How to Leverage Debt in Real Estate & Avoid Loan Pitfalls | Ep 67

How to Leverage Debt in Real Estate & Avoid Loan Pitfalls | Protect Your Investment

In today's episode, Jessi and I explore the key concepts of real estate finance, offering a deep dive into passive real estate investing. We cover essential topics like leveraging debt, loan-to-value ratios, preferred equity, refinancing, and how to work effectively with lenders. This episode is part of our comprehensive eight-part series designed to equip you with the tools and knowledge to make smart investment decisions and protect your wealth. Tune in for expert tips on navigating loan pitfalls and structuring investments in real estate!"

// Key Moments
00:00 Intro
01:08 Eight-Part Series Breakdown
04:20 Understanding Leverage and Loan-to-Value
06:02 Preferred Equity Explained
12:01 Cash Flow and Debt Service Coverage Ratio
14:16 Exploring Financing Options
15:26 Bridge Loans and Their Implications
16:17 Key Questions to Ask About Loans
18:46 The Role of Underwriters in Financing
24:46 The Refinancing Process

// 5 Key Lessons
Lesson 1: If your loan terms sound too good to be true, check the fine print: Just because a lender says something doesn't mean the underwriter will approve it. Verify before you celebrate.

Lesson 2: Floating interest rates are like roller coasters—fun until they aren't: If your loan isn't fixed, make sure you've stress-tested the worst-case scenario, or you might be in for a wild ride.

Lesson 3: Underwriters are the real decision-makers: Your lender may be friendly, but the underwriter is the one holding the final approval—make sure your deal makes sense to them, not just to you.

Lesson 4: Not all cash flow is created equal: Just because a property "cash flows" from day one doesn't mean it's a good investment—look at the long-term numbers, not just the honeymoon phase.
Lesson 5: Refinancing is a strategy, not a certainty: If your entire investment plan relies on a refinance, you might be setting yourself up for a surprise—always have a backup plan.

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//Let's build your wealth and improve housing, together.

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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. https://furlo.com/

// Disclaimers
The content on this channel is for educational and general guidance purposes only. Neither I, James Furlo, nor Furlo Capital LLC are liable for any direct, incidental, consequential, or punitive damages arising from using or accessing this content.

This content does not constitute an offer to buy or sell securities, make specific investments, or take other financial actions. Always consult a financial advisor or wealth management professional before making any investment decisions.

While I strive to ensure the information on this channel is accurate and up-to-date, it is provided "as is" without warranties or guarantees of any kind.

Comments reflect the views of the public and do not necessarily represent my own.

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Видео How to Leverage Debt in Real Estate & Avoid Loan Pitfalls | Ep 67 канала James Furlo | Furlo Capital