The real estate industry is full of promise and potential, but navigating its complexities can often feel like running a never-ending race. If you’re a real estate investor looking to break free from the constraints of traditional financing and maximize your profits, you’re in the right place. In a recent episode of the “Raising Private Money” podcast, Jay Conner and David Richter dive deep into the transformative strategies that have not only kept them in the game but made them leaders in the field. Let’s unpack their insights on raising private money and implementing Profit First principles.
Raising Private Money: A Game-Changer
Understanding Private Money
Private money refers to funds sourced from private individuals rather than traditional financial institutions like banks. This capital-raising method has become increasingly popular among real estate investors due to its flexibility, speed, and accessibility. According to Jay Conner, known as the Private Money Authority, raising private funds allows investors to operate under their own terms, becoming both the borrower and the underwriter.
David Richter’s Journey
David Richter, an expert real estate investor and the author of “Profit First for Real Estate Investing,” shares his personal experience with raising private money. His entry into real estate began with traditional financing methods. However, after realizing the limitations and high out-of-pocket expenses, Richter pivoted to private money through his networks—family, friends, and specifically, high-net-worth individuals.
Effective Strategies for Raising Private Money
Networking Groups: One of the most effective strategies discussed was the power of networking. Richter emphasizes the importance of joining local Real Estate Investment Associations (REIAs), masterminds, and even specialized meetups like “Investor Addicts” or “Captains of the Deal” cruises. These platforms bring together lenders and investors, opening avenues for funding and collaboration.
Building Credibility: Jay Conner and David Richter stress vetting potential lenders and showcasing your credibility. Maintaining transparency and demonstrating a strong knowledge of what you plan to do with your money instills confidence, making lenders more willing to invest.
Implementing Profit First: Maximizing Your Earnings
The Profit First Philosophy
The core idea behind the Profit First methodology is deceptively simple: pay yourself first. Traditional accounting often follows the formula Sales—expenses = Profit. Instead, the Profit First approach flips this on its head, proposing Sales—profit = Expenses. This shift ensures your business not only generates revenue but also secures and grows profit from day one.
Creating a Cash Flow System
Richter’s real-life expertise is underscored by his work in company finance, where he helps businesses identify and stem financial leaks. By implementing the Profit First system, businesses allocate their income into several predetermined buckets, such as:
- Profit Account:
Ensuring a portion of every sale goes directly into profit. - Owner’s Compensation:
Paying yourself adequately. - Taxes:
Setting aside money to avoid tax season panic. - Operational Expenses:
Budgeting what’s left to maintain and grow the business. - OPM Account:
Other People’s Money, which safeguards investment funds from operational expenditure.
This structured cash flow system not only promotes financial health but also provides clarity, fostering better decision-making.
Avoiding Common Financial Pitfalls
David Richter points out that many real estate investors fall into the trap of associating business growth solely with more deals, often neglecting the financial health of their company. The most common mistake, he suggests, is the lack of financial education among entrepreneurs. While they might excel in making money, the skill of keeping money remains underdeveloped.
Profit First aims to close this gap by offering a practical system that demystifies financial management, ensuring that every dollar has a purpose and contributes to long-term sustainability.
Conclusion: Transforming Your Real Estate Business
The insights shared by Jay Conner and David Richter on the “Raising Private Money” podcast provide a roadmap for real estate investors looking to break free from traditional financial limitations. Whether you’re a seasoned investor or a newbie, embracing strategies for raising private money and implementing Profit First methodologies can significantly enhance your financial stability and success.
By attending networking events, building credibility with private lenders, and restructuring your financial approach, you can keep more of what you earn and take your real estate business to new heights.
Ready to take the next step? Discover more about Profit First and how to get your free resources by visiting www.SimpleCFO.com/gift. Stay tuned to the “Raising Private Money” podcast for more invaluable insights and strategies.
10 Discussion Questions from this Episode:
- Personal Journey in Real Estate: David Richter mentioned raising over $1,000,000 in private money and closing over 850 real estate deals. How do you think his diverse experience in various types of real estate transactions (wholesaling, turnkey, BRRRR Method, etc.) has shaped his current business philosophy?
- Profit First System: What are your thoughts on the “Profit First” cash flow system as described by David Richter? Do you think it’s a practical method for ensuring profitability in your own business?
- Managing Private Money: How important do you think it is to separate private money from other business funds as David suggests? What potential issues might arise if this step is overlooked?
- Networking Groups: David talked about joining local real estate investment associations, masterminds, and investment cruises. Which networking group do you think would be most beneficial for a new real estate investor and why?
- First Deal Financing: David mentioned using an FHA 203k loan for his first deal but later wished he had known about private money from the start. What are some pros and cons of using traditional financing vs. private money for first-time real estate investors?
- Investor Addict Groups: How do specialized networking opportunities like the Investor Addicts cruises contribute to successful private money raising? Would you consider joining such a group?
- Mindset and Money Management: David pointed out that many real estate investors think that simply doing more deals will solve their financial problems. What steps can investors take to develop a better money management mindset?
- Challenges in Keeping Money: What are some common challenges that real estate investors face in keeping their money, and how can the Profit First system help address these challenges?
- Philosophy of Profit First: How can the philosophy of “Sales minus profit equals expenses” change the financial trajectory of a real estate business? Do you think this approach could benefit other types of businesses as well?
- Due Diligence: David emphasized the importance of due diligence both in choosing private lenders and deciding whether to accept their money. What are some key factors that real estate investors should consider during their due diligence process?
Fun facts that were revealed in the episode:
- Investor Addicts Cruises: David Richter mentioned a unique networking opportunity called Investor Addicts, where investors and lenders network on cruises and often complete deals right on the ship.
- Nonprofit Paradox: The podcast highlighted that many for-profit real estate businesses unknowingly operate like nonprofits because they don’t prioritize profit properly.
- First Deal Learnings: David Richter revealed that his first real estate deal involved an FHA 203k loan and emphasized that he wished he had known about private money lending back then to avoid using so much of his own cash.
Timestamps:
00:01 Raising Private Money Without Asking For It.
06:15 Profit First system manages business cash through bank accounts.
08:23 Regret not using private money for deals.
10:25 Network and ask about others’ needs, not yours.
13:46 Join vetted mastermind groups for private lending.
18:45 “Profit First”: Ensures business profitability by prioritizing profit.
20:22 Naming accounts organize and protect financial resources.
23:58 Download free Profit First resources at https://www.SimpleCFO.com/gift
Connect With Jay Conner:
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It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
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Efficient Capital Management in Real Estate Through Private Money and Profit First
Jay Conner [00:00:01]:
Welcome to another amazing episode of Raising Private Money. I’m your host, Jay Conner, also known as the Private Money Authority. And I have an amazing guest to join us here today. This is the podcast you know where we talk about how to raise private money without ever having to ask for money. We don’t even have to apply. We make the rules. We are the underwriter as the borrower. My guest is a dear friend.
Jay Conner [00:00:29]:
He’s been on this show multiple times before. We’re in a mastermind together. We’ve known each other for years. He’s raised over $1,000,000 in private money. And his real passion and expertise these days are helping you keep more money in your pocket and not letting it flow out the window unaccounted for. My friend and guest is an active real estate investor. He’s been part of closing over 850 deals, real estate deals, over the past 10 years, and he’s done it all. I mean, he’s done wholesaling turnkey, the BRRRR Method, owner finance, rentals, and lease options.
Jay Conner [00:01:10]:
You name it, he’s done it in real estate investing. Well, since he’s had the opportunity to sit in just about every position and seat there is in real estate investing, he realized that when he got to looking at stuff, the money that was coming into the company, it was all going right out the door. There’s, like, nothing left over at the end of the month. So since he had the opportunity to analyze everything and be in every seat, He has found a calling, and, man, is he good at it. Found a calling in the company’s finance seat to help businesses see where their money is going. So David has helped real estate companies turn around from literally just about going out of business to building cash reserves. And how do they do it? Well, he is an expert at using what’s called the profit-first cash flow system. So to help even more people, just recently, he’s a published author, and he’s written this amazing book called Profit First for Real Estate Investing.
Jay Conner [00:02:20]:
So my friend’s goal is to completely transform the real estate investing industry by helping real estate investors just like you make and keep more money in your pocket. In just a moment, you’re gonna meet my friend and brilliant strategist when it comes to Profit First. You’re gonna meet my friend in just a moment. You’re gonna meet David Richter right after this.
Narrator [00:02:47]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:03:15]:
David, welcome to the show.
David Richter [00:03:19]:
Jay, thanks for having me back. I’m excited to be here.
Jay Conner [00:03:22]:
I know it. I know it. You’re always such a joy to have on. I mean, you know, besides your good looks, you’re smart. You know, you get to you really get to tell people how to keep more money in their pocket, and I’m just excited to have you back on. But, you know, in our previous episodes where I’ve had you here on the show, Raising Private Money, I don’t think I have asked you about your journey of raising private money. I’d like to start with that, and here’s why. The name of the show is Raising Private Money.
Jay Conner [00:03:55]:
So we’ve got, we’ve got a lot of people that are real estate investors, seasoned real estate investors, you know, the newbies as well, that want to learn about how to go about raising private money for the real estate deal. So we definitely want to speak to that for a few minutes. And then I want to segue over to what you are so passionate about these days. And that is, you know, helping real estate investors keep more money in their pocket and not stop letting it, you know, flow out underneath the door. Well, you know, the sad thing is, when you agree, most real estate investors until they learn how to do the business like you can help them with, do they even really know where the money’s going?
David Richter [00:04:42]:
No. That’s a simple answer. Not usually.
Jay Conner [00:04:47]:
I mean, it’s like I mean, what’s the what’s the mindset of most real estate investors? Is it like, you know, if I can just do more deals, then I won’t have to worry about it?
David Richter [00:04:58]:
That is it. And if there’s money in the bank account, we’ll be okay. Right. I mean, it it comes from a lot of things too, Jay. Like, a lot of business owners get into business, but it’s the wild, wild west. Like, we weren’t taught or trained how to be good business owners. We might know how to do real estate, or we might know how to do a piece of it, but, like, there are other pieces besides just making the money. And a lot of people don’t have the keep money skill, or they’re never taught it.
David Richter [00:05:23]:
Like and that’s why the cash flow game is so popular in the real estate investing space because it’s like it helps you to learn some of that you know, those skills. So, yeah, there’s some of the mindset right there.
Jay Conner [00:05:34]:
Well along with that, I’m getting the carpet for the horse. I said we were gonna talk about private money but here we go. Here we are again. Yeah. So here we are again, you know, what do they call it? Squirrel. Anyway, so and then you’ve got, you know, entrepreneurs. They’re they’re they started they’re good at real estate. They’re good at negotiating.
Jay Conner [00:05:55]:
They’re likable. People trust them. They do deals. And they look in their checking account, and it’s got, you know, 100,000 or a $150,000 in the checking account. It’s like, what should I do with that money?
David Richter [00:06:10]:
Right. Yeah.
Jay Conner [00:06:11]:
As in as in foolishly do with that money.
David Richter [00:06:15]:
I tell people, it’s well, let’s just go down the private money trail because Profit First deals with private money a lot. Because in Profit First, if you haven’t listened to my previous episodes with Jay, I’m pretty sure I went deep into it. But Profit First is a system for your cash, literally built on, like, the envelope method. But instead of using envelopes, you use bank accounts, and you’re naming the business, checking accounts, and certain things to keep your dollars safe and know where every dollar goes in your business. And so there’s profit and owner’s comp, like owner’s compensation to pay yourself an owner’s tax. But in real estate, investing profit first, I wrote specifically that you should have an OPM account, other people’s money. Because it is so easy, Jay, when you said, like, someone has a 100 and a 150, it’s even more dangerous if it’s not their money. Like, if they get private money directly from maybe friend or family, there’s no escrow account, they send it directly to the investor.
David Richter [00:07:15]:
It can be very hairy if you’re like, oh, I feel really good. I’ve got over 6 figures in my bank account. What should I do? Or, like, what could I pay for? And it’s like, well, a lot of that should be for your rehab or for your rental repairs or whatever that money was sent to you for. And if you don’t separate your cash, then you could end up running out of your rehab money before the rehab is over. And it’s the same horrible feeling as running out of, you know, the money before the end of the month. It’s like now we’re running out of the money before the end of the deal. So it’s like that’s another big thing I see. And I just wanna hit on that because that was a perfect point right there.
David Richter [00:07:50]:
If you’ve got a lot of money in there, doesn’t mean that it’s yours to spend. And I wanna give you that clarity because clarity creates the confidence to make good decisions in your business versus what you were saying, Jay. Like, what should I spend this money on?
Jay Conner [00:08:03]:
Yeah. Exactly. So let’s go back to private money. So Yeah. You’ve you’ve raised private money. You’ve lay you’ve raised quite a bit of private money. So let’s speak the to our real estate investors here on the show now who want to raise more private money. Yeah.
Jay Conner [00:08:18]:
What have been some of your favorite ways to raise private money?
David Richter [00:08:23]:
Oh, man. I will say I got to raise private money in 2 different ways for myself and with the company I was working with. Myself, I bought my deals, and, man, I wish I had known about private money from my first deal. I bought my first deal right out of college. After reading Rich Dad Poor Dad, I bought a house off the HUD HomeStore, so a foreclosure, and I bought it with an FHA 203k loan. So it was like repairs plus, you know, the purchase price of the house rolled into the loan. And, you know, that was a good first house, but I still that was the very first deal I did, and that was the most money I took out of pocket for a deal because I didn’t know any better. One of my goals personally as an investor is to keep as much cash on hand for myself to be able to weather any storm that comes because I’m a big you know, Warren Buffett, all the people that have stayed rich for a long time, you know, and especially Warren Buffett’s rules.
David Richter [00:09:23]:
Number 1, don’t lose money. Number 2, look at what rule number 1. And that’s where from that first deal, once I started working with this company, I got exposed to the concept of private money.
David Richter [00:09:35]:
And that really helped me even know it was out there. So every deal I did from then, I would get private money. And then if I wanted to, I’d refinance them later or if I sold the deal. But my big way first was, honestly, like, friends and family. Was there someone in my friends or family circle who was looking for a better return? You know, and did they know anyone, you know, and just asking them good questions like that. And then from there, also because I was supposed exposed to the real estate world, I got exposed to some good groups as well, networking groups, that I got around where they brought together high net worth individuals that were looking to invest in real estate. Then another way was another group that I was a part of where they brought investors and lenders together on a cruise. And I’m like, honestly, the number one way for me is just to get out there.
David Richter [00:10:25]:
Get out there, talk about what you’re doing, I’m pretty sure, Jay, your whole approach and the way that we approach it was, how is this good for you, and are you looking, you know, for a good deal versus I’ve got this great thing. You should look at what I have. You know, it’s more of, like, what are you searching for, and do we have something that fits that for you? And that’s honestly, I still I wish I would have known about private money from the first deal because then that wouldn’t have been all that cash that I put out on the very first one. After all, then I would get, you know, the private money and then refinance later on, which I never had nearly the amount of money out of pocket, you know, going forward from there. But I would say my number 1, is networking. Number 2 is being exposed to people like Jay, like, who know where private money is and can teach you, and that can go down that road. I remember back when we were doing about 25 deals a month in that company. Like, we knew about you, Jay, and, like, I’m pretty sure we even bought some of your stuff back then. And it’s like like, we wanted to know more, and, like, what are all the different ways? So it’s like, that was another big thing in our life too, was not just networking, but then who in our network do other people trust to teach about it as well? And, Jay, like, your name still.
David Richter [00:11:46]:
I mean, this is probably now 2012, I bought my first deal. What is this? 2024 when we’re recording this? So 12 years later, like, you’ve been in this space for a very great amount of time to be able to go out there, build a great name for yourself, and also to be able to help people and get them the private money. So I would say those are the top 2. It’s like, who’s in your network? And then your network leads you to other pieces that can open up bigger doors and bigger ways of thinking for yourself.
Jay Conner [00:12:14]:
Yes. So you mentioned that you join networking groups that, you know so can you be more specific about that? What kind of networking groups? Like, what do what do they do? And how do you find them? How do you find these networking groups?
David Richter [00:12:30]:
There there’s 3 that we joined, 3 different types. We joined a local real estate investment association because
Jay Conner [00:12:39]:
I remember.
David Richter [00:12:40]:
That one right there is usually free to a very trivial amount of money if you pay, usually 20 to $50 a month to just be part of that group. And if you do go to that, I will say because it’s a lower barrier to entry, you need to ask around who the real players are in the room and, like, who is vetted
Jay Conner [00:13:01]:
in the room? Important. I mean, for goodness’ sake, be very careful about who you listen to for advice.
David Richter [00:13:08]:
Oy. Yes. I
Jay Conner [00:13:11]:
A lot of those members in those Ria groups, I’m telling you. I mean, they love to go, they love to network, and they’ll never do a deal.
David Richter [00:13:19]:
Right. So if you go to that group, you need to know who the players are. And I will say, that players do show up. Like, people in the game and people lending do show up to those. I will say too, sometimes more hard money lenders show up where it’s gonna be a little bit more expensive. So not always will you get the private money lender who’s just like, oh, I just have money to lend. I thought this would be a good group to go to. They might be a little bit savvier in the Ria group.
David Richter [00:13:46]:
There was another group we got a part of that was more of a paid mastermind but for dentists and doctors. Like, people with high net worth, and that one was really good because they vetted the members pretty heavily, and they vetted us heavily as well. So if you go and you don’t have friends and family, you know, or you’ve exhausted the resources there that you know, for the private money side, or you go to ARIA and then you exhaust the private money side on that side as well too, Then if you start, though, to have traction and you’re doing lots of deals, you might be able to join an actual mastermind of high net worth individuals, which is a room full of people that will private lend to you. And that’s where the same thing though, I’ve also seen in those rooms, you still have to do your vetting process even though they pay more, even though they do you know, they’re at much higher caliber usually than someone who’s never gonna do a deal in a real estate investing association, still do your due diligence. Are they you know, where do they come from? How do you know, like, and make sure that that you have transparency with them? There’s a third group too, that I was talking about where there’s literally on Facebook a couple of groups that go out there. They’re called, you know, just investment cruises, where you hang out on a cruise ship for a week at a time, and it’s like they put together private lenders and real estate investors. That’s been some of the funniest parts because you’re trapped on a ship for a week, and, like, they have, like, networking during that time.
David Richter [00:15:26]:
So I don’t know, Jay, if you want me to say the names of those groups, but that’s where you can go out there and look for them because I’ve enjoyed those. Those are usually good places as well too. Just always do your due diligence, like Jay was saying, and, like, I just keep reiterating here, and make sure that they’re doing due diligence on you. Sometimes, a private lender has saved our butts in the real estate world. They’re like, I’m not gonna lend on that deal because I don’t see it as a deal because of this reason, that reason, the other. That’s where some of those lenders can also save your butts. But if you’re just going after someone who has no idea in the real estate investing world, you also need to give them the confidence of what you’re gonna do with the money. But those are the three areas that I found for the networking types, real estate investing groups, there’s masterminds, then there’s just like meetups or get-togethers on these cruises that put you in the same room.
Jay Conner [00:16:18]:
I love it. Well, yeah, let’s give value, to our audience here, David. Give them the specific names of these groups.
David Richter [00:16:24]:
If you look up investor addicts, that’s one of them. Investor addicts, just like if you’re a drug addict. It’s that’s how you spell addict. They’re they’re addicted to investing. So Investor Addicts, I love the leadership, there. They’ve got some great people heading it up. There were over 130 people on the last one. On the last Cruise? On the last cruise, just
Jay Conner [00:16:47]:
up Is that investoraddicts.com?
David Richter [00:16:51]:
I think they have a website now too. They used to not, but they used to just be on Facebook. You search them up, but it’s gotten big enough now that they’ve got an official website. There were also Captains of the Deal. I think I did that 1 year as well too. That’s another one, but I’ve only done that once. I’ve been to the other one, like, 5 or 6 times. So Invest Radix is the one that I go to.
David Richter [00:17:12]:
They have a great group. They bring together great speakers as well. So there’s education, but then they’re some of the nights, they do what’s called exchange meetings, and people will say, I have x amount of dollars in my IRA to lend. And, like, on the other side of the room, they’re like, who are the real estate investors with deals? And, like, they’ll do deals on the ship, which is one of the coolest experiences I’ve seen because they do it right in front of people, and then they’re like, okay. They do the agreement right there as well too of, like, okay. Like, this is what we’re gonna do once we get off the ship. And they agreed to be like, here. I’m gonna take this money, and I’m gonna put it on this house.
David Richter [00:17:46]:I
t’s a cool experience. Investor Addicts.
Jay Conner [00:17:50]:
I appreciate you, sharing that. I thought I knew I thought I knew about every group that was out there, but I must be transparent. I never heard of Investor Addicts.
David Richter [00:18:00]:
Yeah. It used to be you you might know them by Financial Friends Network. I don’t know if you remember that one. That’s what it turned into when new leadership came in, and this one’s been around for now 2 years, I think. So it’s relatively new and newer with a name.
Jay Conner [00:18:13]:
Well, thank you for that. Hey, you all. Hey. If you’re listening to this show, that was a huge mic drop right there. So make note of that. Alright. So let’s let’s let’s let’s leave private money for a second.
David Richter [00:18:25]:
Sure.
Jay Conner [00:18:26]:
And let’s go over to profit first. So in summary, what is the philosophy? What is the strategy? Of course, you wrote a book. Let’s go ahead and tell everybody. Well, first of all, tell everybody the name of your book and how they can get it, and then and then you tell them tell them the philosophy and the strategy and the summary.
David Richter [00:18:45]:
Profit First for Real Estate Investing is the name of the book. You can either get it on Amazon if you just type that in, or you go to my website, simplecfo.com. We have a link there for the book as well if you wanna get that. Then as far as the philosophy, I love teaching this, Jay, because if you’re a real estate investor or you go down this road, you might have read Rich Dad, Poor Dad, or some of the very famous personal finance books out there, like the 7 Habits of Highly Effective People or Personal Development, or you’ve got the, The Richest Man in Babylon, Profit First has the same philosophy as all those other books, like Pay Yourself First, Rich Dad Poor Dad. A portion of all you have is yours to keep the richest man in Babylon. Profit First literally just says it differently with a formula. Sales minus profit equals expenses. I make a sale, I take my profit first or make sure I’m a profitable company, and then I still have the expenses there to grow the business, but I’m making sure that we’re healthy.
David Richter [00:19:41]:
And it’s looking like it’s so funny, Jay. If you’re listening to this podcast, you probably run a for-profit business if you’re getting into real estate or if you are in real estate, but so many of us end up owning an accidental nonprofit. We don’t make a profit because we don’t place profit as a priority in a for-profit business, and there’s nothing wrong with a profit. That’s a symbol of health for your business and your company and as a leader and as an owner. Then there’s the system behind it. That’s why I wrote the book too and went down hard into the Profit First world because it’s not just that mindset. It gives you a system like I was talking about before. You set up business checking accounts just like in the envelope system.
David Richter [00:20:22]:
If you’ve heard about that in personal finances, you’re giving every dollar a name and putting it into different bank accounts in your business checking accounts. You name it like profit or owner’s compensation, owner’s taxes to make sure your taxes are paid, and operational expenses. And like I said, a bonus account, OPM. If you’re gonna take private money and they’re gonna send it to you directly, you can also give your private lender. I just was at an event where there were real estate investors who had set a profit first in the OPM bucket, and they’re like, I love telling my private lender, I’m keeping your money safe here so I don’t mingle it with the money to run my business. And they just feel like, wow. This person’s savvy enough to have a system for their money. So it’s like that’s why I love teaching this, especially here too, Jay, because I feel like this is such a synergistic topic.
David Richter [00:21:09]:
If you’re gonna do private money, then you wanna make sure your private lender is taken care of and they feel taken care of. And there’s a system for their cash, so you know you’re not just spending their cash on whatever comes through, you know, out the door. So this is where profit first, the mentality, pay yourself. And then from there, there’s a system to make sure it happens because every dollar that comes in, you make sure you’re sweeping it into the accounts where you’re paying yourself first, and then you build your business expenses from there.
Jay Conner [00:21:37]:
David, I know since you consult with a lot of real estate investors and you’ve helped turn companies around from almost, like, literally being out of business to being very, very profitable. My question is and I know you’ve noticed, like, a long list of mistakes that real estate investors make in this in this world of, you know, not managing their money and knowing what’s going on. But if you had to boil it down to one common mistake that real estate investors make as relates to your expertise, I have a guess what the answer is. What is that common mistake?
David Richter [00:22:18]:
Man, you’re making me boil it down to 1, like you said because there’s a laundry list. It just might be it’s not even more of a mistake because a mistake implies that you knew what you were doing and you did it wrong. I feel like in this space, entrepreneurs, real estate investors, like, it doesn’t matter what business you’re in, We are not taught this stuff. We are taught how to make money. We are not taught the skill of keeping money. And I think that’s the biggest thing that hinders people because they think it’s this huge knowledge gap too. They think that keeping the money skill is only for accountants and bookkeepers to learn. But accounting is the language of business.
David Richter [00:23:03]:
And if you are a business owner, you better speak the language of business. And that’s where I feel like Profit First gives you a first glimpse into how I read what my money is telling me and speaking to me. And that’s where I tell people, like, it there’s mistakes for sure. Like, if you’re just like, hey. I just wanna go out there and give all the financial stuff to a bookkeeper or someone. Like, that might be a mistake because then you’re just abdicating responsibility and saying good luck. Like, I’ll see you next year when you have my taxes filed. But I would say it goes even upstream more than that.
David Richter [00:23:37]:
It’s that we’re not taught to keep money skills, so we don’t even know where to start.
Jay Conner [00:23:43]:
Gotcha. Great answer. David, what’s the best way for people to get in contact with you so they can learn about how you can help them keep more money? Get your book. Get your book. But how else?
David Richter [00:23:58]:
So simplecfo.com. If they go to www.SimpleCFO.com/gift, then you can download my book for free. One of the things, is the ebook, the audiobook. I also give a Profit First cheat sheet because if I’m gonna tell you the biggest mistakes, no one’s teaching this, I wanna teach you. Like, let me give you the first steps of Profit First. So even I don’t and that’s what I love about this system. If you’re doing one deal or you’re at deal a 1,000, if you just start to implement it, you’ll be more profitable from the very next deal. So if you go there to that, you can get the book.
Jay Conner [00:24:29]:
Alright. If you’re listening to this show, go to www.SimpleCFO.com/gift,. That’s www.SimpleCFO.com/gift,. And of course, your contact information, this, that I just gave out is gonna be in the show notes, all that. David, God bless you for coming on the show. It’s been all my joy.
David Richter [00:24:54]:
Thank you, Jay. Thanks for having me.
Jay Conner [00:24:56]:
You got it. Look forward to seeing you soon at one of our masterminds.
David Richter [00:24:59]:
Yeah. Like Well,
Jay Conner [00:25:00]:
there you have it. Another amazing show here on raising private money. I’m Jay Conner, your host, and I appreciate your following. If you’re listening on one of your podcast platforms, be sure to follow me so you don’t miss out. Appreciate the ratings and reviews, and that way we get to keep having amazing guests like David Richter. Continue to join us. If you happen to be watching on YouTube, be sure to like and share, subscribe, and ring that bell so you don’t miss out on the upcoming episodes. I look forward to seeing you right here on the next episode of Raising Private Money.
Narrator [00:25:42]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/Moneyguide. That’s www.JayConner.com/Moneyguide, and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/Moneyguide to get your free guide. We’ll see you next time on Raising Private Money with Jay Conner.
