(Watch the YouTube video of this episode here)
In this episode of the Furlo Capital Real Estate Podcast, we dive into the intricacies of identifying subtle red flags in passive real estate investing. We discuss how to trust your gut feeling, understand the business model, and ask the right questions to ensure a deal is right for you. Our mission is to equip you with the knowledge to invest wisely, improve housing, and build wealth. We also share some personal experiences to provide a comprehensive guide to spotting potential red flags in real estate deals.
// Key Moments
00:00 Intro
02:19 Discussing Red Flags in Real Estate Deals
03:24 Understanding the Business Model
08:14 The Urgency Red Flag
10:17 Poor Communication as a Red Flag
11:49 Handling Complicated Questions During Deals
13:32 Red Flag: Unclear Downside Scenarios
19:41 Trusting Your Gut Feeling in Investments
// 7 Key Lessons
Make sure you can explain the deal in one paragraph: If you can't clearly articulate how the investment works, it’s a sign you're not ready—or the deal isn’t right.
Ask the uncomfortable questions early: If a sponsor avoids or sugarcoats tough questions, that’s a major warning sign.
Set your pace—don't let the deal rush you: If you’re twisting yourself into knots to meet a deadline, it might be time to walk away.
Judge sponsors by their communication habits: If responses are delayed or vague before the deal, expect more of the same later.
Always ask, “What if things go wrong?”: A sponsor without a clear downside strategy isn't managing risk—they’re avoiding it.
Know how the money flows: Lopsided terms—especially heavy fees or weird payout structures—are often designed to benefit the sponsor, not you.
Trust your spidey senses: If something feels off, even if you can’t articulate it, honor that intuition. You're entering a long-term relationship.
// 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
// 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.