Furlo Capital Real Estate Podcast James Furlo

(Watch the YouTube video of this episode here)



In our latest episode, we discuss a new property under contract, explore various real estate business models, and share insights on how we secured the deal. I break down the property features, the strategic financial structuring, and potential plans for selling or holding the property. Perfect for those interested in real estate, this episode offers a detailed look at navigating property investments and solving real homeowner problems.



// Timestamps


00:00 Welcome: A New Property Deal
00:59 The Story Behind Acquiring the Property
02:32 The Property's Features and Potential
06:37 Different Investment Strategies Explained
09:55 The Seller's Story and Our Approach
14:26 Negotiation Tactics: Grounding and Emotional Grounding
18:10 Finalizing the Deal: Strategy and Compromise
21:40 Exploring Innovative Financing and Investment Strategies



// Key Lessons


Start with your network: Word of mouth is a powerful tool in real estate. Don’t underestimate the power of a good connection; it could lead to your next big deal.
Leverage emotional grounding in negotiations: Use emotional priming to set expectations. Instead of offering a low number directly, set the stage emotionally to soften the blow and increase the chance of acceptance.
Offer flexibility: Sometimes, it’s not about the highest price but about meeting the seller’s unique needs. Flexibility in terms and timing can seal the deal where others fail.
Master the art of negotiation: Books like “Never Split the Difference” offer invaluable techniques. Use them to your advantage in every deal.
Always be ready to adapt: Plans can change, and being flexible with your strategy—whether it’s a quick flip, a buy-and-hold, or a wholesale deal—can make all the difference.
Think outside the traditional financing box: Creative financing can lead to win-win situations. Structuring deals uniquely can provide solutions that traditional banks and investors might not offer.



// Let's build your wealth and improve housing, together.

I'm James Furlo. I live in Oregon, where I help people invest in real estate passively. Over the last 14 years, I've purchased over $4 million in real estate, and I’m excited to give you the opportunity to partner with us and experience the joy of building wealth while improving housing.

Access private investment opportunities, exclusive market updates, principles for passively investing in syndications, and behind-the-scenes insights. https://furlo.com/



// Disclaimer

Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors.


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Send in a voice message: https://podcasters.spotify.com/pod/show/furlo-capital/message

(Watch the YouTube video of this episode here)



In this episode, we explore the detailed process of tenant screening, emphasizing the importance of early-stage defense in investing. We discuss valuable lessons from our first tenants, and share our 'Solid Screening Method,' an acronym for systematic, objective, lawful, interested, and discerning tenant selection. Learn how our process helps identify responsible tenants, ensuring better property management and investment success.

Download The SOLID Screening Method



// Timestamps


00:00 Welcome & Personal Update
01:25 Transitioning to Tenant Screening Discussion
03:17 Learning from Bad Tenants
04:41 Introducing the SOLID Screening Method
10:41 Criteria and Process for Effective Tenant Screening
16:01 Navigating Tenant Qualifications and Alternatives
20:43 Comprehensive Tenant Screening and Verification Process
25:58 Reflecting on Past Tenant Screening Experiences



// Key Lessons


Early-stage defense in investing: Avoid getting into tricky situations by focusing on strong initial tenant screening, just like a jujitsu practitioner avoids dangerous holds.
Systematic and objective: Follow a systematic and objective tenant screening process to avoid legal issues and ensure fairness.
Understand the law: Make sure your screening criteria comply with all federal, state, and local laws, especially anti-discrimination regulations.
Be genuinely interested: Show interest in your potential tenants’ stories to understand them better and make more informed decisions.
Balance compassion and caution: While it’s important to give applicants the benefit of the doubt, ensure your decisions are based on solid verification.
Flexible yet firm: Be willing to make accommodations, like allowing cosigners, if the applicant shows potential despite minor shortcomings.



// Let's build your wealth and improve housing, together.

I'm James Furlo. I live in Oregon, where I help people invest in real estate passively. Over the last 14 years, I've purchased over $4 million in real estate, and I’m excited to give you the opportunity to partner with us and experience the joy of building wealth while improving housing.

Access private investment opportunities, exclusive market updates, principles for passively investing in syndications, and behind-the-scenes insights. https://furlo.com/



// Disclaimer

Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors.


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Send in a voice message: https://podcasters.spotify.com/pod/show/furlo-capital/message

(Watch the YouTube video of this episode here)

In this episode, we delve into the specifics of 1031 exchanges in real estate investment. This detailed discussion covers the basics of how a 1031 exchange works, its history, and the crucial timelines and rules investors need to adhere to. We explore various scenarios and discuss important concepts like the identification period, exchange period, boot, upleg, and downleg properties. Our conversation also touches on the nuanced tax implications, the role of qualified intermediaries, and the types of properties that qualify for a 1031 exchange. It’s a lot, but it’s all good to know.



// Timestamps


00:00 Welcome
01:16 An Introduction to 1031 Exchanges
05:47 The Evolution of 1031 Exchanges: From Simultaneous to Delayed
11:23 Eligibility and Requirements for 1031 Exchanges
20:32 Exploring Depreciation, Capital Gains, and Tax Implications
25:31 Navigating Complex 1031 Exchange Strategies
31:23 Investing Wisdom and Closing Thoughts





// Key Lessons


Know your deadlines: For a successful 1031 exchange, remember you have 45 days to identify potential properties and 180 days to close on one. Missing these deadlines can cost you.
Use an intermediary: Using a qualified intermediary ensures your 1031 exchange stays compliant. This neutral third party holds the proceeds and manages the transaction.
Consistency is key in ownership: The same taxpayer who sells the property must be the one to acquire the new one. This rule applies to personal names, LLCs, or living trusts.
Upleg, downleg, and boot—decode the jargon: Upleg refers to the new property, downleg is the old one, and any cash difference in value (boot) will be taxed.
Plan for contingencies: Identify multiple properties to avoid losing out if your first choice falls through. The more prepared you are, the smoother the process.
Diverse property options: You can exchange one property for many, many for one, or many for many, as long as the total value aligns with IRS rules.
It’s only investment properties: Personal residences and vacation homes don't qualify for a 1031 exchange unless they are converted into investment properties first.
It's all about intent: Ensure your property is held for investment purposes for at least one to two years to demonstrate intent and avoid tax issues.
Consider the long game: Keep deferring gains until you pass away. When you do, your heirs get a step-up in basis, potentially eliminating deferred taxes.



// Let's build your wealth and improve housing, together.

I'm James Furlo. I live in Oregon, where I help people invest in real estate passively. Over the last 14 years, I've purchased over $4 million in real estate, and I’m excited to give you the opportunity to partner with us and experience the joy of building wealth while improving housing.

Access private investment opportunities, exclusive market updates, principles for passively investing in syndications, and behind-the-scenes insights. https://furlo.com/



// Disclaimer

Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors.


---

Send in a voice message: https://podcasters.spotify.com/pod/show/furlo-capital/message

(Watch the YouTube video of this episode here)



In this episode, we delve into the complexities of real estate investment, focusing on taxes, depreciation, and the strategy of 1031 exchanges. James shares a personal experience about considering selling a property and the tax implications involved, explaining the benefits of 1031 exchanges, how depreciation factors into taxes, and strategies to minimize tax liabilities. The discussion includes technical explanations of capital gains tax vs. ordinary income tax rates and how depreciation recapture works.



// Timestamps

00:00 Welcome

01:08 Diving Into Taxes and Real Estate Investments

11:06 Strategic Tax Planning with Real Estate Transactions



// Key Lessons


Understand the game behind depreciation: When selling properties, always account for the potential tax implications of depreciation recapture, as it might impact your financial outcomes more significantly than anticipated.
Plan for depreciation's payback: The tax breaks from depreciation today lead to recapture at sale, impacting your profits. Factor this into your exit strategy as a financial reconciliation, not a penalty.
Prioritize your tax strategy: When selling a property, depreciation recapture taxes are applied first to the portion of your profit equivalent to the depreciation claimed. This is taxed at a higher rate than most long-term capital gains.
Choose a CPA who knows real estate: Partner with a CPA who specializes in real estate to navigate complex scenarios like depreciation recapture. Their expertise isn't just a service; it's a strategic asset that can save you substantial money in taxes.



// Let's build your wealth and improve housing, together.

I'm James Furlo. I live in Oregon, where I help people invest in real estate passively. Over the last 14 years, I've purchased over $4 million in real estate, and I’m excited to give you the opportunity to partner with us and experience the joy of building wealth while improving housing.

Access private investment opportunities, exclusive market updates, principles for passively investing in syndications, and behind-the-scenes insights. https://furlo.com/



// Disclaimer

Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors.


---

Send in a voice message: https://podcasters.spotify.com/pod/show/furlo-capital/message

Watch the YouTube video of this episode here)



In this episode, we delve into the challenging aspects of being landlords, including evicting a non-paying tenant. James shares his journey to the courthouse to file for eviction, emphasizing the importance of the eviction process, tenant communication, and how such situations are handled legally. This episode encapsulates the realities of real estate investment, the landlord-tenant relationship, and offers insights into dealing with non-paying tenants while highlighting our personal experiences and strategies for managing rental properties.



// Timestamps


00:00 Welcome
02:33 The Realities of Being a Landlord: Eviction Stories
09:23 Navigating Tenant Issues and Eviction Processes
13:26 A Look Back: First Eviction Experience
16:59 The Eviction Process: A Detailed Walkthrough
20:17 Reflections and Future Steps for a Landlord



// Key Lessons


Keep your cool even under legal heat: Eviction proceedings can be a mix of emotion and procedural rigor. By staying composed and ensuring all legal boxes are checked, you stand a better chance of prevailing without unnecessary drama.
Patience is more than a virtue; it's a strategy: Even when the process drags on, understanding the full extent of eviction procedures can help you manage expectations and prepare for each phase effectively. Knowing that initial hearings might not resolve the issue can save you from premature celebration or despair.
The paperwork is mightier than the sword: Always double-check that your notices include all occupants to avoid legal loopholes that could delay proceedings. A simple oversight in eviction documents can turn a quick resolution into a prolonged battle.
Preparation meets opportunity... in court: Showing up prepared with evidence and proper documentation is half the battle. Ensure you can prove claims like continued tenancy to avoid reliance on a no-show victory, which might not always be granted.
Safety first, even if it means stepping back: In volatile situations, assess the safety risks before proceeding with confrontational actions like evictions or property repairs. Sometimes, the wisest course of action is to delay repairs until the environment is secure.
Communication can defuse escalation: Before reaching the point of eviction, open lines of communication can often lead to agreements that avoid the legal route altogether. Being proactive in discussions can save both time and emotional energy for everyone involved.



// Let's build your wealth and improve housing, together.

I'm James Furlo. I live in Oregon, where I help people invest in real estate passively. Over the last 14 years, I've purchased over $4 million in real estate, and I’m excited to give you the opportunity to partner with us and experience the joy of building wealth while improving housing.

Access private investment opportunities, exclusive market updates, principles for passively investing in syndications, and behind-the-scenes insights. https://furlo.com/



// Disclaimer

Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors.


---

Send in a voice message: https://podcasters.spotify.com/pod/show/furlo-capital/message

(Watch the YouTube video of this episode here)



In this episode of the Furlo Capital Real Estate Podcast, we share their journey into passive real estate investing, focusing on our second property purchase, a duplex. We delve into the concept of 'wake up money' taught in a class by our agent and friend Lee, which inspired us to use a Roth IRA for a down payment. The discussion also covers our approach to investment analysis and the concept of 'gyroscopic cash flow,' emphasizing the blend of initial effort and ongoing, minimal management to keep the cash flow steady.



// Timestamps


00:00 Welcome to Our Real Estate Journey
00:56 Our Second Real Estate Purchase
01:27 The Wake Up Money Concept
03:53 The Search for Our Second Duplex
04:25 Investment Criteria and Decision Making
07:24 Managing the Duplex: Tenant Stories and Maintenance
12:36 Gyroscopic Cashflow: A New Investment Philosophy
16:38 Reflecting on the Investment's Success and Future Phases



// Key Lessons


Turn a mistake into a peace sign: When James and Jessi misinterpreted their son's gesture, it led to a funny family insight. Similarly, misinterpretations in business or personal interactions can often be clarified or turned into positive learning moments. Don't be afraid to ask for clarification to avoid misunderstandings.
Wake up to passive income opportunities: James and Jessi were inspired by the concept of 'wake up money' from an educational real estate class, illustrating the importance of continuing education and staying open to new ideas. Always look for educational opportunities that might redefine your financial strategies.
Don't just calculate, recalibrate: Before investing in a property, recalibrate your criteria list to ensure it meets your financial expectations. Jessi's steadfast rule for cash flow positivity from day one is a golden nugget for ensuring investments start paying off immediately.
Keep the cash flow gyroscopic: Think of your investment cash flow like a spinning plate—keep it balanced with occasional checks and interventions. This 'gyroscopic cash flow' model can help maintain a healthy balance between effort and earnings.
Outsource to maximize output: If lawn care isn’t your forte, hiring out cannot only save you time but also spruce up the property beyond amateur attempts. James and Jessi found that professional services could add that extra edge, proving sometimes the grass is greener on the other side!



// Let's build your wealth and improve housing, together.

I'm James Furlo. I live in Oregon, where I help people invest in real estate passively. Over the last 14 years, I've purchased over $4 million in real estate, and I’m excited to give others the opportunity to partner with us and experience the joy of building wealth while helping to provide housing.

Access private investment opportunities, exclusive market updates, principles for passively investing in syndications, and behind-the-scenes insights. https://furlo.com/



// Disclaimer

Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors.


---

Send in a voice message: https://podcasters.spotify.com/pod/show/furlo-capital/message