10 May CREPN #143 – Is a Part Time CFO Right for Your Real Estate Business with Brent McClure
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Podcast
by J. Darrin Gross
To the untrained real estate investors eye, the financials provide an excellent map of where your business has been. They provide income, expenses and the bottom line telling you if you made money or lost money.
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How do you know if a part time CFO is right for you?
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10 Item checklist for Accurate Books
Cost vs Benefit of a CFO
Instead of hiring a costly full time CFO, you can benefit from the professional ability at a fraction of the cost by hiring a part time CFO. In most cases, Brent McClure has been able to pay for his services in by increasing his clients bottom line.
An experienced CFO can look at the same information and provide a good estimate of where you are going and what needs to change if you want a different outcome.
Three Stages of Real Estate
Acquisition:
In the acquisition, you need to know what the sellers numbers mean. A trained CFO can determine if there any room to cut expenses so that you can improve the net operating income.
Operation:
During the operation phase, you are dealing with the day to day activities of running a business. Collecting rents, renting units, maintenance, banking, taxes, insurance, creating financial reports, etc. A trained CFO can put into place the needed controls to contain cost and eliminate waste.
They can also prepare standardized financials for you to present to lenders or potential partners when you are looking for additional capital.
Disposition:
Prior to sale, disposition of your property, is the time to keep great records. Record keeping is key to determining the value of your property. If your financial records are incomplete or miscategorized, you will lower the value of your property and leave money on the table.
In each case, a trained professional can identify the expenses that are out of line and provide controls and ways to lower your costs.
For more go to: https://www.brentmcclure.com/
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