Christian Osgood is not the hero I wanted but the hero I did not need spamming my newsfeed asking me to attend his Multifamily Strategy webinar.
Always with his backwards hat and patchy beard and one eyebrow raised up like The Rock.
Always going on about how single-family homes are about as enticing as a loaded diaper compared to multifamily. Right?
But is that really accurate?
‘Cause begging investors to pour money into a sketchy old motel crawling with bed bugs and bullet holes, then sinking cash into renovations, managing tenants, and waiting 30 years to see a return doesn’t sound all that great, either.
Guess I’ll let Christian make his case.
He says it took him eight years just to buy two duplexes.
He realized: Holy shit, this ain’t working. I gotta go way bigger if I’m gonna retire me and my wife in the next year or two.
So the next deal he did was 38 units.
It cost $2 million. Sat on the market for 13 years. Bad roof, septic issues, plus they were way behind on collections. But the price was right.
Anyone coulda bought it – no magic here.
You can literally just log online, look around for deals that’re listed, and start calling ’em up.
That’s all Christian did for this particular deal.
He got to know the owners. They told him they were stressed out, ready to retire, and just needed $10,000 per month to do so.
So they wrote up a seller financing agreement that promised ’em exactly that.
Rounded up some equity partners.
Then, after taking over, they got the collections on that property up to $27,000 a month. Enough to pay the expenses, the mortgage, the owners their $10k, and still have a little left over for the investors. Right?
Moral of the story: find the opportunity first.
You can always work backwards to figure out the money.
Which is precisely how Christian added a resort, an RV park, and now more than 200 multifamily rentals to his portfolio.
Again, all starting with no money and a ton of creative financing.
In addition to private equity partners, Christian’s used private money lenders, midterm loans, traditional financing – the list goes on.
Sometimes they’ll have set buyouts because the goal is always to own as much real estate as possible.
But the pattern’s always: deal, then debt, then equity.
Or, if you don’t need the equity partners, it’s just: deal, debt, done. Right?
But if you get into this flow, all the sudden your deals become very simple, Christian explains. The money becomes very simple. The type of deal you have tells you how you need to structure your capital.
Hmm. I still don’t get how you know when you have a deal in the first place.
It’s when two things are true, Christian says:
- You have to be able to buy it. So, is it purchasable? Can you structure something in your mind that would make the deal work for all parties involved?
- You must be able to hold it for as long as you want. You can’t get squeezed out. You want long-term, cash-flowing, fixed-rate debt.
Riiight. Got it. I think.
Now.
If you wanna go deep – so deep, put that ass to sleep – on this stuff, Christian’s got you.
MultifamilyStrategy.com sells courses and coaching programs for everybody and every budget.
So what’s my conclusion?
Well, Christian won me over. Easily one of the least douchey real estate gurus I’ve reviewed in a while.
But when it comes to multifamily, I’m far from sold.
In fact, I feel like a deer… caught in the headlights of overwhelm.