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How to Turn a 'No' into a 'Yes': Real Estate Negotiation Secrets | Ep 28

James and Jessi shrugging shoulders
In this episode, we take a surprise turn and cover the dynamics of negotiation, illustrated by a humorous anecdote about Jessi’s interactions with door-to-door salespeople. We delve into the psychology of persuasion and consistency, share real-world examples from our investing experiences, and highlight the importance of building rapport and trust in successful negotiations.

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Show Notes

  • 00:00 Introduction & The Art of Negotiation: Personal Stories
  • 02:44 Psychological Tactics in Sales
  • 08:12 Comparing Sales Approaches
  • 14:50 Building Trust and Social Proof
  • 17:26 Respecting Boundaries in Sales
  • 20:36 The Art of Negotiation

Key Lessons

  1. Build rapport first, sell second: Engage your customers genuinely by asking open-ended questions and showing real interest in their lives, rather than jumping straight into your sales pitch. Show them that they’re more valued than your product.
  2. Respect the ‘no’ and read the room: If someone is showing signs of disinterest or discomfort, respect their boundaries and gracefully exit the conversation. Pushing too hard can damage your relationship and reputation.
  3. Listen more than you speak: Allow your customer to talk about their needs and preferences. By listening more, you can tailor your pitch to address their specific concerns, making your offer more appealing.
  4. Play the long game: Sometimes, walking away from a deal today can lead to a better opportunity tomorrow. Prioritize long-term relationships over short-term gains.
  5. Be transparent about your motives: Make it clear that your primary goal is to help, not just to sell. Whether they buy from you or not, offering genuine assistance builds credibility and goodwill.
  6. Have fun with it: Approach negotiations and sales with a sense of play and creativity. Enjoy the process of finding a mutually beneficial solution, and let your enthusiasm show. This positive energy can be contagious and engaging.

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Read the Transcript

James: Welcome to the Furlo Capital Real Estate Podcast, where we dive into the intricacies of passive real estate investing. And our mission is to equip people to invest wisely in both property and people so that together we can build wealth while improve housing. My name is James and this is my wife, Jessi,

Hi. Hey.

Jessi: Still. Here.

James: What's up?

Jessi: Jessi.Yeah, I am not a negotiator.

James: You're not a negotiator.

Jessi: Yeah. What? Say

James: that, I'm glad that you are a

Jessi: negotiator. Well, every once in a while we have like door to door salespeople. Ah, show up at our house. Yes. I

James: love it when they show up up. I

Jessi: know you love it. 'cause you're like, yeah, gimme your pitch.

Let, let's practice, let's talk. Yeah. Like you have no qualms about saying no

James: or spending 20 minutes with 'em.

Jessi: Yeah, and I'm just like, oh, this feels so bad. Like, I know they're just. Trying to make a living. Yeah, so this book salesperson came to our door last year I totally invited her in and you were like, oh, that's right.

Hey, didn't

James: she have dinner with us? She

Jessi: totally had dinner with us. I ended up buying this set of books for our kids, which the books are super cool Yeah, but I was like, ah, I don't really want to buy the books like but now I feel bad and Jessi.So Yeah, yeah. Different girl. But same books. Yeah, yeah. Same company.

James: Oh, dude, you're a hot marketing. Man, I was like,

Jessi: Well, we got like kid stuff out in the yard. So she's like, I saw the kid stuff out in your yard. You got kids? And we saw how

James: much you spent last

Jessi: year. Right? I'm just like, Jessi.And so, I was like, I was trying all these excuses. I had them ready. I was just like, I'm gonna do this.

Let me hear, like,

James: what was one of your

Jessi: excuses? Come

James: on, give me your negotiation style.

Jessi: I know, it's probably so bad. Would you

James: like to buy a book?

Jessi: And I was like, What'd

James: you say? Well,

Jessi: you know, I don't think we're interested right now. She was like, well,

James: That seems pretty straightforward.

Jessi: Right? She was like, well, tell me a little bit about your kids.

And I was like, okay. Why?

James: Well classic move. You just ignore their initial objection. I

Jessi: don't want the books .

James: So I do that. When people tell me I'm not really interested in any sort of creative deal,

Jessi: Uhhuh, ,

James: you just totally ignore it and keep going. That is, it's so annoying. No, no. That is like, that's negotiation persuasion tactic 1 0 1.

I wouldn't quite

Jessi: know what to do without being rude. There you go. So I was like, see, see you play along. They're seven, nine, you know? That's amazing. She was like, what do they like to study? You know? You're learning so much. Oh my gosh. Like, oh my Dar Legg's history and. My son really just wants to play soccer.

I don't know. She was just like, oh, that's great. We have history in sports books. Yeah. She was like, oh, we've got all these tie ins and this and that. And then she was like, well, can, and I like the whole time I was like, yeah, I know. Yep. I hear you. Your books are great. We love the set that we got. We don't need anymore.

James: Okay.

Jessi: And she's just like, Okay, well, would you at least be willing to like write your name down as like a we like these books? Oh,

James: that's amazing. So this is another like, oh my gosh What you do is you get people to commit to a small right and then later they do it So they did a they did a study on this actually where Jessi.Oh gosh, how did it work?

They were trying to raise money ForJessi. This was in the bookJessi. PersuasionJessi. Influenced Uhhuh by Robert. These things kini, these drive me nuts. AndJessi. Oh man, I can't remember. I, I read this book. I seriously read this book like 30 years ago, so it's been a while, but 30 years when you were like 10. Oh,

Jessi: oh, we're old.

James: No, no. Lemme think about this. Like, maybe it was you

Jessi: were like five. Apparently. I still think we're 35. No, I mean,

James: I was, Jessi.Hmm. How old was I? Okay, 20 years ago. Because I had just, 22, 23 years ago, because I had just graduated high school. So.

Jessi: Man, we're old.

James: Yeah. Alright, so not 30. Okay. Anyways. That's not the point.

Jessi: When

James: you were a baby. When I was a baby. When I was, when I was in middle school. Okay. Anyways. Oh man. Anyways. So they did this study where they were trying to raise money, I think I'm gonna get this right. But they were trying to raise money for. Jessi.LikeJessi. Child safety programs or some, something to that effect.

I can't remember exactly. But, so they, they do split studies, right? So in one, they just went around neighborhoods and they just asked, Would you like to donate for this, whatever, this charity thing? And you know, and they got a very hit of like, you know, whatever, 20 percent response, right? Nothing big. And so then what they did is they did another study where first they had someone go around saying, Hey, would you be willing to put this sign in your yard that says, I think child safety is important.

And that was all they did. And a bunch of people were like, sure, I'll do it. And then it was like a week later, they went back and said, they gave that exact same pitch as the first group of like, Hey, we're raising money for this. And it was something ridiculous. 60, 80 percent of the people said, yeah, sure, I'm in.

Well, so what they talk about is first you get people to commit to a very small thing, and then they want to be internally consistent. And so then they, so then they'll give to something else, right? And so what they talk about in persuasion is start with getting something, getting them to agree with something small, and then you can logic it through.

In the book, he gives a very crazy, sad example of POWs and I think it was North Korea, right? We fought them at one point, right? Mm-Hmm. . I know my war historyJessi. I'm not a guy apparently guys study wars and I am. Not that way, but anyways. But what they would do with the POWs, is they would first get them to say, Is America perfect?

And they'd go, Well, no, America's not perfect.

Jessi: And then they'd

James: go, Well, tell me more. And they would walk them all the way to the point where they would be denouncing, free of will, the United States on camera. And it was just this natural progression where they would just trade on you wanting to be internally consistent.


Jessi: That's why I don't like this stuff. Negotiation and tactics. I don't,

James: I don't necessarily do that when I'm talking to people. I'm not doing it on purpose. I'm not, yeah. I mean, I might subconsciously, but I'm not doing it. Usually you have the other

Jessi: person's best interest in mind. It's like, you're not just trying to make a sale.

James: You will appeal to higher callings. Like, I'm trying to think. I don't know if I use that one, but no, that's a pretty classic.

Jessi: Oh yeah.

James: Tactic. So I was like, sure, yeah. Do you believe your health is important? I love the set of books that I bought. Yeah.

Jessi: Yeah. I'll write that down. Yeah. To which then, she looked at my information and was like, oh, you work with kids, because it had, it asked your job.

Oh, man. Didn't ask for any contact information, because I was like, eh, what does this ask? And I was like, sure, whatever. I'll put that down.

James: Oh, they're smart. They've done their research. Oh, they

Jessi: totally have. And so she was like, oh, do you know, like, we have these other books. I'm super excited to find out the conclusion on

James: how much you bought.

Jessi: I bought nothing. What? I bought nothing. Dude. Look at you. Because I was like. I really don't want your book. Wow. Like, I'm sorry. Did it help that we pulled up

James: at one

Jessi: point in time? It absolutely helped. Because I, I told, that was one of my other things. I was like, you know, I'd, I'd love to sit down and talk with you.

My daughter's on her way home. We gotta go to a piano lesson. It's like, I'm busy. Yeah. I can't do this right now. And she was like, oh, I can come back later. And I was like, no. I'm not interested. You know, and then you pulled up and I was like, see, you know, my daughter's here. She kept trying to talk

James: to me.

So did I catch you at the end where she was asking for referrals?

Jessi: Yeah.

James: Which is another gist. Ugh.

Jessi: Gist is like, she was like, okay, well let me just pull up my map. Oh, you're saving me a lot of time if you just tell me like, you know, in your neighborhood, Who's got kids and this and that. And I was just like,

James: which now she's going to, now she went to every single one of them and said, Hey, I was talking with Jesse earlier and she said that you would find these books valuable.

And so she used you as social proof, which is another, Oh my gosh. Wow, man. They like, right. That's so, whichJessi.

Jessi: Is it bad that I just picked a couple of random houses? I was like, yeah, I think they have kids. I don't know. I think a couple of those, just

James: random houses. Well,

Jessi: it's rude. Like, I don't,

James: you're just like, I

Jessi: don't like her talking with me and like trying to pressure me into buying these things.

Like, come on, stop pulling my heartstrings.

James: Okay. So I still love my kids. I'm not going to buy your books. So this is awesome. We're going to like, I'm just, I'm air launching the topic. I wanted to talk about, this is so fascinating.

Jessi: Jessi.Yeah, this

James: is super interesting. So. This is so cool. Jessi.So I'm trying to think, I'm trying to figure out the best way to do this.

So, okay. So obviously I get to do some of that with real estate. So what, I'm just curious, what, did she do anything that you liked where you went, Oh, that was cool. I felt like you weren't being sold to, but actually like listened toJessi.

Jessi: Maybe her intro.

James: Okay. What was that? Like

Jessi: she introduced herself.

James: Okay.

That's standard.

Jessi: AndJessi. Oh,

James: this is your way of saying I didn't like any of it. Is that what's happening? Yeah. Okay. I mean, if

Jessi: I can recognize that she's like trying to push me into a sale, I don't like it.

James: Oh, really? Okay. And

Jessi: perhaps if she had done it, like, like the girl last year, at the very least, didn't seem like she was trying to sell me.

At points she did, but for the majority of it, like she was just like, Hey, like I'm from such and such a company. Like. She noticed we had kids because both the kids ran to the door with me. So I guess it was slightly different, you know, and she was just like, Hey, what's your name? You know? And I just got to know us,

James: you

Jessi: know?

And she was like, and Elinor, you know, was like, you don't. Like you speak English, but you sound different. Where are you from? You know, and they start talking about language and the girl was like, yeah, I speak Russian. Like, here's, here's how to write your name. Like, how do you write your name? You know? So they got, they like had a bond.

She built

James: rapport. She did. She built a lot

Jessi: more rapport than this particular girl.

James: Okay.

Jessi: This, this girl was like, you could tell she was tired. You could tell she just wanted to sail. We all

James: rolled up at four o'clock in the afternoon. It was hot. It was

Jessi: hot. And, and she, she even said, yeah, she was on a bike and she even said like, I just, I've stopped at several different houses and it's like, there's older people who are empty nesters and nobody wants to buy anything, which I don't know, maybe that was a tactic too, but maybe she was discouraged.

I don't know.

James: That's typically not, I don't know if she's like, outside of just stating the obvious, nobody

Jessi: else is buying anything. Like, how about you guilting me? I don't know.

James: Interesting. Okay. So, so tactic was come in, build rapport, which is classic. That's the thing you want to do. You want to find points of interest that are the same as you.

Yeah. And so you got to play that, which honestly is good to do, like just in lifeJessi. Where you find, okay, here's things that we share in common and you got to play the conversation volleyball game. You ask something. I can't just barrage you with questions. Yeah. I got to share a little bit about myself.

Right. And then let you give you a chance. Got it. Yeah. And comparing

Jessi: the two. She, the first girl, let's call her K, and let's call this other girl J,

James: I don't know why. Can we do letters that don't sound the same?

Jessi: Oh, K and

James: Y. Okay. How about K and A? I just want to

Jessi: give them a name so I'm not like the first girl and the second girl.

Okay, so K, like, she spent a lot more time listening.

James: Oh, interesting. Like, like,

Jessi: relative to the whole conversation. When you say a

James: lot, like, what are we talking? Jessi.Like, obviously she was over for dinner, so she was there for

Jessi: dinner, yeah. Even in the first five minutes of our conversation, Okay. She was very good at asking pointed questions, Okay.

and then waiting. You know, so she would say something like, Like what's a

James: pointed question?

Jessi: Jessi.Like a lot more specific. So it wasn't just like, Oh, I see you have kids. It was more like, Tell me a little bit about your kids. Cause she knew we had them. Yeah, yeah, yeah. You know? They

James: were open ended types of questions.

Jessi: Yeah. Okay. And so it was like, Oh, okay. Like, yeah, they're, they're here and they're, this is what they do and, you know, and so she would, she wouldJessi. Invite me into conversation and then she wouldn't just jump on the next thing. She wouldn't,

James: yeah.

Jessi: You know, this, this girl, why would, like, she would hear something and be like, oh, you know, we have a book for that.

Oh, interesting. She's just, oh my

James: gosh. So we'll do that. I don't care. Interesting. So like, when we're making phone calls. Oftentimes we'll start open ended. It's kind of weird. Like when you're doing a cold call, you kind of got to get to it, but you'll say something like, HeyJessi. Your name popped up, your name or property popped up on my list.

Jessi.Just kind of wondering what's going on. And which is kind of, you leave it as an open ended, let them, cause they know. And he's like, well, I'm in foreclosure. This is going on. Jessi.That's interesting when we're touring a property and the owner's there. You'll ask questions. Oh, what do you like about the house or like, you know, I don't know, you'll try to just ask questions.

Be interested in that person. Jessi.And yeah, I usually, I always feel like I wait just a little long before we get down to business. But then there's definitely a transition of like, okay, we've just been talking. I've been kind of like. Taking it all in. Yeah. Just kind of learning who you are sharing a little bit about me.

And then it gets to a point. And usually like, again, we're doing a tour. So there's some walking around that happens just kind of idle chit chat. We'll ask questions about the house. Oh, what's this going? What happened here? Whatever. And then there's a turning point where it's like, okay, now I've, I've learned about you now I get to the pitch and the offer, but which it sounds like the first, the first

Jessi: girl did that.

Yeah. K did that. Well, but

James: why just jumped in too soon?

Jessi: Yeah.

James: Okay, then you just weren't in the mood to buy. Which

Jessi: Which with the first girl I wasn't necessarily either.

James: No, I don't think so.

Jessi: I mean, initially, on some level I did kind of get like, in my mind I was thinking like, yeah, okay, I can invite her in and still not buy something.

But the more, the longer it went on, the longer it was, it was like that thing where you're like, oh, I'm, I'm walking closer and closer to this, like, realization here that like, okay, these books actually are good. And maybe I do want to buy them. And yeah, it's

James: like, I'm, this is totally not related, but I was sharing with you last night.

I didn't sleep well. And that was because, so our dog sleeps in our bed. Yep. Get over it. And he's awesome. He's a dachshund. So we got plenty of space usually, but he picked a spot and, and it was one of those where at the Time, like, he took most of my blankets, but I still had a little bit of slipper, but it was hot out, and so I was like, Ah, it's fine, I don't need a lot of blankets, and then it eventually got cold, but I have this internal in my thing where I'm like, I've got like a five minute time period where I don't mind booting him out and being like, dude, get off my stuff, but if I lay down and I stay there, there comes a point in time where I've like, I have tacitly said, It's okay for you to be there.

And I don't, for my stinking dog, feel right to just kick him out at like three in the morning when I'm cold, and he's just like, I'm loving life. Right?

Jessi: Yeah, just, it would have felt bad to, yeah, to be like. It's almost like when

James: you forget someone's name, there's a point where you're like, I have no way to do it, I can't

Jessi: ask.

You can't ask, yeah.

James: Okay, so for me the trick is how do I get them to invest a ridiculous amount of time with me? So they feel like they have to accept my offer. Well, it

Jessi: is related to some of the things that you do because it's like they're not necessarily spending time with you in person I mean in those scenarios it is because I don't have multiple interactions with them, but it's like Well, if you're I'm thinking of like an investor an investor builds a lot more with you and looks into what you do and maybe listens to these and gets to know you a little bit more before they give you money.

Jessi.But I suppose you could use similar information with a seller to be like, you know, thought

James: about that.

Jessi: Yeah. Like

James: one of the things that we've thought about doing, and this gets kind of the social proof aspect of it, is for some of those successful deals, Right. Right. A little highlight. And not just saying, Hey, here's how much money would be on this property, but actually focusing on here's how we helped this homeowner to kind of build some of that social proof so that they can get to know us.

Hey, I'm just talking and have some sort of takeaway that they can take home and study, read, maybe share with people, just some sort of handout. That's something that we've been, that we would include with our offer. That kind of makes sense. So it's not just, here's the business piece.

Jessi: Yeah. Cause like you, you do have to build a little bit of trust.

James: Yeah. You know, if, if they feel

Jessi: like you're just coming in and trying to make money off them, like that doesn't feel good. Yeah,

James: no, totally. You have to genuinely feel like, you know, They need to know that my goal is to help them. Yeah. Which is like when we're dealing with someone through foreclosure, I actually have a conversation where we talk through eight different options that they have.

And I tell them some of these have nothing to do with me. I don't make any money, but my goal is to stop the foreclosure, not to buy your house. If it makes sense for me to buy it. Awesome. Cool. I'm here to help. Yeah. But if it doesn't make sense. Awesome, cool. I'm here to help. Let's get you to a better spot.

That's what I Try to communicate. And maybe that's like, for these, you can see the same thing. I'm like, I think books are important. I think everybody should read. I think you should buy books. If you can buy them from us, because we've got books you want, awesome, cool. But, if you've already got a source of places for books, awesome, cool.

I'd still like to show you what we have, because I think they're pretty sweet, and we may have something that the library just doesn't always have in stock, or something, I don't know. And I think an approach like that could be interesting. It's that mindset of I'm here to help. I'm right. I'm not just trying to make a sale.

I'm really trying to figure out what are your needs and do we have something that can take you to that next step or not? I

Jessi: think the last piece that I'm just like, Oh my gosh, you have to do this. Well,

James: okay.

Jessi: It's like, if they are giving you the vibes that they are like, no, I am not interested. I do not want to do this with you.

James: Like

Jessi: you, You have to read that well and respect it. Yeah. Like, that was so annoying today. Mm. When I was like, my, my family is literally walking up to the house. I can't even greet them. Well, because you are right here and you're, you keep pushing and you're like, oh, just, just gimme a minute. Just one more minute.

Yeah, that's

James: right. I did have trouble getting, I was like, excuse me. And

Jessi: I was like, oh my gosh. Like, can you not read the room? We're done. We are done with this conversation, you know?

James: Yeah. We've done somewhere. We've done cold calls on people and you call them up and, and they're like, no, I'm working with this other organization.

We're getting taken care of. And I remember we were training a new guy and watching him do it. And he's awesome. It's going to be great. ButJessi. That happened to him when he made the phone call. And, and there's a little bit of like, Cool. Totally got that. Would love to give you our contact information, just in case.

Here's you can get ahold of us. Here's where you can call. Here's what like started giving the pitch and, and I definitely was like the right response here was like, awesome. I am so happy that this is going well for you. If whatever reason doesn't work out, you got my number, but man, this is great. Happy for you.

Jessi: Yeah.

James: And just, just walk away. Yeah, it's like the same result, but it's delivered differently. Yeah, and I could potentially see, like a month from now, following up just, hey, just wanted to double check that that all worked out. Yeah. And if they go, yeah, it did. You go, sweet. Awesome. Awesome. Glad to hear it.

Congrats. That's great. Like, I could see something like that. Yeah. But, and, and, like, I get it. Like, we had a script that we had given him, and he was working through it. And so that's on us. Like, we didn't train well. AndJessi. And so that's something we're like, okay, we can, we can do better aboutJessi. Helping you see those different decision points, but no, that's a good point.

You got to like, yeah, read, which I mean, like, that's just being a good human,

Jessi: figuring out

James: where they're at emotionally and reacting appropriately to that.

Jessi: And being willing to walk away, you know, to say the sale is not the end goal. Like,

James: yeah, which I agree.

Jessi: I, yeah, I would rather, the sale is nice if, if this is a mutual agreement that is going to work out.

But if I'm pressuring you and this is not comfortable.

James: we've got, we've got another deal that we're working through. We actually, we talk about aspects of it in a previous podcast and there's just some weirdness going on with it in terms of there's some people that he owes money to. And, and one of the things that I've talked about is I said, look, once we actually figure out, what the amount is that he owes and all of that.

Like we need to loop back to him and go, are you still cool with this? Cause technically he's in a contract. There's nothing he can do. Like, you know, he has to do it, but I'm also like, I don't, yeah, I don't want to be in that position of like, Hey man, you signed the document and we gave you a hundred dollars earnest money down.

Like you're committed.

Jessi: And it's like,

James: no, I want him to feel good about it. Cause for all, for all the reasons around it, right. I want him to, if he's ever talking to someone or whatever, like, yeah, no, they treated me well, treated me fairly. Yeah. And I want that. And yeah, just for all sorts of reasons, that's the right thing to do.

Jessi: I'm super interested. LikeJessi. I know you like negotiations and like the, like, my first question is why, because it's so uncomfortable. But my second question is like, do you like.Jessi.Like the hard sale type of tactic or, you know, like the sales, the thing, you've, you're going to go and go and go until you get it.

James: Hmm.Jessi.

Jessi: It might, those might be related,

James: but yeah, it depends on the situation. I, I'm a competitive person. Let's start with that. Yes. And if the, if I sense. That, that other person is trying to negotiate. Like I go, cool game on, like, I'm willing to play. That's why like games like monopoly monopoly where like negotiating is built into it.

I'm like, yeah, like let's like, Okay, cool. And for me, it's just a game. Like, I don't care necessarily. I, it's funny. I've, I'll sometimes pass a car and get one car ahead of them. And I've had you be like, what the heck? We're not getting any faster. I'm like, I know, but now I'm a car ahead of them. Like, it's just fun.

Not necessarily safe driving tactics, but it's fun. And I think negotiations, that same thing. Like if I notice someone's coming in and saying like, Oh, well, we actually want this, which is like when I, when we are talking to a lot of other investors, They often get into negotiation modes like, okay, yeah, dude, let's do this.

And, and I, I do enjoy that part in the, the science and the psychology behind like, okay, if I, if I asked for 85 percent and then I can move up to 92 percent and like, I enjoy trying to think through what would get them to, to budge or. We're thinking through what's something else I can throw in the mix that they weren't even thinking about.

Yeah, I get that. We're talking about price and I'm willing to bet on the price if you give me this other thing in terms of like closing dates or just do a fix or whatever. Yeah. Right. I enjoy it. I'm

Jessi: willing to be quite flexible. Yes. Quite

James: flexible. Creative, creative.

Jessi: Yeah.

James: Yeah. And soJessi. So I would do that a lot.

But if I've got someone who. And the other thing, too, is like, I've got spreadsheets. I'm doing all my underwriting. I know what my max number is. Mm hmm. And I just don't go above it. Yeah. And, and my max number is usually lower than what they want anyways. And so that also just gives me the like, well, I'm not gonna buy it for what they want.

Mm hmm. So at this point, I've already got their no. All I can do is win a yes. So I might as well go for it. That's a good attitude. And, and soJessi. Yeah. So like there's this other house that we're looking at and this will be a future podcast because it's not this one now, butJessi. Yeah, they were asking a lot more than what we could afford to pay.

And I was like, all right, I don't care. I'll make the lower offer. I think that's part of it too. If they're not a big negotiator, I mean, in all cases, I'm starting with like, well, what do they actually want out of this? So it's not just brass tacks. What are the funds? Unless again, there's some investors where that's what it's all about.

They want to increase their investment amount or their return. And so, yeah. Okay. I guess we'll have to just get down to it, but oftentimes there's other motivations that are there and I enjoy the process of uncovering those and then crafting something that gets me the low price while still getting what it is that they want.

Interesting. I enjoy. So in my case, it's like, it's a creative, Mm hmm. thing, but there's definitely some competitiveness there. And I tend to push the bounds on what I think they'll accept. Like our very first place, right? Like we looked at it and I said, Oh, the 30, 000 overpriced. And then eventually they dropped their price by 30, 000.

And that's where I walked in and went, well, we offered them 30, 000 even less. And that was cause I was like, well, in their head, they've already decided that 30, 000 is an acceptable amount. Like that is a number that. That they're okay with. So let's throw that back at them and see just how okay with it.

They are. And that was where they came back and went, dude, you got to come up 15 grand. Sweet. You know, I was happy with that. And for me, I'm like, that was a win. I would have been totally okay with their other number. Like that was fine. I was just like, let's see what happens. Like, that's cool. Cause worst case scenario, they say no.

And I go, okay, fine. I'll give you the price that you want. And now I was just made the offer at the 30, 000 wouldn't wait six months, but whatever. Jessi.Yeah. Yeah. So I, I don't know, does that kinda answer the question? Mm-Hmm. how I think about it.

Jessi: I think so,

James: but it's, which

Jessi: makes me, I'm competitive and creative

James: and

Jessi: I, I think if, if that is what is like exuding from your conversations, like, I generally wanna help you and then like, interested in getting you what you want, you know?

Yeah. Fully realizing like there might be some trade offs 'cause I might not be able to afford that, you know? That, that is, it's a different conversation, I think, than just you getting what you want. And that's the difference between K and Y.

James: You know, it's like

Jessi: K very much was like, what's going to be helpful to you?

James: I also, one of the quotes that I love is the deal of a lifetime comes once a week. And I don't necessarily take that literally, but the idea of, man, there's always something out there. It's okay to say no to all of them. I mean that honestly, that was why when we first got started, we were buying a house every other year because it would take me 24 months to find that next one.

Yeah. And I was okay with that because I had very strict criteria and we're going faster now, but that's just the nature of the investments, a little bit different and capital's different. And the way I'm underwriting is different, you know, all that stuff. But like, I'm still like for this one house that we're looking at, like, I'm not going to give them what they want.

They can't have it. Like I cannot afford to do a deal. So I'm going to work. Yeah. Jessi.So I may have to pass on it and that's okay. And there's been a few others that I've passed on. Okay. Yeah. I don't know. I just, it's fun. I'm competitive. And so that's fun. And I like the idea of somewhere in there is a creative deal that just it, it, the shape fits the hole and, and it's fun trying to figure out what that is.

And honestly, 80 percent of the time, like I don't find the shape and. It's okay. I Move on. Do another one. That's fun for me. I make sure to tell them why their hole is the wrong shape, but

that got weird no, you know, just, I enjoy like being like, here's why this doesn't work and, and just kind of like, here's my line in the sand. Here's what it's worth. And man, I've been shocked. There's been a few times where I do that. We're like, they come back. It's just flat out. No. All right. Well, here's why this doesn't work.

Yeah. And there has been more than one occasion where they go, oh, okay. Yeah. Yeah. All right, let's do it. Which is cool. Well, that works. Can you explain your reasoning? And pardon me for that, but at the time, I don't care anymore. I figured I lost the deal. So, I was just telling them. Yeah. Yeah. Well, that was super interesting.

Yeah. That was not at all where I thought that was going, but just kind of a fun. Yeah,

Jessi: it's kind of cool to hear that, like, your job, you like your job. And it fits you really well.

James: Yeah, yeah. I'm not selling textbooks, but, you know, in some waysJessi. Or just books in general. Yeah. No, I'm trying to buy houses.


Jessi: Yeah.

James: Yeah, and then sell it to investors as well. Here's why this is Similar kinds

Jessi: of tactics, but slightly different. I've learned, though, like,

James: selling to investors is pretty easy. Because I'm like, hey, want to make some money?

Jessi: Right.

James: Like,

Jessi: Yeah, as long as you can show them how they're going to do that.

And so the

James: entire pitch is, you can trust me when I say you will make money. Like, that's the pitch, which is where things like this come in. Come in, building credibility is super important, but yeah, no, that's super interesting. Wow. All right, cool. I have no idea how the show notes are going to work on this one, but that's okay.

I'll figure it out. Oh, that was awesome. So if you enjoyed this podcast, I'm really kind of interested to know if you doJessi. I would appreciate if wherever it is that you listen, you leave a review just to let us know. And if you want to learn more about investing with us, you can do that at

And man, just thanks for listening. Have a great day. Should have said something like,

Jessi: if you want to buy some books, I know who you could talk to.

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Furlo Capital Podcast

Furlo Capital
Real Estate Podcast

A conversational podcast between James and Jessi Furlo that dives into the intricacies of passive real estate investing. Our mission is to equip people to invest wisely in both property and residents so that, together, we can build wealth and improve housing.

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Let's build your wealth and improve housing, together

Passive Income

Tenants pay monthly rent, which covers expenses and generates a profit for investors. Plus, multifamilies appreciate and usually sell for a significant profit.

Consistent Above-Average Returns

Real estate is less volatile and historically outperformed the S&P 500 by routinely generating average annual returns of at least 10% after fees, inflation, and taxes.

Revitalize Local Communities

We give people a great, safe place to call home. This doesn’t hit the spreadsheet, but every property is managed and maintained with the residents as a top priority.

Extraordinary Tax Benefits

Your income is taxed much lower because of depreciation and because it’s taxed at a lower capital gains rate.

Below-Average Risk

More units mean less vacancy sensitivity. Plus, costs are distributed across a larger number of units, which also allows us to hire a professional property manager.


Unlike stocks, lenders like to finance multifamilies and the loans are tied to the property, not the person. This accelerates wealth building.