The Benefit of Profit First for Real Estate Investors with Aryeh Sheinbein

Episode 121: The Benefit of Profit First for Real Estate Investors with Aryeh Sheinbein

The Profit First REI Podcast

October 17, 2022

David Richter

Summary:

Aryeh Sheinbein has done stocks, real estate, business buying, syndications, and more. He started with investment banking after graduating with a finance degree, and from there, built an impressive portfolio and even more impressive well of knowledge and experience.

Aryeh Sheinbein’s expertise gives us profound insight into understanding numbers, cashflow and profit, and why implementing Profit First is a tremendous benefit to your business.

Key Takeaways:
[00:51] Aryeh Sheinbein and His Background

[03:51] How Aryeh Sheinbein Started on Money

[08:07] On Profit First

[13:52] The Benefit of Profit First for Real Estate Investors 

[18:58] The Key Indicators in Finances to Look Out For 

[22:38] The Concept of Product Agnosticism

[26:48] Advice for Real Estate Investors

[22:44] His Advice for the Real Estate Community

Quotes:

[09:42] “The biggest driver isn’t revenue, isn’t profits–it’s cashflow.”

[16:08] “You need to understand where the money is.”

[27:09] “Whether you want to be in the stock market, or whether you want to be in real estate [you have to ask yourself]…Are you creating a new job for yourself? Or are you actually creating some sort of passive income?”

Links:

Aryeh’s Instagram – https://www.instagram.com/aryehthebusinessman/?hl=en

The Investment for Wealth Coaching Program: solutionadvisory.com

Inside the Lion’s Den Podcast https://insidethelionsdenpodcast.com/

Profit First Real Estate Investors FB Group-https://m.facebook.com/groups/ProfitFirstREI/ 

Simple CFO-https://simplecfo.com/ 

Tired of living deal to deal? 

If you are a real estate investor or business owner who is tired of living deal to deal, and want to double your profits, head over here to book your no-obligation discovery call with me. Either myself or someone from my team will hop on a short call with you to get clear on your business goals, remove any obstacles holding you back, and map out a game plan to help you finally start keeping more of the money you work so hard to make. – David 

Transcript:

Aryeh Sheinbein:

A lot of the people really don’t understand their numbers because they look at it so simplistically, they’re like, Okay, I bought something for $10, I sold it for $30. There was another $10 of hard costs, so I net $10 a profit. And you’re like, Okay, but now you actually have to rebuy new inventory and you’ve re the cash went right back in. Where’s your profit? Like, where did that $10 go?

Intro:

If you’re a real estate investor who’s sick and tired of living deal to deal, then welcome home. Hear from everyday real estate investors just like you, and discover how they’ve completely transformed their business by taking a Profit First approach. This is the Profit First for REI podcast, where we believe revenue is vanity, profit is sanity. It’s time to start making Profit a habit in your business. So here’s your host, David Richter.

David Richter:

Hey everyone and welcome back to the Profit First REI podcast. Have another interesting guest today. We have Aryeh Sheinbein on and he has done quite a bit. We were just talking for the last 10 minutes. So I am excited to have him on today about what he’s done in his past. He’s done some real estate, he’s done investing, he’s done stocks, he buys businesses, he’s done syndications. He’s done a lot of different things in the real estate and outside of real estate as well too. And I believe he’s got a real passion for helping people and not just selling them whatever product that he’s doing. He’s calls himself a product agnostic, so we’ll probably talk about that a little bit today too as well. I’m very excited to have him on. He loves Profit First, so that’s a big plus, especially on this podcast since that’s what we are mainly all about here. But Ra thanks for being on today and thanks for coming on our podcast.

Aryeh Sheinbein:

My pleasure. Thanks for having me.

David Richter:

Yeah. Aryeh can you give the audience right now a little bit of your background, cuz we talked about a lot and just the different types of things you’ve been involved in from real estate to stocks to, you know, Wall Street to everything that we talked about.

Aryeh Sheinbein:

Sure. So I went to college, got a finance degree and went straight to Wall Street. So I did the investment banking route. I worked for JP Morgan, and after a couple years I had researched really what I thought I wanted to do, but like anything else, you get there and you’re like, it’s not exactly what I thought it was. But from a skill set and training perspective, it was really not just eye opening, but it was a great skill builder. You know, from there I moved into a, a small investment firm where we made early stage investments, both in, you know, some tech and business services types of companies as well as more established type of businesses over my career to, you know, shorten this and make sure that everybody pays attention so that I don’t bore them with my stuff. You know, I’ve worked at or with some of the largest private equity firms, hedge funds on investments both on the public side and the private side and, you know, through it, out through it all.

 Some of it’s real estate, some of it’s other things, both personally and professionally. I’ve always really drifted and been attracted to non-publicly traded things. I mean, I have a large stock portfolio and I like following stocks, but at the end of the day private companies allow you to have certain levels of control you don’t necessarily have on the public markets, you know, and that’s why, you know, if you read certain books, they’ll talk about Mr. Market being in a good mood, in a bad mood, but it doesn’t mean that the value of Apple Company changed so much overnight. Like one day it’s up 5%, one day it’s down 5% realistically, that’s just the market indication of things. So through it all, like I, I like having like a perspective on the value of things, whether it’s a cash flowing asset like real estate or it’s, you know, a business I’ve been involved in in all kinds of stuff. So hopefully that gives you a little bit of flavor of what I’ve done.

David Richter:

Yeah. So let’s, let’s go backwards from when you got into, you know, what you went to college for. Go a little bit deeper. Where did you first learn about money and what was that thought process like? What, like what took you down that road?

Aryeh Sheinbein:

That’s interesting. So I played a lot of sports when I was a kid, but I also was a big sports card collector. Okay. And by the time, like it started out that when, when I was a kid, the price guide’s Beck was like the, the premier price guide and it wasn’t online. Like it didn’t exist yet. And so this is, you know, I guess I’m dating myself a little bit here. And what I would do was, is because I followed sports, I knew the players who were having good seasons are up and coming and the guides would only come out once a month. And what would happen is is let’s say you had a rookie player that was hot and the cards like may have priced well the first time in, in the publication, but you see that the demand for that player is just gonna be there because they’re having great statistics, they’re having a great season, everybody wants it.

And so basically I would buy or try to accumulate like their cards before the next price guide would come out and maybe even trade for some of it. And typically like you’d go into a store, right? And the store would say, ah, book value is this. And then a lot of times if you wanted to sell to them, they’d be like, Well, we, we, we buy a half book. Like, that was like the standard line that like any dealer would tell you. So I started going to shows and my dad, you know, would kind of drive me around on Sunday to like the different hotels and, and like they had all these car shows, right? And I, I would go to dealers trying to just accumulate things that I thought were going to increase in value and then flip them out if I, once the price guy came out and validated basically my play, and by the time I was like 15, I actually beca I started having tables and selling at some of these shows.

Hmm. and so at the time I didn’t really understand that that became my stock market, but it became my stock market. And so probably around that time my father told me like, Hey, you should probably like look a little bit at some of like, you know, investments or at least put some of your money to work. And, and so I did, like when I was 13, I actually started putting money in like mutual funds mainly index funds, but I didn’t really conceptually understand other than like, it sounded like a good idea because he said like, you know, Hey, this, that the other thing fine. But by the time I got, you know, it was like a senior in high school though, they had like a stock market game for you know, school and like I participated in that and I did well and that really was heading into college.

I was like, I’m going to be a lawyer. I liked, you know, the litigation aspect. I like, you see the movies, you see the tv, this is what it is, right? And of course it’s not right. Like freshman year I had a professor who’s like, Do you like to read? I’m like, Yeah, I’d like to read. They’re like, No, I mean like hours and hours and hours of paper. And I’m like, Yeah, probably not. And they’re like, Well, do you like to just do the same thing and not really deal with a lot of people? And I’m like, Yeah, no, I like people a lot. And he said, I mean he had a, he had a law degree from an Ivy League school and he wasn’t, you know, he wasn’t using that. And he said, You’re gonna hate being a lawyer and I can tell you like, and so honestly the pivot became, Okay, now what?

Right? Like mm-hmm. <Affirmative> unbeknownst to me, I happened to have had a really good mind for business and it just came naturally to me, but I never zoned in on it. And like really honed that fact, people would say things to me cuz I would say, Oh, you should do this or that, or have an idea. But what happened was, I noticed this crazy, I read a Jeffrey Archer fictional book called Can Enable, and basically there was two guys who became like nemesis who came from nothing. And they, one was in the stock market. And I’m like, well, even though I know this was fake, I’m like, well, this dude could do it. Like I could do this. And so that’s it. Like I just started focusing on finance investing, what drive stocks, what, you know, what do the financial statements do. And I happened to have always liked numbers, so it came easily for me. And, you know, that was, that was really like what drove the beginning of the passion.

David Richter:

Wow. That’s awesome. So that’s you see that we have a high caliber person here on this, on this podcast today who’s had quite an experience in the realm of money, finances from college all the way through his professional career too. So we were talking a little bit about like what Profit First and how kind of are introduced to that? Or a specifically the question you like to ask about the three, or I just gave it away <laugh> the answer, but how many financial statements there are and like how that ties in. So can you kind of give that like, the story of how you do that with investors or with other people, but then also like what got you interested in the book and what was, you know, interesting to you about the Profit First methodology?

Aryeh Sheinbein:

Yeah, sure. So I had told David before a story that a lot of times when I would meet with entrepreneurs, I ask the question, how many financial statements are there? And everybody kinda gets the one, right? The p and l would i e the income statement. And you know, some people are like, Oh, you know, there’s that thing some people know it’s called a balance sheet, some people don’t. But, but they know it’s where like the cash resides, right? Like it’s where you see that numbered Now if you have debt, okay, they know it sits there. The idea of equity not so much in a business, like they don’t really get it very, very few, let’s call it one out of every 10 know that there’s a third financial statement. And of that one outta 10, only about 50% of the people actually know it has a name that’s called the cash flow statement.

Now, when I was in college and I was going and I decided I wanted to either be an equity research analyst or I wanted to do investment banking and any of these types of things, you started to prep just like anything else, you started to prep for the interviews. And the big question that you needed to understand was, if you’re going to value a business, if you’re going to value something, what is the biggest driver? And the biggest driver isn’t revenue isn’t profits, it’s cash flow. Hmm. And so to understand that you actually understood how the three financial statements had to work together and understand that the cash flow statement was actually the most critical one because it tells you where the cash is going, where the cash came from, and how much money the business is going to truly generate. Yeah. And, and I think most people, a when they don’t like something, they avoid it.

Right. It’s just natural forget like business just in life, you know, like we procrastinate what we don’t want to do. Like I’m a guilty for it, You know, if my wife is listening to this, she’ll be like cheering. Yes, yes, yes. You procrastinate the things I don’t, you know, <laugh>. But the reality is, a lot of business owners, especially like entrepreneurs who kind of get into things they don’t necessarily they didn’t grow up saying, Okay, I’m going to be a business person, and, and they get a corporate job and then they leave. A lot of people are like, Hey, I don’t, I wanna work for myself, or I have this passion, You know, it’s kind of like emit revisited, you know, Michael Gerber, like, you know, you have a skillset and now you’re trying to mon you become the business person monetizing your skillset.

Right? Right. And what happens is that people are like, Oh, whoa, I don’t wanna deal with my numbers like someone else, like someone else will handle that. Yeah. And so they avoid it. And the, the, the problem with that is like, there’s a lot of important things that are going in there. Now you don’t have to do it, but you just have to like understand it. So when I think about Profit First, I actually think, you know, Mike, in in, in writing the book really did everybody a tremendous favor who didn’t come from like a numbers background or doesn’t really interested in like, you know, his, his reference to like Spock accountants and whatever, Right? Like, I’m not an accountant, but I tell people like, numbers tell me a story. Yeah. And then the objective is like, have the story sound better or look better.

That’s how I think about like my day job in, in valuing businesses. But for the business owner, this just simplified everything. This is like, Hey, we’re gonna take user behavior, we’re going to take how people think about things today, and we’re just gonna keep it the same and make it work for you. Right. So that’s why I, like, I really liked Profit First, but when I got into understanding the cash flows, like back to to college, it actually just started to make a lot of sense of like, okay. And so as I’ve done different things and I have my eCommerce businesses, I’ve always said when I got into them, a lot of the people really don’t understand their numbers because they look at it so simplistically they’re like, Okay, I bought something for $10, I sold it for $30, There was another $10 of hard costs, so I net $10 a profit. And you’re like, Okay, but now you actually have to rebuy new inventory and you’ve re the cash went right back in, Where’s your profit? Like where did that $10 go? Yeah. And they’re like, I don’t know, but I can’t pay my bills. Right. Like <laugh>.

David Richter:

Right. Exactly.

Aryeh Sheinbein:

And so, like this system just allows people to strip away all the noise, all the complexity and just say, Okay, just like, you know, I think he references this, in the book. Like there’s, you know, I’m not per se a Dave Ramsey fan, but the concept of having envelopes for your cash, Right? That’s what this did. It just modernized. Like he definitely mentions this in the book, like he modernized you know, the envelope system. But what it really does is it just allows human behavior not to mess things up. Right. It allows you, you’re already conditioned to do one thing, just keep doing that one thing and, and the money siphons off. And this is why I tell people in investing the same thing. It’s, you know, Parkinson’s law, if you, you know, whatever time and space you have to do something, if I give you a project and you have, you know, two weeks, boom, you’re gonna, you’re gonna take full two weeks.

Even if you think you could do it in two days, and if you tell me it really takes three weeks, you’re gonna get it done. Two weeks investing living off a certain amount. It’s the same thing if I pull that money out. Right. If I take 10% of your $5,000 a month and I pull it out and that, that’s kind of like where the 401k model probably came from. Like you didn’t see it, it didn’t really exist. Right. So you can live off it. Right. You make it work. Yeah. And, and so that’s how I think about like the system works that way and, and so does investing. Investing should be as automatic in, in the similar kind of sense, like once you have the, the money built up.

David Richter:

Awesome. So then real estate investing and the investors listening here, how do you think that the concept of Profit First applies to them? You know, like what does it help them the most? Because, you know, they’re buying assets a lot of times either to buy and hold or like you said you had bought some single families or, you know, fourplexes or up to that or whatnot. What do you think is one of the greatest advantages of using a system like Profit First for the real estate investing world?

Aryeh Sheinbein:

Yeah. So I think it depends, Like, I kind of segregate that into two categories. Yeah. And that is, are you a real estate investor who has another job and this is just kind of like what you’ve done with you’re doing with your money? Yeah. Or is this your job and it’s your primary source of income. And the reason for that is if, if I’m gonna go fix homes, right? And I now have, I basically have a business and some people think about it this way and some people don’t. Like you’ll talk to business owners and they’re like, Oh, well I want to go buy these houses and you know, HGTV made me realize like how much I can, you know, do this and this and this, Right. Or my brother-in-law’s doing this, or my cousin’s dentist, you know, whatever. He left dentistry to do this.

Okay. Understand that. Like, now you have a job, right? Yeah. And so if you’re in that category that like you want this to be a job for you, now the Profit First is totally going to help you because it’s, it’s any other, it’s just like any other business, right? Like your business needs to understand where the cash goes. So you went and you bought this house, whether you use other people’s money or you put some of the money down yourself, plus you may have some other kind of financing. Okay, where is the cash going? And as it comes out, okay, siphon it off because now this is my pot for the next kind of deal. Right? Like, as I’m kind of sweeping it into my Profit First account, that’s super helpful because otherwise people are like, Hey, a mid deal over here and now a new opportunity comes up, the bank account looks flush with cash.

Yeah. So I can go and do it. Turns out I forgot I gotta buy this, this, this, this and this for this, this fix I’m in the middle of and now I’m stuck because like I took that money and I shouldn’t have taken that money. Right? Yeah. So, if you’re doing it that way, it’s hugely valuable because it’s just like any other business, you need to understand where the money is. Yeah. If it’s on the personal investing side, it’s interesting because what happens is, and this is the part that’s interesting about real estate, is people are generally looking for one of two things, right? Appreciation or cash flow, Right. Depending on, on what you’re doing. And if you, if you’re looking for appreciation, obviously there’s not gonna be a lot of returns kind of coming out until you have like some sort of event, whether it’s a refinancing or a sale.

Yeah. And ultimately though, if you are investing on cash flow, the concept that people miss, and this is where I, I kind of try and help like entrepreneurs understand this, is everyone talks about compound interest, compounding growth, compound, compound, compound real estate cash flow is great, but it doesn’t compound. And so if you’re basically, if you think about things a little bit in a Profit First mindset, like when that cash flow comes in, it should basically go to your Profit First account. Right. Because now it has to get redeployed. Yep. And, and so like I remember like my dad who got me into stocks originally, right? When he started looking at real estate deals and he would start, you know, showing me getting my views and thoughts on things I said to him, I said, Well how much money do you have to invest? Like, what’s the allocation to real estate?

And he is like, I don’t know, you know, like I have this, I have that. Like, it was all almost like willy nilly. Yeah. You know? And I said, Okay, well what happens to the distributions that you get quarterly from the other deals? He’s like, Well it goes into this bank account. I’m like, But but that’s like your, your operating bank, you know, basically your, your lifestyle operating account. And it’s like, yeah, so I use it if I need it. And I’m like, now the whole thing’s not growing, you know? And so I basically had him redo some of the stuff just to say, listen, the investment world, like, and this is what I did, like probably, I’m trying to think like at least 15 years ago, and I don’t even know if the book was out yet, but it was just made sense to me like, okay, here’s my allocation for you know, like high expense, big expenses that I knew I had coming.

Yeah. I have a separate bank account, so if I get my bonus boom that money just goes in there and that’s like four saves for that and I don’t have to think about it. Yeah. So it’s the same with investments. Like I had another bank account where I make investments, whether it’s real estate or buying a business or whatever it is. And then the cash flows from those come back in and that’s basically the Profit First model, right? Like the money is coming back there first before I go and like say, Okay, now it’s time for me to buy a new car or whatever I wanna do with it. Right. Yeah. So it’s like a tool separation now, not even to get into the legal side of it, like does that sit in an LLC or other things? All lots of stuff that like people like CFO or any other accountant probably from can, can help you with, but just conceptually it’s a separate bank account and the cash flows are coming in there and it’s effectively your Profit First.

David Richter:

Yeah. No, I love that. That’s awesome. So going a little bit further with any type of business, cuz you are you know, conno sore of the business realm what do you, what would you say is the biggest thing that they should be that an entrepreneur or business owner should be tracking from the financial point of view? You know, like what are the most key indicators that they should be looking out for?

Aryeh Sheinbein:

Well, I think the way I think about it for an entrepreneur is I always tell people, like people come to me and they’re like, Well, should I be doing this? Or how should I handle this? The number one challenge I think people have is they don’t start with the end goal in mind. Yeah. In the beginning, right? Like, I always tell people like, what is the end goal? Like, what are you trying to achieve? Like in today’s world, information is everywhere, right? There’s access to tons of stuff, right? People listening to us on this podcast, you can check out, you know, things on YouTube and all this different stuff where, you know, years ago you didn’t have that, but part of it did the messaging. Like if, if you just like take a step back and you look at social media, you look at all the, the, all of the information, it always sounds like grow, grow, grow, grow, grow, grow, grow.

David Richter:

Yeah.

Aryeh Sheinbein:

And it doesn’t necessarily mean that that’s the right answer for you, right? And so like, what does this person want in their business? Are they looking for an exit? If they’re looking for an exit? Like, what is the number that they want? Like, I know that sounds like abstract and like, what do you mean what, what do I want? Like, but if you actually take a step back from your business and you’re like, Okay, I get it, you did this cuz you didn’t wanna work for someone else. Okay, fine. Is that what you wanna do for the next 20 years in the sense of just like not work for someone else? And then if your kids wanna step in or if you wanna exit, then you’re gonna think about it like, have a plan in place because the key indicators are important, but if you don’t, if you don’t know where you’re trying to get to, you’re never gonna get there.

Right? Like, if we don’t get, get in the car and say like, Hey, I wonder where I’ll end up today. You know, like we, we know we’re going to the mall or we’re getting gas, or we’re picking up our kids or whatever we’re doing. And so it’s the same with your business. So in terms of key indicators, I think the question becomes like, do you wanna be a so printer? Do you wanna be a $10 million business? Like the only way to track the indicators of, of your specific business is knowing where your destination is gonna be so that you can kind of get there, right? So if you tell me like, I want to get to a 10 million revenue business, then we can focus on the revenue side, but understand like, are you gonna bleed cash to get there or are you looking for profitability along the way?

So depending on, on like what you’re trying to do. And so it’s, it’s an interesting conversation probably one for another time is a lot of people who are entrepreneurs and have these businesses, the amount of their net worth that’s tied up in this business is on, on a disproportionate level Oh yeah. To, to the rest of the neural net worth, right? And so, like, one of the things I try and get people to understand is like, hey, if, if you ultimately are gonna sell this and you’re gonna free that up, you definitely need to know where you’re going and you probably need to have some like annual check-ins of like, Hey, how much is my business worth? Or how is it doing? And like I know a lot of people are like, Oh, I don’t wanna pay for this, I don’t wanna pay for that, but yet you pay for, on your personal side, you pay for all this other crap, right?

Like, but you don’t wanna pay for some important things because it doesn’t necessarily quote unquote make you money today. Right? Right. And, and so if you are taking distributions or you are kind of taking cash out of the business, which totally is acceptable once it kind of gets to the other side, you know, on your personal, let’s call it personal balance sheet hey, okay, now let’s focus on making that grow. Because if it’s not gonna come out in this sale, it needs to be working for you. Just like if it was inside the business, it needs to be working for you.

David Richter:

Yeah. Yeah. That makes sense. That’s awesome. So before we wrap up with the final few questions here, what product agnostic, let’s talk about that a little bit. You know, just, we talked about that up front and I really like that concept because I feel like it’s more focused on what the end user, you know, it’s what’s really best for them. So let’s just talk about that concept if you could.

Aryeh Sheinbein:

Yeah, sure. So when, when people, you know, generally think about investing or generally think about like, okay, what do I do with my money? It doesn’t have to be investing per se, right? Like, so again, focusing on the fact that like once it’s out of your business, okay, so it’s now on the personal balance sheet side of the equation. The issue I find with the overarching, you know, financial service industry is whoever you’re talking to, they’re generally selling you that thing mm-hmm. <Affirmative>. So if I talk to the insurance guy, he’s going to tell me how I need this insurance, right? Whether he’s a whole life person or a term or whatever it is, right? He has the best product because he basically has a vertical that he can sell me in his suites of services and suites of product, and it’s probably AB or C.

And then if you go to the broker at Merrill Lynch or Edward Jones or wherever it is, or your cousin who tells you this, that the other thing they’re selling within the product realm that they have. So they usually can sell you stocks, they can sell you maybe some bonds, but all mutual funds. The number one thing, and you don’t actually per se think about for the fact is it’s like why aren’t they offering you something else? Right? The reality is, is each one of these verticals is set up to only be able to sell these things. It’s even, you know, in today’s world where there’s crypto, you don’t see Schwab, the platform doesn’t today allow you to trade crypto. Maybe it will in five, 10 years. So now who knows? But it’s interesting, right? Like you’re inside every vertical and everyone is always kind of pushing their product.

Yeah. So the, the marketing messaging of all of these industries, even like the real estate, Hey, learn to fix and flip. Hey, learn to wholesale, learn to do this. They’re selling that one thing right now from a marketing message, it works the best, right? Like if I tell you here’s your schorge board of options, you’re like, oh, like, you know, decision fatigue, right? But that may not be what’s best for you. And so I view it as like, hey, part of the value of, you know, my experiences, like I’ve dealt with buying businesses, I deal with investing in stocks, I deal with real estate, I deal with lending, I deal with tax lie. So all these different things, some of which have performed, some have not. Like, you know, like there’s no shame in having missteps because I think everyone over their career is no one’s gonna hit it outta the park every single time or even at least hit a single every time.

It just doesn’t happen, right? Like the guys in the hall of fame in baseball hit 300. So in looking at that, my belief is like, hey, I don’t really care what you want to invest in. If you tell me you’re gonna be nauseous because the NASDAQ is down 30% this year and it just, you’re never gonna feel okay, okay, then we can say what stable type of investments, cash flowing real estate, may better for you. Maybe even a whole life insurance may be better for you. And I’m not going to sell you one thing or the other. I’m first gonna educate you, understand the risks of every asset class, understand the benefits of every asset class and hopefully understand like the positive returns. But this way, like if you wanna call the insurance broker, hey, call the insurance broker, but now you’re educated, you wanna invest in stocks, Hey, now you’re educated, you wanna get into real estate, okay, now you’re educated and where I can give you access, great, I will give you access. But it’s much more of like a true advisor. Like you don’t, you don’t call a lawyer when you’re looking to for a plumber, right? Like he, he’s going to advise you on the legal side of it. My objective is to advise you so that you have full perspective before you get on that call with that broker who’s really only gonna sell you on that one thing.

David Richter:

Yep. Awesome. Now I love that that’s what we believe at Simple CFO too. We don’t wanna sell anyone anything. We want what’s best for them. And if that means we have it, great if not, then how do we educate them on that, that, so that’s amazing and I love that. So we’re getting down here last couple questions. Anything else you would recommend or any other advice to real estate investors, the audience that’s listening right now? That person on the other end here listening to this podcast?

Aryeh Sheinbein:

Yeah, so I, I think for the, the people who are interested in real estate in general, I think one of the big things that they always should just understand, like we touched on it a little bit, is whether you want to be in the stock market, whether you wanna be in real estate, let’s focus really on the real estate is understanding are you creating a new job for yourself or are you actually creating some sort of passive income? And, and sometimes like, I think different markets are different things in the sense of like, you know, the single family home model works for some geographies better than others. At the same time understand like even if you have a property manager, is there going to be times that you’re still going to have to manage the property manager? Yes, very much likely. But at the same time, when was the last time, if you think about like truly like large wealthy people, like generationally wealthy people that they said, Yes, I manage a portfolio of a hundred single family homes, right?

Like never, Right? That person probably is an investor in real estate. They may back the person who’s managing a hundred single family homes. Yeah. Or just back the person who owns the, you know, you know, portfolio of apartment buildings or self storage units or whatever it may be. So just think through like, hey, yes, I may be able to position it that the cash on cash return is better for a single family home, but how well does that scale when you have real money and how much money is that gonna truly drive to your, you know, personal bank account every month or every year? Right? So that’s like the point I would just kind of highlight to people.

David Richter:

Awesome. Love it. So provided a ton of value here. What’s the way that the lister can provide value back to you? Is there a way to connect with you or what, where is, how can people get more of you?

Aryeh Sheinbein:

Sure. So they can follow me on Instagram as the businessman. My website is solution advisory.com and they can head over and have a listen to my podcast, which is not Real estate Focus, it’s more business in general and leadership and financials called Inside the Lines, Then podcast available on all podcast platforms.

David Richter:

Very cool. Well re it was amazing having you on today. A lot of knowledge and a lot of, I believe a lot of value brought to the listeners, so thank you so much for being on here today.

Aryeh Sheinbein:

My pleasure. Thanks for having me.

Outro:

This episode of The Profit First for REI podcast is over, but there are plenty more where that came from. Are you ready to learn how David and his team can help implement the Profit First system in your business? Schedule a discovery call at simplecfo.com right now. We’ll see you next time on The Profit First for REI podcast with David Richter.