(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.
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