February 11, 2025 • 42 mins
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Ed Mathews (00:00):
Greetings and salutations, real estate
undergrounders.
It is Ed Mathews with the RealEstate Underground.
Thank you so much for joiningus today.
Today is a really interestingguest and I'm very excited to
have him on the show ChristianOsgood.
I've been stalking him onYouTube for a whole bunch of
time and if you haven'tdiscovered him and you wanna get
into learning how to invest inmultifamily is his wheelhouse,
(00:28):
but he's also done a bit in thehospitality space as well.
I highly recommend we're goingto get into it.
But I highly recommend hisYouTube page because I steal
from him on a very regular basis.
He doesn't know that, but nowhe does.
Hey, Christian, welcome to theshow.
Thank you so much for comingand it's good to see you, my
friend.
Christian Osgood (00:44):
Hey, good to be here.
Good to be here.
Thanks for having me on.
Ed Mathews (00:46):
Yeah, so for those of us out there that have
discovered you, why don't youtell us a about who you are and
what you do?
My name is Christian.
Started out investing inWashington State and started on
the Dave Ramsey's methodactually, while everyone's
fourth, fifth job saved up tobuy real estate, got a couple of
(01:06):
duplexes, got to a cool placewhere my cashflow is paying for
the mortgage on my house.
So I got it to where it took meeight years for my real estate
to pay for my real estate.
It was like a house hack, but Ididn't have neighbors.
My tenants paid for my house.
That's what I was able to puttogether.
On the save up and buyproperties method, there was a
19 year old in the office namedCody.
(01:27):
I partnered with him on severaldeals in the past 19 year old
kid never got a commission check.
Like he'd made maybe $5,000 inhis career and he had 30 rentals
.
And I was like how the heck didyou do this?
And I talked to a seller.
I was going to try to brokerthe deal instead.
He said why don't you just buyit?
I said I don't have any money.
He said, oh, if you can find10% down, I'll sell it to you.
(01:48):
So he got in by meeting anowner and the owner carried the
contract and I was like that isvery interesting.
Fast forward years into thefuture.
I have over 300 rentals betweenWashington State and Texas I've
been buying primarily that wasfour years ago about my first
significant multifamily deal 38units and yeah, since then we
expanded really quickly.
(02:09):
I got unlimited by the amountof money that I have in my bank
account.
Focused on the opportunityinstead, turns out this will be
a theme, but it's much easier toalign an opportunity to the
money.
You could tailor the money tothe actual opportunity as
opposed to tailoring anopportunity to the money.
Or like you could tailor themoney to the actual opportunity
as opposed to tailoring anopportunity to the money that
you're limited by be it yourselfor raising capital before you
(02:32):
invest.
It's a lot easier if you havean opportunity.
That's where the value is.
Hey, what type of money youneed?
When I figured that like simplething out, I went from four
units to I, something like that.
Yeah, and so give me a good way to grow.
That is excellent, so give mean idea of the time frame that
we're talking about here.
Christian Osgood (02:52):
So I bought my second duplex at the end of the
beginning of 2021.
So about one in 2021 and 2021end of 2021.
So this would have beenDecember 2021.
I bought a 38 unit buildingseller financed but they needed
15% down.
I did not have $300,000 for the$2 million purchase.
Didn't have any friends orfamily had money.
(03:12):
But instead of focusing on that, I focused on we have an
opportunity to buy 38 units inWashington state for $2 million.
We can get this thing worthmore than $3 million.
I believe I can find $300,000to make a million dollars.
That just seems like somethingthat's worth doing.
I'm going to find it.
So we went under contract forthe deal.
Appraisal came in 11 monthslater at $4.1 million, which is
(03:33):
more than three.
So we made $2.1 million on thefirst seller finance deal in
equity paper money.
But we dida cash out refi andbought out the partners.
And so what I learned on thatfirst transaction?
The money, but we did a cashout refi and bought out the
partners.
And so what I learned on thatfirst transaction?
The real estate bought the realestate for me.
No money left my pocket.
My investors doubled theirmoney.
I bought them out for $600,000.
I got paid an additional$350,000 and no money ever left
(03:56):
my pocket.
Today that's a deal I still ownat.
Cashflow is about $10,000.
It's in conventional financingnow because of the refinance.
That one deal made me amillionaire in one shot.
That was really fun.
Simultaneously, two weeks afterclosing that, I bought a sixplex
seller finance 10% down$900,000.
Purchase 90 down.
(04:17):
I raised the money from someonewho I met in Starbucks two days
after I went under contract.
He was trying to double hismoney in five years and I was
looking for cashflow at the time.
So they cashflowed $1,000 amonth.
We got a good price on them.
It wasn't an amazing price butit was better than market price
for him.
Yep.
But we had strong cashflow,great seller finance terms and I
(04:40):
ended up buying him out on theanniversary.
I just bought him out.
Actually, year four $180,000.
Went back to him.
He got bought out.
Real estate bought the realestate.
I got cash flow for a signatureon both transactions.
I increased my incomeimmediately and then I let the
real estate do what the realestate does.
I ran it eventually pulledenough money out of it to buy it
(05:02):
.
It's basically the BRRRRstrategy for you small
multifamily people.
Yeah, you go through, increasethe value, pull some of the new
value out, buy out the investor.
You keep the cash flowingproperty.
You own a hundred percent ofthe real estate with no money
out of pocket.
So it's like a magic trick,except it's like super
repeatable and not that hard todo.
I did it on the seven plex andeight plex, the 12 plex, in that
(05:27):
year and then we went on to doa whole bunch of other deals all
over the country.
Ed Mathews (05:28):
Okay, so let's talk about your process and, by the
way, congratulations.
No, thank you.
Christian Osgood (05:33):
I'm glad it worked.
Yeah, me too, which was myfirst business idea, but it's
the one that worked.
Ed Mathews (05:38):
We all have them.
Yeah, I'll take a diversion realquick.
A buddy of mine he's in theventure capital world in Silicon
Valley, a tech guy, and he toldme once he said, look, I won't
even invest with someone whohasn't what he called cycled
Right, and what cycled means isbought a deal, screwed it up or
for whatever reason it didn'twork, landed that plane.
(06:00):
However, that happened likewhether you go out bankruptcy
wise or you just shut thebusiness down or something.
But the key to that he'slooking at is I want to know how
that person handles adversity,not success Everybody can handle
success Right but I want tounderstand how that person
handled himself and handled theemotion and the difficulties of
(06:25):
winding down a business.
Once they do that and they doit successfully, and
successfully means hey, yousurvived right the next business
idea becomes a whole lot easierto invest because that's as bad
as it's going to get.
So it's interesting and I viewfrankly, I view mistakes and
errors and things like that asan opportunity to learn, not as
a you did a bad thing right.
Christian Osgood (06:47):
It's hard to compete with someone who's both
won and lost how to navigate.
I have a unique set of things.
I'll save it for the final five.
But my biggest mistake cost meabout $1,150,000.
That's expensive when the mostyou've ever made in your career
is $250,000 in a like that.
So I messed up at the cost offive years of the maximum I
(07:08):
could earn before tax.
That's uh.
That's an expensive lesson.
So as you navigate stuff, yeah,it's uh.
No, I I couldn't agree more.
I was an overnight successafter eight years of trying
exactly.
Ed Mathews (07:21):
it's interesting the , but the fact is that you're a
lot smarter than you were thatthe before right, and I would
submit that you've probably madethat 1.8 or 1.150, not that
you're counting 1.150 millionback in spades, or at least
you're well.
I'm always interested increative financing, so I'm here
(07:44):
in the Northeast.
A lot of your portfolio is inthe Pacific Northwest, I would
submit.
They're similarly expensivemarkets in terms of per unit
costs, but with that comesreally strong cashflow from a
rental perspective.
And I'm curious about yourprocess in terms of.
Let's start with your buy box.
What are you looking for in abuilding or in a property that
(08:06):
kind of piques your interest?
What are some of the facets ofthat deal that makes you start
to pay attention?
Christian Osgood (08:13):
It's multifamily and I can acquire it
in long-term cash flowing fixedrate debt If it's in a hub and
geographically it has to be inan area where I can manage it.
I don't want to build 15multifamily businesses.
I want to use the sameresources across the portfolio.
I own in Grand County,washington, mason County,
washington, urath County, texas,and Houston, texas, but that's
a growing market for me.
(08:34):
I don't want to just buyeverywhere all the time.
So in an area where I alreadyhave resources it's multifamily,
it's a big enough deal whereit's still worth my time to
travel to it.
I believe in seeing yourproperties there's.
You cannot just delegateeverything to a manager and be
successful.
In my opinion and I also own mymanagement companies, which is
(08:55):
usually not the best thing to do, but it's worked well for me
Building these things that I'vejust found that that's been a an
easy way to call to never losemoney.
As you go in, you go.
Okay, is it going to cash flowon long-term fixed rate debt?
If the market changes, I stillget paid.
Nothing changes for me.
I have a 100% market agnosticstrategy.
(09:16):
If it's a up market, a downmarket.
But it pays me to buy it todayand I can hold it.
On long-term debt, it'll beworth more later.
I call long-term 10 years ormore, so I want a debt product
that's at least 10 years.
There's no point in historywhere the market has gone down
on a 10-year average.
It is always worth more.
So buy deals that make sensetoday and then hold them forever
(09:37):
and you will eventually becomevery wealthy in appreciation.
You don't make it there if youdon't get paid along the way.
So cashflow.
I've had a mentor.
First one I had was terrible atbusiness, now unbelievably bad
at real estate.
However, he was really good atcreative finance and buying
deals, so I learned a lot abouthow to structure deals, how to
(09:59):
raise capital.
The problem is he just lost hisportfolio like two times over.
County condos lost them all.
Got into office, he overpaidbut then got great terms.
So he got deals that you can'tget out of but they make sense
because he got such low interest.
And then COVID hit and so allof his income disappeared.
But he stuck with a whole bunchof real estate he overpaid for.
I learned a lot about watchinghim do that.
(10:22):
I'm like, okay, if you can buyit all and then you can not lose
it, you'll become very wealthy.
You don't lose it.
So that's all it is.
For me, it's long-term cashflowing fixed rate debt.
If I can buy it on those terms,which I always do, you don't
lose the real estate.
Ed Mathews (10:35):
So let's talk about long-term debt.
Are we talking agency debt orare we talking local banks?
Christian Osgood (10:39):
How do you typically finance your long-term
17 of my last 20 deals wereseller financed on long-term
notes.
Oh wow I have.
Last two ones were bank notes,both on 15-year terms.
Those are just conventionalAgency.
I'll be using agency on the 76unit that I'm going under
contract for any day here.
(11:00):
That'll be agency debt, whichwill be fun, but that'll be my
first time actually getting anagency product.
It's usually when I use a bankit's usually a local bank or
credit union.
They're regional banks thatallow higher loan to values,
which typically means if you'recash flowing with less money in,
you typically have a muchhigher cash on cash return.
So I liked having lower downdeals.
So it's the smaller local banksthat usually have the most
(11:23):
incentive to work with you.
A lot of them will also allowyou to blend seller financing
with the bank debt, so you canhave bank first, seller second,
which allows again you to get alittle bit more creative with
how you get to cashflow.
Ed Mathews (11:35):
As long as their loan to value parameters aren't
breached, most portfolio lendersdon't really care too much
about where you're getting themoney right.
Christian Osgood (11:48):
Yeah, they're usually pretty indifferent.
So you can get some banks.
You can get 80, 90% financing.
If you blend there in first,say, a bank does 50% and seller
does 40, a lot of banks will go.
They usually like to see 80%,but if our exposure in first
position is only 50%, that's areally stable place to be as a
lender.
Right, they tend to get alittle bit more flexible when
you get creative on a deal ifthey have less exposure.
Ed Mathews (12:10):
All right.
So let's talk about the sellerfinancing Cause I think most of
the folks here in the audience alot of them do bank finance,
debt and commercial lending typedebt, bridge loans.
How do you, when you acquire,when you go to acquire a
property I want to get into howyou're finding the properties,
but let's talk about since we'reon the financing piece, let's
stay there for a minute.
How do you broach the subjectof seller financing with an
(12:36):
owner I used to bring it upafter.
Christian Osgood (12:39):
So the first thing, the most important thing
actually, is you go through andyou talk about the deal, first
with a broker or an owner.
If you open with hey, youopened a carrying contractor,
you open seller financing or I'mlooking for seller financing,
you're basically saying, hello,I have no money and I want you
to give me something to buy.
Your deal Never going to work.
You talk about the deal the waythat it is.
You're talking about anopportunity.
(12:59):
The order goes deal, then debt,then equity.
I don't need the debt productyet, I need to know what the
deal is.
So talk about the opportunity,talk about the price.
You're basically trying to mapthe goalpost.
If you imagine, as a soccerfield, my goal is long-term cash
flowing, fixed rate debt.
I can't flex on those things.
I need long-term cash flowing,fixed rate debt.
I'm trying to figure out whatthey need.
(13:19):
For the deal 25 unit building Ibought in Stephenville $2
million.
For the deal 25 unit building,I bought in Stephenville $2
million, 5% interest.
He was willing to carry a 85%loan to value, which is great.
On that particular, I actuallythink he carried a little bit
more than that.
It ended up being like 87%, butyou get the point Low down
seller financed.
Problem is his rents were 50%of market.
(13:41):
So I came into that deal.
I mapped out the pieces.
He needs $2 million Great pricefor 25 large units, newer build
in Stephenville, texas.
That's a great price.
Yep, 5% interest is way betterthan market interest.
We have great price and greatterms.
His rents are 550 when marketrent is a thousand.
It's still bleeds money.
(14:02):
So I can't.
My goal is not met thatparticular one, since that's
where the goalposts were.
We did a reverse AM, we justdid hey, my payments are going
to be three and a half percent.
You're going to add to theprincipal for the first two
years and then I'll easily beable to afford 5% out of
cashflow.
I added $50,000 to my principal.
I still bought it for 400,000less dollars than it was worth
(14:30):
and we always cash flow.
So how we're getting the dealsand how we're structuring them
is your only focus when you'retalking about it isn't bringing
up seller financing.
It's not figuring out ifthey're open to it.
You map the pieces and you gooh, I see what would make this
deal work.
Then you just propose that Idon't use the word seller
finance or finance anymore.
I just say, hey, I can takethis to a bank and this is
probably how the bank's going tolook at it.
Or, if you're open to it, I'llput this much down and I'll pay
(14:53):
you this much per month for thenext five years and then I'll
pay you the remainder.
I just explain what it is.
It's a lot easier to wrap yourhead around it, even if you're a
sophisticated investor, whenyou tell me, hey, would you sell
or finance if I put $200,000down?
Or if you said I'll give you$200,000 right now, I'll pay you
6%, which is X amount ofpayments every single month for
(15:16):
the next five years, and then Iwill refinance and pay the
balance.
You're saying, okay, can I giveyou two things?
Can I give you a down paymentand can I give you payments?
As opposed to, will you give mefinancing psychologically much
easier.
Ed Mathews (15:33):
Yeah, and I would submit you're giving them a
third person, a third thing too,and that is their price, right
yeah?
Christian Osgood (15:38):
You try to say yes to everything that they
want and if you can't like myexample the 25 unit I'm like I
can't give you 5%.
I found a way to say yes to 5%anyway.
I can give you $2 million and Ican give you 5%.
This is what it's going to looklike.
The payments are going to be alittle bit lower in the
beginning because I can't dipnegative, but you will get all
of that money.
Some of that money is going tocome later at the refinance, so
(15:59):
we're going to add it to theprincipal balance.
I'm not advocating for reverseAM being your main strategy.
That's often that's a stupididea.
It was perfect for this onedeal.
So the answer to creativefinance is you look at the
pieces which is why you alwaysmap the pieces first and you
just say what is the simplestway to make sure this deal cash
(16:23):
flows and that I can hold itforever?
If you can answer the twoquestions, how do I buy it?
How do I never lose it?
That sounds an awful lot likebuy and then hold.
If that is the goal, that's,all you need to do is go.
How do I say yes to everythingthey want, say yes to everything
I need and do it in a way whereeveryone wins.
(16:44):
I've never had a seller haveany problem with me ever,
because they got 100% of whatthey wanted and I got 100% of
what I wanted.
That was an easy solution, likemany deals are.
I had a mentee go through one ofour programs.
His name's Caleb.
He's become a very dear friendof mine.
We call this move the homelhack.
He had a deal that needed moneyto renovate.
(17:07):
He did not raise the money upfront, which is what you should
have done but he went I can cashflow it if I don't have to pay
a mortgage for six months.
So he said I'm going to giveyou a down payment, I'm going to
give you your price, I'm goingto give you your terms, I'm
going to give you your interestrate, I'm going to give you the
balloon, I'm going to pay youthe down payment and then my
(17:28):
payments to you are going tostart six months in the future.
They're not going to accrue,they're not going to, they're
just that's when the paymentsstart.
Super simple solution.
He was able to cash flowthrough his first few months
bank all the rents for the mostpart, use them to renovate the
units.
He filled the units.
Now he was able to.
He came up with a business planand it was the littlest tweak.
(17:48):
It was everything is perfect.
If I just had six months, thisdeal would work.
So he asked for six months.
Find the simplest solution tothe problem.
Propose it Basically.
No one else is doing that.
There's no one else, Iguarantee you.
No one else proposed what if Idon't pay you for six months
after the down payment?
That's all he needed to closehis first deal.
That's how simple these thingsare.
(18:10):
When you propose something thathits all of their objectives,
you get a yes every time.
Ed Mathews (18:15):
I have two additional questions and then I
want to get into the final five.
First one is with regard to howyou're finding deals.
Yes, what's what is the top twoor three ways that you're
locating these kind of deals?
Christian Osgood (18:29):
I only have two ways.
I go to Google Maps and I lookup the partial map.
So I look for roofs.
I look in residential areas andlike that's a big roof, that's
either a huge mansion or it's amultifamily building.
Usually it's a multifamilybuilding.
You can go to Street View andyou can look at the front doors.
You're like, ah, there we are.
Because of city zoning codes,you typically have multifamily
buildings next to multifamilybuildings.
They're usually in the samearea, so you find a few.
(18:51):
The other buildings, like it,are usually in that area.
There's going to be a fewpockets in town that are zoned
that way.
So you go through, you map outokay, what are the buildings
that I am really interested in,the type of building that I'm
interested in owning.
Then you go to a parcel map orGIS data.
There's different names for it,but every county.
You can click on a map and itshows here's the acreage, the
parcel number, who owns it.
It's like, wait a second, whoowns it?
(19:12):
It's public, yes, it is.
It's either going to besomeone's name you can Google
their name and the city and theword phone number and phone
numbers appear.
It's like magic.
Or if it's an LLC, you can goto a free site like Open
Corporates or True People Search, plug it in, figure out who
owns the LLC and then same exactprocess.
(19:35):
If you were trying to do athousand calls a day, that would
be horrendously arduous.
If you're like me and you calltwo people a day, that's no work
.
That takes literally like twoseconds.
Hop online, click on property,call person.
I don't even care if theyanswer or not.
I make 10 calls On average.
That means I book one coffeemeeting.
I meet an owner in my marketevery single week.
52 owners meet with me everysingle year.
If 52 people know you like youtrust you have a relationship
(20:00):
with you in the market thatyou're buying in.
I promise you will buy realestate if you do nothing else.
And it only costs you coffee.
So I'm highly caffeinated.
That's a great deal.
Great deal, not a sales job.
So that's number one.
Number two just go to Crexie andcall brokers who list the type
of properties you want to list,not just to buy the property,
(20:20):
but analyze the deal with them.
Ask good questions, networkwith brokers on market listings.
What you're going to find isthey also tend to list new stuff
.
You make some friends.
Just form real relationships.
I have brokers who like workingwith me and I do submit offers
on their stuff.
And as you start submittingmore offers, guess who they
think of first when they have adeal that's like the one they
(20:43):
just sold.
Oh, the guy who's actuallysubmitted an offer, even if it
wasn't an offer that gotaccepted.
If you're like, hey, I can'toffer on the deal I found online
, doesn't matter at all, there Igo.
They're firm on the price of5.5 million.
I'm like it's worth 1.2.
I can't do more than that.
Is it worth writing an offer?
They're like let's get an offerin front of them Now.
(21:04):
We've written an offer.
It didn't get accepted.
I'm now one of the people onthe very top of their list
because I had legitimately triedto put together a deal.
The next time they have a 15unit building that's priced
reasonably, I'm going to be oneof their first two calls.
That's the only way I've everfound deals.
I've still never asked anyone tosell a property to me.
It's always been a proposal.
A broker's call me saying, hey,I have a deal for you.
(21:26):
Or, more often, an owner callsand says, hey, I have a deal for
you.
Or, more often, an owner callsand says hey, I have a buddy
who's selling a property.
I think this is a good fit foryou, based on what I know about
you, cause we've actually met.
They know I don't have a lot ofmoney like in cash on hand.
When I started I had none.
They're like okay, I knowyou're, I know you're tight on
cash.
I know you're trying to getinto bigger buildings.
This building is too small forme to acquire where I'm at today
(21:47):
.
It's perfect for you.
It's 12 units.
It's on the street.
I've already talked to them.
They are open to carrying acontract.
They do want to see yourbusiness plan for the property
Done.
Ed Mathews (21:57):
Perfectly reasonable .
Second question, and then we'regoing to hop into the final
five how do you get brokers tobuy in?
Because obviously time is theirmost valuable asset and the way
they convert time is throughcommissions.
When you go into a situationwhere you are stacking
financings let's say 50% I'lluse your example from before 50%
(22:18):
is a local bank, 40% is theseller or the owner of the
property, so that's a 10% down.
So I would imagine 3% to 6% ofthat would go to the realtor,
which brings down the amount ofmoney that's going into the
owner's pocket right out of thebox.
So how do you navigate that?
Christian Osgood (22:39):
So, when it comes to brokers, the seller
financing the brokers usuallypay it on the seller's end, so
they're usually paid out of thedown payment regardless.
So that's just going to be,whatever the deal is, what the
deal is.
If it's 20% down, the brokershould get in the 3%.
If it's 10% down, the brokershould get in the 3%.
The only time it becomes aproblem is when you do a zero
down deal.
I've done 100% seller financedeal.
(22:59):
Now I have to cover all closingcosts, but we had a listing
broker on this.
How's the broker get paid?
It's a rare occasion and ofcourse, course, the brokers.
How am I getting paid?
I'm not going to let a brokerfee blow up a fantastic deal.
If I'm going to make a milliondollars and the broker is going
to make, you know, $15,000 on asale, yeah, we're going to go
ahead and pay the broker fee.
That's how you get around that.
If a broker is like how am Igetting paid on a seller finance
(23:20):
deal, the same way you alwaysget paid.
Unless there's not, you gettingpaid is not the issue.
We will figure out the payments.
Good brokers never bring thatup.
They understand.
I have a contract to be paid.
This much.
I'm going to get the deal done.
They're salespeople, they'regood to go.
If they need a reassurance, youcan just tell them don't worry
(23:43):
about your commission, it's 3%.
I'm worried about the other 97%of the deal that I'm about to
own the 3% If the broker feeblows up your deal.
You already have a bad deal.
Yeah, don't do it.
Ed Mathews (23:54):
Fair point, all right.
Hey, let's get into the finalfive.
I'm always interested in whatmotivates people, especially
people as successful as you Tellme, finish the sentence for me,
my purpose is the funny thingis it does change over time.
Christian Osgood (24:08):
as you achieve one goal, your purpose also
grows.
But my primary purpose I thinkmy primary purpose is to provide
for my wife and kid.
That's my number one highestmotivator.
I grew up.
My dad did an amazing job.
It's lower middle class family.
I live in a really good areathough my mom got to be a
(24:30):
stay-at-home mom, got to stay athome and raise us Single income
family and we were able to makeit in the Seattle area, which
was expensive area, to live thetrade.
My dad didn't get a lot of timewith us until he retired at 62.
I did not get significant timewith my dad.
He had a two hour commute towork, two hour back and he
worked an average of about anine hour day.
So 11 hours out of the day he'sgone and by the time he gets
(24:52):
home he's exhausted.
So did not get a lot of qualitytime with my dad growing up
because he did a great jobproviding.
So my primary motivator isprovide for my family like my
father provided for us, orbetter, and have time to spend
with my family.
It's cool, we're in my homeoffice, so downstairs my wife I
(25:12):
could hear through the walls.
My wife is playing with my twoand a half month year old son,
and that is my primary purpose.
Secondary purpose is I want tohelp.
Ed Mathews (25:20):
as many people do this as seemingly possible those
are really good reasons to getout of bed on Monday morning.
Oh yes, is your dad still withus?
Yes, he is so good, so you getto spend time with him, which is
now, which is even better,right?
Yes, yes, it is.
Yeah, hats off.
Your dad did a good job.
So did your mom.
Speaking of mentors and peoplethat are important to you, I'm
(25:46):
always fascinated by the advicethat people get, and so I'm
curious about when you'reprofessional or personal
travails what is the best adviceyou ever got and who gave it to
you?
Or personal travails what isthe best advice you ever got and
who gave it to you?
Christian Osgood (25:52):
Best advice I ever got and I got it a little
bit later than I wish I did isdon't add steps.
It was given to me by, funnyenough, the worst mentor I've
ever had.
He's the one who keeps losinghis portfolio, but he had some
stuff that was just gold.
It's just.
The guy was an idiot and had noethics.
It was an interesting blend.
An interesting blend.
(26:13):
You can learn amazing thingsfrom bad people.
I learned a lot of great thingsfrom him.
One of the things that Ilearned that was great he had a
simplicity about how he wentabout business, which was what
is the goal?
What steps do we need to get tothe goal?
Let's only do those steps.
You don't skip steps, but youdon't add any.
So, like a lot of people agreat example.
A lot of people go I want to bean investor, so I'm going to go
get my broker's license.
If you write out the steps tobecome an investor, becoming a
(26:34):
broker is not one of those steps, but people do it because we
want to add qualifications.
We went from first grade tosecond grade, to get to third
grade, to get to middle school,high school, college, whatever
we're trained that, we need toqualify ourselves.
This isn't a job.
You're an entrepreneur.
Your job is to, as efficientlyas possible, achieve the goal.
(27:10):
If the goal is to own realestate, what is the most
effective way to do that?
Learn how to analyze the dealand get around people doing
deals.
That's the answer.
Buy a property would be how youbecome an investor.
In fact, that's the only way tobecome an investor.
So that was the best piece ofadvice I ever got.
I could have skipped the eightyears and gotten directly to the
buy real estate stage if I hadheard that before.
Number one piece of advice don'tadd steps.
Ed Mathews (27:19):
Yeah, and it's so interesting, and I'm guilty of
it myself Entrepreneurs, a lotof us are creatives, right In
terms of the way our brains work, and so adding complexity is
one of the things thealbatrosses that we all have to
navigate.
And when you said that piece ofadvice, I wrote it down on my
notepad here.
I'm going to use that as amantra going forward.
(27:42):
So, thank you for that.
Christian Osgood (27:44):
I know we're enlightening around so I'll keep
the story super short, becauseI love telling stories, but
they're one of my favoritemarketers of all time.
I love them or hate them.
Ryan Reynolds owns a marketingcompany and their superpower is
they can go from concepts todeliver product in about 48
hours so they can see a hitcommercial.
It's a sales and marketingcompany.
You can see a hit commercial.
They can hire the staff, writethe script, produce an episode
(28:08):
and have it out to the networksalmost immediately for any
product.
So there's this peloton ad thatwent out and the actress in it
was.
They just ended this story.
They go back to the house.
The peloton's not in there, butit's the same cast.
It feels like a continuation ofthis ad another company spent a
bajillion dollars on.
(28:28):
If you don't add steps, you getreally efficient.
It cuts down your timeimmensely from idea to product
and every.
I have multiple companies thatI'm involved in.
That has always been our superpowers that we can have a
business idea and I can usuallymonetize it within 24 hours.
I'm like I have a concept.
I think someone will buy thisbefore we even produce the
(28:51):
product.
Let's sell it to someone tomake sure that we have the model
and then let's go ahead andbuild it so that we can deliver
it to them.
I've done that so many timesand the ability to do that in
real estate or in business.
I've made millions of dollarsdoing that and it all stems from
don't add steps.
Sorry, lightning round.
I know no more stories.
That was the one.
Ed Mathews (29:08):
And, if memory serves, that was the Peloton
commercial during COVID and thehusband gives his wife a Peloton
and then Peloton took a basting, because the way that most
people perceive that commercialis the husband was telling his
wife that she's fat, she needsto work out, when she was this
like beautiful, healthy person,and and and then if, if I'm
(29:30):
remembering this correctly, soReynolds ad agency or media
company followed up that storyand she had kicked the husband
to the curb right Because shedid now, celebrating with
aviation gin and it's just theability to watch the.
Christian Osgood (29:47):
So that was one.
That was just one I took a lotof inspiration from, but there
was watching that being like.
They saw that they went, wow.
I wonder if someone couldcreate a continuation of this
storyline.
Wait a second, that would sellour product.
Do you know what's funny, themost watched Instagram short I
have.
It has nothing to do with realestate, which is a huge bummer,
but I just had this idea duringthe Mike Tyson fight.
(30:07):
When you see him walking withhis jockstrap, when they showed
his butt on TV, everyone'sposting this thing and I
immediately, my first time I sawthat, I immediately thought of
Ant-Man.
I'm like that's America's ass,that thing.
I was like I can't believe noone's posted this yet.
And then I was like wait asecond, I can post things.
The first one, the firstInstagram reel I've ever posted.
(30:29):
They got 2.2 million views andit's only because it's just the
first one to think about it.
And the time to see it and postit was like probably three
minutes after it went live.
Yeah, I was the most watchedhashtag for Mike Tyson, for two
hours it's At least that'swonderful.
Yeah, don't add Granted.
That added no value to me andnone of those followers will
ever buy anything from mebecause it's unrelated.
But it's a good example of Ihad an idea.
(30:51):
It got a ton of attention onlybecause we launched it before
everyone else.
We didn't get bogged down withother steps.
It was just like oh, this is agood idea, stitch these two
things together, done.
Ed Mathews (31:03):
Yeah, newsjacking is what you're talking about, and
it's a very powerful concept,right, it is, especially if you
can move as fast as you justdescribed.
Yeah, three minutes is ideal,exactly so.
I'm always interested inlearning how leaders like
yourself sharpen the saw, so tospeak.
And readers or, excuse me,leaders tend to be readers, and
so I'm curious who do you payattention to?
(31:24):
What book, virtual or otherwise, is sitting on your nightstand
these days, and who are youpaying attention to?
Christian Osgood (31:32):
There's three books.
Number one hands down favoritebook of all time called bible
good one bestseller highlyrecommend that.
One's always on my nightstand.
That's the basis for everythingoutside of that.
Like tactical sales books.
There's two and I found thatthe communication skills and
sales negotiation are the mostpowerful business tools anyone
can have, regardless of whatyou're in whether you're
actually in sales or marketingor not your ability to navigate
(31:55):
and direct is huge.
Never split the difference bychris foss fantastic book and
straight line method by jordanbelfort.
That one you have to listen toit on audiobook because there's
a big section on tonality.
That's super helpful.
It is really hard to read abouttonality.
You need to do it on theaudiobook, I actually.
(32:16):
So you can fun hack.
You can read faster if you havethe physical book and the
audiobook.
If you listen and read at thesame time, you can go way faster
and you retain astronomicallymore that if you have just those
two books.
You you can basically sellanything, move any piece of
product and negotiate.
Never Split the Difference isvery much the basis of map out
(32:37):
every side's objectives and getto a 100% yes for everyone.
It is negotiating win-winswhere you give exactly nothing.
That is a lot of creativefinance that one translates into
real estate like no other,translates into real estate like
no other.
Ed Mathews (32:50):
Yeah, indeed, and it's one of my favorite books.
Christian Osgood (32:56):
So good, although I haven't read Jordan
Belfort's book, so I'm going tobe picking that one up soon.
It is.
It is the best book on salesand, funny enough, straight line
method.
What did I just share?
Don't add steps.
It is yeah.
Yeah, that's been the basis of alot of my stuff.
Like how do you, how do youwrite a good script?
Why do you write a good script?
My favorite quote from thatbook no one likes scripts and
you don't read the scriptexactly.
(33:17):
It's a conversation.
Everything should be organic.
Great actors are great actorsbecause they know the script so
well that they can go off scriptand they can dance back and
forth with the script.
They can interpret the scriptbecause they know where they're
going.
Creating that straight linethat is your roadmap for
conversations.
My group Multifamily Strategythat's a lot of what we talk
(33:39):
about in scripting is theseconversations.
There are actual literalstraight line points that you
touch and your ability to dancealong those and keep the
conversation moving in orderdictates your success.
So that's, yeah, the great book.
You'll love it.
Ed Mathews (33:49):
I can't wait, I'll be.
I'll be hopping on audible assoon as we hang up here.
Good, so last question for thefinal five what does success
mean to you?
Christian Osgood (33:59):
What does success mean?
Success to me?
It's funny Cause I get askedthat question a lot and it
changes, like every time.
So I'm like I literally have acanned answer for this and I'm
questioning my canned answer.
Success for me is that you movesignificantly forward.
It used to be like literalsuccess.
I had an idea and it went toplan.
Or like when you get startedand you don't have any money,
when you have ideas that makemoney, it was easy to be like I
(34:23):
want to be a millionaire.
So when I made my first milliondollars, that felt successful.
But success is significantlymoving forward.
Every time you do anything.
I've had deals where I've lostit.
The deal didn't lose a milliondollars, but it cost me a
million dollars when it wassupposed to be zero down.
That's expensive.
Still made money.
It increased my net worth butit didn't work the way it was
supposed to.
(34:43):
And when you don't have anymoney and you need to pay, you
imminently need to pay a milliondollars and you've never made
that much before.
Pretty stressful.
So success to me in thatinstance was I can get bogged
down and really stressed aboutI've never made a million
dollars before.
Or let's focus on what thingscould I do in the 10 month
(35:04):
period I have to, where amillion dollars is no longer
scary.
What things can I do with mycurrent set of skills that allow
us to scale beyond that?
And so that's where success isfor me, and I'm trying my best
to articulate this while I'mthinking about it, but it's
taking every scenario andbecoming better and stronger for
it.
I didn't know how to make amillion dollars, but it got a
(35:25):
lot less scary when I built abusiness that makes more than $2
million and I was like, oh, Isolved it with a check because I
didn't focus on making amillion dollars, I focused on
making five and I failed and Imade two.
I still solved my problem and Ihad a million dollars of cash
which bought me a really coolhouse.
(35:47):
Like that's a good example of Itechnically failed my goal, but
I definitely moved forward andI overcame adversity.
That's a successful outcome.
So that's what good example ofI technically failed my goal,
but I definitely moved forwardand I overcame adversity.
That's a successful outcome.
So that's what success is.
It's being farther than youwere before you started Right.
Ed Mathews (36:00):
Okay, always advance the ball.
Yes, I could have just saidthat would have been better
Straight line.
You're not talking about realestate and doing deals.
What do you like to do for fun?
Christian Osgood (36:12):
For the past three, four years.
All lame answer, but all I do,for I love real estate.
I love real estate.
I really have enjoyed thecommunity that we built around
it.
So I know this sounds corny,with, like multifamily strategy
being my core product thementorship, the community, the
coaching but actually getting tobe a part of that, to host
(36:32):
events, to get to travel andspeak it takes all of my time
and I wouldn't do anything else.
I'm a really obsessive person.
That's why I can't play videogames, because I know it would
take all my time.
I have to compete and I have topush to be when something's not
as good as it can be.
I'm a hyper-perfectionist.
Having a project where this issomething that I can put
(36:53):
infinite energy into and it cannever be perfect, it can just
keep getting better.
I am so passionate about thatthat is, a majority of my time
is spent on how do I grow thiscommunity.
How do we increase the successrate of students?
My target is right now I have50 people.
I try to cap it to about 50people.
(37:14):
We're pretty much full like 48.
But how do I get these 48people to?
100% of them buy a deal withinthe next six months, multifamily
more than five units.
Most of them will be less than50 units.
But it's like, how do we get100% success rate?
That is the current challenge.
But that stuff I just from thetime I wake up to, usually about
(37:34):
one in the morning.
That's pretty much what I'mdoing.
Ed Mathews (37:36):
It's interesting, the usage rate of training and
things like that is usuallyabout five to 7%.
I don't know if you knew that.
So, really, yeah, and here'swhy the way the human brain
works when you go buy the bookor you buy the training, you
already get the dopamine hitthat you're looking for.
So your brain thinks I'vealready accomplished what I set
(37:57):
out to do, but you didn't Right.
And so that's why so manypeople, when they buy books,
they sit on a in a bookcasenever opened.
It's why, when you look attraining statistics, yeah, about
5% of the people actuallyfollow through on the training,
which is insane.
That makes me very happy.
I have we about 5% of thepeople actually follow through
on the training, which is insane.
Christian Osgood (38:14):
That makes me very happy.
We have over 50% of my studentshave bought a deal within the
first six months, which is verygood, and yeah, I hate anyone
who doesn't, though I reallywant to get that number up.
Ed Mathews (38:25):
Yeah, but your heart's in the right place and
the fact that you strive for100% really says something about
your character and also,frankly, your community is lucky
to have you.
Oh, thank you.
Christian Osgood (38:35):
If I have my friend Caleb he started with.
He was they started like 18.
He had no money.
His sales skills were.
I didn't know there was a levelnegative one until I met Caleb
Never had a job.
He's the least qualified personto of all time.
He just closed on a.
He's at 109 rental units rightnow.
He just he turns 22 tomorrowactually, so still 21.
(38:56):
I look at, whenever I look atit, I'm like there's no one I've
ever met who is less likely tohave succeeded than him.
So everyone else in the groupis more qualified to buy real
estate, so everyone should beable to do it.
That's how I look at it.
I mean it is possible to get ahundred percent%.
We just need to get everyonethere.
So it's a fun challenge andI'll never hit it.
(39:16):
You'll never have 100% success,there's no way, but we'll keep
shooting for it.
Yeah.
Ed Mathews (39:22):
You're already tenfold what the industry
provides.
There we go.
I'm not.
Christian Osgood (39:26):
That's a soundbite post.
That's testimonial.
Ed Mathews (39:28):
So if people want to learn more about multifamily
strategy or Kensho propertymanagement or your investment
company or just you know, pickup the phone and say hey, I'm in
the Dallas-Fort Worth area andI want to buy you a cup of
coffee.
Yeah, if you're in theDallas-Fort Worth area.
Christian Osgood (39:44):
My property management company down here is
Apex Asset Management Kensho.
I actually recently sellerfinanced to someone.
Funny enough but Apex AssetManagement DFW all the way down
to Waco.
So anywhere recently sell ourfinance to someone.
Funny enough but apex assetmanagement dfw all the way down
to waco, so anywhere down to 35you can go to apex amcom.
The youtube channel, multifamilystrategy a little over 100 000
subs.
You guys are more than invitedto that.
That's completely free.
Information is free, by the way, anyone who's selling you an
(40:07):
online course that's what it is.
Just go to youtube, seriously,it's easy.
I have a course that goes withthe mentorship.
That's what it is.
Just go to YouTube, seriously,it's easy.
I have a course that goes withthe mentorship.
That's on demand, which isgreat 250 videos, you can check
it out.
But if you want a community, youwant coaching, if you want to
plug into a system, if you'vedone the YouTube thing, you've
read some books and you're like,wow, bigger pockets, I've seen
a hundred episodes, but I havenot bought a hundred units If
(40:29):
you want to jump into a system,that's what multifamily strategy
is, and I run webinars.
Usually every Wednesday.
I'm on the YouTube channel.
I'm always linking stuff, so ifyou want to get in, you don't
need to spend $8,000.
Check out the channel, checkout some of the things and if
you're like this is thecommunity, I want to jump into
multifamily strategy.
You guys can always reach outand book Paul with my team All
(40:49):
right, happy to hang out.
Ed Mathews (40:54):
Excellent, Christian Osgood, congratulations on your
success, good fortune and thankyou for joining us today.
I got a lot out of this.
I've been jotting notes aswe've been sitting here talking,
which is not always the casewith my guests.
Thank you for your time today.
Christian Osgood (41:06):
Thank you so much.
Greetings and salutations, real estate
undergrounders.
It is Ed Mathews with the RealEstate Underground.
Thank you so much for joiningus today.
Today is a really interestingguest and I'm very excited to
have him on the show ChristianOsgood.
I've been stalking him onYouTube for a whole bunch of
time and if you haven'tdiscovered him and you wanna get
into learning how to invest inmultifamily is his wheelhouse,
(00:28):
but he's also done a bit in thehospitality space as well.
I highly recommend we're goingto get into it.
But I highly recommend hisYouTube page because I steal
from him on a very regular basis.
He doesn't know that, but nowhe does.
Hey, Christian, welcome to theshow.
Thank you so much for comingand it's good to see you, my
friend.
Christian Osgood (00:44):
Hey, good to be here.
Good to be here.
Thanks for having me on.
Ed Mathews (00:46):
Yeah, so for those of us out there that have
discovered you, why don't youtell us a about who you are and
what you do?
My name is Christian.
Started out investing inWashington State and started on
the Dave Ramsey's methodactually, while everyone's
fourth, fifth job saved up tobuy real estate, got a couple of
(01:06):
duplexes, got to a cool placewhere my cashflow is paying for
the mortgage on my house.
So I got it to where it took meeight years for my real estate
to pay for my real estate.
It was like a house hack, but Ididn't have neighbors.
My tenants paid for my house.
That's what I was able to puttogether.
On the save up and buyproperties method, there was a
19 year old in the office namedCody.
(01:27):
I partnered with him on severaldeals in the past 19 year old
kid never got a commission check.
Like he'd made maybe $5,000 inhis career and he had 30 rentals
.
And I was like how the heck didyou do this?
And I talked to a seller.
I was going to try to brokerthe deal instead.
He said why don't you just buyit?
I said I don't have any money.
He said, oh, if you can find10% down, I'll sell it to you.
(01:48):
So he got in by meeting anowner and the owner carried the
contract and I was like that isvery interesting.
Fast forward years into thefuture.
I have over 300 rentals betweenWashington State and Texas I've
been buying primarily that wasfour years ago about my first
significant multifamily deal 38units and yeah, since then we
expanded really quickly.
(02:09):
I got unlimited by the amountof money that I have in my bank
account.
Focused on the opportunityinstead, turns out this will be
a theme, but it's much easier toalign an opportunity to the
money.
You could tailor the money tothe actual opportunity as
opposed to tailoring anopportunity to the money.
Or like you could tailor themoney to the actual opportunity
as opposed to tailoring anopportunity to the money that
you're limited by be it yourselfor raising capital before you
(02:32):
invest.
It's a lot easier if you havean opportunity.
That's where the value is.
Hey, what type of money youneed?
When I figured that like simplething out, I went from four
units to I, something like that.
Yeah, and so give me a good way to grow.
That is excellent, so give mean idea of the time frame that
we're talking about here.
Christian Osgood (02:52):
So I bought my second duplex at the end of the
beginning of 2021.
So about one in 2021 and 2021end of 2021.
So this would have beenDecember 2021.
I bought a 38 unit buildingseller financed but they needed
15% down.
I did not have $300,000 for the$2 million purchase.
Didn't have any friends orfamily had money.
(03:12):
But instead of focusing on that, I focused on we have an
opportunity to buy 38 units inWashington state for $2 million.
We can get this thing worthmore than $3 million.
I believe I can find $300,000to make a million dollars.
That just seems like somethingthat's worth doing.
I'm going to find it.
So we went under contract forthe deal.
Appraisal came in 11 monthslater at $4.1 million, which is
(03:33):
more than three.
So we made $2.1 million on thefirst seller finance deal in
equity paper money.
But we dida cash out refi andbought out the partners.
And so what I learned on thatfirst transaction?
The money, but we did a cashout refi and bought out the
partners.
And so what I learned on thatfirst transaction?
The real estate bought the realestate for me.
No money left my pocket.
My investors doubled theirmoney.
I bought them out for $600,000.
I got paid an additional$350,000 and no money ever left
(03:56):
my pocket.
Today that's a deal I still ownat.
Cashflow is about $10,000.
It's in conventional financingnow because of the refinance.
That one deal made me amillionaire in one shot.
That was really fun.
Simultaneously, two weeks afterclosing that, I bought a sixplex
seller finance 10% down$900,000.
Purchase 90 down.
(04:17):
I raised the money from someonewho I met in Starbucks two days
after I went under contract.
He was trying to double hismoney in five years and I was
looking for cashflow at the time.
So they cashflowed $1,000 amonth.
We got a good price on them.
It wasn't an amazing price butit was better than market price
for him.
Yep.
But we had strong cashflow,great seller finance terms and I
(04:40):
ended up buying him out on theanniversary.
I just bought him out.
Actually, year four $180,000.
Went back to him.
He got bought out.
Real estate bought the realestate.
I got cash flow for a signatureon both transactions.
I increased my incomeimmediately and then I let the
real estate do what the realestate does.
I ran it eventually pulledenough money out of it to buy it
(05:02):
.
It's basically the BRRRRstrategy for you small
multifamily people.
Yeah, you go through, increasethe value, pull some of the new
value out, buy out the investor.
You keep the cash flowingproperty.
You own a hundred percent ofthe real estate with no money
out of pocket.
So it's like a magic trick,except it's like super
repeatable and not that hard todo.
I did it on the seven plex andeight plex, the 12 plex, in that
(05:27):
year and then we went on to doa whole bunch of other deals all
over the country.
Ed Mathews (05:28):
Okay, so let's talk about your process and, by the
way, congratulations.
No, thank you.
Christian Osgood (05:33):
I'm glad it worked.
Yeah, me too, which was myfirst business idea, but it's
the one that worked.
Ed Mathews (05:38):
We all have them.
Yeah, I'll take a diversion realquick.
A buddy of mine he's in theventure capital world in Silicon
Valley, a tech guy, and he toldme once he said, look, I won't
even invest with someone whohasn't what he called cycled
Right, and what cycled means isbought a deal, screwed it up or
for whatever reason it didn'twork, landed that plane.
(06:00):
However, that happened likewhether you go out bankruptcy
wise or you just shut thebusiness down or something.
But the key to that he'slooking at is I want to know how
that person handles adversity,not success Everybody can handle
success Right but I want tounderstand how that person
handled himself and handled theemotion and the difficulties of
(06:25):
winding down a business.
Once they do that and they doit successfully, and
successfully means hey, yousurvived right the next business
idea becomes a whole lot easierto invest because that's as bad
as it's going to get.
So it's interesting and I viewfrankly, I view mistakes and
errors and things like that asan opportunity to learn, not as
a you did a bad thing right.
Christian Osgood (06:47):
It's hard to compete with someone who's both
won and lost how to navigate.
I have a unique set of things.
I'll save it for the final five.
But my biggest mistake cost meabout $1,150,000.
That's expensive when the mostyou've ever made in your career
is $250,000 in a like that.
So I messed up at the cost offive years of the maximum I
(07:08):
could earn before tax.
That's uh.
That's an expensive lesson.
So as you navigate stuff, yeah,it's uh.
No, I I couldn't agree more.
I was an overnight successafter eight years of trying
exactly.
Ed Mathews (07:21):
it's interesting the , but the fact is that you're a
lot smarter than you were thatthe before right, and I would
submit that you've probably madethat 1.8 or 1.150, not that
you're counting 1.150 millionback in spades, or at least
you're well.
I'm always interested increative financing, so I'm here
(07:44):
in the Northeast.
A lot of your portfolio is inthe Pacific Northwest, I would
submit.
They're similarly expensivemarkets in terms of per unit
costs, but with that comesreally strong cashflow from a
rental perspective.
And I'm curious about yourprocess in terms of.
Let's start with your buy box.
What are you looking for in abuilding or in a property that
(08:06):
kind of piques your interest?
What are some of the facets ofthat deal that makes you start
to pay attention?
Christian Osgood (08:13):
It's multifamily and I can acquire it
in long-term cash flowing fixedrate debt If it's in a hub and
geographically it has to be inan area where I can manage it.
I don't want to build 15multifamily businesses.
I want to use the sameresources across the portfolio.
I own in Grand County,washington, mason County,
washington, urath County, texas,and Houston, texas, but that's
a growing market for me.
(08:34):
I don't want to just buyeverywhere all the time.
So in an area where I alreadyhave resources it's multifamily,
it's a big enough deal whereit's still worth my time to
travel to it.
I believe in seeing yourproperties there's.
You cannot just delegateeverything to a manager and be
successful.
In my opinion and I also own mymanagement companies, which is
(08:55):
usually not the best thing to do, but it's worked well for me
Building these things that I'vejust found that that's been a an
easy way to call to never losemoney.
As you go in, you go.
Okay, is it going to cash flowon long-term fixed rate debt?
If the market changes, I stillget paid.
Nothing changes for me.
I have a 100% market agnosticstrategy.
(09:16):
If it's a up market, a downmarket.
But it pays me to buy it todayand I can hold it.
On long-term debt, it'll beworth more later.
I call long-term 10 years ormore, so I want a debt product
that's at least 10 years.
There's no point in historywhere the market has gone down
on a 10-year average.
It is always worth more.
So buy deals that make sensetoday and then hold them forever
(09:37):
and you will eventually becomevery wealthy in appreciation.
You don't make it there if youdon't get paid along the way.
So cashflow.
I've had a mentor.
First one I had was terrible atbusiness, now unbelievably bad
at real estate.
However, he was really good atcreative finance and buying
deals, so I learned a lot abouthow to structure deals, how to
(09:59):
raise capital.
The problem is he just lost hisportfolio like two times over.
County condos lost them all.
Got into office, he overpaidbut then got great terms.
So he got deals that you can'tget out of but they make sense
because he got such low interest.
And then COVID hit and so allof his income disappeared.
But he stuck with a whole bunchof real estate he overpaid for.
I learned a lot about watchinghim do that.
(10:22):
I'm like, okay, if you can buyit all and then you can not lose
it, you'll become very wealthy.
You don't lose it.
So that's all it is.
For me, it's long-term cashflowing fixed rate debt.
If I can buy it on those terms,which I always do, you don't
lose the real estate.
Ed Mathews (10:35):
So let's talk about long-term debt.
Are we talking agency debt orare we talking local banks?
Christian Osgood (10:39):
How do you typically finance your long-term
17 of my last 20 deals wereseller financed on long-term
notes.
Oh wow I have.
Last two ones were bank notes,both on 15-year terms.
Those are just conventionalAgency.
I'll be using agency on the 76unit that I'm going under
contract for any day here.
(11:00):
That'll be agency debt, whichwill be fun, but that'll be my
first time actually getting anagency product.
It's usually when I use a bankit's usually a local bank or
credit union.
They're regional banks thatallow higher loan to values,
which typically means if you'recash flowing with less money in,
you typically have a muchhigher cash on cash return.
So I liked having lower downdeals.
So it's the smaller local banksthat usually have the most
(11:23):
incentive to work with you.
A lot of them will also allowyou to blend seller financing
with the bank debt, so you canhave bank first, seller second,
which allows again you to get alittle bit more creative with
how you get to cashflow.
Ed Mathews (11:35):
As long as their loan to value parameters aren't
breached, most portfolio lendersdon't really care too much
about where you're getting themoney right.
Christian Osgood (11:48):
Yeah, they're usually pretty indifferent.
So you can get some banks.
You can get 80, 90% financing.
If you blend there in first,say, a bank does 50% and seller
does 40, a lot of banks will go.
They usually like to see 80%,but if our exposure in first
position is only 50%, that's areally stable place to be as a
lender.
Right, they tend to get alittle bit more flexible when
you get creative on a deal ifthey have less exposure.
Ed Mathews (12:10):
All right.
So let's talk about the sellerfinancing Cause I think most of
the folks here in the audience alot of them do bank finance,
debt and commercial lending typedebt, bridge loans.
How do you, when you acquire,when you go to acquire a
property I want to get into howyou're finding the properties,
but let's talk about since we'reon the financing piece, let's
stay there for a minute.
How do you broach the subjectof seller financing with an
(12:36):
owner I used to bring it upafter.
Christian Osgood (12:39):
So the first thing, the most important thing
actually, is you go through andyou talk about the deal, first
with a broker or an owner.
If you open with hey, youopened a carrying contractor,
you open seller financing or I'mlooking for seller financing,
you're basically saying, hello,I have no money and I want you
to give me something to buy.
Your deal Never going to work.
You talk about the deal the waythat it is.
You're talking about anopportunity.
(12:59):
The order goes deal, then debt,then equity.
I don't need the debt productyet, I need to know what the
deal is.
So talk about the opportunity,talk about the price.
You're basically trying to mapthe goalpost.
If you imagine, as a soccerfield, my goal is long-term cash
flowing, fixed rate debt.
I can't flex on those things.
I need long-term cash flowing,fixed rate debt.
I'm trying to figure out whatthey need.
(13:19):
For the deal 25 unit building Ibought in Stephenville $2
million.
For the deal 25 unit building,I bought in Stephenville $2
million, 5% interest.
He was willing to carry a 85%loan to value, which is great.
On that particular, I actuallythink he carried a little bit
more than that.
It ended up being like 87%, butyou get the point Low down
seller financed.
Problem is his rents were 50%of market.
(13:41):
So I came into that deal.
I mapped out the pieces.
He needs $2 million Great pricefor 25 large units, newer build
in Stephenville, texas.
That's a great price.
Yep, 5% interest is way betterthan market interest.
We have great price and greatterms.
His rents are 550 when marketrent is a thousand.
It's still bleeds money.
(14:02):
So I can't.
My goal is not met thatparticular one, since that's
where the goalposts were.
We did a reverse AM, we justdid hey, my payments are going
to be three and a half percent.
You're going to add to theprincipal for the first two
years and then I'll easily beable to afford 5% out of
cashflow.
I added $50,000 to my principal.
I still bought it for 400,000less dollars than it was worth
(14:30):
and we always cash flow.
So how we're getting the dealsand how we're structuring them
is your only focus when you'retalking about it isn't bringing
up seller financing.
It's not figuring out ifthey're open to it.
You map the pieces and you gooh, I see what would make this
deal work.
Then you just propose that Idon't use the word seller
finance or finance anymore.
I just say, hey, I can takethis to a bank and this is
probably how the bank's going tolook at it.
Or, if you're open to it, I'llput this much down and I'll pay
(14:53):
you this much per month for thenext five years and then I'll
pay you the remainder.
I just explain what it is.
It's a lot easier to wrap yourhead around it, even if you're a
sophisticated investor, whenyou tell me, hey, would you sell
or finance if I put $200,000down?
Or if you said I'll give you$200,000 right now, I'll pay you
6%, which is X amount ofpayments every single month for
(15:16):
the next five years, and then Iwill refinance and pay the
balance.
You're saying, okay, can I giveyou two things?
Can I give you a down paymentand can I give you payments?
As opposed to, will you give mefinancing psychologically much
easier.
Ed Mathews (15:33):
Yeah, and I would submit you're giving them a
third person, a third thing too,and that is their price, right
yeah?
Christian Osgood (15:38):
You try to say yes to everything that they
want and if you can't like myexample the 25 unit I'm like I
can't give you 5%.
I found a way to say yes to 5%anyway.
I can give you $2 million and Ican give you 5%.
This is what it's going to looklike.
The payments are going to be alittle bit lower in the
beginning because I can't dipnegative, but you will get all
of that money.
Some of that money is going tocome later at the refinance, so
(15:59):
we're going to add it to theprincipal balance.
I'm not advocating for reverseAM being your main strategy.
That's often that's a stupididea.
It was perfect for this onedeal.
So the answer to creativefinance is you look at the
pieces which is why you alwaysmap the pieces first and you
just say what is the simplestway to make sure this deal cash
(16:23):
flows and that I can hold itforever?
If you can answer the twoquestions, how do I buy it?
How do I never lose it?
That sounds an awful lot likebuy and then hold.
If that is the goal, that's,all you need to do is go.
How do I say yes to everythingthey want, say yes to everything
I need and do it in a way whereeveryone wins.
(16:44):
I've never had a seller haveany problem with me ever,
because they got 100% of whatthey wanted and I got 100% of
what I wanted.
That was an easy solution, likemany deals are.
I had a mentee go through one ofour programs.
His name's Caleb.
He's become a very dear friendof mine.
We call this move the homelhack.
He had a deal that needed moneyto renovate.
(17:07):
He did not raise the money upfront, which is what you should
have done but he went I can cashflow it if I don't have to pay
a mortgage for six months.
So he said I'm going to giveyou a down payment, I'm going to
give you your price, I'm goingto give you your terms, I'm
going to give you your interestrate, I'm going to give you the
balloon, I'm going to pay youthe down payment and then my
(17:28):
payments to you are going tostart six months in the future.
They're not going to accrue,they're not going to, they're
just that's when the paymentsstart.
Super simple solution.
He was able to cash flowthrough his first few months
bank all the rents for the mostpart, use them to renovate the
units.
He filled the units.
Now he was able to.
He came up with a business planand it was the littlest tweak.
(17:48):
It was everything is perfect.
If I just had six months, thisdeal would work.
So he asked for six months.
Find the simplest solution tothe problem.
Propose it Basically.
No one else is doing that.
There's no one else, Iguarantee you.
No one else proposed what if Idon't pay you for six months
after the down payment?
That's all he needed to closehis first deal.
That's how simple these thingsare.
(18:10):
When you propose something thathits all of their objectives,
you get a yes every time.
Ed Mathews (18:15):
I have two additional questions and then I
want to get into the final five.
First one is with regard to howyou're finding deals.
Yes, what's what is the top twoor three ways that you're
locating these kind of deals?
Christian Osgood (18:29):
I only have two ways.
I go to Google Maps and I lookup the partial map.
So I look for roofs.
I look in residential areas andlike that's a big roof, that's
either a huge mansion or it's amultifamily building.
Usually it's a multifamilybuilding.
You can go to Street View andyou can look at the front doors.
You're like, ah, there we are.
Because of city zoning codes,you typically have multifamily
buildings next to multifamilybuildings.
They're usually in the samearea, so you find a few.
(18:51):
The other buildings, like it,are usually in that area.
There's going to be a fewpockets in town that are zoned
that way.
So you go through, you map outokay, what are the buildings
that I am really interested in,the type of building that I'm
interested in owning.
Then you go to a parcel map orGIS data.
There's different names for it,but every county.
You can click on a map and itshows here's the acreage, the
parcel number, who owns it.
It's like, wait a second, whoowns it?
(19:12):
It's public, yes, it is.
It's either going to besomeone's name you can Google
their name and the city and theword phone number and phone
numbers appear.
It's like magic.
Or if it's an LLC, you can goto a free site like Open
Corporates or True People Search, plug it in, figure out who
owns the LLC and then same exactprocess.
(19:35):
If you were trying to do athousand calls a day, that would
be horrendously arduous.
If you're like me and you calltwo people a day, that's no work
.
That takes literally like twoseconds.
Hop online, click on property,call person.
I don't even care if theyanswer or not.
I make 10 calls On average.
That means I book one coffeemeeting.
I meet an owner in my marketevery single week.
52 owners meet with me everysingle year.
If 52 people know you like youtrust you have a relationship
(20:00):
with you in the market thatyou're buying in.
I promise you will buy realestate if you do nothing else.
And it only costs you coffee.
So I'm highly caffeinated.
That's a great deal.
Great deal, not a sales job.
So that's number one.
Number two just go to Crexie andcall brokers who list the type
of properties you want to list,not just to buy the property,
(20:20):
but analyze the deal with them.
Ask good questions, networkwith brokers on market listings.
What you're going to find isthey also tend to list new stuff
.
You make some friends.
Just form real relationships.
I have brokers who like workingwith me and I do submit offers
on their stuff.
And as you start submittingmore offers, guess who they
think of first when they have adeal that's like the one they
(20:43):
just sold.
Oh, the guy who's actuallysubmitted an offer, even if it
wasn't an offer that gotaccepted.
If you're like, hey, I can'toffer on the deal I found online
, doesn't matter at all, there Igo.
They're firm on the price of5.5 million.
I'm like it's worth 1.2.
I can't do more than that.
Is it worth writing an offer?
They're like let's get an offerin front of them Now.
(21:04):
We've written an offer.
It didn't get accepted.
I'm now one of the people onthe very top of their list
because I had legitimately triedto put together a deal.
The next time they have a 15unit building that's priced
reasonably, I'm going to be oneof their first two calls.
That's the only way I've everfound deals.
I've still never asked anyone tosell a property to me.
It's always been a proposal.
A broker's call me saying, hey,I have a deal for you.
(21:26):
Or, more often, an owner callsand says, hey, I have a deal for
you.
Or, more often, an owner callsand says hey, I have a buddy
who's selling a property.
I think this is a good fit foryou, based on what I know about
you, cause we've actually met.
They know I don't have a lot ofmoney like in cash on hand.
When I started I had none.
They're like okay, I knowyou're, I know you're tight on
cash.
I know you're trying to getinto bigger buildings.
This building is too small forme to acquire where I'm at today
(21:47):
.
It's perfect for you.
It's 12 units.
It's on the street.
I've already talked to them.
They are open to carrying acontract.
They do want to see yourbusiness plan for the property
Done.
Ed Mathews (21:57):
Perfectly reasonable .
Second question, and then we'regoing to hop into the final
five how do you get brokers tobuy in?
Because obviously time is theirmost valuable asset and the way
they convert time is throughcommissions.
When you go into a situationwhere you are stacking
financings let's say 50% I'lluse your example from before 50%
(22:18):
is a local bank, 40% is theseller or the owner of the
property, so that's a 10% down.
So I would imagine 3% to 6% ofthat would go to the realtor,
which brings down the amount ofmoney that's going into the
owner's pocket right out of thebox.
So how do you navigate that?
Christian Osgood (22:39):
So, when it comes to brokers, the seller
financing the brokers usuallypay it on the seller's end, so
they're usually paid out of thedown payment regardless.
So that's just going to be,whatever the deal is, what the
deal is.
If it's 20% down, the brokershould get in the 3%.
If it's 10% down, the brokershould get in the 3%.
The only time it becomes aproblem is when you do a zero
down deal.
I've done 100% seller financedeal.
(22:59):
Now I have to cover all closingcosts, but we had a listing
broker on this.
How's the broker get paid?
It's a rare occasion and ofcourse, course, the brokers.
How am I getting paid?
I'm not going to let a brokerfee blow up a fantastic deal.
If I'm going to make a milliondollars and the broker is going
to make, you know, $15,000 on asale, yeah, we're going to go
ahead and pay the broker fee.
That's how you get around that.
If a broker is like how am Igetting paid on a seller finance
(23:20):
deal, the same way you alwaysget paid.
Unless there's not, you gettingpaid is not the issue.
We will figure out the payments.
Good brokers never bring thatup.
They understand.
I have a contract to be paid.
This much.
I'm going to get the deal done.
They're salespeople, they'regood to go.
If they need a reassurance, youcan just tell them don't worry
(23:43):
about your commission, it's 3%.
I'm worried about the other 97%of the deal that I'm about to
own the 3% If the broker feeblows up your deal.
You already have a bad deal.
Yeah, don't do it.
Ed Mathews (23:54):
Fair point, all right.
Hey, let's get into the finalfive.
I'm always interested in whatmotivates people, especially
people as successful as you Tellme, finish the sentence for me,
my purpose is the funny thingis it does change over time.
Christian Osgood (24:08):
as you achieve one goal, your purpose also
grows.
But my primary purpose I thinkmy primary purpose is to provide
for my wife and kid.
That's my number one highestmotivator.
I grew up.
My dad did an amazing job.
It's lower middle class family.
I live in a really good areathough my mom got to be a
(24:30):
stay-at-home mom, got to stay athome and raise us Single income
family and we were able to makeit in the Seattle area, which
was expensive area, to live thetrade.
My dad didn't get a lot of timewith us until he retired at 62.
I did not get significant timewith my dad.
He had a two hour commute towork, two hour back and he
worked an average of about anine hour day.
So 11 hours out of the day he'sgone and by the time he gets
(24:52):
home he's exhausted.
So did not get a lot of qualitytime with my dad growing up
because he did a great jobproviding.
So my primary motivator isprovide for my family like my
father provided for us, orbetter, and have time to spend
with my family.
It's cool, we're in my homeoffice, so downstairs my wife I
(25:12):
could hear through the walls.
My wife is playing with my twoand a half month year old son,
and that is my primary purpose.
Secondary purpose is I want tohelp.
Ed Mathews (25:20):
as many people do this as seemingly possible those
are really good reasons to getout of bed on Monday morning.
Oh yes, is your dad still withus?
Yes, he is so good, so you getto spend time with him, which is
now, which is even better,right?
Yes, yes, it is.
Yeah, hats off.
Your dad did a good job.
So did your mom.
Speaking of mentors and peoplethat are important to you, I'm
(25:46):
always fascinated by the advicethat people get, and so I'm
curious about when you'reprofessional or personal
travails what is the best adviceyou ever got and who gave it to
you?
Or personal travails what isthe best advice you ever got and
who gave it to you?
Christian Osgood (25:52):
Best advice I ever got and I got it a little
bit later than I wish I did isdon't add steps.
It was given to me by, funnyenough, the worst mentor I've
ever had.
He's the one who keeps losinghis portfolio, but he had some
stuff that was just gold.
It's just.
The guy was an idiot and had noethics.
It was an interesting blend.
An interesting blend.
(26:13):
You can learn amazing thingsfrom bad people.
I learned a lot of great thingsfrom him.
One of the things that Ilearned that was great he had a
simplicity about how he wentabout business, which was what
is the goal?
What steps do we need to get tothe goal?
Let's only do those steps.
You don't skip steps, but youdon't add any.
So, like a lot of people agreat example.
A lot of people go I want to bean investor, so I'm going to go
get my broker's license.
If you write out the steps tobecome an investor, becoming a
(26:34):
broker is not one of those steps, but people do it because we
want to add qualifications.
We went from first grade tosecond grade, to get to third
grade, to get to middle school,high school, college, whatever
we're trained that, we need toqualify ourselves.
This isn't a job.
You're an entrepreneur.
Your job is to, as efficientlyas possible, achieve the goal.
(27:10):
If the goal is to own realestate, what is the most
effective way to do that?
Learn how to analyze the dealand get around people doing
deals.
That's the answer.
Buy a property would be how youbecome an investor.
In fact, that's the only way tobecome an investor.
So that was the best piece ofadvice I ever got.
I could have skipped the eightyears and gotten directly to the
buy real estate stage if I hadheard that before.
Number one piece of advice don'tadd steps.
Ed Mathews (27:19):
Yeah, and it's so interesting, and I'm guilty of
it myself Entrepreneurs, a lotof us are creatives, right In
terms of the way our brains work, and so adding complexity is
one of the things thealbatrosses that we all have to
navigate.
And when you said that piece ofadvice, I wrote it down on my
notepad here.
I'm going to use that as amantra going forward.
(27:42):
So, thank you for that.
Christian Osgood (27:44):
I know we're enlightening around so I'll keep
the story super short, becauseI love telling stories, but
they're one of my favoritemarketers of all time.
I love them or hate them.
Ryan Reynolds owns a marketingcompany and their superpower is
they can go from concepts todeliver product in about 48
hours so they can see a hitcommercial.
It's a sales and marketingcompany.
You can see a hit commercial.
They can hire the staff, writethe script, produce an episode
(28:08):
and have it out to the networksalmost immediately for any
product.
So there's this peloton ad thatwent out and the actress in it
was.
They just ended this story.
They go back to the house.
The peloton's not in there, butit's the same cast.
It feels like a continuation ofthis ad another company spent a
bajillion dollars on.
(28:28):
If you don't add steps, you getreally efficient.
It cuts down your timeimmensely from idea to product
and every.
I have multiple companies thatI'm involved in.
That has always been our superpowers that we can have a
business idea and I can usuallymonetize it within 24 hours.
I'm like I have a concept.
I think someone will buy thisbefore we even produce the
(28:51):
product.
Let's sell it to someone tomake sure that we have the model
and then let's go ahead andbuild it so that we can deliver
it to them.
I've done that so many timesand the ability to do that in
real estate or in business.
I've made millions of dollarsdoing that and it all stems from
don't add steps.
Sorry, lightning round.
I know no more stories.
That was the one.
Ed Mathews (29:08):
And, if memory serves, that was the Peloton
commercial during COVID and thehusband gives his wife a Peloton
and then Peloton took a basting, because the way that most
people perceive that commercialis the husband was telling his
wife that she's fat, she needsto work out, when she was this
like beautiful, healthy person,and and and then if, if I'm
(29:30):
remembering this correctly, soReynolds ad agency or media
company followed up that storyand she had kicked the husband
to the curb right Because shedid now, celebrating with
aviation gin and it's just theability to watch the.
Christian Osgood (29:47):
So that was one.
That was just one I took a lotof inspiration from, but there
was watching that being like.
They saw that they went, wow.
I wonder if someone couldcreate a continuation of this
storyline.
Wait a second, that would sellour product.
Do you know what's funny, themost watched Instagram short I
have.
It has nothing to do with realestate, which is a huge bummer,
but I just had this idea duringthe Mike Tyson fight.
(30:07):
When you see him walking withhis jockstrap, when they showed
his butt on TV, everyone'sposting this thing and I
immediately, my first time I sawthat, I immediately thought of
Ant-Man.
I'm like that's America's ass,that thing.
I was like I can't believe noone's posted this yet.
And then I was like wait asecond, I can post things.
The first one, the firstInstagram reel I've ever posted.
(30:29):
They got 2.2 million views andit's only because it's just the
first one to think about it.
And the time to see it and postit was like probably three
minutes after it went live.
Yeah, I was the most watchedhashtag for Mike Tyson, for two
hours it's At least that'swonderful.
Yeah, don't add Granted.
That added no value to me andnone of those followers will
ever buy anything from mebecause it's unrelated.
But it's a good example of Ihad an idea.
(30:51):
It got a ton of attention onlybecause we launched it before
everyone else.
We didn't get bogged down withother steps.
It was just like oh, this is agood idea, stitch these two
things together, done.
Ed Mathews (31:03):
Yeah, newsjacking is what you're talking about, and
it's a very powerful concept,right, it is, especially if you
can move as fast as you justdescribed.
Yeah, three minutes is ideal,exactly so.
I'm always interested inlearning how leaders like
yourself sharpen the saw, so tospeak.
And readers or, excuse me,leaders tend to be readers, and
so I'm curious who do you payattention to?
(31:24):
What book, virtual or otherwise, is sitting on your nightstand
these days, and who are youpaying attention to?
Christian Osgood (31:32):
There's three books.
Number one hands down favoritebook of all time called bible
good one bestseller highlyrecommend that.
One's always on my nightstand.
That's the basis for everythingoutside of that.
Like tactical sales books.
There's two and I found thatthe communication skills and
sales negotiation are the mostpowerful business tools anyone
can have, regardless of whatyou're in whether you're
actually in sales or marketingor not your ability to navigate
(31:55):
and direct is huge.
Never split the difference bychris foss fantastic book and
straight line method by jordanbelfort.
That one you have to listen toit on audiobook because there's
a big section on tonality.
That's super helpful.
It is really hard to read abouttonality.
You need to do it on theaudiobook, I actually.
(32:16):
So you can fun hack.
You can read faster if you havethe physical book and the
audiobook.
If you listen and read at thesame time, you can go way faster
and you retain astronomicallymore that if you have just those
two books.
You you can basically sellanything, move any piece of
product and negotiate.
Never Split the Difference isvery much the basis of map out
(32:37):
every side's objectives and getto a 100% yes for everyone.
It is negotiating win-winswhere you give exactly nothing.
That is a lot of creativefinance that one translates into
real estate like no other,translates into real estate like
no other.
Ed Mathews (32:50):
Yeah, indeed, and it's one of my favorite books.
Christian Osgood (32:56):
So good, although I haven't read Jordan
Belfort's book, so I'm going tobe picking that one up soon.
It is.
It is the best book on salesand, funny enough, straight line
method.
What did I just share?
Don't add steps.
It is yeah.
Yeah, that's been the basis of alot of my stuff.
Like how do you, how do youwrite a good script?
Why do you write a good script?
My favorite quote from thatbook no one likes scripts and
you don't read the scriptexactly.
(33:17):
It's a conversation.
Everything should be organic.
Great actors are great actorsbecause they know the script so
well that they can go off scriptand they can dance back and
forth with the script.
They can interpret the scriptbecause they know where they're
going.
Creating that straight linethat is your roadmap for
conversations.
My group Multifamily Strategythat's a lot of what we talk
(33:39):
about in scripting is theseconversations.
There are actual literalstraight line points that you
touch and your ability to dancealong those and keep the
conversation moving in orderdictates your success.
So that's, yeah, the great book.
You'll love it.
Ed Mathews (33:49):
I can't wait, I'll be.
I'll be hopping on audible assoon as we hang up here.
Good, so last question for thefinal five what does success
mean to you?
Christian Osgood (33:59):
What does success mean?
Success to me?
It's funny Cause I get askedthat question a lot and it
changes, like every time.
So I'm like I literally have acanned answer for this and I'm
questioning my canned answer.
Success for me is that you movesignificantly forward.
It used to be like literalsuccess.
I had an idea and it went toplan.
Or like when you get startedand you don't have any money,
when you have ideas that makemoney, it was easy to be like I
(34:23):
want to be a millionaire.
So when I made my first milliondollars, that felt successful.
But success is significantlymoving forward.
Every time you do anything.
I've had deals where I've lostit.
The deal didn't lose a milliondollars, but it cost me a
million dollars when it wassupposed to be zero down.
That's expensive.
Still made money.
It increased my net worth butit didn't work the way it was
supposed to.
(34:43):
And when you don't have anymoney and you need to pay, you
imminently need to pay a milliondollars and you've never made
that much before.
Pretty stressful.
So success to me in thatinstance was I can get bogged
down and really stressed aboutI've never made a million
dollars before.
Or let's focus on what thingscould I do in the 10 month
(35:04):
period I have to, where amillion dollars is no longer
scary.
What things can I do with mycurrent set of skills that allow
us to scale beyond that?
And so that's where success isfor me, and I'm trying my best
to articulate this while I'mthinking about it, but it's
taking every scenario andbecoming better and stronger for
it.
I didn't know how to make amillion dollars, but it got a
(35:25):
lot less scary when I built abusiness that makes more than $2
million and I was like, oh, Isolved it with a check because I
didn't focus on making amillion dollars, I focused on
making five and I failed and Imade two.
I still solved my problem and Ihad a million dollars of cash
which bought me a really coolhouse.
(35:47):
Like that's a good example of Itechnically failed my goal, but
I definitely moved forward andI overcame adversity.
That's a successful outcome.
So that's what good example ofI technically failed my goal,
but I definitely moved forwardand I overcame adversity.
That's a successful outcome.
So that's what success is.
It's being farther than youwere before you started Right.
Ed Mathews (36:00):
Okay, always advance the ball.
Yes, I could have just saidthat would have been better
Straight line.
You're not talking about realestate and doing deals.
What do you like to do for fun?
Christian Osgood (36:12):
For the past three, four years.
All lame answer, but all I do,for I love real estate.
I love real estate.
I really have enjoyed thecommunity that we built around
it.
So I know this sounds corny,with, like multifamily strategy
being my core product thementorship, the community, the
coaching but actually getting tobe a part of that, to host
(36:32):
events, to get to travel andspeak it takes all of my time
and I wouldn't do anything else.
I'm a really obsessive person.
That's why I can't play videogames, because I know it would
take all my time.
I have to compete and I have topush to be when something's not
as good as it can be.
I'm a hyper-perfectionist.
Having a project where this issomething that I can put
(36:53):
infinite energy into and it cannever be perfect, it can just
keep getting better.
I am so passionate about thatthat is, a majority of my time
is spent on how do I grow thiscommunity.
How do we increase the successrate of students?
My target is right now I have50 people.
I try to cap it to about 50people.
(37:14):
We're pretty much full like 48.
But how do I get these 48people to?
100% of them buy a deal withinthe next six months, multifamily
more than five units.
Most of them will be less than50 units.
But it's like, how do we get100% success rate?
That is the current challenge.
But that stuff I just from thetime I wake up to, usually about
(37:34):
one in the morning.
That's pretty much what I'mdoing.
Ed Mathews (37:36):
It's interesting, the usage rate of training and
things like that is usuallyabout five to 7%.
I don't know if you knew that.
So, really, yeah, and here'swhy the way the human brain
works when you go buy the bookor you buy the training, you
already get the dopamine hitthat you're looking for.
So your brain thinks I'vealready accomplished what I set
(37:57):
out to do, but you didn't Right.
And so that's why so manypeople, when they buy books,
they sit on a in a bookcasenever opened.
It's why, when you look attraining statistics, yeah, about
5% of the people actuallyfollow through on the training,
which is insane.
That makes me very happy.
I have we about 5% of thepeople actually follow through
on the training, which is insane.
Christian Osgood (38:14):
That makes me very happy.
We have over 50% of my studentshave bought a deal within the
first six months, which is verygood, and yeah, I hate anyone
who doesn't, though I reallywant to get that number up.
Ed Mathews (38:25):
Yeah, but your heart's in the right place and
the fact that you strive for100% really says something about
your character and also,frankly, your community is lucky
to have you.
Oh, thank you.
Christian Osgood (38:35):
If I have my friend Caleb he started with.
He was they started like 18.
He had no money.
His sales skills were.
I didn't know there was a levelnegative one until I met Caleb
Never had a job.
He's the least qualified personto of all time.
He just closed on a.
He's at 109 rental units rightnow.
He just he turns 22 tomorrowactually, so still 21.
(38:56):
I look at, whenever I look atit, I'm like there's no one I've
ever met who is less likely tohave succeeded than him.
So everyone else in the groupis more qualified to buy real
estate, so everyone should beable to do it.
That's how I look at it.
I mean it is possible to get ahundred percent%.
We just need to get everyonethere.
So it's a fun challenge andI'll never hit it.
(39:16):
You'll never have 100% success,there's no way, but we'll keep
shooting for it.
Yeah.
Ed Mathews (39:22):
You're already tenfold what the industry
provides.
There we go.
I'm not.
Christian Osgood (39:26):
That's a soundbite post.
That's testimonial.
Ed Mathews (39:28):
So if people want to learn more about multifamily
strategy or Kensho propertymanagement or your investment
company or just you know, pickup the phone and say hey, I'm in
the Dallas-Fort Worth area andI want to buy you a cup of
coffee.
Yeah, if you're in theDallas-Fort Worth area.
Christian Osgood (39:44):
My property management company down here is
Apex Asset Management Kensho.
I actually recently sellerfinanced to someone.
Funny enough but Apex AssetManagement DFW all the way down
to Waco.
So anywhere recently sell ourfinance to someone.
Funny enough but apex assetmanagement dfw all the way down
to waco, so anywhere down to 35you can go to apex amcom.
The youtube channel, multifamilystrategy a little over 100 000
subs.
You guys are more than invitedto that.
That's completely free.
Information is free, by the way, anyone who's selling you an
(40:07):
online course that's what it is.
Just go to youtube, seriously,it's easy.
I have a course that goes withthe mentorship.
That's what it is.
Just go to YouTube, seriously,it's easy.
I have a course that goes withthe mentorship.
That's on demand, which isgreat 250 videos, you can check
it out.
But if you want a community, youwant coaching, if you want to
plug into a system, if you'vedone the YouTube thing, you've
read some books and you're like,wow, bigger pockets, I've seen
a hundred episodes, but I havenot bought a hundred units If
(40:29):
you want to jump into a system,that's what multifamily strategy
is, and I run webinars.
Usually every Wednesday.
I'm on the YouTube channel.
I'm always linking stuff, so ifyou want to get in, you don't
need to spend $8,000.
Check out the channel, checkout some of the things and if
you're like this is thecommunity, I want to jump into
multifamily strategy.
You guys can always reach outand book Paul with my team All
(40:49):
right, happy to hang out.
Ed Mathews (40:54):
Excellent, Christian Osgood, congratulations on your
success, good fortune and thankyou for joining us today.
I got a lot out of this.
I've been jotting notes aswe've been sitting here talking,
which is not always the casewith my guests.
Thank you for your time today.
Christian Osgood (41:06):
Thank you so much.
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