How To Buy A Property For $1 and Still Lose Money | Ep 89

(Watch the YouTube video of this episode here)

 

In this episode of the Furlo Capital Real Estate Podcast, we share a cautionary tale about how we lost $14,000 on what seemed like a can't-lose investment: a manufactured home purchased for just $1. Join us as we discuss the missteps and unexpected challenges that turned this deal into a costly mistake, despite our best efforts at rehabbing and creative financing. Learn about the lessons we learned, including the importance of conservative underwriting, managing holding costs, and better contractor coordination. While this episode isn't our best sales pitch, it's an honest look at the highs and lows of real estate investing.

// Key Moments

• 00:00 Intro
• 02:09 The $1 Property Investment
• 04:52 Unexpected Challenges and Costs
• 06:02 Struggles with Selling the Property
• 08:04 Creative Financing Challenges
• 08:58 Failed Attempts to Rent or Sell
• 10:40 Market Slowdown and Unexpected Costs
• 11:29 Lessons Learned and Future Plans

// 7 Key Lessons

1. Always calculate your holding costs early: That “free month of lot rent” disappeared quickly once repairs dragged on.
2. Don’t let $1 blind you to $1,200/month: Even the cheapest purchase can sink you if recurring costs are steep.
3. Cheap contractors can be expensive in disguise: Saving on labor cost meant sacrificing timeline—and paying for it every month.
4. Know your buyer pool before you buy: A 55+ community and high lot rent shrank the buyer base to almost zero.
5. Creative financing doesn’t solve bad math: If the numbers don’t work, offering notes or lease-to-own won’t magically make them work.
6. Pick two: cost, quality, or speed: If you give up on speed, make sure holding costs aren’t lurking in the background.
7. Losing money teaches sharper underwriting: Painful lessons lead to more conservative (and safer) future deals.

// 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

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// DisclaimerPlease 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.