Speaker 1: Then all you have to do is just figure out
the last little bit I found to keep it in
that order. That's the psychological difference between being able to
buy a little bit of real estate or build a
dollar by dollar, or just go like, Okay, let's find
the opportunity first and tailor the money to it. And
all of a sudden, the Papa raised it became very
easy sell. Our financing became pretty intuitive, just because we
just swapped the order.
Speaker 2: You are listening to Carrie Let's Financial Survival Network, where
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Speaker 1: And welcome.
Speaker 3: You are listening to and watching the Financial Survival Network.
I'm your host, Carrie Let's. Well, you know I love
entrepreneurial success stories. You know the is it all saying?
You know you can tell any story you want in
Hollywood as long as it has a happy ending. Well,
happy endings happen in life too. Christian osgood is with me? Now?
Christian you went from managing just two units to thirty
eight in a matter of weeks, and you kind of
never stopped. Now you're taking a breath, you're moving your home,
You've accomplished your goals.
Speaker 1: Hey, let's hear your story. Thanks for me. I love
getting the shore. This strike's been It's been a little
bit unusual, and I'm not a fan of real estate
being get rid quick, but a lot of the adventure
after eight years of building happened in a relatively short
period of time. So I am very excited to get
to share some of the journey here with everyone. Hey.
Speaker 3: So, yeah, two units and you said, gee, this real
estate thing is good. I want to do more. But
you know a lot of people too. How did you
make the transition? So I had I'd always wanted to
own real estate as long as I can remember.
Speaker 1: I remember being a kid looking around and just having
the realization every single building someone else owns, like there
is a there's an owner for every single building, So
there must be a way to play this game. I
remember having that thought in like high school. Fast forward
through college. My first job, second job, third job, I
was told you have to save by real estate, and
that's what they did. I had an eight year career.
I bought a single family live and flip, did the
house hack thing that I learned on Bigger Pockets. So
had a roommate, picked up the condo, sold it for
a pretty good profit. Eventually bought two duplexis, so I
got the four units. I married my wife. The two
units cash flow to total or sorry, the four units
two rentals cash float about two thousand dollars a month,
which is the same as my mortgage in my little
house in the rents and Washington. So my real estate
was paying for my real estate, which felt pretty good
until I looked back at my goals and I was like,
wait a second, it's cool that my rentals paying my mortgage,
but that took eight years. I don't know that I
want to wait another eight years. Do you have another
two thousand dollars a month in cash flow? If the
goal is financial freedom, the goal is retiring the wife,
I have to find a way to accelerate this. Around
that time, that's when COVID nineteen hits, so we had
all the businesses decided to shut down, and it was
a great time to actually sit at home and think,
what do I actually want to do and how would
I strategize. I've found a company in Cooma, Washington that
I worked out, and while my boss there was a
I'm quite honestly a terrible business person. I mean he
was not good. He was very good at creative finance.
He was good at buying properties and then shortly after
losing them. He could buy anything, he could raise money
for anything, did not do the math on how to
keep it. So I built my entire business off the
principle how would I buy it and how do I
never lose it? The answer to all cuts into the
chase that the answer is long term cash flowing picture
ate debt. Like that's what I came up with. I'm like,
if you can fixture variables and your property pays you
to wait, and you own anything for a long period
of time, it will make money. So I watched this
guy buy all this stuff, like my boy, he could
just hold it all, he would be rich. So let's
come up with a path to do that, which ended
up being actually fairly simple. First significant deal I did
was a thirty eight lex. I had a business partner
at the time, Cody Davis, my first ever business partner,
one of many over the years, and he had figured
out some of the sellar financing stuff he had. At
the time, he was twenty one years old with thirty
rental property and I looked at that at the time
being twenty nine and said, hey, wait, second, you have
no income. You'd only had one job. By the way,
he'd worked a Safeway forbably twenty four minutes, and I
was like, this is not for me. So he had
had basically no job, no income, and had found a
way to acquire and hold thirty rental units two twelve plexes,
one six. When I was interviewing him as one of
my first owner meetings, so how did you build what
you built? He's like, well, I just found like we
all we have to do is figure out where they
bash alone and just walk into terms like well, how
would I get thirty units by thirty if I'm twenty
nine And he's like, well, I don't know that I
can help you because I need to take out a
thirty eight un building and I've wanted to take this
out forever. I need a partner to share the work with.
What if we partnered and took out us thirty eight together?
And so that was the first deal we did sell
our finance so cool five percent financed by the seller.
So day one starting our deal was eighty five percent funded.
All we had to do is go, okay, we found
a building that we want to buy. We think we
can make this cash flow. It is going to be
a project. Mean you guys who can work on this
basically full time. And it's already eighty five percent funded.
We just have to find fifteen percent of the money.
I think we can do this, And so we put
it on a contract in a way we went.
Speaker 3: That's an incredible story. So then you said, hey, this
is this is nice. Let's do it again. So it
became like a wash lance repeat right more or less,
and every deal is a little bit unique. You have
to figure out what is the deal, what's the actual opportunity,
what debt options are available? Again, that's how we got
an eighty five percent funded. I'm like, okay, well we're
already five percent done.
Speaker 1: And then if you need to raise additional capital, you
just figure out the equity piece last. It always goes
to that order deal debt equity. I see a lot
of people try to figure out the money first, especially
when you don't have any Yeah, That's really what I
think I got stumped on for a lot of years
is I don't have the money, so I can't look
at the deals, right, Yeah, that's only I think of it.
I think I bought and sold real estate.
Speaker 3: Some of my best to wind falls in life have
come from real estate, residential and non residential. Lost money
on a few but not a lot, and done flips.
But the idea of like owner financing to find these
deals has always eluded me.
Speaker 1: It's one of the It's kind of like anything else
in real estate. I feel like there's always something that
people are like, oh, well, there's this one piece that
I haven't found yet. You get good at whatever you practice, right.
And when I went around, I interviewed, just like I
did with with Cody Davis, the twenty one year old,
I interviewed every single owner as an owner, not as
a seller. And so I met all of these donners.
And when I asked a bunch of people how they
built their business, a really common thread that I found
in the cities that I was asking in A lot
of them started with little money and started with a
lot of creative finance. I was really common from a
lot of the owners I spoke to in a bunch
of different markets. So the people who I eventually bought from,
for the most part of the people who taught me
how to buy, which made them pitch super easy. When
you're talking to someone who just taught you how they
built their entire portfolio with creative finance and why you
need to cash flow, and then they're like, oh, by
the way, I'm a partner who would really like to
sell out of these you know, three duplexus. You just
pitch them the terms they just taught you to pitch.
It's really hard to say no, and so it pitches
you on your own idea. Who done that? It's worked
so many times it seems gimmicky. I think start the
first time you year, it's like, oh, that's not going
to work. And I've done that on what we've done
twenty three transactions. I've done it in Grant County, Washington,
Mason County, Washington, King County, Washington, Earth County, Texas, also
property in Houston. The rto of the call in Texas,
Like there's like five or six different markets. I've done
the same thing in Not to mention, our mentorship group
done all over the country, but just personally. It's the
same method. It's no paid leads, it's it's a very
relationship based sale. But what it opens up is if
you start with the deal, you can tailor the money
however you want treat a financially. All you have to
do is what would make this deal work? What do
they need? What do I need? How do we get there?
If you just start with the money, it's pretty rigid.
There's only so many deals that fit your money. If
you know you can get ten percent debt, you need
deals that can cover the ten percent debt, So you're
only looking at deals that can do that. If you
have a finite amount of money, you can only buy
solis real state. If you start with the opportunity, then
find the available debt product, and then all you have
to do is just figure out the last little bit
I found. If you keep it in that order, that's
the psychological difference between being able to buy a little
bit of real SIY or build a dollar by dollar,
or just go like, okay, let's find the opportunity first
and tailor the money to it, and all of a sudden,
Kappa raised. It became very easy sell a financing McCain
pretty intuitive, just because we just swapped the order of
let's look at every deal.
Speaker 3: If I can paraphrase you, like most people put the
cart before the horse, right, and instead you put the
horse before the cart in this case.
Speaker 1: Yes, because the goal in this metaphor be to own
as many horses as possible. So the goal being owned
the horses. The real estate is the engine that pays
the money that funds all the deal. Ultimately, the real
estate has to buy the real estate. So if you
don't have enough money, you don't need to go find
more money, you need to go find more real estate. Yeah, okay,
I'll buy it. I'll buy it, all right.
Speaker 3: So hey, if I wanted to start using your system today, Christian,
how would I go about doing it?
Speaker 1: For my system? The first thing I would do, And
there's a million there's a million paid mentorships out there.
Someone were good, some were bad. I would skip that
step first. I think. The first thing I would do
is I would write down what is your specific goal?
That was a huge difference for me my wife. We
got We've always been weird politically at Washington, but over
the past five years it's it's gone downhill extremely fast.
My wife is a teacher in the school district kindergarten.
We went through the whole the whole pandemic hrcaching. Kindergarten
is over zoom in a really impoverished area too, so
it was like it was par Then she got injured
in school, so we took her ten year goals and
basically said, hey, end of this year, I'm retiring my
wife from teaching. I happen to get the real estate there.
When I set a target that mattered, and I put
a dollar amount to it, like what do I need
to make per month to retire my wife? Yeah, that
made the target really clear and there's urgency. So number one,
set your target. Number two, go out and find the
people in your market who've done this thing that you
want to do. I just interviewed all the people who
owed over one hundred rental units in the little county
of Grant County. There's a few larger groups, but for
the most part, there's a lot of mom and pop people.
It's like ten main players. I just met those ten people,
and now you move from being an outsider to an inside.
So I think the easiest thing for people to do
is one know your target too. Just find the other
people who've already hit that target. Generally speaking, everything you
want to do to someone else has already done. Just
go find those people so you don't need to reinvent
the wheel. You don't. You don't at all. And like
I've I have a group called multipeller Strategy multipellly Strategy
dot com. I'm a hole. We've had over a thousand
people go through our course and hundreds go through the
mentorship program. Like I've coached people to do things, but
I think the most important thing that I share with
everyone is while you can accelerate stuff in community, no
one who has been successful in any mentorship ever would
have not been successful by themselves. Like everyone would have succeeded.
If you can find a group of people doing the
same thing whatever it is you want to do, you
can speed things up up. But the first thing you
really have to work on is like you have to
know yourself, know your goals, and then you have to
be able to run the business yourself. Once you know
what you're doing, then find like minded people and get
into some community somewhere paid or unpaid. That's going to
help you move forward faster and be able to answer
your questions cut down on what we call the stupid tact.
Sometimes you don't know what you don't know, and that
costs a lot and care. I'm imagining being in a
real estate you've had some expensive, expensive lessons along the
way as well. Well.
Speaker 3: My father always said anytime you get into a new business,
you pay for lessons. Yes, and I've found that to
be extremely accurate, and if when in doubt, you know,
it's always always proving true.
Speaker 1: And it's good to know you will pay for your lessons.
Either way. Nice to do that upfront instead of mid project.
It could be very expensive to not know what you
don't know. Part Way through our business we bought a
we bought a resort seller finance four and a half
a million dollar waterfront resort on the assumption that we've
been good at real estate, we've been good at creative finance.
Of course, running hospitality will be the same as running
multi family. Oh sure, thank you right?
Speaker 3: Yeah, like novels dirty, Why why is the bed of
miss Grim wasn't cleaned to write how do you run eight,
eight or nine employees on a small campry?
Speaker 1: Yeah? We survived that pretty much because we had already
bought enough multi family that we are good at. We
got we got through that, and it eventually did make
a good deal of money. But it was so expensive,
the way that we structured it, the way that we
ran it, the amount of time it costs. If I
had just paid for the lesson of getting a mentor
on any piece of the business, anyone could have looked
at that and said, you do value add multifamily like
you're you're a you're an entry level house guy, don't
don't buy a resort. I would have saved like a
million dollars there. You know what would have really been
helpful in the search of financial freedom. An extra million
dollars early on, it would have been great.
Speaker 3: Probably what a lost state that it was me. Hey,
so what about people that go the airbnb route? Obviously
not what you're doing when you have too many units,
it's just not really scalable and you're effectively running a hotel.
Speaker 1: Right so on my hotel is my resort is it's
a twenty unit resort. We also bought the house next door,
which actually wasn't good play, and we bought a sell
frid it. They're all run on like an Airbnb. It's
just a little bit more scaled. It's all on Airbnb,
the RBO, so we run that type of thing. I
would say, just like multi family and a single family,
single family takes a lot of time to scale. You
have to do a lot of transactions. It could be
a little bit harder to repeat success because they're not
as many people who have huge portpolos of single family.
It's kind of the same concept Billy's I believe in hospitality.
If you want to go that route, don't buy a
bunch of multi family, be a specialist in hospitality and
buy there. Buy the boutique hotels, do the turnarounds on
failing motels. They screw some up. Like those type of projects.
Much easier to scale. You would make more money. You
could make a ton of money. Do it exactly what
I did, seller finance, resort airbnb style. But that needs
to be your business. That needs to be everything you do.
You need to be the best at how do I list?
It's a cool niche you could outperform. Unlike multi family,
you can kind of do what the market's doing, maybe
a little bit more. You have more ability to use
your creativity to make money, but it's super time intensive.
You're not going to do Airbnb style stuff. If you're
doing Airbnb houses, I think that model is way oversaturated.
Regulations kind of killing that. It's a hard way to
make money. You can do it, but it's hard. If
you love that model, I would get into the smaller,
mid sized buildings like what we bought. Man, if you
would like the hotel on the hood canal that does
really well, I didn't want to run out, so you
can have mine, all right.
Speaker 3: Hey, if I could get a good deal on the
owner of financing, I'm definitely interested.
Speaker 1: There we go. I know the prior owner would would
carry at least a couple million of the probably about
five and a half million. I bought for four and
a half but I added a large piece of property
to it. But yeah, I know you'd be able to
sell our finance at least you know, thirty percent of it. Yeah,
the starter all right, all right, you gots me interested now.
Speaker 3: Hey, So one final piece of advice to anybody out
there who was in your position and looking at real
estate but hasn't pulled the trigger yet.
Speaker 1: You haven't pulled the trigger yet. My biggest piece of
advice would be don't add steps. I think we've been
trained from first, second, third, fourth, fifth a way by
high school for some college. You get jobs to get
money to save up for real estate. I added a
lot of steps because I was told there's a lot
of steps to do this. Ultimately, if your goal is
to be an investor, the path to do that is
to buy an investment property and then congratulations, you've done
the thing. When I bought my first duplex, it took
me two years to buy my first thirty eight plex,
So it took me two years from there to be
at two hundred and thirty five rental units in two states.
It took me eight years to stave it up and
buy the person Star rental property. I could have done
that much quicker. Like, look at the age in my
first partner, Cody Davis, or I have a buddy, Kale
Palmo bought his first property at nineteen. He's twenty one.
If he's under podcast for another forty four units, it's
gonna be like one hundred and thirty years this year. Amazing.
All right, Hey, we appreciate fast. Just buy the first property.
Just buy the first property. Love it.
Speaker 3: Hey, you got a question for Christian to myself? Shoot
me an email Kal at Terry Ledz dot com. You
find a link to Christian site, just give us your
site now Christian Yeah. A multifamily Strategy dot com. Multifamily
Strategy dot com link is in the show notes to
this interview on our site Financial Survival Network dot com.
While you're there, please sign up for your free newsletter,
Chris Finn.
Speaker 1: It's really been fun. We will definitely have you on again.
Speaker 2: Thank you so much, thanks for listening to Carrie Lenz's
Financial Survival Network, your solution to today's trying times. For
the latest, go to Financial Survivalnetwork dot com. Financial Survival
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