30+ Rental Units Before 30 Years Old by Building New Problems

TL;DR

Christian Osgood rapidly scales to 71 rental units through strategic partnerships and creative financing.

Transcript

this is the biggerpockets podcast show 605. now i'm learning accounting i have the right person to teach it to me i have a cpa it took me a while to find but i have the right cpa who makes me go through the steps and learn it before he'll file anything while it's a pain i'm understanding it and next year when i get here i'm not gonna have an accoun... Read More

Key Insights

• Christian Osgood and Cody Davis have built a 71-unit portfolio by focusing on relationships rather than direct transactions.
• They emphasize learning new skills, such as accounting, to tackle new problems as they scale their business.
• Their partnership thrives on complementary skills: Cody excels in deal-making, while Christian manages operations and finances.
• They use Google Maps to identify multifamily properties and build relationships with owners, rather than relying on traditional methods.
• Creative financing, such as seller financing and leveraging relationships for capital, has been crucial to their rapid growth.
• Understanding the deeper 'why' behind investor motivations is essential to maintaining strong, lasting partnerships.
• Mistakes, like misjudging investor goals or poor property management, have been valuable learning experiences.
• Their approach to real estate is problem-solving oriented, focusing on creating new challenges to drive growth.

Questions & Answers

Q: How did Christian and Cody build their real estate portfolio?

Christian and Cody built their portfolio by focusing on relationship-building and creative financing. They prioritize understanding the motivations of property owners and investors, which allows them to structure deals that meet everyone's needs. By leveraging seller financing and partnerships, they've rapidly scaled to 71 units.

Q: What role do partnerships play in their success?

Partnerships are crucial to their success. Christian and Cody have complementary skills, with Cody focusing on deal-making and Christian managing operations. This allows them to tackle different aspects of their business effectively. Additionally, they emphasize building strong relationships with investors and property owners.

Q: How do they find off-market deals?

Christian and Cody use Google Maps to identify potential multifamily properties. Instead of relying on traditional methods, they focus on building relationships with property owners. This approach allows them to uncover opportunities that others might miss, as they prioritize understanding the owner's goals and motivations.

Q: What mistakes have they learned from?

They've learned from mistakes like misjudging investor goals and poor property management. For instance, they lost an investor because they didn't fully understand his desire to be more involved. They've also faced challenges with property management, which led them to start their own management company.

Q: How do they handle financing for their deals?

They often use creative financing methods, such as seller financing and leveraging relationships for capital. For example, they secured a deal with 10% down by understanding the seller's goals and structuring a deal that met those needs. They also raised capital from investors by understanding their goals and offering terms that aligned with those.

Q: What is their approach to problem-solving?

Christian and Cody view new problems as opportunities for growth. They believe in continually evolving their strategies and learning new skills, such as accounting, to tackle the challenges that arise as they scale their business. Their mindset is focused on creating new challenges to drive growth.

Q: Why is understanding the 'why' behind investor goals important?

Understanding the 'why' behind investor goals is crucial for maintaining strong partnerships. It allows Christian and Cody to structure deals that align with the investor's motivations, leading to more successful and lasting relationships. This approach has helped them avoid misunderstandings and ensure that all parties are satisfied with the terms.

Q: What advice do they have for new investors?

Christian and Cody advise new investors to focus on building relationships and understanding the motivations of property owners and investors. They emphasize the importance of creative financing and learning new skills to tackle challenges. Their approach is problem-solving oriented, encouraging investors to embrace new challenges as opportunities for growth.

Summary & Key Takeaways

• Christian Osgood and Cody Davis have built a substantial real estate portfolio by focusing on creative financing and relationship-building. They prioritize understanding the deeper motivations behind investor goals, which has been key to their success.

• Their partnership thrives due to their complementary skills: Cody focuses on deal-making and relationship-building, while Christian manages operations and finances. This dynamic has allowed them to scale quickly and effectively.

• Learning from mistakes, such as misjudging investor goals and poor property management, has been crucial to their growth. They emphasize the importance of tackling new problems and continually evolving their strategies.