Building a Legacy of Generational Wealth With Josh Cantwell

Episode 101: Building a Legacy of Generational Wealth With Josh Cantwell

The Profit First REI Podcast

August 4, 2022

David Richter

Summary:

Achieving entrepreneurial freedom has a price and also takes time. But the good thing is, it’s not impossible!

Our guest Josh Cantwell can attest to that. Today we dive into the finer details of how important the Profit First mindset is in your business, as well as how to use it so you can get the right framework in place to maximize your profitability.

Key Takeaways:

[1:54] What got him started in real estate?

[4:28] What early lessons did he learn about money, and how is it compared to what he’s learned about money today?

[9:00] What lessons about money does he want to pass down to his children?

[17:49] How does he use Profit First in apartment investing?

[27:43] Get into the psychological habit of making sure you’re taken care of , so you’ve got the right mindset and you’re not hating your business at a different level.

Quotes:

[4:43] “You realize that when you sign up as an entrepreneur, you sign up for personal freedom.”

[11:03] “One of the lessons I’ve learzed is that in order to be a high earner, you must have excellent time management skills.”

Links:

Free Land Ventures-www.freelandventures.com

Tired of living deal to deal? 

If you are a real estate investor or business owner who is tired of living deal to deal, and want to double your profits, head over here to book your no-obligation discovery call with me. Either myself or someone from my team will hop on a short call with you to get clear on your business goals, remove any obstacles holding you back, and map out a game plan to help you finally start keeping more of the money you work so hard to make. – David 

Transcript:

Josh Cantwell:

When we get to the point of the building being stabilized, it could be two years from now, four years from now. Then we do a big refinance. We pay all the investors off, we pay them back and now it’s all profit. <Laugh>

David Richter:

Right?

Josh Cantwell:

Yeah. It’s all profit.

Intro:

Welcome to the Profit First REI podcast where real estate investors, master financial management, eradicate entrepreneurial poverty, and learn to be profitable from day one. Now for your host, David Richter

David Richter:

Everyone. It’s David Richter here again on the Profit First REI podcast have Josh Cantwell today, which is, I am super excited about this because he does apartment investing and uses Profit First. So, and he’s gonna tell you, because there’s definitely a different aspect to the apartment investing and using Profit First. And you’re gonna hear about limited partnerships and how the cashflow plays into that, how it plays into when they’re buying, when they’re selling, when they’re refinancing, how the Profit First system and when he uses it and how he manages it, cash that way. And I think this is gonna be an awesome episode. Josh, thank you so much for coming on today.

Josh Cantwell:

Yeah, David, absolutely. I’ve been looking forward to this, you know, the Profit First books and the series of various books from Michael. It’s been phenomenal. I’ve, I’ve either done the audio books or most of the books. I’m a really slow reader, so it’s mostly audio books. Yeah. But no, I love his stuff. I love your book and I, you know, I’m super excited and honored to be here.

David Richter:

Awesome. Well, I really appreciate that. So let’s just, let’s start where everyone starts. How got what got you started in real estate?

Josh Cantwell:

Yeah, look, I, I probably have a little bit different story than a lot of people. I certainly fell into it. Like a lot of people. Do you kind of hear about it from one way or another? What I did was when I was in college, I was very lucky to have a father who was an entrepreneur. My dad built a business. He filed for bankruptcy when he was in sixth, when I was in sixth grade. And then by the time I was in college, just within six or eight years later, my dad was a multimillionaire. So he went from nothing. So I, I was like, wow, what, you know what happened? And he built a business. He built an employee benefits company. So I jumped into employee benefits. I jumped into actually financial planning in early twenties. That’s one of the things that’s led me David, to be so good at raising money is I was around money mm-hmm <affirmative> in my early twenties, right after school.

Josh Cantwell:

But long story short, those clients that I had that had stocks, bonds, mutual funds, IRAs, life insurance policies, estate planning. I noticed that a lot of them had their biggest dollars. Their biggest assets were not in the stock markets. They were in real estate. They owned apartment buildings. They owned rental properties. They owned strip centers. They leased them out to, you know, restaurants and things like that. And I took notice. So I started going to boot camps. Like a lot of people I got into real estate for the cash flow, but I, I started with wholesaling and I started with flipping like a lot of folks do, you know, fast forward 15 years. Now we own 3,700 units of apartments. We’ve raised and deployed about 80 million and we have about 40 million deployed right now. And I’ve got 451 units under contract to buy by the end of the year. So we’re adding to the portfolio as we go. Yeah. So very meager start. But you know, there’s a lot of lessons out there. Very fortunate David to have a, a dad that was an entrepreneur, the big, big, big advantage coming outta the gate.

David Richter:

Yeah, no kidding. Cuz a lot of the people that we talked to either they’ve had that advantage and they had someone that went through that or they didn’t, and it’s like, it’s just, it’s fun to watch people how they springboarded into real estate and just the whole entrepreneurship type board. So that is awesome. I love that. I hope to provide that. I have a four year old daughter, so I’m hoping one day she’s able to say that on some podcast that I’m really glad that my dad went into this. And so I really love what she’s

Josh Cantwell:

Always home.

David Richter:

Yeah, right?

Josh Cantwell:

Yeah. That whole point.

David Richter:

Right? Exactly. It’s just, it is, it’s so funny having a four year old and like, you know what, the kid, you have no idea like that. It’s not normal for me not to be home like fitting a typical, you know, nuclear family or whatnot because my dad went off to work every single day and stuff and she’s like coming and ask, can you, can you play with me? You know, like in the afternoon. So I love that. Love that. What you what you learned from your father, because one of the big questions I asked and I’m gonna ask you the same things is what early lessons did you learn about money and how does that compare to how you think about money today?

Josh Cantwell:

Oh yeah. The fantastic question. Look, I, I, the first lesson for sure, David is I realized that building a business, like taking the chance to be an entrepreneur, you realize that when you sign up to be an entrepreneur, you’ve signed up for personal freedom. That’s really what you’re trying to do. Yeah. Personal freedom. It’s not about the money. The money will come. It’s not about the Ferrari and the Lambos and all that crap. Like nobody cares. Right. What we care about is personal freedom. And so when I got to see my dad take lots of time off at certain times of the year and then other times totally bust his ass and work late. You know, I got to see how he got to manage that schedule. Right. I also got to see going from sixth grade bankruptcy, we lived in a very small, like 1400 square feet house with a half finished basement you know, paneling in the basement, that type of thing.

Josh Cantwell:

And all of a sudden about  the time I was in college. My dad bought like a 4,000 square foot house and he had a third car and he had a condo in Hilton Head, and I’m like, whoa, like what happened? I remember we walked into the house that they were buying, right. Because me and my brothers were so used to this little tiny ranch we lived in, when we walked into the house, they were buying, we all kind of looked at each other like, can we afford this? Cause my dad was also very quiet, so, okay. One of the things about money, I realized one was that watching him in business was the, the multiplication, the multiplicity of business and owning the company, whether it’s apartment units, whether it’s eCommerce. In my dad’s case, it was employee benefits. He was able to grow a business substantially and then use that.

Josh Cantwell:

And it grew very quickly versus just working like a W2 job. It’s very hard to have that exponential growth in a W2 job. Secondly, my dad was very quiet about his wealth. He, my dad was very quiet about the money that he was making. We had no idea. My dad still shopped at thrift stores. He would buy suits secondhand, even though he could afford thousand dollars suits, he would, we was so proud to buy a $50 suit second hand and have that tailored to fit him. He would come home from work and be like, yeah, I stopped at thrift store. Second hand, guess how much this suit was? I’m like, I don’t know, 500 bucks. He’s like, dude, I bought this suit for $28. <Laugh> so that was amazing. Right. But also at a young age, when I got into financial planning, I also realized that everybody has the same goal, David, which is just to save and invest wisely.

Josh Cantwell:

Right? People don’t need to hit flyers. I understand people betting on crypto and all the up and down with crypto and the big returns I get it. But really wealth is built long and slow. It’s built long and slow. That’s why I love apartments. And that’s not just making wealth David, but keeping it right. If you make wealth really quickly, I get it. There’s the Facebooks of the world, the Instagrams of the world, the Snapchats of the world make money practically overnight. But for most of us, the goal is not just to make it, but to keep it. And I think it’s actually easier to keep it if you make it slowly, right. Build methodically. Instead of looking for this massive growth all at one time is to grow. When I always say grow it methodically. I’m not talking about over 40 years, I’m talking about maybe over five or 10 years, that wealth is hard to rip away. Right? So those are some of the lessons I learned for sure. Watching him.

David Richter:

Oh man, I love that because I feel like that’s the, the difference between principles and just like the next new fad, it’s the principles of marketing will take you further than the next new Facebook thing or the next new Instagram, you know, like just always on the, the trend it’s are, do you have the principles down? Same thing with money. I love what you said there. It’s not 40 years, but it could be five 10 of building something that’s real. And that lasts a lifetime. I think, I think if you stop listening to the podcast right here and just said, you know, that’s what I need to do. I need to build my five year plan of what I’m going to do long term. You could be, you could go very, very far for a long time if building that foundation. That was incredible. So thank you. Yeah. I love that. So then do you now, Josh, do you have children right now? Or I do

Josh Cantwell:

A sixth grader and a fourth grader girl, girl. Yeah.

David Richter:

So I love that because another thing that I like to ask too, is what lessons do you wanna pass down to your children to the next generation about money and like what you’ve learned so far. And it’s, it’s definitely selfish since I have a four year old

Josh Cantwell:

Daughter. Yeah. Well, look, look, I’ve already been coaching my kids and talking to them about high school and college. Right. And I’ve already told them that I want them to go to college, not for the degree. I want them to go to college for the relationships. Like to me, college is the biggest networking party of all time, right? Like 60,000 people at Ohio state university or where I went to school, 4,500 people at Baldwin Wallace college. If you use school to build and make relationships for sure. Now as a 45 year old my closest friends are still from college and high school and even grade school. And I’ve definitely had gotten in on some businesses and some business deals and private investors from college. So I didn’t really use college. My dad even told me back then, David, like you don’t go to college to get a degree.

Josh Cantwell:

You go to college to get that piece of paper, to get your first job. Everything really need to know you’re gonna learn on the job. My dad was very direct about that. So I’d, I passed that same lesson back to my kids, go to college, get the degrees. You have the options, but become an entrepreneur. Leverage the relationships that you make in college. The people that you meet in college to make that next leap. And hopefully they get into entrepreneurship as early as possible. I I’ve never had a boss. David. I graduated from college, got into financial planning. I never had a boss there. I worked for only commission only for profit. I’ve never had a W2 income. So I hope my kids do the same thing. I don’t know if my kids are built for it. We’ll see over time. Mm-Hmm <affirmative>, I’ve certainly had a lot of ups and downs.

Josh Cantwell:

So some of the things I would tell my kids look is business wise and money wise. One of the lessons I think it takes to be a really big earner is that you have to have super, super time management skills. Okay. Yeah. So one of the ways that you can be a big earner and have a, make a money lesson is that you have to have super time management skills to be a CEO, to be a founder, to be an entrepreneur. That is something you must have because the bigger your business. Again, we have 3,700 units. We own 17 large apartment complexes. We’ve got several different, large property managers that work for us, several construction companies that work for us. You have to have super time management skills to do that. Doesn’t mean you’re working all the time, but when you are dialed into something with work, make sure they have super time management skills. Another thing I would say that’s a money lesson. I tell, look like when you sign up for entrepreneurship and you sign up to be an entrepreneur, you’re signing up to have that personal freedom, but you’re also signing up and understanding nobody’s coming to your rescue.

David Richter:

Hmm. Yeah.

Josh Cantwell:

Nobody, you’re a hundred percent responsible and accountable for your own life. You’re a hundred percent responsible and accountable to whatever you build. And a lot of that’s gonna be built with a great team, but you are a hundred percent responsible and accountable to that. And so these are some of the money lessons. I think that really start with personal reflection, personal how you manage your time, your mindset of nobody’s coming to your rescue, the mindset of service trump’s price. You can always charge more. If you have amazing service. These are some of the things I learned in business that absolutely impact people’s incomes. And I hope my kids learn those.

David Richter:

No, I love that. And something I wanna pick out there that is contrarian to most entrepreneurial type podcaster, like lines of advice is going to school and going to college and having, but being intentional. I think that was so, so great that you gave a different perspective of like, Hey, no, go to college, do that, but be intentional with what you’re doing and then know that it is about networking and those relationships and be very intentional while you’re there have fun, you know, do that stuff. But it’s also be very intentional with it, which, you know, a lot of people, you know, especially like you hear the Robert Kiyosaki and stuff and it’s like, oh, school’s just, you know, it’s not for everyone. Don’t do it and just go into it. But it is. I think, I think what you said, it’s perfect. It’s the networking and who can you, who can you provide value to once you get into, out there and know what your superpower is and know how you provide value to others and how do you bring those people together? I think that was something I wanted to pick out. That’s not typically on what you hear on entrepreneurial type podcast. So yeah, no, I thought that was great.

Josh Cantwell:

I think there’s two types of school, right? There’s definitely the traditional college, which if my kids want to do that, want to go, like I’m very supportive, but I’m a huge fan of the weekend warrior boot camp.

David Richter:

Oh yeah. Yes.

Josh Cantwell:

Like real estate, eCommerce, raising money, lifestyle investing – so many different boot camps. And especially now that so many of ’em are virtual. You can get access to amazing information for a few hundred dollars or a few thousand dollars. If you buy a ticket and you have to travel somewhere that again, relationship building and learning together and having fun, right. Meeting new people and going out and having a blasting new cities. Like I, I just got, I got lucky that my dad really advocated for traditional college and my dad advocated for entrepreneurship. I went to, while I was in high school while I was in college, I saw my dad going to Zig Ziglar conferences. Like, you know, Brian Tracy Conferences, listening to books, you know, the, the university on wheels like Brian, Tracy used to talk about in the car. My dad did all that stuff. And my dad was a very much a W2 earner most of his life. And then when he was in his fifties, he started these companies and our, my, my life has forever changed because of it. And that was the mix of traditional schooling as well as weekend warrior schooling, as well as like, you know, understand, you might go into debt to get a traditional degree, but the networking that can come from it, that was a perfect mix for me. It’s not right for everybody, David, but it definitely worked out for me,

David Richter:

Man. I love this. I mean, if you’re listening to this, it doesn’t matter your age. Doesn’t matter where you are right now. You can get that education, whatever you want. And it’s not too late to start and it’s not too early to start like go out there, see how you can provide that value. I think it says, this covers anyone who’s listening right now. You can go out there and make something, do something. Don’t be afraid to take that leap and bet on yourself. I love what you said too. It’s your, it’s your accountability. So if you know right now, if you have that fear, it’s usually that fear that’s inside of you because you don’t trust yourself. But once you get over that hump and the mindset and going down your personal journey, it becomes a whole lot easier to bet on yourself. When you say I’m gonna do it, I’m gonna make it happen. I don’t care what it takes, but I’m going to do it. So absolutely love that. What

Josh Cantwell:

Expectation I think is important. You know, I think that as parents, especially entrepreneurial parents, we’re trying to build something special for our own lives, for our kids, our employees, our staff. Yep. But I’m also, you know, I think you’ve gotta take that extra effort. If you have young kids or grandkids or nieces and nephews, or just, even if you don’t volunteer at a school, go, go give a talk at a high school or a grade school or a college and expectation is so important. Right? So I expected because I watched my dad, I didn’t say a lot, but I just got to observe him that I expected to be in the top 1%. I expected to be the top of my class, get good grades. I expected to have success. Like I, I never thought any different, like I never thought I was just gonna be middle class and just get by that.

Josh Cantwell:

It was never, it was never in my vocabulary. It wasn’t in my DNA. It was never an option. And it wasn’t like my dad said, you have no option. You must be successful. That wasn’t it at all. It was just, that’s the standard, the example that he said. So I think as parents and as adults, we have an obligation. I feel to give that back to the next generation and talk to them about expectation. You should. There’s no reason why you can’t do it. I tell people, look, make a million bucks a year. What makes you so special that you can’t do that?

David Richter:

Right?

Josh Cantwell:

These are lots of people who are not special, who are making a million bucks a year who have a million dollar business. Yes. They’re not special. So why are you so special that you can’t do that? Because there’s so many people who are just very normal average who just work hard, take responsibility that build amazing companies. They can do it right. A little bit, sir. Walk, the example is big, but the expectation I think is just as important.

David Richter:

Oh yeah, no, I love that a hundred percent. So let’s for the last few minutes here, let’s talk a little bit about Profit First and, and apartment investing. So tell us about that setup and kind of taking a hard pivot here too. Now that side of the business of managing the money from that point of view and using the Profit First mentality and the Profit First system. Can you just tell us how you use that from the apartment side of things?

Josh Cantwell:

Absolutely. Look, Profit First had a big impact on my life couple years ago when I went through it. I remember I immediately, after listening to it, I was working out. I was in my basement. I called my CFO. I’m like, Roberto, we’ve gotta set up all these accounts, Profit First. This is the way to do it. And we didn’t adopt it exactly, but we’ve, it had an impact psychologically on how we were gonna manage the building. So when we buy an apartment building, I have an apartment building that we’re closing on in about 40 days. So that deal we’re gonna buy for 9 million. We’re gonna put in about a million million, one in improvements. So those are hard capital improvements, very similar to, if you have an eCommerce business and you’re buying inventory or you’re building your website or you’re setting up your Facebook ads, you’re doing the, the, the hard work of building the business that for us is improving the building, improving the units, adding new roofs, adding, you know new amenities, those kind of things to really harden the asset.

Josh Cantwell:

Then when the building is hardened, you could charge more money. Mm-Hmm <affirmative> you can raise the rent. Yep. Right? So it’s like, okay, if I have an e-commerce business and I’m selling crafts arts and crafts, well, maybe at the beginning, you’re just trying to get your first customer. So you charge less. Then you’re not making maybe a lot of profit, but over time they have a repeat customer. You upsell things. Maybe you could charge more, you have more established, you can raise your rates. So for us, it became, okay, we’re gonna take one account. We’re gonna set up one kind of Profit First account, just for capital improvements. We’re gonna take this million dollars. We’re gonna close on the deal. We’re gonna take a million bucks that we’ve raised from investors. And we’ve gotten from our lender. We’re gonna set that aside in a CapEx account.

Josh Cantwell:

Okay. Mm-hmm <affirmative> and the money’s gonna come out of there. Then we identify, we said, what’s the hard regular recurring costs, the cost of labor, the cost of people. What does that cost every single two weeks. And that comes out of that CapEx account. So our cost of our VP of construction, cost of the labor, it’s all starting to come out of that account, that account, just like my Mike talks about you guys talk about in your book, David is that’s not gonna intermingle with our operating account. Hmm. Yeah. Okay. So then the operating account, the operating account is where the cash is coming in from the rents. And the rents are coming in. The rents are coming in to pay the debt, service, the expenses, the real estate taxes, the insurance, those kind of things. And we have a budget for all of that.

Josh Cantwell:

So we have a budget when we buy the building, we know David that the previous owner was managing the building a certain way. We see a copy of his financials. Well, our financials are totally different, right? So we’re gonna have a certain amount of like management fees, management, expenses, insurance property taxes. Then we have utilities, those kind of things. So as we improve the building, all the money for the, the hard improvements of the building are coming outta the CapEx account. All of the operating expenses are coming outta the OPEX account. And then our property manager is paid a percentage of the gross rents, the gross collections mm-hmm <affirmative>. So that property manager gets paid more money. The more money we make and collect the more money they make mm-hmm <affirmative>. So we’re all in the same boat row in the same direction.

Josh Cantwell:

Okay. Then the next step is, and this is, I guess, the there’s several other steps, but these are the big ones. This third piece is our limited partners. So when we buy a building, we syndicate it syndication, right? Where we raise money from private investors for the down payment, for the capital improvements, the soft costs and the acquisition fee. So we now have two ways that we, one way we get paid, and one way the limited partners get paid at closing, we take our Profit First by taking an acquisition fee. So we usually take a one or a two or 3% acquisition fee upfront. We take that off the top, just like the books. Talk about, take it off the top that goes into our HQ account, our headquarters account to pay our, our HQ headcount, which means our CFO, our operations managers, and we as owners takes the money out of the business, right.

Josh Cantwell:

When we buy the property. Okay. Yep. So that comes out off the top Profit First. So we take the money. Then the limited partners who put up the money, they are now being paid first out of the cash flow that’s coming in. So they get what’s called a preferred return as they get a preferred return from the deal they get paid before we get paid. Okay. Mm-hmm <affirmative> so we’ve essentially set up essentially for accounts or four buckets, where one is a CapEx bucket. One is the OPEX bucket. You have the acquisition fee bucket. And then out of the operating account, we have to pay the debt service first, the expenses second, and the limited partners. Third. Okay. Yeah. So these, all the buckets that Michael and you talk about in your books, and then finally, when we get to the point of the building being stabilized, it could be two years from now, four years from now, then we do a big refinance. We pay all the investors off, we pay them back and now it’s all profit.

David Richter:

<Laugh> right?

Josh Cantwell:

Yeah. It’s all profit. Cause now we have enough new cash flow to pay the debt service, to pay the expenses. And just now everybody’s being paid profit out limited partners, general partners everybody’s being paid. So that’s how we manage the building during stabilization. And that’s how we manage it during, when it’s stabilized and it’s throwing off lots of cash flow.

David Richter:

Yeah, no, that’s awesome. I love that because so many people <laugh>, it’s from all walks of life, all types of real estate investors, it doesn’t matter if it’s a single family or they’re doing rentals flips, you know, or multi-family, they’re always thinking, how does this apply to me? How can I do this? Then here we go. If you have any qualms or any questions or anything, this is how Josh is doing it with literally multimillion dollar transactions. This is how he just gave you some steps of what he does to separate those out, to make sure he knows his numbers, knows it from the cash perspective, knows there’s enough cash to pay the people, take the Profit First and make sure that that he’s actually they’re benefiting from this and that the limited partners are benefiting and that it’s actually all in sync. And he does that very clearly. And I, I love that because, you know, we work with a lot of different types of people and it’s like, okay, this works no matter what type of business you have, this just helps you more with the mindset of, yes, we can make this happen. We can see the numbers very clearly. And we can make sure that we are profitable on these deals and help to retain that profitability.

Josh Cantwell:

I have no problem paying out the limited partners, paying the debt, paying the operating expenses because I took the Profit First. When I bought the property, I got paid off the rip. So even if I don’t make a whole lot of money now for the next year or two or three, while we’re izing the building, I always got paid first. So because of that, I’m not like mad at my deal. Now that I’m working hard to stabilize it. Like I mad at my business. A lot of people get mad at their business because they’re like, I just keep sinking money into it. It never pays me back. And I’m just working hard and my money keeps disappearing into all these expenses. Well, look, if you take some of the profit off the top at the beginning, like we do, or like we talk about in all the books, right?

Josh Cantwell:

That is a way to psychologically win out of the gate so that you’re okay. Working late, working weekends, working harder to build the business, ultimately that you want. So for us, it’s like, look, we get paid. Like I I’ll probably this year, we’ll close on seven or eight large apartment complexes. We’ve already bought five or six. I can’t remember. We’ve got three more closing. So I’ll get eight times. Let’s call it seven or eight profit. First off the rip hundreds of thousands of dollars. You’re talking close to probably a million bucks at the end of the day, that is gonna come to me, come into the business to run it. And then I have no problem working my face off so that we can have a long term stabilized asset. That’s gonna pay us forever. That to me is psychologically is where we went off the rip. If you’re not doing that, you’re gonna despise your business. You’re gonna hate your business. You’re gonna hate to work in it. You’re gonna feel obligated to it probably going into debt because of it, because you don’t even like your company. Right. Right. Right. So find a way to get paid off the rip and the whole psychological part of running a business changes.

David Richter:

Right. And I love what you said there because that’s how many people work late anyways and work nights, the work weekends. And they are, they’re just hating it. Why am I doing this? This is ridiculous. And this is, you are at the stage now you’ve been implementing it and you are seeing it. And now you’ve got a system for it at these high level deals. But if you’re just starting out in real estate and listening to this, do it from your first deal, do it or wherever you are right now, your next deal, I should say, your next deal, implement this, start this, because then it gets easier. You’re get into that psychological habit of making sure you’re taken care of. So that way, when you’re doing million dollar deals like Josh, that way, you’ve got the right mindset and you’re not hitting your business at a whole different level, you know, with 6 0 7, 0 8, you know, like however many zeros it is that you can, you’re going to get to. So absolutely love that. That was great advice. That is

Josh Cantwell:

One piece. Like I started doing this on single family properties over ago. I would buy that property for a hundred grand. I was gonna put 35,000 of renovation into it. I’m into it for 1 35. I would borrow like 140 or 145 from my private investor to do that deal. I would take a 5,000 or a $7,000 acquisition to what I was basically doing was I was taking Profit First. Some of my future profit I was taking when I bought the property, then I wasn’t despising that deal as we were renovating it or fixing it up. So you could do it on a, on a rehab, a small single, or a small duplex, cuz I did that. And you could do it on a, you know, 170 unit or a 220 unit like the deals we’re closing next month. Mm-Hmm <affirmative> it doesn’t matter. You just kinda over raise or over borrow a little bit of money for a real estate deal upfront that there’s enough cash sitting in the operating account. Take a little bit of scratch off the top. Then you go into all your stabilization plans and of course the deal still needs a pencil. You know, if I was into that deal for 1 45, I would wanna make sure it’s gonna be work two 10. Yeah. Or two 20, by the time I’m done with it or 200, there’s lots of equity, lots of profit for everybody. So, but yeah, we started on really small deals when we started this.

David Richter:

Yeah. And I love that. I love just getting into that habit, its getting to that habit of Profit First and making it that psychological effect of, you know, I don’t wanna hate my business while I go through it. You know, like let’s enjoy this and if I do need to work late or do these things, then it’s like, ah, well we we’re taking care of, I don’t, at least I don’t have to stress about money while I’m working late. We’re just getting the deal done and getting it across the finish line. Right. that’s awesome. So you’ve provided a ton of value here. Just have one final question here. So Josh, you are, you raise a lot of capital. You’ve got a mastermind, a very elite individual. So how, what, how can our listeners who, if they wanna connect with you and how can they provide value back to you?

Josh Cantwell:

Yeah. So just visit our website FreelandVentures.com. There, you know, we can work together like, look, I’ve, I’ve had a big coaching business before I’ve strategically wound it down just because I wanna focus on doing deals. Hmm. So, you know, I could partner with your listeners. They have deals, especially the bigger, the better for me. Like they’re looking for somebody who’s maybe wants to cosponsor a deal, raise capital. I’m looking for those kind of partnerships. You wanna be a passive investor. That’s great. If they’re an intermediate to advanced investor, looking to kind of scale up into apartments, we can connect that way. We can just go to our website, FreelandVentures.com. We can connect there and you know, I’d love to do deals. It’s all about partnerships, big deals. There’s so much equity. There’s so much profit. If they’re done right, you can splice the deal up with lots of people and everybody makes a lot of money. So happy to do that.

David Richter:

Awesome. So there you go. And there’s this website and we’ll make sure that that’s in the show notes too, but Josh, this has been incredible. Thank you so much for coming on today and giving people encouragement for your Profit First journey and what you’re doing now. Thank you so much.

Josh Cantwell:

Hey Dave, thanks for having me on,

David Richter:

Thank you so much for listening to today’s show. If you found this episode valuable, could you do me a quick favor? Could you give us an honest rating within iTunes and be honest, you could say whether you liked it or not. And obviously with iTunes, the more reviews and ratings we have, the better it is for other people that are searching for Profit First and a podcast. So we’d love to be ranked on there and that’s thanks to your help. So we would really appreciate that if you would like to go give us a rating. Also, if you’re looking to connect with us further, I would highly recommend checking out our Facebook group Profit First for real estate investors. And that’s literally what it’s called. So you can type in Profit First for real estate investors and you’ll be able to find <laugh>, you’ll be able to find our Facebook group right there.

David Richter:

So come join active real estate investors who are supporting each other and growing their businesses and profits together. That’s what that group is all about. The link should be in the description below. And if you’re interested in working with us and implementing Profit First in your real estate business, we offer coaching and guidance. So if you wanna work with someone who’s actually Profit First Certified and who works right now currently with real estate businesses, you can actually go start your application process by going to simpleCFO.com/apply or just go right to simpleCFO.com. And there’s an applied button right on there. If you wanna actually start your Profit First journey with someone who can actually walk you through those step by step and help, you know, and grow your cash flow. Thanks again for joining us for another episode of the Profit First REI Podcast. See you next episode.

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