Profit FIRST in Real Estate with Rocky Lalvani

What you’ll learn in just 17 minutes from today’s episode:

Learn what a Profit First System is and how it protects you against yourself
Find out how to build systems in your real estate that truly build wealth
Learn how to tell your dollar where to go so that you can manage your cash flows and always be profitable

Resources/Links:

Richer Soul Podcast: http://richersoul.com/
Profit Answer Man Podcast: https://profitanswerman.libsyn.com/
Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz

Summary:

Rocky Lalvani used the Profit First model in his real estate business. He owns rental units and flips houses in Harrisburg, PA. Rocky’s main goal is to help other real estate investors ensure they are always profitable. In this episode, Rocky shares how he uses the Profit First System, and the equation of Sales – Profit = Expenses, where profit is truly accounted for, and bills are paid every time.

Topics Covered:

01:12 – Why profit first
02:55 – The thing with portfolio envy
03:34 – Being the spreadsheet geek that he is
04:38 – What properties did he start with and the deals he’s into now
06:36 – Creating systems that build wealth
08:38 – The need to have a team
12:54 – The need for cash flow management system
13:26 – How do we protect against ourselves

Key Takeaways:

“We can make it work; we can figure out a way we kind of go in the opposite way. We want our deals to be so robust with so much extra room, that when things go wrong, and they usually always do that there is room to handle the mistakes.” – Rocky Lalvani

“If you’re not cash flowing properly, you may not be profitable.” – Rocky Lalvani

“Once I saw the system from Mike and I learned that most business owners weren’t looking at their financial statements, and they couldn’t understand them, I was like, there’s the goldmine for me, this is where I belong. And so that’s where that grouping came together with him.” – Rocky Lalvani

“You’re not going to buy that house and flip it without putting a lot more money into it than you said you had to. And that’s the reality of it.” – Rocky Lalvani

“With the profit first system, you tell your dollars where to go.” – Rocky Lalvani

“We got to get a deal. You are better off waiting and finding the right opportunity than rushing out because I’m sure you’ve heard it a million times. Where’s the money made in real estate? On the purchase.” – Rocky Lalvani

Connect with Rocky Lalvani:

Connect with Dave Dubeau:

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