608: The “Golden Trio” Every Real Estate Investor MUST Have to Truly Profit First w/David Richter

BiggerPockets Real Estate Podcast

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

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

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

In This Episode We Cover

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

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

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

The rockstar team member that can make or break your business

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

Redefining the “pay yourself first” method of making money

And So Much More!

Links from the Show

BiggerPockets Youtube Channel

BiggerPockets Forums

BiggerPockets Pro Membership

BiggerPockets Bookstore

BiggerPockets Bootcamps

BiggerPockets Podcast

Grab Your Tickets for BPCon 2022

Invest in David and Rob’s Next Property

David’s YouTube Channel

David’s Free Giveaway for BiggerPockets Listeners

Our Interview with “Profit First” Author, Mike Michalowicz

Books Mentioned in the Show:

Profit First for Real Estate Investing by David Richter

Lifeonaire by Steve Cook

Rich Dad Poor Dad by Robert Kiyosaki

Profit First by Mike Michalowicz

The Road Less Stupid by Keith J. Cunningham

The Book on Rental Property Investing by Brandon Turner

The Book on Managing Rental Properties by Brandon Turner

Connect with David:

David’s Instagram

David’s BiggerPockets Profile

Connect with Rob:

Rob’s Youtube

Rob’s Instagram

Rob’s TikTok

Rob’s Twitter

Rob’s BiggerPockets Profile

Connect with David Richter:

Simple CFO Solutions

Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-608

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