twelve months off and support them? You know, so it's like that's what the business the business should be providing that peace of mind for you as well too. To be able to say, I have to walk away right now and maybe even shut everything down. You know, and it's like I and then that way you could at least weather those storms without having to say, shoot, I wonder how the business is doing. And like, you know what?

I know they just went into surgery, but I gotta make this call real quick, you know, while I can do this deal. It's like, gives you some of that peace of mind as well too.

Steve: Yep. Anything else in the process before we get into people's questions?

David: Oh, man. Just start start with that one account. Start opening that account, so that way you can get into the habit of being profitable. That's what this system is about. That's why I did.

I sold I had I built up a little rental portfolio. I was doing some of my own deals. Like, I sold all of that to start this movement now of, like, please, for the love of God, stop living in your real estate rat race. When we can get out of that, there's a system for this, a simple system to be able to pay yourself. So there you go.

There's my last 2¢ before Alright. We go into

Steve: the questions. And, like, again, you're right. Like, he's done over 850 deals. Like, this is not something that's, like, kinda like theory. Like, you No.

You're you're

David: I've seen it. I've lived it.

Steve: Knees deep, hands deep, chest deep within it. So, so before we get to the questions, how much how much should someone put in self development? Or is it such a such a thing for like, because we talk about Brian Tracy, Darren Hardy. Right? 10% to tiling, 10% to personal development.

Right? Like, do you have any kind of figures for this?

David: As far as a figure goes, I don't have a specific figure. I would say 10% is a good amount because that's about what we're spending, like, on masterminds or going and sharpening the ax or mentorship or whatnot. So I would say 10% is a great target because that's the best investment we know that you're gonna make. Because that's where you learned. Stuff like this.

You learned the sales. You learned how to be a better business owner. You learned financial management. So, yeah, I would say 10% for sure. And then, when in doubt with this system, add an account.

Open up an account for personal development and say, I'm gonna stick 10% of every deal in there because I know that I want to level up my game over this next year and this is what I have to spend on coaches, mentors, masterminds, programs, whatever. So that way I can be so that way, it also shows you this is the amount that I have. So I have to be very selective of who I go to, the training that I get, what do I need. So I would say 10% is a a very healthy number. You

Steve: know Larry Ash?

David: Oh, yeah. I love Larry.

Steve: Yeah. So we we, we spent, 35,000, right, just to have him coach all the leaders in our organizations, and it's been mind blowing.

David: Mind blowing.

Steve: For sure. I already know we made that money back.

David: Alright.

Steve: So, guys, if you need help in your business, schedule a call with our team. Just send me just send me a DM on Instagram help, and then we will help you in the best way that we can. So questions so far. So Corey g on YouTube, what's the average profitability margins you see for wholesaling operations? So you put 30 to 40%, but I think that might be optimistic.

So what do you typically see?

David: Well, I would honestly say for wholesale, let's let's define that too. Because I'm gonna have a totally different what I say is profit. Because, you know, like, let's think about this. You say you're a 7 figure business, most people are talking about their gross profit. Mhmm.

You know, and it's like, okay, that's great. So what's your gross profitability percentage? Or, like, what's your net profitability? Or in Profit First, what's your cash profitability margin? You know, so there's like different things.

So I'm gonna do it from the most the one that most people think of is net profitability on their profit and loss that their accountant shows them at the end of the year of like or what they they can log in and see, this is my net profit. For wholesaling businesses, now, this is a lot of people add in what they're paying themselves to. We've seen as high as like 50% net profitability where someone that's running super efficiently that can really and it's just strictly wholesaling. Fix and flips, not that high. The highest we're seeing is 27 to 30% for fix and flip.

Wholesales, 30 to 50% is really healthy. And we see that them, the wholesalers being able to achieve that higher margin. There was one person we were work we worked with. They were at 27%. They started focusing on their profit.

They're at 52% right now.

Steve: Okay.

David: Because it's like, they know they need to be focused on these areas in order to really pump out that profit percentage. So Do

Steve: you know what it is across the industry? Across the industry? Mhmm.

David: I can only say speak for the ones where we're digging into their books. I would say it is closer to that 30%, where a lot of people are closer to that 30% margin of, you know, that's where their net profitability is.

Steve: I think you're a little high. So anyway At least with the people

David: that we're working with. That's what we're doing. Disclaimer. I'm

Steve: just saying. I think that's a little high. Yeah. And then the best he's seen here is 52%. So, Ben, on YouTube, with all the different strategies in real estate investing, how do you encompass all the different rows different needs of each strategy or business when you suggest a profit first account splits in your book?

David: Yes. I love this. So if you did read the book, they I've got different setups for different types of businesses. And if you have multiple entities inside of your business, this is something I cover in there too, that do different types of exit strategies, like fix and flip versus rentals, you know, or active versus a passive type of investment. I would set up the accounts for those specific you know, I would treat them differently.

I would treat them like two totally different businesses and say, these are my accounts for the fix and flip. These are my accounts for the rentals. These are the my percentages that I'm shooting for for the rentals. These are percentages I'm shooting for for the fix and flips. And that's how we set it up with a lot of the people that we're working with.

But if you've got, like, multiple LLCs or multiple entities for the same type of business, I would create, like, master accounts for all those different entities and just be, like, this is how we're doing overall or whatnot. So that's how we've handled it with people. But if it's different exit strategies, split it out.

Steve: Yep. And then, the same, same from Ben is, what do you think about guys who borrow a couple extra thousand dollars from a private money lender atop the secured loan to into their business to cover marketing or OpEx expense.

David: As long as you are telling the investor that you're doing that, you know, like, that those I don't want you getting that property loan and then using it for the business. Mhmm. You know, so it's like, is this just an unsecured loan that they're giving to you because they trust you as the business owner that you're able to use for whatever to grow the business? So make sure that you're just very careful, that you're very above the board, that you're gonna tell them, like, what you're gonna be doing, with that. But I'd be very careful of taking project money and then using it for other things.

And for no other reason, you know, besides obviously telling the investor, but then getting in that habit. That quickly becomes a habit of I'm getting extra money, I'm gonna do that, and now I'm gonna be able to cover more of my expenses versus I need to do more deals or I need to figure out a better solution to bring more revenue in Right. To be able to grow to where I want to without having to use private money all the time for whenever there's a new stage of growth.

Steve: So Yeah. And, Jamil, who you probably know too Yes. We talked a long time ago, like, you know, one of the best ways or a lot of Ponzi schemes just don't start off as Ponzi schemes.

David: Right.

Steve: They start off as mismanaged funds.

David: Exactly.

Steve: And it gets worse

David: and worse

Steve: and worse.

David: And worse and you're like, oh, shoot. I'm paying for project b's, you know, for project b's project with project, you know, x's money. You know, like, it snowballs that much and we're like, oh, shoot. We gotta now, you know, we've gotta make sure that we have a a plan to get that back on track.

Steve: Yeah. I see Steven Collier here. So thank you, Steven, for all the comments. So on Facebook, Anthony, what is the most common mistake you see investors make in the first thirty six months?

David: Oh, great question. First mistake I see is not having a system for the money. You are going to make you're listening to the real estate disruptors podcast. Like, Steve is a millionaire maker. Like, these they we don't say these things just because it's a marketing scheme or whatnot.

We say these things because it go it's going to happen. You take action as a real estate investor. You listen to these guys. You're going to and gals, you're going to make the money. So the biggest mistake I see is that there's no plan once you make the money what to do with that money, like being very intentional with every dollar.

Because if you do this from your first deal and building good habits, you're now building a habit and that muscle from deal one that scales to that habit of deal 1,000 and doing 10 deals a month, you know, and like getting to that point. So the biggest mistake I see is people abdicating and just saying, I'm gonna give this to the bookkeeper. I'm not gonna think about the finances. Hopefully, they'll just take care of all that stuff and I could just do deals. It's like, you don't just need to do deals, you need to direct that money.

Where is the best usage for that money to go? And are you getting into good profitability habits? So that's where, right from the beginning, this is for you, the real estate investor who's just starting out. Start this system now and you'll build better habits than when I'm I do. I already have, when I get back next week, 10 calls with people already scheduled where they're wanting to come on to say, help.

I'm on fire. They're, you know, like, they're running around with a chicken with their head cut off because now they've scaled up and now it's a big mess. So it's like, before you get to that point, because thirty six months down the road, you can get to that point very quickly, like, in the first twelve months, you know. So get into good profitability habits. Get a financial management system, cash flow system like Profit First, like, to manage that cash on the other side because you're going to make that money.

Steve: Yeah. I mean, I think that's a very great point. And it's just the the I still remember reading all the testimonials. Right? And and and Mike's first book.

And these all these guys had started the right way. And then when they became really successful, like, they were that profit stayed the same, and they did really well as the business grew.

David: Right.

Steve: And, yeah, the the, you know, sales and marketing sales is sexy.

David: Oh, yeah. Big time.

Steve: Signed contracts, big checks, that's sexy. Marketing, cool too.

David: Oh, yeah.

Steve: Right? But money, right, like, it's a I I would rather cold call. There was a time, not today. Sure. There was a time I would rather cold call than look at my books.

Yep. Right? Like, if you look at all the different things we have to do in our business and we get stuck or whatever, I would rather cold call than look at QuickBooks.

David: Exactly. And we understand that. I understand that. That's why we started this company too, to be in between a bookkeeper and CPA. Because that's all they focus on, is the books, the transactions.

Mhmm. And for us, it's what do those numbers mean? Like Right. We don't even let's take the the data out of there and, like, build a dashboard for you and be like, this is where you can pull these levers now. Because, yeah, that's why I'm like, when people try, you know, like, and interview me or whatnot or on other things and they start bringing up accounting or bookkeeping, I'm like, please, just for for the love of God, that's not what they wanna hear.

Mhmm. You know, like, because no one wants to really talk about that as a business owner. You care about the cash in the business and making the money and doing the deals and what you take home in your pocket. Right. And that's where what are the levers that pull that?

So, yeah, I totally understand that too. So it's like, you don't abdicate and just let everything go. But there's a point to where you need to just be looking at the highest numbers from that those systems and saying, okay, what are the what are the levers to pull? Because I love this. This perspective for me was a great I've got a personal mentor and he said that, you know, a lot of people love to solve problems.

You know, like, we're we're entrepreneurs. That's what we do all day long. Right? We solve problems. The biggest thing in business though is knowing the best problems to solve.

Those numbers uncover those best problems to solve, whether it's with a system, a process, a person, man cash flow management, whatever it might be. It's a red neon light for the ones who know what they're looking for to say, here's what the problem is. Let's fix it. You know? So it's like, knowing that is really what's gonna help you Yeah.

Steve: The clarity. Get

David: get that clarity.

Steve: Yeah. And I don't know how many times I lie to myself. Like, alright, this weekend this weekend, I'm gonna look at I'm gonna look at the numbers. This week, I'm gonna look at the finances. Right.

David: Yep. And how many levels? Yeah. That's where accountability.

Steve: David Nicholson on Facebook. Is there any kind of platform that allows you to see all these accounts in tandem? He has accounts with multiple banks, and it's cumbersome to view them all.

David: So besides a QuickBooks, I mean, a QuickBooks takes everything and puts it into the one format. And, like, now I'm getting into the accounting portion, so buckle up. I mean, please stay with me. So, like, on the balance sheet, it'll show you. Even if you have multiple bank accounts spread across multiple banks, it'll show you in one clear place.

Like, this is the different bank accounts that I have no matter where the banks are and how much I have in each of them. So if as long as you have something like that with a QuickBooks like online system, that's one place to do it. Then there are, like, online management softwares or systems or tools that, you know, some people use for that. It could be like, you know, like some of these tools I think of like Reach Reporting or Fathom. There's some other types of reporting tools that kinda do that as well to bring it together.

But If you've got a QuickBooks and whatnot, you could literally pull up your balance sheet and say, okay, I wanna see I just wanna connect all my business accounts and they're gonna show up here on my assets. You know, like like Robert Kiyosaki says in his books. I mean, they're gonna be right there. Cash is one of your assets. So that's an easy way, that was an easy hack, to see all of your accounts that they're spread out across multiple places.

Steve: Yeah. And QuickBooks, I I I again, is that's that's the place to go. Yeah. You gotta have QuickBooks online. Yeah.

I believe. So, Kai Nguyen on, YouTube. What do you do when you run into mental hurdles or you get stuck?

David: What do I do personally? Oh, man. That's great. I have mentors. So I have a personal mentor that I pay a lot of money to to reach out to.

I also have amazing team members. I have a great right hand man who is the CFO and, like, COO of the company where I talk about, this is the angst I'm feeling right now. Is this legitimate? Is this valid? You know, like, and talking through those things as a business owner.

Then books. I'm a huge avid reader. One of the books I'm going through right now is The Four Agreements, by Don Miguel Ruiz. And it's a great personal book. Just the four agreements that you should set up with yourself.

You know, be impeccable with your word. Don't take anything personally. Don't make any assumptions. And always do your best. So it's like things like that, where, like you said, you know, it's like being able to say, I need help, you you know, at these times and this is where I'm gonna get it from.

So, yeah. That's where a lot of that I go to. One of my personal heroes too, I'm just gonna throw this out there, Fred Rogers, mister Rogers, especially with a five year old daughter now. Thank god for him. You know, it's like being able to talk about those things that you were talking about.

And I have this my wife got me a calendar. She got me a last year and did this, again, this year of all mister Rogers' quotes. I start our we have a daily huddle with our team, so I start with those. We have a weekly huddle with our whole team, like more of a, you know, culture building. So I, you know, always start with one of those quotes because it gets me to think deeply at the very beginning of the day.

So that's another thing too that kinda keeps me sharp from, am I am am I giving people emotional paychecks? Am I being that emotional support to them? Am I and am I getting that too? So there you go. There's a couple of the the hacks for me that I go to.

Steve: On Instagram, at atres chitta, if you were starting with $5,000 to wholesale, how would you structure the business?

David: So if I were starting with 5,000 so this is money that you've already saved. So this, to me, shows me that you're already on the right path. Because you, I have the $5,000 where a lot of people just get in and they say, I have no money. How can I do real estate? No money down.

Mhmm. So I would say, first of all, that money might be best spent on, like, a Steve train or on, you know, like, a system to teach you how to duplicate the deals. Duplicate that deal flow. How fast can you systematize the business to where you're getting consistent deals in the door? So if you that's where I'm gonna say the first time you make 5,000, I'm gonna say it's totally different.

Now, you need to split it up into the different buckets. But if you have 5,000 to invest, I would invest it in yourself to say, what how can I make this this business as consistent as possible? Whether that's sales training or whatever you might be weak in or hiring an admin person. Because the first person I believe most entrepreneurs need is an admin. Absolutely.

Or just the ticky tack stuff, paperwork or whatnot, and to do the books. Because you're not gonna wanna touch the books. No. But guess what? From day one, if you have someone in there, you're gonna have the power, control, and clarity that you need to run the business if you have someone in there.

So there you go. There's a couple options if you're just getting started out with $5,000.

Steve: So on Facebook, Cody, Wilmoth wants to know, when's the right time to scale? How much revenue should be produced per acquisition agent, in your opinion?

David: Okay. So I'm gonna take it a different way. It has nothing to do with revenue. It has everything to do with what you're keeping. What are you keeping?

Are you first of all, are you paying yourself enough? Are you paying yourself what you deserve? If you can answer that question and say, you know what? Yes, I'm good. It's probably time to scale up.

It's probably time to say, you know what? We could take a couple of the percentage points from profit and put it back into the business. Because because if you have a system like Profit First, you know how everyone says I feel like I hear this all the time, sales solves all problems. Mhmm. It definitely does if you have a Profit First system.

Yeah. Because then, you're adding fuel to a plane that's on its way up versus if you have no profit, you're barely squeaking by, you're barely paying off your credit card debt every month, and you're just like, you know what? I don't know if, you know, like this next month, but I think if I scale up, it's gonna be a lot better. If I do more deals, you know, like that, that's gonna fix everything. So I would scale once you say, hey, I'm in a good place right now.

We've got some profitability percentage. Now, I'm gonna put some of that towards actually scaling the business where you might be at 10% profitability now. Maybe you take that down to two or 3% for a little bit and throw those extra percentage points into hiring a, pick a person, you know, that comes on your team and revolutionizes it, or hiring a Steve, or hiring a Sharper, or something like that to come in to systematize the business, or getting you more into that foundational level. So I would say it has more to do with how you're doing health wise of the business than it does the revenue. Like, okay, I've hit 10,000 in a month in revenue.

Should I go to 20,000 now?

Steve: Yeah. I love that you're talking about profit. Like, how much profit are you making? The other thing too, let's say a lot of people went through some steak. You know, like, they're running appointments.

Right? They're going to meet with the homeowner. And when they close, like, as a business owner, you just keep that profit. Right? Which makes sense.

Yep. But they never pay themselves as a as a salesperson.

David: Right?

Steve: Right? And so, like Yep. You know, they're not paying themselves the ten, fifteen, 20% they would pay the next person when they replace themselves. So your profitability might be a little

David: Dude Yeah. Because you're not doing if you're not paying yourself what you would pay that person, how can you replace yourself?

Steve: Right. So, again, you're making 10% profitability. You're bringing this new person, but now you're paying them, let's just say, 10%.

David: Yep.

Steve: Now your profitability went zero or negative. Right. Exactly. So if you're gonna scale, you gotta make sure that you're paying yourself for the seats that you're in. Otherwise, your profitability is not quite as accurate.

David: That's why I love percentages. That's why I love running the business from percentages because then we know we can we scale up and down of where we are right now? Do we need to pay more to the owner or do we need to throw more towards OpEx because now we're actually gonna have a person on the team that's going to take this off the shoulders? You know, like, whatever that is in the business. You know, as you start unloading your hats and giving them to other people, do you have the money for that?

So that's why I love running off percentages because then you can see. Do we have the percentage points to be able to bring on someone? Or do we not have those percentage points? Or do we need to build that in over this next quarter and laser focus on our profitability before we get to that stage of, like, you know what? I'll run appointments for another quarter here.

But then after that, I'm gonna build that profitability margin in to get someone in there. Mhmm. And that way because the worst thing I hear people say is we're just gonna hire the person and we're gonna make it work. You know? And it's like That

Steve: sounds like a thing

David: I would say. Right? It's it's it's what so many people say because they're like, I just have to get this off my plate. This will solve all my problems. And then it creates another one.

It creates one where you're like stressed all the time of like, why don't I have money in there? Well, it's like, because we didn't have the profitability margin in there to hire that person at this time with where we are right now. So like, maybe we need to just focus on that for the next month or two, get to that point, and then we can bring that rock star person on.

Steve: Yep. So softball for, here for you. Okay. So on YouTube, Corey wants to know, how would Simple CFO Services apply to help a wholesale operation?

David: Sure. Well, our main focus is to two to five x what you're taking home. That is our goal. And we work with fix and flippers, wholesalers, rentals, like, any type of real estate investor. We're working we're working with influencers too.

The people that, you know, that you watch a lot of those people and to make sure that they're profitable. But the way we work with wholesalers is we set up the fundamental accounts, and then we're working with them consistently. We have a whole system and process too of, like, these are areas in your business that you should be savvy with. Your cash flow management, how you manage debt, how you manage, you know, like, your business, and like, how you have a team, you know, like, those different things. But for a wholesale company, we'd be looking at first, what do you need?

What do you want? What are you paying yourself currently? And then setting up those accounts to say, we're gonna start funding, so that way you are getting paid what you deserve. So that way, you don't feel like burnout all the time of like, why am I going on these appointments? Why am I hiring these people?

Why do I build this business? So and also, especially with wholesaling companies, setting up that tax account. We make sure we set that tax account up because you're gonna pay taxes at the end of the year if you're just wholesaling. So making sure that you don't have those moments of panic moments, I should say months of panic of where is this money gonna go for the tax man. So we focus a lot more, obviously, if it's a wholesale company, on the active side of the business and what we need to make sure we're holding you as the business owner accountable to building those reserves and not touching them.

Because that's I hear this all the time. If you're out there right now and you've set up Profit First and you've ever swept the money out of the accounts, know that you're in good company too. That's another thing that we help people stop doing, that set up profit first. When they set up profit first, they either get too aggressive and start putting too much in these places Mhmm. And they're like, oh, shoot.

You know, like, I can't pay payroll this month, so I gotta sweep all this money out. And then, we're we're building down we're breaking down the the disciplines and habits that we're trying to build up. So it's like, that's another big thing too when we start working with these companies. It's like, you've started this system. You've probably hit some bumps in the road.

Let's help you smooth those out too.

Steve: Yeah. I mean, just kinda on that note, like, one of the worst things that could happen, you know, was when your accountant says, by the way, you owe 30,000 to Uncle Sam. And you look in your bank account, and there's only 10,000.

David: Right. That's the worst feeling. Yeah. That's what we see with a lot of owners when before they come, then when after they come. Do you mind if I tell a quick story?

Yeah. So one client we worked with, we've been working with him now for almost three years. So when he came to us at the 2019, he's like, I've lost money in my fix and flip business. I've got rentals too, and they're basically covering what we need to take home, like, just our bare minimum essentials. And then, he got a text he got a call from his accountant at the end of that year and said, if I were in real estate investing looking at your business, I'd be out of there so quick.

Like, I would not even, like, be in real estate investing. So he's feeling like the worst ever. So then, the next year, after working a year, implementing Profit First, focusing on profitability, he gets a call from his account the next year. And she says, I don't know what happened, but, like, this is what you've made. And he made net multiple 6 figures this next year.

And his account said, you actually owe taxes this year. And he's like, yeah, I actually owe some this year because I didn't, like, lose all the money. So he's like, even with the rentals and everything, this is what you owe. That's what the accountant said. And he said, okay, let me look at my tax account.

And he's like, let me bring it up right now. And he brought it up and he like, had to within a $100, he had the money to send it to her. And he's like, where where can I send this? Can I send this right now? And she's like, what?

You know, send it right now. What are you talking about? He's like, yeah, I already have the money in the account to send you. I don't wanna think about this again for another year. You know, and she was like, okay.

Then it gets better. He calls me the next year, so the end of last year, and says, I just got a call from my accountant again. She said, I don't know what's working in your business, but this is what you owe in taxes again because you had another stellar year. And he said, this time, I looked at the accounts, and I had 20,000 extra in my account. He's like, now I'm giving myself a $20,000 refund this year instead of a couple years ago where I was, you know, worried, nervous about all this.

That's the power of setting up an account and being disciplined and focusing on the proper things. Is that way you have those taxes and maybe even be able to give yourself a refund because he put that in a profit. You know what he did? Bought an RV. And he's taken like a trip with his family this year.

And like, living the best life that he's lived the the life that he wanted to as a real estate investor.

Steve: So this might not be something David agrees with. But, like, when I look at it is if I have if I've overfunded my tax account, that is, like, party money. Like, let's do whatever the heck we want with this money. Because it's like found money. Because we set it aside for Uncle Sam.

And now we can go spend it irresponsibly.

David: We tell people put in your profit account. Yeah. Put it to your profit account because then you take 50% and do that exactly. Like, spend it on an RV. Like, do the things that you wanted to do as a business owner.

When

Steve: you started.

David: Exactly. When you first started, you started for several reasons. Was that time freedom, money freedom, to take trips, to spend more time with your family? Like, if you have this system and then you're able to have a windfall like that, do what you rethink back to those days and say, you know, it'd be really cool if I bought this car, if I if I did this thing or went on this trip with my family or took my significant other to, like, another part of the world because that's what we've always wanted to do. So I'm a 100% in agreement with that because that will save your business more than you thinking, okay, if I just use that $20,000 to go reinvest it back into something.

It's like, well, what's better for you and for your mindset and for where you are right now? For your family. Exactly.

Steve: So, you know, you kinda touched on the account thing, and this isn't kind of direction you were going with it. But I just wanna add to this. Yeah. In my personal experience, accounts will screw you up. Accountants?

Accountants will screw you up. Because they're gonna look at the profit first. Like, why do you have all these bank accounts? This is unnecessary. They, for whatever reason, don't understand the Profit First model.

David: So we're gonna go down this road. So here we go.

Steve: Yes, I

David: got I mean, you open the can of worms here. I started the business because I hate I hate how accountants talk to business owners. Yeah. Because accountants, their real client is the IRS. Mhmm.

They only care about make my job easier so I can report your stupid stuff to the IRS. And if I don't understand it, you need to put it in a format I understand. But the business owner's like, wait a thought, what the heck is going on here? I have no idea. They're talking over my head.

No idea what's going on. I don't understand the tax code and like this person's trying to get me to do something. That's where so many people have had those bad experiences that coat the industry of like, no one no one's going to understand from the financial perspective. That's why I started Simple CFO because we're business strategist. We work with the owner on profit first and like these mindsets to say, you care about what you bring home.

And all this other stuff, really, if you can manage the cash, all this other stuff really takes care of itself. Right. Like, you need a good bookkeeper, you need a good CPA, But let them do their thing and like, we'll help manage that. But you need to know what your money is doing. That's all you care about from the financial perspective Right.

And what you're owe in taxes. So like, let's work on that versus the jargon and, like, the accounting speech and language that just goes way over everyone's heads. Like, what the heck is going on here? So, yeah. It's a whole can of worms there.

But here's my thoughts on on accountants and how they Yeah. They help.

Steve: So So you're also in that department. No nobody likes poor those poor accounts. Right. So Eamon, also, what percentage of out of state investors do you see doing really well financially versus investors working in their own market?

David: Oh, good question. I would say a lot of the people that we work with are working either a combination of their own market and other markets. So I would say, I don't have exact data for you from that question that you just asked me right here in front of me. But I would say that the people that go to other markets are and that are successful, that I should say that are successful, have to build the systems that don't rely on them. So it almost forces them to open up their mindset to systems, processes, automation sooner than someone who's just like, let me just invest in my backyard because I can go there.

Where that sometimes slows down that person from reaching their potential sooner of having a true business. Because a true business is not just because you've replaced your w two income. A true business that we know is you're able to replace yourself in all seats in your business too. And if you're running a virtual business, it's easier to have that mindset sooner of, like, I've gotta get people there because I'm not the boots on the ground. I can't go out there and knock on, you know, mister and missus seller's door here.

So that's where I would say that the people that are that we're working with that are successful, a lot of them do out of state, you know, or different types of markets, or it could be like adjacent markets to them. But a lot of them have branched out just because of the need and necessity as well too. But I would say, if you're going down that path and you're thinking about it, that's one reason to think about, wholesaling or doing real estate investing virtually because it forces you to think differently and think systems process automation.

Steve: So there's a question here. You don't have to answer this. Yeah. What is better if you want to focus just on wholesaling, LLC or s corp?

David: So I don't have to answer that. Steve said it. Right? I'm not just a disclaimer here. Me, personally, I'm not a CPA or accountant or bookkeeper.

Like, I started this company and I have amazing people on our staff. So I'm not gonna give you tax advice for you. But I will say a lot of people, LLCs, taxes, and s corp because that's where a lot of people just, you know, they're paying themselves and it just falls into their, you know, like their personal earnings or whatnot. So that the active side, I would say.

Steve: So I'm not an accountant or or CPA or an attorney, whatever. I will only share that I am also an LLC taxed as an s corp.

David: There you go.

Steve: Alright. So what is your biggest struggle right now?

David: What's my biggest struggle right now? I would say my biggest struggle right now that I'm going through is I do have a five year old daughter. I'm not saying that's the biggest struggle, but it's like, I wanna make sure I'm providing a great life for her. Not just monetarily, but a lot of the stuff that I'm learning now, I want to pass on to her. We moved to Florida in September, so here we go.

Huge tip. If you are an entrepreneur, you need to look up this type of school. It's called an Acton Academy, a c t o n. It's a nontraditional, very entrepreneurial. They do like core values at the beginning of the year, like from a young age.

The kids have to hold each other accountable to that. It's like almost a leadership type school and foundation and curriculum. And it's very Socratic, so they the teachers are more guides and ask a lot of questions and make the kids think. So I think it's passing on a lot of what I've learned in my twenties and thirties to my daughter who is now five. And I want her to be a thinker, to be the one that gets this training and knowledge.

So, like, my big struggle right now is making sure that I'm passing that on and teaching her good things. I would also highly recommend the Tuttle Twins books if you've got young kids and the seven habits of high of happy kids, two of, by Sean Covey too. We've got a whole line of books, teach great things. So it's, like, my biggest struggle right now is probably just making sure I raise a competent human.

Steve: Yeah. And contributing citizens to

David: Exactly.

Steve: I'm definitely gonna get that list of books from you, later on. Acton, that's not the same one that Elon started.

David: No. Not the same one that Elon started. I actually heard about this one from, someone in a mastermind that I'm a part of, started one in Oklahoma. And that's, like, got me. It's Courage to Grow is the name of the book that the founders started of Acton.

And now, they're in almost every single state. Like, there's ones in major cities in every single state. So you can look that right up on their site.

Steve: That's cool. Yeah. Because I was reading about the one that Elon started because he did not care for the traditional school system. And so, yeah, in case you guys have have not noticed, giant Elon Musk, you know, super fan. And, you know, just a word of warning for you.

Right? Your five year old daughter. So I got ten, nine, and coming up on five tomorrow. Oh. Right?

And so, the having kids that learn how to think, you're gonna have a lot of challenges because they question me on everything.

David: I see your post, and I'm like, I want what Steve is doing with his, like, nine and 10 year olds. I want Ellie, my daughter, to be asking those types of questions or, like, challenging me. Because I I I love that because it is. It's like sometimes the best accountability is your is your children.

Steve: Oh, yeah.

David: Big time.

Steve: You know the I was talking to them, and I ended the question with rights. And I've taught them, you don't end questions with right. I just ask a question, don't end it with a yes, no modifier. Because I asked them a question, and I say, right. They're like, yeah.

You're not supposed to do that.

David: I was like, damn.

Steve: Like, there is no reprieve. Yep. How do you measure success?

David: Oh. I measure success. Yeah. I get this a lot from Larry Edge. It's more of a feeling.

Mhmm. So it's more of a feeling of our accomplishment for that day. Did I do my and from reading the four agreements too. Did I do my best today? If I can, no one can touch me.

Mhmm. No one. And I can't give a 110. A 110 gives you burnout. Did you give a 100% of yourself that day?

So that to me is true success. Because if I was a good father or a good podcast guest or if I was doing whatever, if I could bring value to the world that day and I did my best, that's how I have to measure success now. Because I've fallen into that trap before of, like, money and fame or, you know, like, books sold or whatever. It's like but no. True success to me now is more, did I do my best?

And if I did, no one can really touch me. Even if I disappointed someone that day, I did my best. That's what real success is. And honestly, we need that on a daily basis. Not I'm not looking for some success off in the future.

I'm looking for success today.

Steve: I love that. What is your superpower?

David: I would say my superpower is teamwork. Working with a good team, building a team, really being able to build a good culture. There's another great book. A CEO only does three things, Culture, People, Numbers. I would say one of mine is finding the right people and building a great culture.

So, like, those superpowers of bringing that team together and making sure we're all on the same page and that we're really bonding together to help people. So I would say that's definitely a big superpower

Steve: of mine. Phenomenal. What is the greatest lesson you've learned?

David: Besides profit first, of course. Mhmm. So the greatest lesson I've learned, this is so difficult because I have seriously, I keep track of all the books I read, and I've learned so many different lessons. But it might be what I've learned recently from the four agreements, that I don't need to take anything personally. You know, other people have their view of the world, then they're going to always be thinking their way.

And they're thinking, you know, and they're all every single response is from something that they've been, you know, that they've been exposed to.

Steve: Their lens and their filter.

David: Their lens, exactly. Their lens are their filter. So don't take anything personally. Don't make any assumptions whatsoever. Ask the question.

If you think you know something, ask. Don't think, know it if you especially if you need that answer. And then, like I said, that last one there of always do your best. And if you do your best, no one can really touch you because you know deep down that I did my best, then you know that you're going to be able to put your head on your pillow at night. And isn't that what we're all looking for?

You know, like, that's why. That's why now, getting this message out there, I want people to say that who didn't have an education in finances or whatnot, can now say there's a book out there, there's a process, a system that I don't have to live in the rat race, so I can do my best here to provide for my family or to do those things. So that might be some of the best lessons I've learned, and and I just I try and constantly learn. So that's the lesson I've learned, Laurie.

Steve: Yeah. Well, I get that. What was, your favorite best or most interesting failure?

David: My favorite, best, or most interesting failure. Man, when there's so many. Just kidding. But as far as the failures in my life up to this point, probably the biggest one that's, for me personally, was people pleasing. I was very much people pleaser, like at any cost to my personal health.

I was a big I used to check my email probably a 100 times a day. And you know what? As you grow as a business owner, you can't be doing that. That's not our highest and best. And it's like always thinking I need to be there, I need to respond, I need to do this, and not letting the team really be what the team is there for.

So I feel like that was probably one of my earlier mistakes over the last few years, and getting better at that of really letting go and letting the people that I've trusted run with those things. So that way, I don't have to I can actually be on a podcast like this, bringing value to a lot of people and saying, you can get out of this rat race. So it's like those failures of not letting go of those things when I should have and really not empowering those people in those seats at that time. Because you think, you do that, that's a faster way in order to help more people. It really is.

So I would say those are 100% is. Those, I think.

Steve: And last question is, what book have you gifted more than any other?

David: So I will say, because that one's hard too, because I gift a lot of books and I'm a huge reader. Obviously, profit first for real estate investing now. So I wanna make sure that we're gifting that. But then also, oh, man. Probably the Road Less Stupid is the one that I've gifted more recently Ultimate Blueprint for Insanely Successful Business, both by Keith Cunningham.

Those are really good books on The Road Less Stupid is all about good questions you should ask yourself if you're going through difficult troubles in your business. Like Yeah. He's helping you avoid the dumb tax as a business owner. So, like, if you're going through hiring or teamwork or, like, systems or whatever, here's questions, deep deep questions to ask yourself of, like, how you can turn that around or whatnot. So that's definitely one that I've gifted a lot here recently and that we give to all the people that we're working with.

Steve: Yeah. I think it's an incredible book. And, you know, for those of you guys that are, are wondering because it's such a weird title.

David: Right.

Steve: The there's two things about that book that I really like a lot. First, just thinking, like, if you never made an a miss financial mistake, where would you be financially? Right? It's like, oh my goodness. So now okay.

Now that he sold you on the value of thinking time, now you can start doing thinking time.

David: Yep. Right?

Steve: So that's the first thing. So that's why he calls it the road less stupid. And the second thing is, no matter what obstacle you're facing in your business, there's a chapter. Yep. Exactly.

Wherever you're struggling with your business, how do I handle this difficult employee? How do I fire somebody? How do I scale? Whatever question is, there's a chapter for it. Yep.

And it gives you, like, nine questions to ask yourself.

David: Exactly. Yeah. And I love that. How to apologize, like, he's got a whole apology. Like, maybe I did something wrong, but we're not working here.

You know, it's, like, it's just great practical information and a lot of good questions.

Steve: Yeah. So it's definitely, I don't know if it's number one. Yeah. I gotta figure that out, but it's definitely my top three favorite books. Yeah.

David: Oh, yeah. Big time for me.

Steve: Alright. So, I want you to think about what you wanna leave the listeners with while I make just a few quick announcements. Guys, if you have value today, please like, subscribe, share, comment. I'm on a mission to create a 100 millionaires. David is on a mission to help people get out of this rat race we put ourselves into.

Right? Like, we all talk about the rat race as far as the the the Kiyosaki Yeah. Perspective. But we're talking about, like, actually becoming wealthy from your business. Running a business doesn't rely on you.

So we're both actually on big missions here. So like, subscribe, share, comment helps us reach more people. We do have our Discord channel, so check out the link and our YouTube for the Discord channel. We do have a workshop that's coming up tomorrow, so it might be too late. But if you guys are interested, check it out right now at disruptors.com/workshop.

What are some last thoughts you wanna leave the listeners with?

David: So the last thought. So I'll speak to you right now. This is you and me in a room. I've already said it, but I wanna hit it again. The whole point of what we talked about today, to make profit a habit.

So open up that one account, call it profit, and transfer 1%. And I promise, a year from now, you will have more money in that account than you've ever had in your business, in your life. You'll be able to then say, I've built this habit and this discipline because that's what we're trying to build here. That's how you get out of the rat race. That's how you do what wealthy people do.

And I want to make sure that you have no excuse whatsoever now to go out there and be a profitable business and go out there and and bring more value to your employees, to the community, to the world. So there you go. Yeah.

Steve: I think this is the last piece. Right? We're talking about creating millionaires. Like, this is probably, like, the the that end piece. Right?

Like, you've learned marketing and sales and business, leadership, all these key principles. At the at the end of the day, if you're not keeping it, it's all a waste of time.

David: Exactly. You go down business bloodline is cash. If you run out of cash, game over. No more 100 millionaires. No more going out there buying a 100 properties or doing 10 deals a month.

You need to make sure you have this piece.

Steve: Yep. How can someone get a hold of you?

David: Simplecfosolutions.com. That's really the one stop started if you think you're wanting to work with us because we do. We work with people that are doing about five deals a year, you know, up to people that have a $10,000,000 business. So we're working, like, anywhere in between there to help people with their finances.

Steve: Yeah. So simplecfosolutions.com. And if you guys actually like this episode today, David interviews a whole bunch of people on his on his podcast. And if you wanna learn more about my business, actually, David interviews me, and we talk about my finances. So if you guys wanna check that out, go check out simplecfosolutions.com.

Check out that podcast. You look for our episode, or you can go buy the book, Profit First

David: for Real Estate.

Steve: For Real Estate Investing. Yeah. Thank you so much. This was a lot of fun. Thank you, Steve.

Alright.

David: Shout out to Steve Train. Jump on the Steve Train.

Steve: We've really