00;00;05;21 - 00;00;26;01

Unknown

You're listening to the Profit First for Real Estate Investors podcast. This show is all about helping real estate investors and entrepreneurs bring clarity and structure to the financial side of their business. In these sole episodes, we focus on practical financial strategies that real estate investors and business owners can actually implement, whether it's profit, cash flow, forecasting or mindset.

00;00;26;02 - 00;00;48;20

Unknown

The goal is simple to help you run your business with more confidence and less financial stress. Enjoy the episode. If you don't have a real reserve strategy, you don't have a real business. Why would I say something like that? Like I, of course I have a real business. I'm out there, I'm doing deals, I'm making things happen. I'm paying bills and, you know, things are moving.

00;00;48;22 - 00;01;09;28

Unknown

But a real business owner that has a business that will stand the test of time has a strategy of reserves where a lot of especially in the real estate space, a lot of real estate investors don't love reserves. They love to put all the deals out there and all the money out into the deals, and they like to do the deals.

00;01;09;28 - 00;01;46;15

Unknown

They like to go out there and make sure that they're just getting more in the door. But if that's your strategy, it's just, let's get the deals at all costs and let me drain the accounts all the time. Let me drain my bank account. I can live with it. I can live with the risk. I'm telling you right now, that's not what a business owner who wants to stand the test of time says it might be a business owner who wants to scale very quickly and wants to scale quickly, and your hair might be on fire, but it's not a strategy for the long term success.

00;01;46;18 - 00;02;11;25

Unknown

You might say I am constantly fighting fires. I am literally going fire to fire, to fire, and I can never land this plane like. And I never feel like the fires are all are ever getting out. That's what reserves can be. They can be fire prevention for you. I was at a mastermind one time, and the guy stands up there and says, if you're constantly fighting fires in your business, you're the arsonist.

00;02;11;26 - 00;02;35;17

Unknown

That was very convicting to me because I was in that seat just all the time trying to put out fires, trying to make sure that I constantly am in the business all the time, just making sure everything was going right. I didn't have real fire prevention. I didn't have good systems. I didn't have good people in place to as a buffer for me.

00;02;35;20 - 00;02;54;21

Unknown

Well, when it comes to our cash as business owners, a lot of us don't have good systems, we don't have good people, and we don't know what to do. So we are constantly fighting the fires. We are constantly behind that eight ball. We don't know. Okay. Do I have enough money to reinvest? Do I have enough money to pay myself?

00;02;54;21 - 00;03;12;13

Unknown

Do I have enough money for the taxes? If you don't have a system for the money, then reserves are going to be next to nothing and you're going to be living deal to deal instead of paycheck to paycheck. You're literally leaving deal to deal. That means that you're just going out there trying to get that deal, trying to get it close.

00;03;12;13 - 00;03;29;08

Unknown

It closes boom. Once put some money in the bank account, and then you do the same thing over and over and over again. Then you wake up a decade later and you're like, why did I do all these deals and make all this money if I'm just broke at the end of the day and I'm telling you right now, that's going to hurt you, that's going to hurt you over the long term.

00;03;29;09 - 00;03;49;00

Unknown

What you need right now are those reserves, and you need a strategy for reserves. To me, that is profit first. Like profit first. The system is you getting a handle on your cash and your cash flow and knowing where every dollar is going. That's what Profit First is at its core. It's a system to help you keep more of your cash.

00;03;49;00 - 00;04;05;01

Unknown

And if you say, well, I don't want reserves, I just want to do the deals. Reserve. Did you know that help grow your business? And you say, well, the money's not out on the street, so it's not helping me grow by not being out on the street. It's helping you grow as well. Because if you want to go get a loan, what do lenders want to see?

00;04;05;01 - 00;04;22;07

Unknown

They want to see financial stability. They don't want to see you doing deals where it takes all of your cash to zero, and you're constantly skirting by by the skin of your teeth. That is not what savvy investors want to see. That's not what savvy business owners want to see. I want you to be a savvy business owner.

00;04;22;07 - 00;04;42;28

Unknown

So that means having that strategy like profit first, a system in place for your cash, your cash movement, but more importantly, your cash reserves. You having a buffer that helps you become the fire preventer versus the firefighter all the time. I want you to have a very clear system for your cash. So that way you have reserves to grow the business.

00;04;43;00 - 00;05;12;29

Unknown

You deserve it. You are building this business and you took a chance on you. You went out there and started the dang thing. It might as well give you what you want. It needs to provide that financial freedom. Financial freedom comes through reserves. Another big thing about having reserves and the reserve strategy is I would have you grow from your reserves, not from your revenue, making sure that when you want to grow, you have the reserves available to grow and not just, oh, we're making a lot more.

00;05;13;00 - 00;05;33;13

Unknown

Let me just plow everything back in that we're making into the business. That top line, all you're doing is recycling the revenue. You're just recycling the revenue, hoping to scale up, hoping to keep more. But you're not putting a strategy in place for reserves to make sure that the cycle of reserves keeps going and growing. That's what I offer you through profit first.

00;05;33;13 - 00;05;49;22

Unknown

That's why if you have never read that book, I highly encourage you to read it. If you're in the real estate space, there's profit first for real estate investing specifically that I wrote. As the author, I want you to know exactly where your dollars are going. I want you to have a plan for the reserves. I want those reserves to grow.

00;05;49;28 - 00;06;07;18

Unknown

One time I had a guy where I taught about Profit First, and he came up to me the second year because it's somewhere I speak annually. And he said, I just implemented one key teaching from Profit First. And now he said, I have six months of reserves. He said, I've never had reserves in my life before. I've always been in financial chaos.

00;06;07;18 - 00;06;25;19

Unknown

He's like, now I feel financial peace of mind. That's what I want for you. I want reserves to be your financial peace of mind, but I also want to be a tool for your growth, your profitable growth. That's what real reserves are. So real business owners have a real reserve strategy that they implement as part of their system of money.

00;06;25;20 - 00;06;44;16

Unknown

Thanks for spending time with me today. If this episode gave you clarity or a new perspective. Be sure to like, subscribe, and comment below if you're ready to apply what we talked about today with real guidance and accountability, visit Profit Raycom to schedule a free discovery, call with us to create your path to financial clarity and freedom.