00;00;09;21 - 00;00;35;15

Unknown

Welcome to the Profit First for Real Estate Investing podcast. Every week we bring you top investors and experts sharing how they create clarity, cash flow and consistent profit. This episode is brought to you by simple CFO. Profit first. Profit always. Let's go. We have Adam Whitney on the profit first report. Adam is an incredible human being, and in this episode, he teaches you how to keep more of what you're making.

00;00;35;15 - 00;00;58;28

Unknown

Yes, through profit first. But then he gave some practical tips on the personal side. But then he also gave his experience from the military how he makes decisions when you have wild swings in months. He was very open, not like a lot of people sometimes want to be on podcast. And so I think you will gain a lot of knowledge, a lot of insight, a lot of practical tools to gain the value of keeping more of what you're making, not just through profit.

00;00;58;28 - 00;01;22;29

Unknown

First, from the the personal side as well to this is an episode you want to turn into and then probably listen to on repeat to get everything that he said, because this can be life changing for your business. Enjoy the episode. Welcome back to the Profit First right podcast, I'm David Richter, I'm here with Adam Whitney, who has become a much better friend over the last few years, especially once I knew he's a profit first fan.

00;01;23;00 - 00;01;49;10

Unknown

So I'm like, obviously that just that just makes the connection even better. So Adam, thanks for being on the show today David. Such a blessing to be here, man. I'm such a huge fan of what you're doing for the industry. Yeah. And before we even go, I've got some great questions and I want to dive into that, but I want to preface this with I went to an event because Adam works with another person in the industry.

00;01;49;10 - 00;02;16;09

Unknown

He could talk about him if he wants to, but because this is Adam Spotlight here, but they did something at their mastermind that I've never seen before that is very resonant with this podcast, where they gave an award called the Freedom Award to the people in their group who had reached, like, financial freedom, what that meant to those people, and like they had to back it up with whether it was a profit and loss or a number of deals or like cash flow or whatnot.

00;02;16;09 - 00;02;38;28

Unknown

And I thought it's right behind them to if so, if you can see this on YouTube, you just pointed behind them. If you're just listening. He's sitting in his office there. I thought that was the coolest award I've ever seen at a mastermind because it highlighted that number of deals, not revenue, not anything crazy like volume. It it really honed in on the people that really went after what freedom meant to them.

00;02;38;28 - 00;02;56;21

Unknown

So, Adam, I just want to say thank you for doing that because that really opened my eyes to something very cool in a mastermind. I don't even know if you have anything to say there, but I want to at least start there with the I'm not, I think. I think we have a big responsibility. If you run a if you run a community or, you know, mastermind.

00;02;56;22 - 00;03;23;01

Unknown

I think we have a big responsibility to both inspire, encourage growth, but also encourage it in the right way. Yeah. And I know that. And you and I had these deep conversations, like a lot of people start the entrepreneur trip journey looking for some kind of freedom time freedom, decision freedom, financial freedom in order to get there. There's a whole bunch of work between that.

00;03;23;01 - 00;03;37;28

Unknown

And you do got to do some deals and you do got to make some money. But we get lost in that and we forget to come back to why we're doing what we're doing. And I think we've got to put that in front of our people, and we've got to keep it in front of ourselves all the time.

00;03;37;28 - 00;03;59;25

Unknown

So yeah, it's like, why are you really, truly here? It's not it's not for the 100th dealer, the thousandth dealer or the 2000. It's like it's for freedom. Some kind of freedom. Yeah, exactly. And that's where it was so cool to see an award presented at one of these places where it's like, this is where you're really focused on why they're there, which was a little bit mind blowing to me.

00;03;59;25 - 00;04;18;13

Unknown

After being a part of so many masterminds and events in the past. So and if you're wondering what mastermind he runs seven figure flipping. So I am a hardcore fan of them. I go to lots of masterminds, so this is one that I heavily endorse if you're in the real estate space. So I'm just going to put that out there as an endorsement out here at the front.

00;04;18;13 - 00;04;41;25

Unknown

But Adam, I want to get more into your story and your mindset around money and just all the things you've gone through when you filled out some of the info that we asked beforehand, you you, number one, have spent over, what, 20 years in the Marine Corps. So I wanted to thank you for your service. But then you said because of that, you were also able to transfer some of that knowledge into the real estate space and especially around money.

00;04;41;25 - 00;05;04;29

Unknown

So when you were in the Marine Corps for those years in the military intelligence, then you went all in on real estate. What did that operator discipline teach you about managing money that maybe most investors never learn? Oh, man. First off, David, I've made tons of mistakes. So we all have, I think. I think you can hear it until it's tactile.

00;05;04;29 - 00;05;32;10

Unknown

It's hard. I have a my executive assistant who sits next to me. Can't see. Not in here. Right now is 23. I routine like literally right before this podcast, we were talking about money habits, personal money habits. Cool. And before I did real estate, I dreamed of freedom. And then the freedom dream led me to go. Like, in order to get freedom, I need money.

00;05;32;13 - 00;05;51;13

Unknown

Yeah, it's not all about money, but I need, I need money. I'm in the military. My my pay is published. You know, I literally looked at myself. Social security statement I made $9,000 my first year in $14,000 my second year in the Marine Corps. Now, of course, I get other benefits and stipends and stuff. They're not taxable, but that's the tactical money.

00;05;51;13 - 00;06;13;06

Unknown

So I got no money. You know, I'm not doing something really hard. I'm not really making money. The good news is, is I'm mostly just doing something hard, and I don't have a lot of time to spend it. So I spend the first four years making little money. And at the end of the four years, they say, if you stay in the military for another four years, I was enlisted first.

00;06;13;12 - 00;06;39;27

Unknown

You get a $41,000 bonus tax free. Because I was in Iraq, I was in combat. I was like, oh, I was just going to get out and go be an idiot somewhere. So now I got to rethink that because $41,000, that's more than I made in the year. And this is like 2007 eight. I took the bonus. I paid for a more expensive wedding than I should have.

00;06;39;28 - 00;07;08;27

Unknown

By the way, I was already married and we decided to have the wedding. So that was like 13 grand. Yeah, I went out and bought a brand new 2008 f150 FX package vehicle that was like at the time it was about 40 something thousand dollars. Same truck. Today is probably 80 and I was not being paid. My pay wasn't commensurate with paying that payment and that insurance and that.

00;07;08;29 - 00;07;28;25

Unknown

So I'm driving across the country, there's two there's like two points in my life where my money habit, my my mindset about money habits changed. The first one was when I was driving across the country in 2008. Post buying this, do you remember what happened to gas prices in 2008? They were nuts. That's when it was like, what, $4 a gallon?

00;07;28;26 - 00;07;55;12

Unknown

A lot of cell phone. Yeah, for 5450, I'm making less than 30 grand a year. And I drove right, right. So like, none of this makes a lot like, if you talk to me, then you'd be like, you're an idiot. You should go get yourself a used Toyota Corolla. Right? So I'm driving across the country. I'm. I'm in my first few years of marriage, and we listened to Dave Ramsey, the total money makeover on a seat.

00;07;55;14 - 00;08;21;02

Unknown

Okay, okay. You know, so it's like really fundamental like the first set of fundamentals. I also listen to Richard Edgar net at that time. But like that that was a seed for later. Dave Ramsey was actually the first seed and it's paid on your debt. Save up a thousand bucks emergency fund and save up some cash. You know, two three months of expenses and then the rest of his investing stuff, I'm like, yeah, it's not very aggressive.

00;08;21;02 - 00;08;40;06

Unknown

I don't like it. But that fundamental started. My wife and I literally did the envelope system. So his envelope system was like instead of use, your card was back in the day when cash was more prevalent, as you know, like all your bills are filed in an envelope and you have to take the cash out and you're like, paying with cash.

00;08;40;07 - 00;09;02;26

Unknown

I pay with cash. Watch the money go away. So it's like that in and of itself was irrelevant. But the habit of that okay, so that was 2008, around 2015. So 2011, I dabbled in real estate. I started buying real in 2017. So that that was always that was like there. But I didn't really I wasn't good yet.

00;09;02;26 - 00;09;34;10

Unknown

I didn't necessarily have it figured out. Well, in 2016, I stumbled upon this community called financial Independence retire early and 2016 to 2018. I was just like obsessively learning, listening to podcasts, you know? Then this book comes out called Profit First. And I read that first book and I'm not getting, like, crushing it in real estate. But the financial independence, the financial independence, retire early community showed me a pathway to I don't need a W-2.

00;09;34;11 - 00;09;56;04

Unknown

There's another way if I do things right, so I move up in my career making maybe 60 or 80 or $90,000, and I get to the point where I'm saving 50% of my income. Wow. And I'm tracking literally every dollar, every cent that comes in and out of my account. And this was very labor intensive, like my wife.

00;09;56;06 - 00;10;18;27

Unknown

Seems like we'll build a little spreadsheet. We're tracking it all. We're reconciling. We're we're digging your personal bookkeepers at this point, right? Right. So then I create a habit of saving. Well, then I go, okay, cool. By helps me buy some rentals. I start listening to all the real estate stuff, and I'm like, how can I cook this up and go faster?

00;10;18;29 - 00;10;41;10

Unknown

And I see who's now my partner and good, really good friend and mentor, Bill Allen. And he's this retired Navy pilot, you know, doing 200 deals a year. And I'm like, oh, well, if he can do it, I can do it. So I go down that track. Yeah. And then I learned the business side of it and what I learned in business.

00;10;41;13 - 00;11;05;20

Unknown

First I built personal financial good habits. Yeah. And then what I learned in business was you also need business personal business, financial habits. Right. Because I did $1 million in a year and gross profits and made like meager money. And it felt good to say I hit $1 million, but it didn't feel good to not fill my bank account up.

00;11;05;21 - 00;11;28;28

Unknown

Right. And then I realized, and I then I, you know, at some point, I read Profit First for real estate investors. And I realized how important it is to pay yourself. And what's crazy is my partner. Now, Bill told me this in the beginning you must take money out of your business. It is a non-negotiable. Or you'll work for free for way too long.

00;11;29;04 - 00;11;51;29

Unknown

Yeah, and I had to learn that on my own. And then, you know, of course, I get into real estate and I'm buying rentals, which was I'm grateful that I did that because I think on our transactional flip wholesale, whatever side, you lose sight of that, too, because that builds net worth. And then, you know, I grow that that business.

00;11;51;29 - 00;12;22;29

Unknown

And, you know, we're all. I don't I've never hit under seven figures on that business and gross profits. I've been more profitable years. I've had 41% net profit margins. And I've had single digit profit margin years. Yeah, yeah. Never been close to breaking them. Never lost money. You know, you have rough spurts and stuff like that. So there's a lot of habitual lessons learned personally.

00;12;23;02 - 00;12;40;14

Unknown

And I had somebody on David and I. Maybe you'll create this and I'm teaching a class online and somebody there's all this like new people who are like, well, I'm broke, I've got a bunch of debt. And I just stopped the class. And I go, if you don't, if you can't take care of $100, you'll never take care of a million.

00;12;40;17 - 00;13;02;11

Unknown

Yeah, you can't pay down your consumer debt and save $1,000 in an emergency fund. You shouldn't be doing real estate. And I know that hurts me, but it's going to hurt you more, right? This is really good stuff. That. Yeah, I love that journey because it sounds like you really hit it from the personal aspect. First, the personal finances.

00;13;02;11 - 00;13;26;01

Unknown

You got some of those habits because even you said Dave Ramsey in the envelope system, which profit first, mirrors a lot of that. So do you think it's what do you think about profit first when you read it and then started implementing it that made you not just use it, but want to either share it with other people in your mastermind because you've had me, you've had you know, you are a big proponent of the book as well too, because some people don't have those personal financial habits.

00;13;26;01 - 00;13;46;13

Unknown

So I'm just wondering curious on your thoughts from that. I think it's I think it's a mirror. But by the way, in business and in some bigger flipping and both in blackjack real estate, I literally pulled up my accounts. I have a profit count of a principal account. I have an interest full account, I have an operating account.

00;13;46;13 - 00;14;04;12

Unknown

I have a tax account. Literally looking at my bank music to my ears right now. So I love this just just because like, I'm not just on the podcast because I think it's cool. You know, you and I are friends. Like it's it's a system that's critical, critical to actually making money because it's easy to bring in money.

00;14;04;12 - 00;14;28;02

Unknown

It's hard to make money. Yeah. So, to me it's the profit first book and especially for real estate investors is is it? It's really more psychological. The system is great. It works perfectly. But if you don't change your mindset around it, if you don't under if you don't understand the concept of it, like you're never going to do it.

00;14;28;02 - 00;14;48;18

Unknown

So understanding, like I'm focused on making money first and that's what comes off the top. And then expenses are baths out of that. So so important. And it's hard. It feels hard to do until you start doing it. It feels hard. It's like, well, how am I going to pay for marketing? How am I going to pay for this?

00;14;48;18 - 00;15;05;21

Unknown

And the truth is, is like, you'll always pay for that stuff first. If you never give yourself a profit, like you literally will do all this work and work for free and do not like, not make any money. And I know you were. You have that story. That's kind of how this whole thing was born during 25 kills a month.

00;15;05;21 - 00;15;28;03

Unknown

And right, it's like we actually didn't make money this month. What, like that's a lot of work. To not make money seems kind of unreasonable. Quick pause from the episode. I have exciting news that's expanding the world of profit first for real estate investors. You may know that years ago I wrote the book Profit First for Real Estate Investing, endorsed by Mike McCourt, that has been read now by thousands of real estate investors.

00;15;28;03 - 00;15;55;22

Unknown

And now we're launching three workbooks, one for wholesalers, one for fixing flippers, and one for rentals. These aren't just deal calculators. They're full implementation guides. They're dialed in for each type of business. Wholesalers you're getting assignment fee math, marketing, budgeting, planning, and how to beat the feast or famine cycle. If you're a flipper, you get ARV accuracy, rehab, budgeting and profit forecasting, and running multiple projects at once without going broke rentals.

00;15;55;22 - 00;16;16;28

Unknown

You get your freedom number, cash flow per door, and a five year portfolio plan, plus the full profit first bank account set up an allocation system tuned to your business with formula specific for your business type everything you need to go from operator to CEO. And right now they're free. You just need to cover shipping. You go to free workbook.

00;16;17;00 - 00;16;42;01

Unknown

That's p r workbook. Just like profit first for real estate investing. Free workbook. Grab whichever matches your business or you can grab all three free workbook. Go get them. Make more profit. All right, back to the episode. Yeah, exactly. So well, I love that you hit that because, you know, like if I had to script out answers for people, that's what I would have scripted out for Adam.

00;16;42;01 - 00;17;03;20

Unknown

But we don't script anything out here. So you get people's raw, real answers, because what you just said there is so key. It's psychological. It's not just a system. It's not just bank accounts. It's like helping them become a better business owner and thinking differently about their money. So I obviously I love that answer. So that's where profit first to you is not just a system.

00;17;03;20 - 00;17;22;06

Unknown

It's helping them become better business owners who know how to deal with their finances and with their cash, and with the money that's flowing through their fingers 100%. Like the first step is. I had a guy, a young guy, and kind of our newer side of our community asking a bunch of questions, and I really appreciated it. And but he was experienced enough.

00;17;22;07 - 00;17;43;19

Unknown

He had done enough flips that his name was Peter. He's in California. He's. I love this guy. I told Peter, don't call me. Don't ask me another question until you brought 250 K revenue in your business. Then we're in the next phase where we can talk. You already got this stuff figured out. Your job now is to execute and bring cash in.

00;17;43;21 - 00;18;10;10

Unknown

Once you bring cash in, then we start talking allocations. Then we start talking of smart money management. You know, like don't just spend money to to bring money in. It's so easy to bring money in. It's hard to create margin. Right, right. Yeah. Which I love that. That's why I love having you on because you get it. You get it from a high level from the business owner now, and you even start with your personal finances.

00;18;10;10 - 00;18;30;19

Unknown

So I appreciate you telling that story as well too. I did want to talk about potentially maybe a harder time. So sounds like you had to restructure seven foot seven figure flipping at one point where what was the telling you? And you had to make some cuts in like some things that sounds like you had to do a turnaround at one point.

00;18;30;24 - 00;18;51;06

Unknown

Yeah, I would say the market changes for this is both for real estate seven figure flipping. Any business I've had is like, there's a there's a point where what you're doing is not producing, you know, it's costing you a lot of money, but it's not like the revenue and the spend starts to get close. You have tighter times.

00;18;51;06 - 00;19;32;06

Unknown

And cash flow management I think, has not talked about enough in business. I would agree. It's not that and it's not static, right. It's not like what's in my bank account today because it's what's coming in, what's in and what's going out. And this thing is it's literally like a flow of a river. So once you build the business, it's stuff coming in, stuff in and stuff going out, and you have to have your eye on a daily basis on all three of those things, and you get caught in operations, you get caught in, you know, leadership and managing people and putting the right people in the right, all these things that are really important

00;19;32;06 - 00;19;53;06

Unknown

to our business. And then you go, crap like the flow of water is slowing down, which is now causing the bank account to go down. And by the way, none of this is like right in the same day. This is over a period of time, it starts a trading and then what's going out almost is never coming down unless you do something right.

00;19;53;07 - 00;20;21;07

Unknown

Build adage if nothing changes, nothing changes. So I've had times in our across any business, real estate included, where I've had to cut personnel and it was because we, you know, we're executing a front end model to acquire deals or clients. And that model starts to the cost to acquire a deal, the cost to acquire customer, the value, the lifetime value of the deal, the lifetime value of the customer.

00;20;21;12 - 00;20;38;22

Unknown

Those things are getting too close to each other. There's not margin in the model. It starts to change. And like if you're not tracking data, if you're not tracking money, if you're not tracking your cash flow. And so I've had those times. I literally have had those times where it's like, crap, dude, we're break even this month. We're break even two months in a row.

00;20;38;24 - 00;21;12;29

Unknown

This is not good. We're down. I've had I've had months in business where we're down, we're down 20 K, we're up 100 K, we're down 60, we're up 30 K, we're like, you know, you look at a L and it's like I mean there's it can sometimes feel like a roller coaster on that thing. Which is why principles and fundamentals are going to serve you much better than reactionary banking and moving money and debt and all these tools you have available to you if you can't apply.

00;21;13;02 - 00;21;36;03

Unknown

I've been so grateful and fortunate to have Bill Allen be a mentor who's got a brilliant money mind. Just a brilliant numbers mind. He's an engineer and I know him personally. I see a lot of the stuff he's doing. What he's really beautiful, beautiful mind at is cash flow management, staying where the money's at and understanding what's coming and understanding what's going out.

00;21;36;03 - 00;22;03;29

Unknown

And because he can do that so well, he can create consistency and predictability when he's watching. And I've just watched him and learned from him and constantly, you know, taking notes on how he does his personal finances, how he does his how he manages the businesses and all those things. So, yeah, I've been I've been on the spectrum, David, you know, I think not enough people will get on here and say, you know, I've had months where I didn't make money.

00;22;03;29 - 00;22;31;10

Unknown

I had a year where I didn't make money. Like, those are all realities of business. And I think any, any meaningful business owner has experienced it. And sometimes that's what it takes for them to read profit first and execute on that book or, or put the principles in place at least. Yeah. And it sounds like what? Bill, I don't know if it either comes naturally to him or he just built that skill or, you know, as the engineer and the numbers mindset.

00;22;31;10 - 00;22;51;04

Unknown

But it sounds like what you've done too, is it's like you had many versions of Bill before you even had Bill. You know, it's like pro, not profit first. But Dave Ramsey and his envelope system like for your personal finance. So it's like you gained some knowledge on the journey and then you had a mentor take it to the next level of like, okay, I have profit first.

00;22;51;06 - 00;23;17;02

Unknown

It's a good first stopgap. Like it's a good indicator system. But like now I need to know some more in depth than like, how do I really manage this and how do I manage the $100,000 swings back and forth from a month to month basis like that? So it sounds like you also had a good mentorship on this journey to from someone who actually understood the financial point of view as well, to not just the ownership, and not just like, let's just get a lot more deals or a lot more sales or a lot more things coming in.

00;23;17;03 - 00;23;35;21

Unknown

Yeah, that was and set more sales to help for sure. But you know what? Bill was a profit first guy. Yeah. Like all my bank accounts I just run off to you literally looking at them on my computer right now. We're all all set up. We're all already set up. Like, these are in front with Bill, and they're all already set up like he was already.

00;23;35;22 - 00;23;55;08

Unknown

His mind just works that way. How do I get money out of the business? That's his first thought. Yeah. When he looks at any business model. Now, this guy, you know Bill, he's like, he's got a farm that does seven figure who's got commercial multifamily. I mean, you name it, he's got it. He's he does trades watches like he's got all kinds of stuff going on.

00;23;55;08 - 00;24;17;01

Unknown

But his his default is the profit first, which I think is the big thing. Well and it sounds like like you said, it's a person of that when he was even first training. You take money out like force yourself to take it out because you'll start not paying yourself and you'll be working for free for years, which is what we see across the board.

00;24;17;02 - 00;24;34;04

Unknown

I mean, that's ten times out of ten almost, you know, like people walking through our door where it's like they're not paying themselves or they're having those types of issues because they're not thinking about that part of the the management of the money. So now I appreciate that and appreciate you sharing that. You've got a lot of experience though.

00;24;34;04 - 00;25;01;21

Unknown

So I want to at least ask you one other question about how, as an owner like that mindset, because you have a unique perspective. I've been around you and Bill enough where you talk about the loop and the commander's intent, and especially how do you apply that to business. And then especially like under pressure decisions like especially it might be financial, it might be a personnel like, how are you applying those to those areas of the business.

00;25;01;27 - 00;25;28;20

Unknown

Yeah. Well first off we're raised that way. Right. So all the thing that think about this with the military, I'll speak to the Marine Corps specifically. Imagine running an organization of hundreds or thousands of people, and every year, one third of your people turns over. So I go, I get orders, I get told I'm going to go work at an organization and fill a specific job role.

00;25;28;22 - 00;25;47;11

Unknown

And I spend about three years there doing that. By the third year, I'm really good at it. And then the next year I leave and go to a new job role and I start all over. And I do that for 20 straight years, where by time I become a lead in an expert at something. I'm in a completely new job role or completely new level of leadership.

00;25;47;14 - 00;26;14;03

Unknown

So that's like part one. Part two is remember why the military exists. It's a warfighting organization designed to fight and win. Okay. So that that means you're going to be put into chaotic and complex situations without all the information you need most of the time, and you have to be able to be decisive. How can you do that while also managing risk?

00;26;14;03 - 00;26;43;04

Unknown

So every day from the time I was 18 years old to the time I was 40 years old, I did that. I was trained on it. I was trained and trained and trained, and then I was put in the situation to do it. And, you know, from from leading myself to leading for people to leaving 13 people to leading 4050 people to leading 205 people and being the sole person responsible for those human lives, not just the human lives, but the equipment.

00;26;43;11 - 00;27;07;18

Unknown

When I left the military, I was responsible for a $1.5 billion portfolio of exquisite equipment. So they're really good at putting you into a situation to grow. And, you know, maybe they have a little more room for error because they don't have a bottom line from a money perspective. They have a bottom line from a human capital perspective.

00;27;07;19 - 00;27;39;18

Unknown

So it's not exactly the same. But there are a lot of things that are translate really, really well. First off is decision making. Moving fast with wall risk adjusted. So it's like Ooda loop. What is that? John Boyd, actually Air Force fighter pilot did all this study and research thermodynamics, you name it. And he said, why is one fighter pilot win in a aircraft fight in the sky?

00;27;39;19 - 00;28;11;02

Unknown

Dogfighting is what they call it over another. What makes them better? Well, the person who can observe their surroundings based on their hearing sticks, who can orient on the problem, can decide on the solution and then act the fastest was the one that one every time. So that's the loop process. Now that process is based on your training, your heuristics, where you grew up, all these all these intangible things that you have and some tangible.

00;28;11;02 - 00;28;35;04

Unknown

So the ability to look at a complex situation, whether it's on the combat field or the bank accounts, the cash flow, the leadership, the like, whatever we're looking at and just information, make sense of it, make a good decision, or at least the most informed good decision you can make with the information you have. I've been put into thousands of situations to do that over and over and over and over and over again.

00;28;35;04 - 00;29;01;18

Unknown

So obviously bringing that over to what we do in business, which is oftentimes chaotic and complex, translated super well. So that's my that's my take on the loop process and why it's so beneficial for business now. Yeah. What was the second one. Well not let's just end there because that's where I've seen you teach this. I've seen Bill teach this.

00;29;01;18 - 00;29;29;27

Unknown

And it's like, this is another thing that I think sets you guys apart from a lot of the other organizations out there as well, to just because of this type of knowledge where you're not going to ship them off to the military if they haven't been a part of the military up to this point. But you're teaching them a lot of the things that make them great business owners that you take from those principles from the military, which I think is great, too, because like you already said, you have some months that are so great and then you have some months that aren't so great.

00;29;29;27 - 00;29;48;21

Unknown

And being able to make those decisions, like in a dogfight, like in your own business in that cockpit, and making sure that you know exactly what's going on and where it's going. So now I love that. To round this out, we've talked about your journey and your financial habits and, you know, the psychology of money and really understanding, you know, why profit first is really good.

00;29;48;21 - 00;30;13;11

Unknown

And then all the way to and making sure that you can be decisive and knowing exactly what to do in those ten situations. What is one financial blindspot? You see the investors, either you coach or just in the marketplace, you know, or people in seven figure flipping. What's a blind spot that usually hits them upside the head? Yeah, I would say probably there's like two there's like two major blind spots.

00;30;13;14 - 00;30;43;16

Unknown

There's two types of kind of investors. There's I go, I'm going to go direct the seller investor. Yeah, I have to invest money into marketing and for, for flippers for so those primarily assignments in wholesalers. And then there's house flippers. So for house flippers specifically especially house flippers going direct the seller is understanding cash conversion cycles. Okay. So I did a study one time on leads David.

00;30;43;16 - 00;31;06;10

Unknown

And from the time you spend a dollar on direct mail, for example, to the time you bring revenue back in your business from a flip is like 200 and something days. Now, you know, in this business we can't we gotta be. We're always told to be consistent in marketing. So I spend five grand, small amount, but five grand this month on mail and I get a deal like, awesome.

00;31;06;12 - 00;31;24;19

Unknown

I got a deal. That's great. 2500 bucks for that deal, I'm going to make 40. I'm not going to make 40 until month seven. What do I do a month two? I got to spend five grand on marketing. Maybe I get another deal. If I'm lucky, then I now I'm on month eight and then month three. So your money's going out.

00;31;24;22 - 00;31;47;04

Unknown

You freak out because you didn't plan to spend. You didn't plan for the cash conversion cycle. So then you create your own instability by shutting off marketing. Four months later, you get money and then you go, oh my gosh, I have no more deals. So money came in. But you have you have no more deals. So you need deals.

00;31;47;04 - 00;32;06;26

Unknown

You need front end deal acquisition. So I just we create a lot of our own instability by not just understanding cash conversion cycles. Probably the number one thing I see with people. Okay, that's a great one because especially in the flipping arena, it's like you just said, lots of outweighs of cash before you see the cash coming back.

00;32;06;27 - 00;32;28;12

Unknown

A lot of people don't understand or don't know how to, you know, make sure that that doesn't affect their business in the long term. So what would you give as advice to an investor like one action they should take from this podcast, if they want to be either better managers of their money or if they want to stop making money but feeling broke, what would you give that advice?

00;32;28;16 - 00;32;50;19

Unknown

Yeah, I would tell them that if nothing changes, nothing changes. Like if you keep doing the same thing, if you're if you have a business and it's it's producing deals and you're, you're lacking profitability. But first off, you're not alone. There's more people out there doing that than you think. Very true. Second off is if you don't change anything, nothing will change if you don't go to profit first.

00;32;50;19 - 00;33;12;23

Unknown

If you don't find a way to pull profit out first to pay yourself no matter what, you will never, ever make money doing this. Yeah, well, I back that up 100%. So that's where I want you to listen to. Adam. This is someone who's been on this journey from a personal standpoint and really learning the habits of money at.

00;33;12;23 - 00;33;32;14

Unknown

Seems like early on in your career, even before you got heavy into the real estate world, but then learning profit first, learning some of these things from the military and and then applying them to business. I highly endorse Adam and what he teaches in his mastermind. So Adam, what's the best place for them to reach out if they're interested in what you've got going on?

00;33;32;18 - 00;33;54;13

Unknown

Yeah, you can check us out at seven. Figure flipping com number seven figure flipping. Com I'm also me personally I'm on social media. You can find me on Instagram or Facebook. But yeah seven figure. Com absolute best place. Awesome. So go there check out what they have. You will become a better business owner from there. You're not just going to learn how to do deals like a lot of other places.

00;33;54;14 - 00;34;13;05

Unknown

Teach. You're going to become a person who knows exactly what to do as the business owner in the good times and the bad times. These are people that are leaders and trained leaders trained. And obviously since they're big profit first fans, they're helping you keep the money as well too, and have that mindset taking that money off the table.

00;34;13;05 - 00;34;31;11

Unknown

So I highly endorse them. That's seven figure flipping. Com that's what the number seven at the beginning not spelled out. It's the number seven. So seven figure flipping. Com. Also if you need help specifically because you're like you know what I'm great at making money but I don't know where it's going. You could also head over to our website simple CFO.

00;34;31;11 - 00;34;49;00

Unknown

Com where we can help you implement profit first. Honestly, a lot of people just are missing a good financial foundation in their business. They really don't know where to start. They don't know what's going on. That's where we can take you by the hand and at least give you a great financial foundation and have someone come alongside you, so we'd love to do that for you.

00;34;49;07 - 00;35;14;01

Unknown

Adam, thank you so much for being on the podcast today. You provided a ton of value here. Thanks for having me, brother. Appreciate you. And remember, if you're listening to this make profit a habit in your business. That's it for today's show. Be sure to subscribe, review and share this episode. If you're serious about financial systems and keeping more of your profit, visit simple to take your free discovery call today.