Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

#1 MISTAKE Real Estate Investors Make! #realestateinvestment #podcast #realestate #shorts

22 Sept 2025 · 1 min

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0:31

Christian Osgood says new real estate investors make one critical mistake: raising only enough money to buy a property, then trying to fund renovations from cash flow. This stretches projects into years and blows budgets. Raise capital for the purchase price, full renovation costs, plus a buffer.

Chapters

Biggest mistake I see new investors make, like the number one thing, they raise enough money to close the property, they're like, hey, we'll fix it up or repair it out of cash flow. You take a 90-day project and it becomes a 3-year thing. It's like if you're trying to clean your house and you do it one room per day, your whole house is just always messy. That one stove blows your budget for your renovations, you have to replace that, then next month wait for the money to regenerate. It's a terrible way to do properties. You come in, you buy cash flowing real estate, you raise enough. If you need renovations to finish your entire project, rip it out, move forward.
So if I need a million down and I need a million to reno, I should raise 2 mil?
Yeah, get to your $2 million. Probably put a little buffer on top of that to make sure. And if the deal doesn't work with that big of a raise, you know you don't have a deal.