How to Know If a Deal's Renovation Plan Is Worth Your Money | Ep 59

(Watch the YouTube video of this episode here)

In this episode, Jessi and I dive deep into the construction plan segment of our due diligence checklist for passive real estate investing. We share why it's crucial to scrutinize the sponsor, understand the renovation budget, and know the timeline. I share anecdotes, tools we use, and key questions every investor should ask before committing funds. Whether you're a seasoned investor or just starting, our insights will help you invest wisely and improve housing while building wealth.

// Key Moments

• 00:00 Intro
• 02:30 Introducing the 'Good Deals Only' Document
• 04:38 Evaluating Construction Plans and Teams
• 08:39 Challenges with Contractors and Budgeting
• 11:50 Using Technology for Accurate Estimates
• 17:58 Using Apps for Construction Estimates
• 24:43 Handling Tenant Relocation During Renovation
• 29:24 Balancing Risk and Return for Investors

// 6 Key Lessons

1. Know your sponsor, know your deal: Due diligence is key before investing. Ask questions about the sponsor’s track record, team experience, and past project success to avoid red flags.
2. Big plans need big questions: A construction budget should align with the overall business plan. If it doesn’t, hit pause and ask why.
3. Use tech to stay savvy: Apps like Estimate On can provide rough budgets for renovations. Even a $10 tool can save you $10,000 in surprises.
4. Consider the community impact: Projects should aim to improve neighborhoods and provide value to residents, not just ROI.
5. Tenant compassion isn’t optional: During renovations, ensure tenants are treated fairly and legally. Happy tenants = better outcomes.
6. Know when to outsource, but check the math: Passive investors should trust sponsors but also do quick gut checks on numbers, costs, and timelines.

// 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.