Furlo Capital Real Estate Podcast

James Furlo
  • 5.0 (3)
  • Investing
  • Updated Weekly

A conversational podcast between James and Jessi Furlo that dives into the intricacies of passive real estate investing. Our mission is to equip people to invest wisely in both property and residents so that, together, we can build wealth and improve housing.

  1. 5d ago

    Why Interest Rates Matter Less Than Income Growth in Real Estate Investing | Ep 148

    Mortgage rates are sitting around 7.28%, and most real estate investors are asking when they'll come down. That's probably the wrong question. The better one: is your income growing faster than your debt? A low rate on a property that can't cover its own payment still loses. A higher rate on a property whose income keeps climbing can still work. In this solo episode, James walks through Ray Dalio's well-known video "How the Economic Machine Works" and turns each idea into something a real estate investor can use. Credit is roughly 17 times larger than cash in the US. Every loan works like a bar tab that pulls spending forward. And one person's spending is another person's income, which is why the whole system can spiral up or down. From there, he covers the short-term and long-term debt cycles, the difference between a recession and a deleveraging, and why paying down debt can backfire when everyone does it at once. He also tells the story of a 40-unit deal in Astoria that fell apart when rates went from about 3% to 6% during a two-month contract delay. The episode ends with Dalio's three rules translated into underwriting terms, plus six questions to ask before you invest. Chapters (00:00) Introduction(01:26) Why Watching Rates Is the Wrong Question(03:36) Credit Dwarfs Cash: The Bar Tab Economy(08:54) Tractor or TV? How Lenders Size You Up(12:25) The Debt Cycle and a 40-Unit Deal That Died(19:02) Debt Burden and the Road to Deleveraging(27:09) Four Ways Debt Burdens Come Down(31:20) Why Income Growth Has to Beat the Interest Rate(37:30) Dalio's Three Rules, Translated for Real Estate(43:30) Six Questions to Ask Before You Invest Let's build your wealth and improve housing, together. I spent 12 years as a data scientist at HP and purchased $5M worth of real estate over 15 years using my own money. Now, I'm partnering with busy professionals to diversify their investments and generate passive income through real estate syndications and short-term flips — without dealing with tenants, toilets, or tantrums. At Furlo Capital, we believe real estate isn't just a transaction; it's a partnership. Our value-add approach creates win-win situations where residents thrive, and investors build wealth. We're not just in this to make money — we want to make a difference. If you're ready to diversify from stock market volatility and want reliable, steady returns, let's build your wealth and improve housing, together. Want to dive deeper into my investing thesis and strategy? 👉 Learn more: ⁠https://furlo.com⁠ Curious about the critical questions to ask before investing? 👉 Get my 196-question due diligence vault: ⁠https://furlo.com/good-deals-only-ebook⁠ 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.

    Why Interest Rates Matter Less Than Income Growth in Real Estate Investing | Ep 148

  2. Oct 14

    How a Data Scientist Analyzes Rent to Reduce Vacancy and Protect Returns | Ep 147

    A $2,900 rental sat empty for four months. The market said $2,300 from day one, and that's where it finally leased. The empty months cost the owner about $9,000. This solo episode walks through the full rent analysis process behind a single recommendation: why the right rent can be $50 below the market average. James draws on his background as a former HP data scientist to walk through the rent analysis report his property management company sends to owners, layer by layer. It starts with the answer: a recommended rent, a market range and an expected lease-up time. Then it shows the evidence behind it. That means 29 comps with the outliers removed, neighborhood demographics, local days on market, and macro signals like payrolls, mortgage rates and Oregon's CPI-based rent cap. The core argument is that rent is a plan, not a number. Overpricing does more than slow a lease-up. It changes who applies. Every empty week also has a concrete dollar cost that owners can weigh against a small price cut. The episode closes with six questions any owner can ask a property manager to test whether their rent recommendation holds up. Chapters (00:00) Introduction(00:47) Why Rent Is the Number Everything Depends On(04:01) Vacancy, Applicant Quality, and Lease Timing(06:56) Lead With the Answer, Then Show the Comps(10:55) Location and the Natural Tenant(13:02) A Softening Market and the Macro Signals Behind It(19:43) The Price Drop Plan and the House That Sat for 120 Days(24:47) The $50 Decision and the Cost of One Empty Week(26:14) Six Questions to Ask Your Property Manager 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.

    How a Data Scientist Analyzes Rent to Reduce Vacancy and Protect Returns | Ep 147

  3. Oct 7

    Midyear Portfolio Review: Content Package | Ep 146

    Your sponsor says the deal is on budget. Good news, right? Not necessarily. A budget is usually built off last year's numbers, so a deal can match it exactly and still be badly off from the plan that justified buying it. The only honest benchmark is the day-one underwriting. Everything else is a moving target. James and Jessi talk through why "on budget" is a weaker statement than it sounds, and what to compare against instead. The core idea is to separate forecast error from execution error. Did rents simply not do what you expected, or did someone market in the wrong places and screen poorly? Both tend to get blamed on "the market," and only one of them is actually out of your control. From there it turns practical: a short year-end checkup for owners who don't manage their own properties. It covers shopping your insurance, contesting your property tax assessment before the December 31 deadline, and why James pulls his listings between Thanksgiving and Christmas. They close by naming which of their own long-term holds landed furthest from the original numbers. One beat expectations. The other got hit with a property tax bill that jumped from about $800 to $8,000 a year. Chapters (00:00) Introduction(02:46) Why Budgets Make the Market a Scapegoat(05:20) On Budget but Still Broken: Forecast vs. Execution(08:55) Adding $1,500 a Year Without Touching Rent(12:23) Property Taxes and the Holiday Leasing Trap(16:08) Which of Our Deals Missed the Numbers Most(19:46) The Year-End Checklist: Compare to the Promise Let's build your wealth and improve housing, together. I spent 12 years as a data scientist at HP and purchased $5M worth of real estate over 15 years using my own money. Now, I'm partnering with busy professionals to diversify their investments and generate passive income through real estate syndications and short-term flips — without dealing with tenants, toilets, or tantrums. At Furlo Capital, we believe real estate isn't just a transaction; it's a partnership. Our value-add approach creates win-win situations where residents thrive, and investors build wealth. We're not just in this to make money — we want to make a difference. If you're ready to diversify from stock market volatility and want reliable, steady returns, let's build your wealth and improve housing, together. Want to dive deeper into my investing thesis and strategy? 👉 Learn more: https://furlo.com Curious about the critical questions to ask before investing? 👉 Get my 196-question due diligence vault: https://furlo.com/good-deals-only-ebook 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.

    Midyear Portfolio Review: Content Package | Ep 146

  4. Sep 30

    The $50 Rent Increase That Could Cost a Property Investor $4,300 | Ep 145

    Oregon lets landlords raise rent 9.5% a year. The Corvallis market right now supports somewhere between zero and negative one percent. That gap is where a lot of investors get hurt. A $50 increase on an $1,800 two-bedroom sounds reasonable, until the tenant leaves and the unit sits for 48 days. James and Jessi work through the math on a flat rental market and why the most expensive cost in real estate never shows up as a line item on your P&L. Vacancy only appears as income that didn't arrive. You plan for it when you underwrite a deal, and then it quietly disappears from view once you're operating. They walk through what's actually happening in the Corvallis rental market: days on market nearly doubling, average rents down $46 per bedroom year over year, and roughly 25,000 new units added across the region. From there, the conversation turns to why advertised rents are misleading when landlords are quietly offering concessions, why rent tends to get set by the most desperate landlord in the market, and why James has started preferring smaller units over big shared houses. The core argument is simple and a little uncomfortable. In a flat market, retention is growth. Keeping a good tenant is often worth more than any rent increase you could push through. Chapters 00:00 Introduction01:31 Vacancy: The Cost That Never Shows Up on Your P&L05:00 Longer Vacancies, Lower Rents, and the Most Desperate Landlord10:50 The $50 Increase That Takes Seven Years to Pay Back14:15 When All the Demand Shows Up in April16:18 Why Retention Is the Real Growth Strategy21:43 Don't Get Into It: The Early-Stage Defense Let's build your wealth and improve housing, together. I spent 12 years as a data scientist at HP and purchased $5M worth of real estate over 15 years using my own money. Now, I'm partnering with busy professionals to diversify their investments and generate passive income through real estate syndications and short-term flips — without dealing with tenants, toilets, or tantrums. At Furlo Capital, we believe real estate isn't just a transaction; it's a partnership. Our value-add approach creates win-win situations where residents thrive, and investors build wealth. We're not just in this to make money — we want to make a difference. If you're ready to diversify from stock market volatility and want reliable, steady returns, let's build your wealth and improve housing, together. Want to dive deeper into my investing thesis and strategy? 👉 Learn more: https://furlo.com Curious about the critical questions to ask before investing? 👉 Get my 196-question due diligence vault: https://furlo.com/good-deals-only-ebook 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.

    The $50 Rent Increase That Could Cost a Property Investor $4,300 | Ep 145

  5. Sep 23

    The Hidden Debt In Every Investment Can Make It Impossible To Get Out | Ep 144

    Most investment analysis asks what happens if a deal goes badly. Far fewer people ask whether they can get out at all. This conversation uses the opening months of World War I, where no major power actually wanted the war they ended up fighting, as a lens on commitment risk in real estate. The centerpiece is a manufactured home bought for one dollar that eventually lost $14,000, largely because no exit was ever available. Chapters (00:00) Introduction(01:11) The War Nobody Actually Wanted(04:55) Every Deal Has a Second Balance Sheet(07:02) The Constraints You Inherit With the Plan(10:23) Why Tanks Are Called Tanks(15:09) The $1 House That Lost $14,000(19:31) The Rule That Was There Before You Signed(22:46) Is There an Off Switch? 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.

    The Hidden Debt In Every Investment Can Make It Impossible To Get Out | Ep 144

  6. Sep 16

    The Interest Rate Is The Wrong Question In Private Money Lending | Ep 143

    In this conversation, James and Jessi walk through the questions that actually matter when you're lending money on real estate. James breaks down why the difference between a 10% and 12% rate is often just a few hundred dollars, and why the smarter question is what your guaranteed minimum payout is if the loan gets paid off early. From there they get into why a capped, guaranteed loan can beat an uncapped equity position, what your lien position actually determines if a deal goes underwater, and why a lender takes a lien instead of just taking the deed outright. They also cover why the person borrowing the money matters more than the deal itself, how extensions and early payoffs typically work (spoiler: you usually can't get your money back early, but the note itself can be sold), and what happens if either party dies before the loan is repaid. It closes with a pre-wire checklist: read the default and remedies section first, name every human signer, and remember you're not buying a rate, you're buying an exit. Chapters (00:00) Introduction(03:24) What Actually Counts as a Private Money Lender(05:22) Why a 10% vs. 12% Rate Barely Matters(06:51) The Minimum Floor: A Smarter Question Than the Rate(10:38) Equity vs. a Fixed-Rate Loan(12:51) Lien Position, Worst-Case Math, and Deed vs. Lien(22:20) Underwriting the Borrower, Not the Deal(24:17) Extensions, Early Payoff, and Selling Your Note(28:34) Death, Disability, and the Pre-Wire Checklist

    The Interest Rate Is The Wrong Question In Private Money Lending | Ep 143

  7. Sep 9

    How We're Turning One Property Into Two — and Creating Value Ourselves | Ep 142

    We bought a rundown house on a quarter-acre lot for $205,000 — and we're splitting it into two lots, patching up the original house just enough to sell it near breakeven, and building a brand new home on the other half. Do the math and the lot is essentially free. Key Moments (00:00) Introduction(00:53) Why This Isn't a Classic Fix-and-Flip (and a Costly Tax Lesson)(02:20) Inside the $205K House (And Why It Smells Like Money)(04:37) The Real Numbers: How Splitting This Lot Pays for Itself(08:38) Builders, Timelines, and the Kid Who Picked the Faucets(11:35) How We Fund Deals Like This — and How You Can Join Let's build your wealth and improve housing, together. I spent 12 years as a data scientist at HP and purchased $5M worth of real estate over 15 years using my own money. Now, I'm partnering with busy professionals to diversify their investments and generate passive income through real estate syndications and short-term flips — without dealing with tenants, toilets, or tantrums. At Furlo Capital, we believe real estate isn't just a transaction; it's a partnership. Our value-add approach creates win-win situations where residents thrive, and investors build wealth. We're not just in this to make money — we want to make a difference. If you're ready to diversify from stock market volatility and want reliable, steady returns, let's build your wealth and improve housing, together. Want to dive deeper into my investing thesis and strategy? 👉 Learn more: https://furlo.com Curious about the critical questions to ask before investing? 👉 Get my 196-question due diligence vault: https://furlo.com/good-deals-only-ebook 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.

    How We're Turning One Property Into Two — and Creating Value Ourselves | Ep 142

  8. Sep 2

    Nobody Gets Rich From Labor Alone | 141

    Working hard and getting rich turn out to be two different skills. On this Labor Day episode, we break down why a good salary can still leave you empty-handed, and the four-step model that actually turns labor into wealth that keeps paying you after you stop working. Labor Day has strange timing (the date shifts almost every year), and most people treat it as just a day off. But the holiday is about remembrance, not rest, and that distinction opens up a question: does hard work actually make you rich? A big salary at a good company doesn't automatically build wealth. What separates someone building real ownership from someone stuck on a treadmill is one thing: the size of the gap between what they earn and what they spend, and what they do with that gap. That gap is the hinge of a four-step model laid out here with a real example: labor creates income, margin (income minus spending) creates capital, capital buys productive assets, and those assets eventually create income without another hour of anyone's life. Chapters (00:00) Introduction(00:39)Why Labor Day Exists (And Why the Date Keeps Moving)(03:47) Does Hard Work Actually Make You Rich?(09:57) Escaping the Hamster Wheel(14:01) What Actually Counts as a Working Asset(18:31) Own More, Not Just Earn More Let's build your wealth and improve housing, together. I spent 12 years as a data scientist at HP and purchased $5M worth of real estate over 15 years using my own money. Now, I'm partnering with busy professionals to diversify their investments and generate passive income through real estate syndications and short-term flips — without dealing with tenants, toilets, or tantrums. At Furlo Capital, we believe real estate isn't just a transaction; it's a partnership. Our value-add approach creates win-win situations where residents thrive, and investors build wealth. We're not just in this to make money — we want to make a difference. If you're ready to diversify from stock market volatility and want reliable, steady returns, let's build your wealth and improve housing, together. Want to dive deeper into my investing thesis and strategy? 👉 Learn more: https://furlo.com Curious about the critical questions to ask before investing? 👉 Get my 196-question due diligence vault: https://furlo.com/good-deals-only-ebook 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.

    Nobody Gets Rich From Labor Alone | 141
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A conversational podcast between James and Jessi Furlo that dives into the intricacies of passive real estate investing. Our mission is to equip people to invest wisely in both property and residents so that, together, we can build wealth and improve housing.

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