As I have conversations with small and medium business owners (SMBs) and families with property portfolios the most common sentiment is they feel their business or portfolio is too small for a CFO.
On a monthly basis, their Bookkeeper is paying their bills, collecting rent, and ensuring any employees are getting paid. They might even have a Controller who gets the financials prepared, handles the year end auditors, provides reporting to lenders, or ensures the sales tax filings are done. These are very critical real estate accounting tasks that everyone needs and are essential for “keeping the lights on”.
When I tell them more about the services we offer at Finalyze Real Estate CFO Services the most common reactions I get is that they feel at their size a CFO either isn’t needed, seems overkill, or might just be too expensive!
Let’s break down these reactions one by one and see how we can provide real estate investors with Real Estate CFO level expertise at a very reasonable cost.
Do I even need a CFO?
Unlike the critical roles of a Bookkeeper or Controller, a CFO goes beyond what happened to help you manage the future. We are forward looking financial experts. Think of a CFO as a guide or coach to help you get from today to your financial vision of tomorrow.
Everyone has financial goals and aspirations. As it relates to their real estate, folks might be interested in building their portfolio size, increasing their passive income, need help in increasing profits/cash flow on their properties, reducing their income taxes, or even passing down wealth to the next generation. You might even be someone looking to buy their first investment property! I’ve had clients discuss how best to position a property for sale or even help them negotiate better financing terms with their lender.
The CFO steps in and works with your existing team which could include your Bookkeeper, Controller, or even your tax advisor to help you meet your goals and objectives. We step in to first help you set your targets and then put in place a plan that is tracked on a monthly basis to help you achieve your goals and objectives.
Isn’t a CFO overkill for the size of my business / portfolio?
For almost every client we serve, a full-time CFO is overkill. However, welcome to the “gig economy” or the “as a service” way of delivering services. Similar to your ability to order what you need on demand, you can get the expertise of a CFO at a fraction of the cost of a full-time CFO.
Our Monthly CFO Service (sometimes called a Fractional CFO) offering is built where the CFO services multiple clients leveraging their deep expertise in the real estate industry to help guide you in meeting your real estate investment objectives.
We work with our clients to build them a financial plan, track progress on a monthly basis, advise them on key decisions to be made, optimize their tax strategy, negotiate better financing terms, invest their excess cash, help them with their financial systems, and so much more! Think of it as having access to your own financial expert who works seamlessly with your existing team.
Imagine a world where you have a Real Estate CFO diving into your property financials each month analyzing trends, working with your property managers to improve lease-up, negotiating better financing terms on your behalf, and more importantly helping you put more cash in your pocket!
Ok, I like the service but I can’t afford it!
You would be pleasantly surprised at the cost. Typically the cost of the Monthly CFO Service is less than the cost of a full-time Bookkeeper or Controller in North America. With our CFO Service, you are getting senior level finance expertise for a monthly fixed fee helping you achieve your real estate investment goals. You benefit from having your day-to-day financial support through your Bookkeeper or Controller with the added benefit of the additional horsepower of a CFO when you need it!
If you’d like to learn more about our Monthly CFO Service or to inquire further about Finalyze Real Estate CFO Services offerings please reach out for a complimentary consultation at Info@FinalyzeCFO.com. We are proud to work with real estate investors across North America helping them achieve their financial goals and dreams!