Real-Life Money Traps and What Real Estate Entrepreneurs Can Do About Them
Special Event: Learn from Profit First Expert David Richter | June 28th Online Master Class
You close deals. You cash checks. But somehow, there’s never enough left over.
You’re not alone—and you’re not doing anything wrong. But the way you’re managing your cash flow and planning for taxes might be quietly draining your business—even when you’re “doing well.”
David Richter, our guest instructor in June has seen this pattern hundreds of times. As a real estate investor turned financial systems expert, he’s worked with investors across the country who were making good money… but keeping almost none of it. That’s what led him to write Profit First for Real Estate Investing, and why we’ve invited him to lead a special online Master Class for MAREI on Saturday, June 28th.
Let’s look at a few real-life examples:
❌ The Contractor Who Can’t Take a Paycheck
Jason runs a remodeling business. He’s got steady work, happy clients, and a solid team. But with subcontractors, materials, and overhead due upfront, his cash is always tied up—while invoices sit unpaid for weeks.
So when it’s time to pay himself? He shrugs and says, “I’ll catch up later.”
❌ The Flipper Who “Made” $100K… and Owes $30K
Monica flipped five properties this year and showed a six-figure profit on paper. But her accountant drops a bomb: she owes over $30,000 in taxes.
Why? Because she didn’t plan ahead. No money was set aside. No S-Corp benefits. No deductions maximized. Now she’s scrambling—and the IRS doesn’t do payment plans that feel good.
❌ The Investor Scaling Too Fast
Derek built a rental portfolio fast. He hired a property manager, leased office space, expanded into multifamily, and added a VA to keep up.
But then the market slowed. A rehab dragged on. A few tenants didn’t pay. Now, he’s drowning in overhead with no cushion—and wondering where all that momentum went.
🧨 The Hidden Threat: Tax and Cash Flow Planning Gaps
Even profitable businesses can leak money in ways you don’t notice—until it’s too late.
You could be overpaying thousands in self-employment taxes by operating as a sole proprietor instead of an S-Corp.
You might be missing deductions for vehicles, tools, health insurance, or even a home office—because no one told you they were on the table.
You may not be using depreciation to your advantage, especially if you’ve bought real estate, equipment, or vehicles.
And if you’re paying yourself the wrong way or misclassifying contractors, your payroll taxes might be bleeding you dry.
Most investors and business owners overpay simply because they don’t know what they don’t know. And by the time tax season rolls around—it’s too late to fix it.
🧠 Why This Happens: Profit and Taxes Are an Afterthought
For most real estate entrepreneurs, financial clarity takes a back seat to hustle. You’re focused on finding the next deal, managing contractors, handling tenant issues, and keeping the wheels turning. And that’s exactly how profit quietly slips through the cracks.
The problem is baked into the formula most people follow:
Revenue comes in → You pay expenses → Whatever’s left might be profit
But “whatever’s left” is rarely enough. Why? Because you’re trying to grow without a financial foundation—and your business is eating your income faster than you can make it.
To make matters worse, tax planning usually happens in a panic—after the year’s over, when there’s nothing you can do. That’s when you realize:
You didn’t set aside money for taxes
You missed out on deductions you didn’t know existed
You could’ve saved thousands with a better business structure
It’s not your fault. Most investors were never taught how to manage money. You’re told to flip more, wholesale faster, buy more doors—and hope it all works out.
That’s why the Profit First system is such a game-changer.
💡 Flip the Formula and Build a Healthier Business
David Richter’s system starts with one critical change:
Revenue – Profit = Expenses
That shift forces you to treat profit as non-negotiable. Instead of hoping something’s left, you plan for it—and build your business around what’s actually sustainable.
This isn’t theory. It’s a simple, practical system that uses separate bank accounts for profit, owner pay, taxes, and operating expenses. That structure forces clarity and gives you control.
The best part? You don’t need to be an accountant to make it work. You just need the right setup—and a little discipline.
🎓 Learn How to Implement It at Our June 28th Master Class
MAREI is hosting a powerful, hands-on training with David Richter, author of Profit First for Real Estate Investing.
Whether you’re flipping houses, managing rentals, wholesaling, or lending—this training will help you take control of your money once and for all.
David Richter
Author of Profit First for Real Estate Investing and founder of Simple CFO, where he helps investors turn cash-eating businesses into profitable, sustainable ones.
