Generations Of Wealth

Generations Of Wealth | David Richter | Profit First


It always surprises many people that a lot of business owners simply aren’t turning out a profit. A lot of times, they end up treating business like a job, or worse, an ongoing expense. How do you turn your business from a massive liability to a true cashflow machine? Profit First is the answer, and David Richter is here with us to tell us more. Join the conversation and learn how you can keep more of your business’ earnings for yourself right from the start and how that would create a ripple effect on your lifestyle!

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Profit First: A Simple Solution To Creating A Profitable Business With David Richter

In this episode, a good friend of mine, David Richter, has spoken at events of mine. We’ve done some business with each other, and I know many people that he’s helped over the years. David, I know you’ve been in business for at least ten years that I know of. You were doing a lot of real estate and different types of creative structures, flipping and land-lording, and all this stuff that a lot of us do. You then figured out that there was a better way to keep some money. Is that a thing? If you wouldn’t mind, tell everybody who you are, and let’s dive in.

I’m David Richter. I wrote Profit First for Real Estate Investing, but there was a long journey that got me there. It was the real estate world. I’ve been in that world since 2012. I have been a part of a lot of deals like you mentioned, and a lot of different types of deals. I saw that we were doing at our highest point 25 deals a month, but spending 26 worth out the door. You make $1 million and spend $1.1 million, and that’s no bueno.

I also figured out because I was going to Masterminds back then too. We weren’t the only ones. That’s the trajectory that I was on to write the book and everything. That was when my eyes were opened that a lot of people make money but feel broke, so I said, “How do we get out of that cycle?” That’s the journey that took me to where I am now, but that’s a high-level overview without all the nitty-gritty details behind the scenes.

Getting Out Of The Rat Race

We’re going to get into the nitty-gritty details because that’s what we do. This is going to be like a therapy session with you as we move on. We know so many people that get into this business. They start out with 1 or 2 properties and maybe a couple of rentals. Maybe they flip a house. They are trying to get out of the rat race, except they bury themselves even deeper in the rat race. As you mentioned, overhead costs and everything else. Tell me how you define the rat race and how you escape the rat race.

What you teach is so crucial because a lot of people don’t get it. A lot of people build themselves into their own rat race. If you’re a real estate investor and you jumped into that boat and you wanted to escape your W-2 job, living paycheck to paycheck, like what Robert Kiyosaki says, “Just live in the same day over and over again.” In the real estate world, instead of living paycheck to paycheck, you’re living deal to deal. Even on the Cashflow game board, if you’ve ever played Cashflow, it’s trying to land on the little green spaces to get deals out. That way, you can get out of the rat race in that game. It’s the same thing in the real estate world. We’re living deal to deal.


Generations Of Wealth | David Richter | Profit First


What I saw is that a lot of people in the real estate world have make-money skills. They can go out there and they can listen to podcasts, or they go through courses, or they go to training and mentorship and all that, and they can learn how to make money in real estate. A lot of people get good at that, but they usually don’t get the keep-money skill on with it. That’s where I believe that if you’re truly going to get out of the rat race, it’s not just more deals that solve it. It’s more deals plus, “I’m catching the money on the back end. I know how to keep the money from these deals that I’m doing.”

That’s where a lot of people don’t have that skill. It’s never been taught to us in schools, our training from parents, and stuff like that. We never get taught how to be a business owner and the fundamentals of business ownership. We don’t get any of that. That’s where we fall off the track. We become business owners and we think this is going to be the end all be all. Financial freedom is on the other side of me quitting my job and not having a boss, then you’re like, “What the heck happened?” I woke up a year later, and I had less money in my bank account. I feel like that’s what Profit First is. At least solve the first portion of that. That’s why I got so adamant and passionate about the book.

We never get taught the fundamentals of business ownership. Click To Tweet

When you had this a-ha moment in your business, how did you figure it out, and what resources? I don’t think you have an accounting degree or background in accounting. How did you start figuring it out?

When I was in that company, I was with a company for five years where we had scaled to 25 deals a month. At the very last year, I sat in the finance seat for a year even though I didn’t have the background. I was like, “I want to learn this.” I sat down with the CPA at that point that we had and asked him a billion questions so I could know what a profit and loss is and what a balance sheet is. I was so green back then. I remember asking, “What’s PNL? What does the N stand for in PNL?” He said, “It’s profit and loss. It’s an and.” I’m like, “That makes sense.”

I was asking a bunch of silly questions back then. From there, that’s where I learned the foundation of knowing the numbers. Through a series of events, I moved across the country. I wish I had learned Profit First back then, but the company blew apart internally. A lot of people left. I wish I had a happy ending to that story but I don’t. Because we didn’t figure out the money piece, we all went our separate ways. That owner is still there and he’s still doing well, but he has a team of a few people now versus the team that he had back then.

I moved across the country and started working with another investor in Richmond, Virginia whom I grew very close to, a very good friend of mine. He was a mess too. I said, “Show me your books.” That was the first thing I asked him. I want to know your numbers. He didn’t have anything. It wasn’t in any order, shape, or fashion. I went in there and helped get that all cleaned up. From there, he said, “This has been life-changing, knowing what I spend and keep now, and knowing where the heck my money has gone.” To me, that was the light bulb moment. I’ve got to help people get clarity.

This is why you should have mentors in your life. This is why I called a mentor. He said, “Have you ever read the book Profit First? I said, “No. It sounds like a great title though.” I read that book that evening, and I took ten pages of notes and said, “This is a great framework for the cash management piece.” That’s when my eyes were open because they were open the first time by giving that one guy clarity like, “I could do this,” then I was like, “This makes sense.”

Profit First made sense to me as an entrepreneur because that book doesn’t talk a bunch about profit and loss, the balance sheet, or becoming a financial guru. It’s more about leveraging some of the habits you already have with your money and putting a better system in place. That way, you’re leveraging what you’re already doing around your cash and the money coming in. To me, that was a huge light bulb moment like, “This speaks to me as the entrepreneur type. I want to get this out and I want to start implementing it and see proof of concept.”

Profit First is more about leveraging some of the habits you already have with your money and just putting a better system in place. Click To Tweet

We did start implementing it and saw the proof of concept that this is beautiful. That’s when I reached out to Mike Michalowicz, the original author, about eight months into helping people. I said, “I’ve got a real estate background. You’ve got the Profit First book. I would love to do one for real estate because real estate is such a nuanced product out there with all the different things you can do with it.” He signed off on that. That’s how I got Profit First out the door. Those were a couple of the key moments in my life where I saw it.

Now, I’ve seen it over and over again with the clients we work with and our own company. I wish I would have had this back then when we were doing all those deals because I’m like, “Where would we have been if we would have had a simple system like this in place?” It was through trial and error and one failure, going through that to come out better on the other side.

How Profit First Works

Playing devil’s advocate, one of the listeners just starting to hear this for the first time is going, “I’ve got to survive today. I’ve got to keep food on the table for my family today. There’s no way I can take Profit First. You got to give me more. How do you explain that to me?” I was the same way for years and years. I would venture guess. I’ll make up a percentage, probably 95% of business owners, not just real estate. You said it before you’re living deal to deal, regardless of what business you’re in. When you see any shift in your business market and you’re living deal to deal, but also you can’t get a deal, now you’re spiraling. I would be retracting. I would be saying, “I’ve got to get deals done. I’ve got to work more hours. I’ve got to spend more time away from my family.” How does Profit First work?

I’ll probably introduce them to the story of Joey English. I know you might know him through Bill Cook and other people.

Joey and I are good buddies.

In 2019, he’d done more deals than he’d ever done but lost more money than he’d ever lost. If someone came to me with that rebuttal like, “I’ve got to feed my family, and I’ve got to keep going and doing the deals,” I would tell them, “We need to hold on a second right here. Do you realize what you’re telling me right now is what’s going to keep you in that hustle mode for a long time?” We’ve got another good mutual friend who says hustle is a season, not a lifestyle. If you have that hustle-all-the-time mode, then you’re going to constantly be addicted to that. That’s why you have vision coaching. You help people extract their vision. That’s where one of the first steps we do in this process is to make sure what you want from your business.

Hustle is a season, not a lifestyle. Click To Tweet

You say you want to feed your family. Let’s take the Profit First name out of it if you want to and if you’re like, “I can’t do that.” This is all about making sure you can feed your family. Do you know what it takes to feed your family? A lot of people don’t have the basic numbers of what they need for their household or what they even need for their business. The business isn’t a huge expense suck on them. Let’s get very clear on the first goals that we have and getting out of our own rat race. Profit First is all about setting up a simple system with your cash. That way you can feed your family. You can pay yourself consistently because it’s built on the envelope method. It’s built on the method of giving every dollar a name.


Generations Of Wealth | David Richter | Profit First


Instead of setting envelopes up and naming every dollar in envelopes, we set up physical bank accounts in our business for different types of things like profit or owners’ pay to pay themselves. If you’re saying like, “I’m living deal to deal right now, and I’m in this rat race,” there’s more reason why you should focus then on the profitability. You’re giving me fuel for my fire to say, “Something needs to change, doesn’t it?” If you’re living deal to deal, we’ve got to have that mindset shift because right now, I bet you could probably live off 1% less in your business. Can we siphon off 1% to pay yourself? If you’re living deal to deal right now, on the next deal, can we put a little bit away?

I want to get you in the habit because if I can start that habit, we can see it snowball into the effect of like, “I see this now.” I can only do X percentage right now to pay myself, whether that be a very tiny amount or you can start off a little bit more modestly. Wherever you are now is wherever you can start, even if it’s very small. We’re going to grow from there. That’s why, in the book, we give the target allocation percentages for paying yourself. That’s a goal to shoot for. It’s like GPS. You need to install the GPS in there because right now, you’re not starting at the end goal. You’re starting wherever you are on your journey. We’ve got to see how long and how far we think it’s going to be. How can we navigate around some of those obstacles?

That’s what I would rebut for someone who says, “I can’t do this right now.” It’s almost like, “Do you like where you’ve been?” If you don’t have a system for the cash, do you think it’s going to get any better a year from now if you do 100 more deals or whatever it is that you’re trying to get to, or did you just add a zero to your problems?” It’s trying to give them that type of advice.

I had this conversation a week ago at my local REIA meeting with a group of people because the majority of house flippers, landlords, and real estate investors are horrifically bad at doing bookwork or keeping it up to date. I’ve had people I’ve worked with over the years whose philosophy is, “I got to make money and I’ll worry about the books later.” That can be frustrating if that’s somebody that’s within your actual organization or if you’re doing a joint venture with somebody or anything.

I know plenty of people, and I’m sure you do too, that jump into real estate joint ventures without vetting each other at all, without ever having these conversations about who’s going to keep the books, what’s going to happen if there’s a negative that comes about. I can tell stories for hours about my own personal experiences, and you’ve got way more than I do. You can’t give names in specific situations. What’s the worst situation you’ve dealt with Profit First, and how dire was it?

I’ll tell you two different stories, and I will redact the names. One guy came to us, and he’s still with us now all these years later. He was one of the very first clients. This is not Joey. It’s another guy.

We do not have to redact Joey English from Georgia.

He’s a great guy. He’s doing well. He’s got a great business. This guy came to us and had seven years’ worth of unfiled taxes and had no books set up or anything. That was one of the scariest ones, especially right out of the gate. I was like, “I want to help this guy, but this is going to take a big lift.” It took a big lift and took almost a year to get everything through and wrapped up. That was a nightmare. Thankfully, he was stuck with it and put his head down and was like, “I’m going to get through this with you. Whatever you need, I’m going to get it to you.” I was like, “There’s a secret of success, but it takes two to tango to get in there.”

I would say another one too that came to us that was in the hole. This one is one of those sad stories where a guy had a very decent-sized company, thinking he was in the black but he was doing great. He came to us and we were like, “Let’s get clarity here because the books are a mess. Let’s go through this and clean this up.” This was in 2021, I believe. He had loans like the PPP and the EIDL when we were going through all that stuff during COVID. They had covered up a lot of the sins of going negative on properties or covering a lot of the cash mishaps.

It turned out he thought he was in the black and positive, and he was $270,000 in the hole negative. I’ll never forget that number because I looked at it after our team had gone through it. I’m like, “That can’t be right. There’s still stuff that you’re working through.” They’re like, “No, this is it. This is the end. It’s all reconciled. It’s all up to date.” I was like, “I do not want to get on this phone call.” We had that phone call. It was a very tough conversation. Thankfully, he had assets like rentals and stuff like that.

I remember telling them, “Here’s a plan. Now that we have it, we can get out of it. If you want to, this is what we have to do.” He was on the phone. I’ll never forget this. He started crying because he was like, “I’ve been building this portfolio for years. This is what I’ve done.” I was like, “I don’t want to kill some of these. You don’t have to sell all of them. What are the ones that can get you back at least to even now while you still have your deals in the pipeline?”

He went through a big restructuring, hiring different salespeople, and going through that. He went back into some seats to get out of that hole. He was also one of those where the tax account saved his butt too because he would always come to tax time and be like, “I’ve got this big tax bill. I have to pay a bunch,” whether it was property taxes because he had a lot of rentals or personal taxes. That’s where setting up that account saved the other years that we were working with him because then he didn’t have to worry about that. He was worried about knocking down the debt that he owed. He got out of that situation by doing some of those hard things. That’s where I’m like, “I hate situations like that.”

It’s like when you’re scared of the dark as a kid, but you turn on the light, or it’s like monsters in your closet. If you open your closet, there’s nothing there. Sometimes, you have to open it up and see what’s going on and what’s happening. That way, we can attack it from there. I had someone ask me on a show this week. I was on another one. He said, “Have you ever lost someone once they knew their numbers and they were throwing in the towel?” I’m like, “No.” Usually, we could go from there and give him either a plan or they can say, “This stops today, whether it’s the overspending or whatever it might be.” I could keep going on and on. As you said, there are lots of stories, but those are the two that stick in my mind.

Joey’s story would be the third contender. He got himself out of it through the Profit First methodology, but I’ll never forget him coming and saying, “I did more deals than I’ve ever done and lost more money than I’ve ever lost.” In 2019, his wife Ashley was working in the business with him as a transaction coordinator and having seizures because it was so stressful. Joey is doing the 80, 90, and 100-hour weeks. You know Joey. He’s a family guy and loves doing that. It wasn’t working out. You see him today. He’s fit and in shape, doing all these triathlons and stuff.

In 2019, he’s not doing any of that stuff. There are different ways people come to us with different situations. Those were two of the ones where it came with the worst numbers. One of them, Joey, his story is still one of the most emotional that I’ve gone through because I sat with Ashley, I sat with Joey, went through, and got everything they were feeling. It was like, “What the heck is happening here?”

The Next Step

It’s interesting how that plays into your vision because I know Joey personally, and I know what his vision is for his family, his kids, and everything that he stands for. That’s what deteriorated his health. I don’t even think it was the stress of the money. It was the stress of not being able to be with his family when he should be with his family. Generations of wealth, I say it on almost every show, is not financial wealth. It’s the emotional wealth, the physical wealth, and the spiritual wealth. All of that gets affected, especially when you’re hemorrhaging money. I don’t want to say turn it around, but once you shine the light on their issues, what’s the next step? How do you get them to be able to start scaling and get their profitability going up? What does that look like?

Usually, once we have the numbers, then we can pinpoint what the heck is going on. Is this a make issue, a spend issue, or a keep issue? Usually, the keep is where Joey might not have been too worried about the money or whatever it might have been, but he had tied that to family time. Sometimes, that keep is that what you’re keeping is either isn’t enough or if you’re not doing anything, then it’s affecting every part of your life.

It’s like going into it and saying, “If it’s something bad where that guy was upside down, how do we get out of this?” It’s like an emergency evacuation plan to get him back on track, or it is like the other guy, “We got to get through this.” Once we’re through filing the taxes and he’s got that all taken care of for the last 50 years or whatever, then we got to go into and say, “What’s the next step? Where does he want to be?” We like to do some of that vision as well. “What is your vision?”

For Joey, it was family time, and it was giving to charity. For Joey, the plan was to help him set up a giving account or help him with the profit account. Let’s talk about when you take a profit distribution, how are you going to use that for your family? It’s those types of things because that’s why when we work with people, you get one CFO, so they could get to know you a little bit better, your situation and what’s going on, and what matters to you versus the cookie cutter answers that are out there. That’s where it’s taking the tailored plan and putting that in place.

I’m very familiar with it, having worked with you personally. I do want to switch gears a little bit. You made a comment earlier that everyone should have a mentor. The first half of my career, from 2003 until about 2012, I was myself, my wife, and closet investors. We go to seminars, but we didn’t build a network. I kicked myself for not keeping all the business cards and stuff I had that first ten years. Granted, many of them would be out of business by now. The point is how have mentors, masterminds, and those types of things escalated your life and your business?

It’s funny. I’ll tell you a very real story that’s happening right now with our daughter. Our daughter goes to a different type of school where they don’t do grades. They do studios, and they have badge plans and things like that because they don’t just focus on reading, writing, that type of stuff. They focus also on emotional health and networking. If you have ten friends you’ve never talked to, you talk to them in order to get to the next studio. She got to the next studio, and this week was her first week.

The transition has been a little rough. She’s got a thorn in her flesh a little bit where anything hits it. The cat claws come out. We’ve been talking, my wife and I, about community. We’ve got a great community with the school, but we should probably get deeper with some of these people and have some other people in our lives where we can throw these ideas off of what our daughter is going through. We know, number one, is there stuff that we could be doing or helping with during this transition. Is this normal? Are we going through the same things?

It’s funny because as we were having that conversation, I was thinking in the back of my mind of how lucky I’ve been and how blessed I’ve been to be a part of places where they pushed me into networks ever since I was young. In that first company, even though it didn’t end the way we wanted it to, I got so much training and insight. That was where I went to my very first Mastermind as a very young early 20s going to these real estate Masterminds. That was so eye-opening to me. I remember my first one coming back and being like, “This is a group of people that all think the same way and read the same books. It was very encouraging from the very beginning.

Honestly, right now, people say for Simple CFO, our business, “How did you build it? How did you grow it?” I say, “I built a network for eight years in the real estate world, and I had great people like a mentor that I could call to say, ‘Is this a good idea for a business?’ He said not only, ‘Yes, it’s a good idea’ but ‘Can you come speak to my group?’” I wasn’t even looking for that at that point. It was more like, “What do you think about this idea?”

It was more of that that helped me along my way. I would not be where I am now without the people in my life, those communities, and also my spouse. Everything is pointing us toward the communities that have helped us live the vision and values that we have. That’s why we moved to the school that my daughter is in. Someone else from a different Mastermind that I’m part of. I heard he started this type of school in Oklahoma, which was a branch of a bigger network of schools. We started researching that and moved from the Maryland area, where we were near some family to Florida, where no family is.

That’s why we moved here because we believe so much in what we wanted for our daughter to have. That’s where community to me has been the ultimate difference. I think if you want to go fast, go alone. If you want to go far, go with people. That is so true because it is the people that you get around you. Even if you’re a Christian, the Bible says, “Iron sharpens iron.” You have to be around people who will get you to where you want to be, but also are going on that same path and will tell you how it is, what they’re going through, and being real with you, or they’ll tell you like, “I see what you’re doing. You should stop that” and be real.

If you want to go fast, go alone. If you want to go far, go with people. Click To Tweet

The mentor is a little bit different than the community. That’s the one-on-one where they’re going to get into your business. If it’s a real mentor, a real coach, or someone who cares about you, they’re going to be like, “You should not be doing this.” I had a call with my mentor this week, “I’m firing you from this position in your company. This person is going to take over now for you.” I was like, “Okay.” That’s where you have to put people in your life that will make you uncomfortable.

There’s a great book called The Power of Ted. The Empowerment Dynamic. It’s about the drama triangle. Most of us lived as victims, and we had persecutors and rescuers. I want to live on the creator side, be the creator, and surround myself with challengers and coaches. Those people in my life who are going to push me are the people in my life who have been where I want to be and can give me a pathway there. I know that was a long-winded answer, but I can’t stress how much it’s impacted my life on a deep level.

Continuing The Work

It’s not long-winded at all. That’s exactly what I wanted to get out of you because our path has been similar to yours. When we started the original Generations of Wealth voyage, that was one of those moments. It was mentors of ours that had put on this event for eight years. We were on seven of the eight cruises, and they decided it was time for them to exit. We were violently told, “You’re taking this over.” We rejected that for months. We finally said, “We’ve never run a conference before. We don’t know what we’re doing, but we were passionate about continuing the work and passing on the knowledge to the next generation,” just like they passed it on to us. That’s where Generations of Wealth started and came from.

It’s fun now because some of those same mentors are now a part of Generations of Wealth. They come and speak at our events. It’s humbling but exciting all at the same time. As far as the Masterminds that we host, the REI Circle of Trust, we have people that come from all walks of life, all different parts of the country, different ages, different demographics, and everybody has very similar problems. It has nothing to do with your net worth. Some people think, “Higher net worth can buy you out of your trouble.” Not really. You can have a $100 million net worth and get cancer because you didn’t take care of your health. You didn’t have anybody calling you out on it because they looked at you and said, “He’s worth $100 million. I can’t say anything to him because that person is above me.” That’s bullshit.


Generations Of Wealth | David Richter | Profit First


When you’re with the right group of people, everybody should be able to call each other out with love but also with some fortitude. That’s the interesting part. That’s when we started meeting each other not necessarily in Masterminds but at real estate events, and started talking a little bit. Once we got to know each other more and more, it was a pretty fast friendship for that reason because you don’t beat around the bush. Anybody who knows me knows, I’m blunt as hell. There’s nothing that I’m going to hold back on in most cases.

That’s why I give a lot of credit to the groups I’ve been a part of and the people that I’ve been in my life. You have to surround yourself with the ones who want to help you sharpen and also want to sharpen themselves.

The ones who really want to help you sharpen also want to sharpen themselves. Click To Tweet

That’s the best point. It is being humble enough to help but also take help from people. I’ll speak for myself. Oftentimes, when you’re at the top of the food chain in your organization, you take on all the stress, you take on all the work and the sleepless nights, and you don’t have anybody to turn to. It’s a lonely world. You’ve got to have somebody to vent to or you will lose that health at least. I appreciate the long-winded answer because that’s what I was looking for. What’s a question I should be asking you that I’m not?

I would say one of the first things is let’s make it very practical. How do you get started keeping more of what you’re making today? It’s going to sound ridiculously simple because we’ve already even hit on it. I want to at least give you an action step from here. If you did one thing from this show, what would you do that can help you on a real tangible level? It would be setting up one different bank account. You don’t even have to go down the entire Profit First road.

If you tune in to this and you didn’t read the book or you didn’t go on search and go on YouTube and find the videos of what to set up, set up one different bank account, call it owner’s pay, and start putting a little bit away from everything that you’re making. Even though money isn’t usually what it’s about and it’s a symptom of the root problem, if we can start, it is one of the things that we use as an excuse the most to block the real things that are going on in our lives. If I can help you get some of that out of your way so you can focus on what is going on, that’s what I want to do.

If you could set this up, get some good habits in your business, set up one account, and do 1%, do something small of every deal, you flow into that account. I want you to start to build that habit. If you’re in survival mode all the time, you cannot think about what we’re even talking about here most of the time. You can’t think of the higher-level stuff and think about, “Where should I live, where should I go, what is my vision?” and all that.

That’s why we got to give ourselves breathing room. I need to give you breathing room so you can say, “Okay.” Also, sometimes, we can’t even see what our true potential is if we’ve never touched it. I’ve seen so many people like Joey. When Joey went down this path that first year, he gave himself a very realistic set of numbers of properties that he could do in a year. The year before, he was trying to do a ton of properties per month like 2, 3, 4, and 5, scaling up more than he’d ever done before. In 2020, he said, “I could do five to get to where I need to be.”

He slowed down to speed up. He’s doing more than that now, and he has a great business, but it’s sometimes getting to where you know you can be right now that isn’t going to also drain you and keep you in that cycle, that rat race we were talking about. I would also say to get someone good around you. If you’re tuning in to this, why are you not already in his circle of trust in the jet going on the cruise? Derek is a straight shooter, and his group is great, and they have great success. Success defined as these people are growing. They’re constantly growing, learning, helping each other, and getting closer to whatever it is that their purpose is. They’re living that out every day. I would suggest opening up the account and getting around someone who’s going to sharpen your axe.

That is fantastic, and that’s why I ask the question the way I do because that pulled something out of you that you wanted to say, what you’re emotional about, and what you’re excited about. Plus, it makes me look like a superstar. I pulled something out of you that I wouldn’t have even known the right question to ask. As we wind down here, David, tell everybody where they can find you and what they can do. I know that you’ve got a little giveaway, which they’ll be able to get at but tell us a little bit about that.

If you go there, I want to give you the book. It’s the e-book and audiobook of Profit First for Real Estate Investing because, let’s be honest, you don’t get much of this info of I make the money, what do I do with it, how do I keep more of it. If you want to dive deep into the Profit First methodology and the setup in the system of making sure you know where every dollar is going, that’s where you can get it. I also give a cheat sheet because I am like you, the entrepreneur who’s like, “Give me the one-page version so that I can see if I can implement this and if this is worth my time.” I’ll give you that as well.

I also give you a visual overview because some people are very visual learners, so here’s the flow of money and how it should go through, and if you set up the system. It’s visual versus bullet point. You get the bullet point one, you get the visual overview, and you get the actual book as well so you could start listening to it or at least pull the e-book up and say, “What do I need to set up?” You could go right to some of those chapters.

You can go to to get that. David, anything else? The name of your company is Simple CFO. Talk a little bit about what your company does.

Many people have bookkeepers and CPAs. They love to look at the past. What has happened? They’re the rear-view mirror. What I like to equate the CFO to is the cleaner of the windshield and the installer of the GPS because you have to see where you’re going. Those numbers in the past help us to know like, “Here’s a base of where we’re going.” We clean that windshield off for you there so you can see what’s going on, and we install a GPS for you too, like, “Where do you want to head? What is that vision, and what does it look like?”

What we do is we make sure you have the right bookkeeper and bookkeeping system process like, who’s going on, who’s putting the numbers in. Usually, most owners wear the CFO hat. They don’t know what the heck they’re doing or how to manage the people in their lives. Number two is we implement Profit First and everything we’ve talked about here. That’s where we help you manage the cash and where your cash is going to take you. That’s part of the GPS process.

The third one is implementing a dashboard. We’ve upgraded in the last year where we connect right to people’s QuickBooks accounts, and we pull in right into QuickBooks to a dashboard now where they can see in real-time what’s going on, and giving them forward-facing number’s projections, where’s their cash, and that type of thing, running Profit First from there. That’s what we do. When you’ve heard a person on your team, and you might be thinking CFO, that’s the ivory tower. This is not a full-time person on your team. This is a part-time person who’s cost-effective for where you are.

If you’re newer and tuning in to this, go and get the download and get the first steps. If you’re on your first deal or looking to get into this, this is still a great foundation. I could tell you the story of one guy I had on my podcast where he said, “If I would have started this at the very beginning from the first deal, I would have had $5 million more in my account now.” That’s what I’m so passionate about. Start wherever you are. Deal 1 or deal 1,000, start with at least the first step, but if you need extra help and handholding along this process, that’s what we’re there for as well.

I’ve been a friend of yours, I’ve been a client of yours, and I’ve seen firsthand what you’ve done for people. I’m truly honored that you took the time to come on and help my audience. Thank you for that.

I’m honored to be on. I always appreciate when people have me on because we both know this type of stuff is not talked about a lot. If it is, it’s very dry and boring and we turn off the podcast off right away. I appreciate you having me on to be able to share the message.

To the audience, you can find everything that we’ve got available at You can jump on The Generations of Wealth Facebook group and join that, join the community, help us grow this, and share it. Get out there, live your vision, and love your life. We’ll see you on the next show.


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About David Richter

Generations Of Wealth | David Richter | Profit FirstDavid Richter is an active real estate investor who has been essential in closing over 850 deals over the last 10 years. He has experience with wholesale, turnkey, BRRRR, owner finance, rentals, lease options, and any other exit strategy you can think of.
While growing and building a real estate business from 5 to over 25 deals a month, he realized that as much money was coming in, it was all going right out the door. With the unique opportunity of being in every seat as a real estate investor, he found a calling in the company’s finance seat to help businesses see where their money really went.
David has helped real estate companies completely turn around from going out of business to building cash reserves by using the Profit First cash flow system. He has been featured on Biggerpockets, Real Estate Disruptors with Steve Trang, and many other podcasts, shows, and stages.
To help even more people, he wrote Profit First for Real Estate Investing – a derivative of the original Profit First by Mike Michalowicz that is tailored specifically to Real Estate Investors.
His goal is to completely transform the Real Estate Investing industry by helping real estate investors make and KEEP more money in their businesses. As the founder and owner of SimpleCFO Solutions, he wants to bring investors true financial clarity and freedom and help every investor stop living deal to deal.





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