If you've ever asked yourself, "Where did all my money go?" this episode is for you. I sat down with David Richter, founder of Simple CFO Solutions and author of Profit First for Real Estate Investing, to talk about the hidden financial pitfalls that sink even high-grossing businesses—and how to avoid them. Whether you're wholesaling, flipping, or building a rental portfolio, David breaks down exactly why revenue doesn't always equal profit, and how simple cash flow systems can transform your business.

We dive into the Profit First method, the real reason so many entrepreneurs feel broke even when business is booming, and why your first hire probably shouldn't be a full-time CFO. David's story is packed with hard lessons from the field and clear solutions that every investor should hear. If you want your business to serve you—not the other way around—this episode could be the game-changer you need.

[0:00] - Introduction

[2:25] - David shares how running a 25-deal-per-month company led him to realize profit ≠ revenue

[6:48] - The turning point that inspired David to launch Simple CFO Solutions

[8:40] - Three-step framework: laying a financial foundation, implementing Profit First, and setting up dashboards

[11:02] - When and why a business really needs a fractional CFO

[13:09] - What kind of revenue triggers the need for a full-time CFO

[16:14] - Clarifying the different roles of bookkeeper, CPA, and CFO

[20:47] - Why QuickBooks should be treated like your "CRM for money"

[24:05] - David's #1 tip for any entrepreneur: start by managing your cash

[26:41] - How systems—especially financial ones—save time, money, and sanity

[30:01] - David's perspective on AI and the future of finance in real estate

1. Revenue isn't everything – Without a system, you could be growing broke.
2. Profit First works – Simple bank account structures help you allocate every dollar.
3. Most entrepreneurs don't need a full-time CFO – A fractional CFO offers the clarity without the overhead.
4. Financial education is missing – Entrepreneurs need to learn how to interpret their numbers.
5. Systems drive scalability – You can't grow what you can't track and optimize.

• Get a free copy of Profit First for Real Estate Investing: simplecfo.com/gift

• Learn more about Simple CFO Solutions: simplecfo.com

If this episode brought you clarity, insight, or even just a few "aha" moments—do me a favor. Follow the show, rate it, leave a review, and share it with another investor who needs to get their finances under control. Until next time!