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Oct. 10, 2022

Ep 236: David Richter: First Real Estate Deal Story

Ep 236: David Richter: First Real Estate Deal Story


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0:00 Easy. Okay, we are. Yes. What's up everybody? It is your girl Brittany Thompson. Straight from Birmingham, Alabama. I have the honor and pleasure of bringing you all another phenomenal episode edition of the my first deal story. Podcast. Today we've got an incredible guest, y'all when I say incredible, I mean an absolute Rockstar. I cannot wait to introduce him formally, though. For those of y'all that don't know, look, this pot. The purpose of this podcast y'all is to impact inspire and influence aspiring investors look in their journey of real estate investing, it's meant to remove the limiting beliefs of why you can't or shouldn't invest in real estate. It was stories from all over the world from all kinds of investors of how they found gotta close their first deal. This podcast creates a community of showing no matter who you are, no matter where you're from, no matter what you've done, you can find get it close your first real estate deal. So without further ado, I want to introduce the what David Richter the simple CFO, founder, also author of Profit First, for real estate investing. I'm fired up just met this young man, he talks so beautifully about his family. I'm super excited for you all to hear his personal story, what he's doing, how he's helping other people. So we're just gonna jump right into it. Joe, welcome to the C Damon winter, baby. Oh, 1:33 man, thank you. This energy is amazing. Brittany, this is incredible. You've got to got a great thing going here. I'm glad people have you to listen to to have you on their journey as well. 1:45 Welcome, thank you for your time. And I'm super excited to dive and I know it was a little wordy. But I really want you to take over and tell tell the people who is David Richter, where did you come from? How did you find real estate and let's really get into this first deal story. And this, let's hear it talk about her. 2:03 So in college, she'll never guess I was given a book. And a book changed my mindset in my life. And that book was Rich Dad, Poor Dad. So 2:13 I started with that book. And it was helped my mindset go from, you know, what I thought I wanted to do and what was expected of me to oh, there's a whole nother world out there. So that's what got me started on my journey. Thankful for that friend, then I wanted to buy real estate, I didn't want to just read about it. Because I'm an avid reader. Like, if you look at me, I've got the bookshelf behind me the all the books and stuff, like I love to read, if you you know, I got the glasses and stuff. I mean, it just all fits, you know, like into the reading persona here. So I love reading I love I love diving in, but I like taking action too. So I read Rich Dad Poor Dad and said, How do I get a house like I want to, I want to get a house as soon as possible. So I was I think 19 In college, and that's when and are 19 or 20, I went to a broker that was a part of our church. That's how I knew like, that's where that my connections were coming from was from the people that I knew. And she had, she was one of the top Realtors in the area. And I said I'd like to buy an investment property and, you know, put some work into it. And then, you know, either sell it or live in it or rented or something. So I talked with her. And what we ended up doing was I started looking at deals on the MLS at that time, because this was my first deal was done in 2012. So 2012 was still the height of like, everything was super dirt cheap everywhere still. So you could find deals on the MLS foreclosures on the HUD home store, like instead of going out and just having to talk to sellers all the time, you could literally cherry pick the deals right off of basically in any market in anywhere and say, you know, like I wanted this deal. So we did, we found one basically in my backyard about 10 minutes away from where I was living. And it was a fixer upper from the MLS. So we I hired contractors that were they also were connected to my church too. And they were had a good name and could rely on them. And they came in like with that one on budget, you know and on time so that I had a good experience with the whole process upfront of making the house a home. And I actually my first deal, I did several things with it. Number one, I rented it out first for I think it was at least a summer or three to six months at first because I didn't need to move into it yet. And I had some people that wanted to move in and needed a house in the area. So I connected them with my house and they rent it for that three to six months and I got to cash flow. So that was the first time I'm like woohoo, I see cash flow like this is awesome. So then from there, I was still young, still really young. I wasn't married yet was dating. And so I told my wife like hey, would we want to you know, like fix it up again. You know, like, you know, like after the renter's move Would we want to spruce it up a little and then live there? And she said, Yeah, let's do that. So we lived in it for two years while I was still doing some other real estate. But we went into that house for two years, because the tax code says, if you live in a house for two out of five years, when you sell it, you don't have to pay capital gains. So we were all building that life. So we moved in there, lived there for two years. And then my wife was actually the one who said, Hey, I found another property, why don't we rent this one out, and then we'll move into the other one, and, you know, build, start building our portfolio. So that's what we did with that first deal. So we had rented it up front, I lived in it for two years. And then we put a lease option tenant in that first house, because I'll have to tell you more of my backstory of why I even knew what a lease option was at that time. But I put a lease option tenant, which is basically someone who's renting, but that has the first option to purchase the property, they have a different contract besides the lease, it's also called an option contract, and they get the first right to buy the property when I want to sell or if they want to say, hey, I can now get a loan. It's a good bridge into homeownership, too, for people that you know how, you know, maybe hospital bills and put them into the 400 credit score, you know, range or whatever. So, but they're good people. So I put, so I was able to get a lease option tenant there. And this guy, man turned out to be like super tenant, he came early, he was communicative when he needed to be didn't bother me, you know, like, and we rented that place out for six months to super tenant, then he comes to me and says, You know what, I've been working behind the scenes, I'd like to, I'd like to cash you out and purchase the property. I'm working with a mortgage loan person right now. And I'd like to actually cash you out. And he cashed me out, like six months into that lease option thing where I was making good money on the on the cashflow side of things. So I'm like, Okay, I guess. And then I cashed out and got that lump sum, which was at that time, because it was still in that five year window, completely tax free. So I got a lump sum of capital gains, and didn't have to pay any taxes on it because of the tax code. So that was my first deal that I ever did and did several things with it has every deal turned out crystal clean like that. And amazing. No, but my first deal was a homerun, at least for me personally. So that's how, 7:27 you know, what you give people is stories like these that give people hope, 7:34 will experience you know, and I read books, I will say that what the key was, here's the key was from renting it to living in it. That didn't take much skill, because I still hadn't, I didn't have mentors at that time, I just had books and knowledge so that art can get you to a certain point, I would have never lease option the property after the two years, though, if I wouldn't have sought out mentors, and people to help me on my real estate journey. Because if you remember me that first deal, I lived there for two years. So during that two years, I sought out a real estate investing company that was at that time doing about five wholesale deals a month. So they were already pretty established and doing about 5060 deals a year. And I said, I want to learn from you, I want to learn real estate, I want to learn business. And so for like eight months, I worked with them for free, like on nights weekends, you know, like I would like do whatever they needed me to do, because I just wanted to learn. So then after that time period of eight months, they offered me a job at that real estate investing company. And we took that company, I stayed there for five years at that company. And we took it from five deals to about 25 or 30 deals a month, like and I got to be a part of that leadership team, I got to see a whole bunch of different types of deals. So that's where during that time, like those first few years, after I moved out of my first house, I was able to lease option because I had learned right from other people, what all the different exit strategies there were in real estate and what was the best, you know, scenario for my situation, like what would be the best exit strategy. For my situation, I would have never had that part of it. The really happy ending, if I wouldn't have had a mentor or guidance from other people like that, I probably would have just tried to sell it after the two years, you know, or you know, just rented it out again, just a straight rental like I had done before. But getting mentorship gave me two things. It gave me ability to see someone else make mistakes and learn from their mistakes. And it also got me to see that there's other exit strategies that might be more beneficial. Because with a lease option, a lease option where you have a lease with a with a tenant, you've also got that option contract. Fact, where they could buy it in the future, that usually creates a better type of tenant for you, this person wants to own it in the future. So they're not thinking of this as a short term stop, and I'm going to mess up the house, they're thinking, I need to be on my best behavior. So I could go to a loan person, get a loan for this property, cash that person out. And I want to own this. So like this guy that went in there, this tenant was a teacher in the Chicago school systems, and had a great job had great income. But I believe, I believe don't quote me on this, but I believe his wife had had some some medical issues. So I think that's what put him into that situation. But he was a great guy, like, like I said, the proof was in the pudding, they're great tenant, great everything, but he couldn't get a regular loan for the first six months. So I had to do this type of bridge into this homeownership with a lease option. All that to circle back to say, I wouldn't have even known about lease option, if I wouldn't have had a mentor. That's why I love that people are listening to your podcast, because it's Brittany, you've seen it, you've seen the different types of exit strategies, like you're wanting to guide people to their best solution with their first deal. So like, for me, I would have not have had a homerun, if I didn't have a Britney in my life, who was there podcast, or mentorship or challenges or coaching or whatever it is, that helps you get from that point A to point B, it would have been a totally different story, I believe, if I would have had that. So there you go. There's my first story and kind of my introduction to real estate and how I got to do about 800 deals while I was with that company, a whole lot of different exit strategies during that time as well, too. So I've seen everything you should and shouldn't do, and real estate investing. 11:47 One more time for the people in the back did you just say over 800 deals. 11:54 So we were running about our highest year that we did was 300 deals in a year, which we wanted to do like one deal a day, basically. So we wanted to hit 300. So that was our highest one. And that was yeah, it was an it was an awesome experience in that company to I was kind of like the utility man, I got to sit in the acquisition seat and run that dispositions and sell properties project management and run rehabs property management and run the property, the actual rental portfolio, we had about 100 rentals in that company. And then I got to do like transaction coordination in the finance seat as well, too. So I got to see not only real estate investing, but business, like how to put the different pieces together, and how those coincide with each other, how they interact, how they mix, how they mingle, and how to create an actual business and not just the daily real estate grind, you know, that a lot of people talk about just when they first get started, I got to see something that formed into an actual company, that was awesome experience was getting to sit in those different seats and see actual Small Business unfold in front of me while we were while we were growing that company. 13:09 That's amazing. Thank you for thank you for giving us a background on that. It sounds like you know, you, you read your way into your first deal. And when I actually I was hoping you're taking notes, because I got a couple of questions to touch back. But you know, I love the fact that not only did you self educate, you know, there's so many people out here, you know, they watch these TV shows, or they go to these real estate meetings or, or conferences, and they get hyped up about people sharing their story, which is amazing. We're all supposed to get motivation and inspiration. But it's short term until you actually take action. And I love the fact that not only did you take the information, but you applied it to take action. And then once you got to a certain point, you realize, okay, what I've done what I know has gotten me here, I need to adapt, I need to get out there's something I don't know, that's going to take me to the next level. So the fact that you were able to go into another operating business and exponentially grow with just your presence and learn. I mean, that's just the kudos to you, brother. What else to you? I wish more people because, look, we all know that investing real estate is simple, but it's not easy. And just it you can easily get into something, but how easy is it to get out of something, especially if you do something wrong. And you mentioned lease options. Like there's there's so many ways to jack that up. So you got to make sure you have people that know what they're talking about talking to you and giving you that wisdom. So thanks and we're gonna get on that in just another second to be while you're watching this. So taking action, right broker relationships, right? You came in at 2012 when things really were good, like we think things are great now but things were really good thing. And so you were you were able to get out there and network and you know, one of the things that just took smell spirit when you said your own back yard? I mean, it's like, Oh, I love it. That's one of the things that I tell people about it and our own separate challenges. Master your market. You live in California, maybe investing in New York is great. But can you start in California? First? Can you learn which and which you don't know? Touching on that, two things. When you got you talked about hiring contractors, you said they were from your church? How, what did you use to gauge? Was it just the reputation or references? Like, how did you really dial down to choose them? 15:44 That was what it was at the beginning was Who did I know, in the church that had used them before that, like their work could provide a reference of, you know, like, they liked what they did. So went to several people, you know, in the church that I got connected to, and was asking them, and that's how I chose that first contractor there. And, you know, from there, it's, the rest is history. 16:05 Oh, my gosh, you know, so you didn't just go with Bob off the street. So you did a bit of market research, right? Because that's important for anyone getting their first deal, yo, you've got to do research, don't always go with the first, it makes sure you, there are so many people that are unfortunately being taken advantage of, especially these days, especially with this market, when it comes to labor and supplies, etc, etc. And you've got to make sure that you get some proof, some references. So thank you for touching on that. And then one more thing I want to ask you about is tenants. How super tenant like, what 16:49 if you remember that, you know, the way that I knew about lease options was we had that company that was doing lease options, and they were the ones that I got to learn different exit strategies, right, from, you know, like, right from working with there, they had a guy that would take the calls and screen people and we had a process. So I asked, Could I put my house with you, I'll pay you, you know, the first month's rent, or, you know, like, whatever his fee was, at that time, to find the person, put them in there. And, you know, get everything set up for me. And that's what he did. He found it because he was already used to finding people and talking to them about lease options. So I didn't really even have to talk with the tenant until they, you know, like he said, I've got a really good candidate for you, you know, why don't you look at this file over, you know, and whatnot, too. So that was how I kind of hack that as well, too, because so many people think they have to do everything, they have to do all the stuff. You are not the expert in everything. No one is the expert in everything. That's why I looked for someone who was the expert in putting a lease option tenant in place and said, Help, you know, please help me, I will pay you whatever it is that you want for your you know, for your fee up front, just to get a person in there, that's not going to be a headache to me. And he picked a winner, he picked the winner, because not only did he pay that tenant pay me early, he cashed me out, which, if you know these options is usually usually they're not as motivated to get, you know, cashing out or whatnot, because they're buying stuff on credit. And it's like they're not trying to actively build even if you even if you lead them to the water, they're still in that, you know, they still sometimes have a hurdle of actually getting to that option stage. So this was yeah, it was a lot of reliance on other good people who are experts at what they do. 18:41 Wow, look at that, right there. I heard you say, do not try to be a jack of all trades is what you're saying it. 18:54 I could I could park there for a long, long time. Because as a real estate investor, if you're going to buy your first house, if you're watching this to buy your first deal. Once you take action, you're a real estate investor, you get you get that property under contract, you purchase it, whatever you do with that deal. Now you're a real estate investor, you've actually invested in real estate. There's a big difference, though, between being a real estate investor and a business owner. Owner knows they're not the master of all things. They need a team around them. If you want to build a company. A real estate investor says I'm going to buy a deal or two here. I'm going to be able to manage it. I'm going to be able to do what I can do. And they don't rely on other people which is fine. You might want to just stay real estate investor and do a couple of deals here and there have a small portfolio of properties that you can manage. There's nothing, nothing wrong with that. You do not have to have this multimillion dollar company and you know 100 rental units and you don't have to have, you know, doing 300 deals a year. That is a totally different set of skills that you have to Learn, you have to learn to be a CEO, and a business owner. But you cannot think that you're going to grow it and scale it, if you want to thinking I'm going to be the jack of all trades. And because if you are, you're the master of none. And what you need to master is if you go from that first deal, and you get the bug, because that that first deal gives you the bug, it just does, it bites you, it bites you, it gives you the bug and you're like, oh, man, game over, I just wholesale my first deal for $10,000. And this is like, you know, this is like more than I make in a month, you know, or in a quarter or whatever. And it's like, you get that first check. And you're like, I want to do this again. And again. And again. That's where you are going to have to do some deep soul searching of what do you want? Do you want to be a business and a company? Or are you just going to stay small time investor, which is nothing wrong with that I don't say that in any way, shape, or form, it's just do you want to do a couple of deals here are there that you manage that you do that you can wholesale a deal a month or a deal a quarter or Intuit a year or whatever, to provide some extra income, like, there's a difference in that level than being the business owner because you cannot be the jack of all trades. When you're the business owner, you have to have good people on your team that help you with those different things, you have to have that lease option expert, if you want to lease option the property. So there you go, there's my two cents on there. And I can still keep going and going and going on not being a jack of all trades. But I digress. 21:27 No, you, you you are exactly where this thank you for elaborating on that. And I think that many people don't understand that there is a difference between being a real estate investor and a business owner, and neither are bad. You know, it just depends on what the person's vision and what their goal, what is it what is it that they're wanting to accomplish down the road. So I love that you were able to create that degree of separation and bring clarity, because you're right, when you get that first deal, oh, boy, your posture is different, right? You just like this, and then you know, you have to make sure the soul searching, you gotta have some financial, you just you just gotta know. You gotta you gotta blow it, like your first deal, and then end up back where they started. So thank you for touching that. And I believe this is a natural progression into what you're doing now and how you're helping people. So enlighten us what what's going on? I mean, Prophet first. We all know that bless my spirit and my business. And the reason I'm here today is one is. So I love that you have for real estate investing, because that's icing on the cake. Talk to us. 22:38 So you remember how I told you we were doing 30 deals a month? Well, I sat in the finance seat for the last a year, I wanted that seat, I wanted to learn the accounting, I wanted to learn Small Business Finance, I wanted to learn what you know where the money flowed from acquisitions and acquiring it all the way to selling it or renting it or whatnot. And it turns out when I sat in that seat, yeah, we were doing 30 deals a month, but we were basically living month to month deal to deal because we had so many people on our team 25 people in office had a lot of overhead had a lot, it would took a lot just to break even I think it was like 80 or 90,000, maybe even 100,000. You know, like where we got to where it was just our breakeven, like we had to do that a month just to break even every single month. And so there were some months we were spending that or above, you know, like what are, you know, like what we were doing? And that's where I saw that? I bet you this is probably not just the business that I'm in right now, I bet you there's a lot of people that don't know how to analyze this don't know what to do with this information. So that's what got my wheels turning at the beginning of like, why even like the financial side, or why I wanted to even pursue that part of it. Long story short, there are a lot of people from that business, we all went our separate ways. One of them big reasons was that there wasn't enough, you know, like we weren't, even though we were doing 30 deals a month, it wasn't enough, you know, like to to support everything. I had a little portfolio at that time that I had built up. So I sold everything I had, and moved across the country with my family, I finally had some freedom there, started working with another investor because I had the bug. So I wanted to work with someone else and partner with them in a different area where I was living. And first thing I did with that investor was say show me your numbers, show me your books, like show me what you're doing right now because numbers don't lie. They don't. And, you know, I know that this tells a story, your numbers for your business, tell your story. I want to see if it's a horror story or if it's a love story, you know, like what is what's going on here. So I dive into it. And it's a mess just like a lot of investors like there's not things categorized in the right place. I can't get a clearer picture. That story book is all jumbled up it's like page 32 is actually on page why it's like it's a what is going on here. So then I helped him clear that up, get very clear on where he stood finding Initially, that he also had a small portfolio of properties at that time, too, he was underleveraged on his properties, meaning he only owed about 30% of what the properties were worth. Because he had dumped a lot of his own money in and was constantly asked him before I got there, Where's all my cash, and I'm like, we know the numbers. Here it is tied up in your property. So you know, like, so he refinanced a lot of his properties there that he had that portfolio and put hundreds of 1000s of dollars in his pocket. And he came to me and said, I've never had clear numbers. And nowhere I've stood. And I've never been able to make decisions like I can now in my business. Now with this cash in my pocket, you this what this process has changed my life, and my children's lives. And this is just, I've never had clarity like this and a competence to make decisions. So that to me was like, boom, light bulb moment, I need to help other investors, because this is not the fun part of real estate investing is sitting down and doing the numbers, you know, like, you could just see that accountant in a corner like Bob Cratchit, you know, in Christmas, Carol, you know, you could just see someone doing the books, and I'm on a run away screaming as an owner. So I'm like someone from the real estate investing world that doesn't have a CPA background. But as a real estate investing background needs to bring a message to the real estate investing community to help them be true business owners, to help them get true financial freedom and clarity and confidence in their business. So that's what started simple CFO. So I started helping businesses and one of my mentors called me and said, Have you ever read profit first? So this was a couple years ago? And I said, No, I've never read that. So I read that book that evening, downloaded it on Audible, took 10 pages of notes and said this is a great system for the cashflow, to make sure investors understand cash flow. So that was my introduction to it, we started implementing Profit First, and the cash flow systems inside of real estate investing companies. And that's where I start started seeing it work. And that's when I went to Mike McCalla wits, the original author of Profit First the general Profit First, and, and said to him, there needs to be one for real estate investing, no book for real estate investing and Profit First, because we're so nuanced. We're buying assets over here, we're not just, you know, we're not just selling a widget all the time, or we're not just doing this without our service based business. We're a different breed of monster, you know, different breed of REO of business owner. So we need a, a book for this and a message to bring. So then I partnered with him to, I bought that intellectual property from him to write Profit First for real estate investing. And that's how the book came to be. Because the core message of the book is that I don't want you to miss out your next deal. I don't care if it's your first deal, or your 10,000 deal that you've ever done in your life, I don't want you to miss out on profit you're already making. 27:55 Go into your pocket, profit that you are already had, that you already have on these deals, by not knowing what to do with it. So you don't do any more deals or buy any more rentals to make more profit, you need to take your profit first. I'm tired of people living deal to deal like this, you get the bug. And then you're like, Ooh, I'm going to do more, I'm going to do more, I'm going to do more. And then you're like running around like this. And then you are the jack of all trades. And guess what? You wake up one day and say, shoot, I'm doing five deals a month. But where's all my money? Why does my bank account say $1,000 in it, and you say, oh my goodness, I've made more money than I've ever made in my life. And I've probably spent more money than I've ever spent in my life. Because I don't know what to do with it. This book, this concept, this philosophy is to get out there to say stop living deal to deal and stop that cycle before it even starts, like with your first deal. Like set up this system to be able to not live deal to deal at all anymore and get all the profit you can from those deals. And make sure you know what to do with the cash. Because that let's just be honest, we don't get into real estate investing just for fun. I mean, a lot of us financial freedom, the financial world, and that means different things to different people. But you know how wealthy people are wealthy by having a system for their money to say, I know how to make it, but I also know how to keep it. I also know what to do with it once it comes in. And I'm building healthy, wealthy habits in my business in order to be profitable on my first deal, or if I'm doing my 10,000 deal, like I said so that's the crux of what profit first is I don't want people living deal to deal and I don't want them thinking that this is this also to Britain you've implemented it's not this is not an accounting or bookkeeping. Like this is not something where you're like I have to go to school to learn this. It is literally a very simple system, leveraging leveraging items you already use banking counts, like this practical side of this system already leverages things that you're using in your daily in your daily business or your daily real estate investing or daily life right now. So it's not like you have to go out there and become this finance ways to implement this. Yeah, this is written from an entrepreneur, to entrepreneurs to say, Stop living, do the deal. And please, please put something in place to catch the money for you. So that's kind of how I got started with the Profit First, and what opened my eyes that it was a big need in the business space, and specifically real estate investing. 30:33 This is so good. I feel like I've been screaming this from the rooftops, but didn't really understand how to convey it. And you just, you put it so beautifully together. You know, all we see on social media nowadays is people hyping up and ads and cars and houses and trips and all of these extravagant things, which are great, you know, there's no knock against that. But you're right, a lot of investors are living deal to deal even though they might be doing 510 2030 a month, they have a high overhead, and they're not. I was not paying myself first in the beginning. I was I was raised on the thought process of you make your money, then you reinvest it, right, no. And when I first read that book, I said, Man, this is crazy. And I started implementing, you know, the methods. I said, Wow, this works. Wow, I'm actually still in business. Oh, you mean, it's helped me I did entrepreneurship so that I can travel and be with my family. And I can actually do that. Like, like you mentioned, when you helped another client, you didn't have to go and secure another portfolio to help him you just helped him look to see what's in his in his hand reevaluated restructured and see and see the blessing there. And I've been looking for you. 31:54 Man, that's, it's funny that you put it that way. Because we have a business that helps people with this. And so many people have told us we've been looking for you. Like, we're like with those same words, because a lot of people have an accountant and a book and or a bookkeeper or CPA, but they don't have anyone to talk to them on our just a regular human level. Not this numbers, Spock, you know, different language, you know, that is out there with the accounting world is to talk to us as business owners and to be able to translate that. So I totally get where you're coming from to. Because there's so many people out there that they're like, I want to do more. I want to provide more for my family. Like I want to do these things. But then they have the thoughts that you just said they say like, but don't I have to reinvest everything like don't I have to struggle till I make it? No, no, you don't. You don't have to struggle. You don't have to feel like that you can you can be profitable right now. Because guess what you're modeling yourself after like a Snapchat or Facebook who gets venture capital and billions of dollars and gets their salaries covered until they sell? That's where no, you're not that you are the small business owner who is creating a business from from scratch, you know, and like doing it with your bootstraps, and doing it from the profitability of the deals. So will there be reinvesting Yes, but there also has to make sure that you're taking care of because there's no one coming to savior, you know, there is no venture capitalist out there that's going to swoop in, and come in there and say I'm gonna invest a million dollars in your company right away. That's why you have to take care of yourself, you got to put your oxygen mask on. First, you've got to make sure that you're the one there that is not going out of business before everyone else does in the company. You know, like, if you Yeah, I could go on and on and on. If you're having problems at home with money. One of the biggest problems that that couples struggle with is money or business partners, talking about the money, even if you're not married, and you've got business partners, or you're alone in the business, you're still going to constantly think about money. So that's why we've got to make sure that we have the mindset that is going to get you where you really want to be and start practicing that from the next deal. Whether that's deal one, or deal 1000 That's where we got to start practicing these types of things in order to get to where we want to be. So there you go. There I'm off my soapbox again. 34:22 I like it, you know, and and I have to highlight this because this is something that impacted my family in this journey of real estate investing and you set it when you manage when you learn when you master proper management in your business, then you will see support people, your spouse will begin to trust you once you're shown that you understand what you're doing. There are a lot of people maybe they've done businesses before maybe they've gotten involved in a partnership before and they say well, my spouse or my significant other, you know, they don't believe what I'm doing now. They're not really supporting me. Well, there's a reason it's because you're just track record, right and it doesn't make anybody imperfect. That's just a part of your journey, but you got to understand like you, like you mentioned. And look, when I learn how to properly steward what I have, then I will have the support my husband, or my wife, or my kids or my parents, or whomever you garner the respect of you will have their support wants to show that you understand how to manage what's in your hands. So you for touch. 35:31 here's the here's a quote that you could take from me, cash is not King, cash flow is not keen cash flow management is keen to cash in the world, and that it might be bad to sit on it, or you don't have all the cash in the world because we didn't manage it properly. You get all the all the cash flow and income coming in, you could create $200,000 You know, like a year income just for you. But if you don't know what to do with that money, is that gonna matter next year, if you're not learning to keep it. So cash is not King cash flow is not King cash flow management is king. 36:07 I love it. Man, you you touched on it. Thank you for giving us your story sharing your first deal. I love how it just your story just seemed like it worked. But what I really appreciate is the fact that you properly educated yourself, you didn't just go out and just wing it. And a lot of people wing it and say it doesn't work or wing it and find discomfort. So you got yourself to a position and then wrote Rocha hand and said, Hey, I need I need assistance here. And I need some help here. And then you just slowly but surely integrated yourself into more wisdom. I mean, there's just so there's just so much the wisdom and having the counsel of many that are in your corner. So I love that you touched on what one more thing that I really want to be able to bless this audience of well, first things first, tell people how they can reach you, I know you've got this, this phenomenal book, tell them about this book again, and how they can find you reach you. And then I'm gonna ask you a question and then we'll wrap it up. 37:05 So the book is available on Amazon and the at the time of this airing, it is officially available for audio book two because I know real estate investors love Audible and love listening to books. So it's officially available on Audible as well too. So you can listen to it, I recorded it myself speaking. So very excited to get that out there. Also to if you want the one stop shop for for me and like reaching out to me simple C F o Simple CFO has a link to our book going to our podcast, which Brittany is coming on and as a guest there as well, too. So you'll be able to hear her episode there. And then we also have, you know, some education there. And we have a service, a fractional CFO service where we provide some fix results for people who just need some implementation, then, for some larger companies, we work on an ongoing basis with them to put an actual CFO on their team that helps them understand their numbers and not just not just talk about the numbers, but they actually understand what to do with them, and how it fits into their business and cash flow projections and help with profit first and helping the implementation. So that's our services as well. So simple, CFO That's how you can get a hold of us. And if you'd like to work with us, you can click the Get Started button to fill out some info before working with us. 38:28 Thank you, thank you for sharing that y'all go get profit, first real estate investing, and also go get profit first. There are a lot of people out there making a lot of money and not managing it and wondering why it seems like it's just going through their fingers. And I'm telling you, there are some methods there. Look, there's something you don't know that if you knew what make the biggest difference in your business. So I hope that you hear the conviction in my voice. And when I say that, and David, before I let you go, for the people that are still unsure, maybe maybe they have not really dived into real estate, maybe they have and maybe haven't gotten their first deal. I want you to answer this question for me. What is one major limiting belief that you had to overcome to be successful in this business and to take your first step forward? 39:17 Probably the just the belief in myself to go out there and say I can do this. So that's probably one of those limiting beliefs. And can I provide value to someone else, you know, so that was probably one of the ones at the very beginning. Even though I had the pension for taking action, I still had that fear. I still had the fear of reaching out to the realtor had the fear of closing on the actual property and bringing my own money to closing in my first deal. You know, like there were things that happen that looking back even I could have done even better on that first deal even though it turned out great. But it was the one of the big things was just being able to do it. So not letting the fear stop me and actually taking that action that was one of those big first hurdles because We all, we all get the butterflies in the stomach, we all will get that, like that's a that's a natural human thing. So it's that belief in yourself to say, I can do this, even if there's no history of that, if you don't have people are crowded around you saying who rah, you're the man or you're the woman, you know, it's like, even if you don't have that, you've got to have that for yourself to get started. And to really say, I can do this, you know what, because I've seen a lot of people out there, that if you're listening to this, you're probably smarter than some of the real estate investors out there currently. So it's like, yeah, then I'm not saying that as a slam, that's to encouragement to you that there's a lot of people doing it, that if they can do it, you can do it. I started out very young, as just green as green can be. And I did it at 19 or 20. Like you could do it wherever you are, I don't care if you're, if you're 70. Or if you're seven, you know, listen to this podcast, you could get around the right people and take that action. So some of those limiting beliefs, they're just been that belief in yourself and just get out you will be able to conquer those butterflies by taking that action. 41:00 Mm hmm. So beautifully spoken. Thank you for sharing that. Thank you again for taking the time out and just really sharing your story and adding so much value on the my first deal story podcast. I am so grateful and honored to you. Look for those of y'all that have been listening in and and you just now you feel like you're ready to move. I want you to go to get my first and join us for our next challenge on April 11. It's a five day free challenge that's going to give you the blueprint so that you can take confidence steps like David did take confident steps to get your first deal buying get close and 90 days or less, y'all thank you for joining us, David, of Profit First for real estate investing, go get that book, go to simple CF o Hi, Colorado talk to him. If you're already producing at a high level and you feel like something's missing and you just feel like you need to master these numbers highlight his team. He's an incredible individual in a beautiful spirit and will do everything he can to serve you and bless you, y'all. This is your girl Brittany Thompson signing off of the my first story. Bye guys. I'm super excited. Thank you all for tuning in and be blessed and take action