608: The “Golden Trio” Every Real Estate Investor MUST Have to Truly Profit First
BiggerPockets Real Estate Podcast
BiggerPockets
4.8 • 16.5K Ratings
🗓️ 12 May 2022
⏱️ 67 minutes
🧾️ Download transcript
Summary
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
Grab Your Tickets for BPCon 2022
Invest in David and Rob’s Next Property
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:
Connect with Rob:
Connect with David Richter:
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Transcript
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| 0:00.0 | This is the Bigger Pog's podcast show, 6-0-8. |
| 0:04.2 | If I have money, I don't have to go after that next deal. |
| 0:08.1 | I don't have to say I'm not living deal to deal. |
| 0:12.0 | So, meaning, if you jump from the W2 into real estate |
| 0:16.7 | and you start feeling like I have to have that next deal, |
| 0:19.3 | you start making decisions out of fear and not from your purpose. |
| 0:22.9 | You start saying, oh, that's a slim deal, |
| 0:25.4 | but I think I could still make it work. |
| 0:27.2 | You know, like I know that I can make this happen |
| 0:29.4 | because, you know, I need that next deal. |
| 1:00.0 | What's going on, everyone? |
| 1:00.8 | This is David Green, your host of the Bigger Pog's real estate podcast. |
| 1:04.9 | If you want to find financial freedom through real estate, |
| 1:07.0 | you, my friend, are in the right place at Bigger Pog's. |
| 1:09.8 | We are passionate about helping people build wealth, |
| 1:12.2 | improve their lives, and find financial freedom through real estate. |
| 1:15.3 | We do that in a number of ways. |
| 1:17.1 | We've got a website with over 2 million members, |
| 1:19.9 | a forum where you can ask any question you could possibly think of |
| 1:22.7 | in someone will answer it or read questions other people have answered. |
| 1:25.4 | An amazing blog, a host of books at BiggerPog's.com slash store, |
| 1:30.7 | where you can go and check out different books on different titles that are meant |
... |
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