Furlo Capital Real Estate Podcast James Furlo

(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.


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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 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.


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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 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

(Watch the YouTube video of this episode HERE)



In this episode of the Furlo Capital Real Estate Podcast, we explore the five levels of investing outlined in Robert Kiyosaki’s book Cashflow Quadrant. We discuss how each level impacts wealth accumulation, the impact of actively managing investments, and highlight the substantial impact of financial education.



// Timestamps


00:00 Kicking Off with a Light-hearted Intro
01:50 Exploring Robert Kiyosaki's Five Levels of Investing
04:20 Level 1 & 2: From Zero Financial Intelligence to Savers as Losers
07:55 Level 3: The 'I'm Too Busy' Investor
15:01 Level 4: The DIY Investor
18:11 Level 5: The Capitalist Level
20:16 Reflecting on Personal Financial Journeys



// Key Lessons


Get started today: Understand that investing is not just for the affluent; it can start with you, regardless of your current financial situation.
Risk comes with potential reward: Embrace calculated investment risks to enable substantial wealth accumulation. This mindset shift is crucial for moving from passive saving to active investing​​.
Never stop learning: The most successful investors continually educate themselves about financial markets, strategies, and opportunities. Regularly seek knowledge to enhance your financial intelligence.
Diversify, but be informed: While it's wise to diversify your investments, ensure you have a solid understanding of where your money is going. Blindly trusting others with your investments without understanding the basics can be detrimental.
Active involvement leads to better outcomes: Taking an active role in your investments, rather than just setting and forgetting, can lead to more substantial growth and learning from both successes and failures.
Seek synergy in investments: Look for opportunities to add value, whether through direct involvement or strategic partnerships. This 'wedge' can significantly increase your investment's worth over time​​.
Passivity has its place but comes with trade-offs: Understand that while passive investments like 401(k)s or mutual funds can offer moderate growth, they may not provide the learning or larger returns that come with more active involvement​​.
Leverage experts and partnerships wisely: Collaborating with experts and leveraging partnerships can amplify your investment potential. However, choose partners who align with your investment philosophy and goals.
Understand the impact of taxes on investments: Be aware of how different investments are taxed. This understanding can significantly affect the net return on your investments and influence your strategy.
Investing is a commitment to your future self: Recognize that investing isn't just about making money; it's about securing your future. Make decisions that will benefit you in the long term, not just for immediate gain​​.



// 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

(Watch the YouTube video of this episode HERE)



In this episode, we examine a potential real estate investment opportunity: an 18-unit property owned by a nonprofit. We discuss the financials, challenges, and a creative financing solution to make the deal work. We also examine various aspects of the deal, such as rent subsidies, seller financing, and operational expenses.



// Timestamps


00:00 Welcome
03:29 Diving Into a New Multifamily Syndication Opportunity
05:12 Exploring the Potential of a Unique Property
09:25 Creative Financing Solutions for a Challenging Market
16:38 Navigating Rent Increases and Tenant Management in Oregon
19:26 Investor Considerations and Return Expectations
26:39 Creative Financing and Seller Financing Strategy



// Key Lessons


The nonprofit's dilemma is an investor's lesson: When a nonprofit struggles with a property that doesn’t fit its mission, it reminds investors that every investment should align with their goals. If a property doesn't contribute to your portfolio's mission, reconsider its place​​.
Creative financing is the spice of real estate life: Zero-interest financing from a seller might seem as rare as a unicorn, but it's all about negotiation and understanding needs. Be the investor who finds unicorns​​.
When raising rents, remember it's a marathon, not a sprint: The path to increased rents and property value is a marathon filled with regulatory hurdles. Pace yourself, plan for the long run, and remember—it's about gradual growth, not a quick dash​​.
Board decisions are not just about the boardroom: When a property sale involves a board, it's a reminder that behind every investment, there are people and processes. Understanding their perspectives can unlock doors to opportunities​​.
In real estate, sometimes you must pay full price to uncover hidden gems: Paying the asking price based on future value is like investing in a map that leads to hidden treasure. Sometimes, the full price is just the entry ticket to a wealth of opportunity​​.



// 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