Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

3 types of money in real estate👆#multifamiltystrategy #multifamily #investingcontent

6 Mar 2025 · 0 min

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In this brief video, Christian Osgood outlines the three fundamental forms of money that drive wealth in real estate: cash flow, liquidity, and equity. He stresses that achieving a target cash flow is essential for gaining financial freedom, especially during the building phase of a portfolio. Liquidity reflects the ability to access cash quickly, while equity represents the property’s net worth, which appreciates with market conditions and rising rents. Osgood argues that when an investor simultaneously holds strong cash flow, sufficient liquidity, and growing equity, they achieve true wealth in real estate, as each component reinforces the others and protects against inflationary erosion of money value.

In real estate, there's only 3 types of money. You have cash flow, liquidity, and equity. You need to hit that cash flow number, especially when you're building. That's the one that gets you freedom. Equity adjusts with the market. You have money here so it doesn't just get eaten away. Your rents go up, so your cash flow goes up, and your actual net worth goes up because it's tied to real estate. As money gets less valuable, housing tends to go up. When you hold all 3, now you're rich. Now you're actually wealthy in real estate. You have the income, you have liquidity, you have the cash flow.