Christian Osgood bought a 90-year-old resort with 20 cabins on Washington's Hood Canal for $5.4 million using seller financing. He converted an adjacent house into three rental units and now runs weddings, concerts, and cabin rentals. He warns inexperienced investors not to over-leverage when entering hospitality.
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As a multifamily investor, I don't talk a whole lot about my hospitality business, but this is the White House. This is an expansion of the Robin Hood Village Resort. This was also a seller finance transaction. I'm going to share how we did this deal, what these look together. We're going to walk over to the Robin Hood. We'll talk about the Robin Hood Village Resort, but I'm going to talk about hospitality on this. While it is not my core business, I do believe that you always need to buy bigger. So while this is a single family house, we converted it into a triplex. It also has an RV spot, 2 RV spots in fact, and storage. It's part of the Robin Hood Village Resort, which is a much bigger project. So I'll show you what this actually looks like. But when I do hospitality— here we go. By the way, welcome to Multifamily Strategy. All right guys, this is the White House. So Quality Kitchens is about a million dollar house. We bought it for $900,000, seller financed, low interest, long-term debt, the normal things. This is what it looks like. We do hospitality. We blacked out this kid's room. We got bunk beds. 3 kids can sleep in here quite comfortably. Occasionally an We also stick a Caleb Hummel in there. We got a queen bed over here and we have the master bed. Now, if you have to stay somewhere while you're building your business, it's kind of nice to do it in your own place. So I've stayed at my own resort many, many times. This is typically where I'll stay. As a side effect of doing hospitality, I happen to just have a million-dollar house on the water that I can stay at anytime I would like. But this is the White House, the upper story of it. Lower story is two full-time rentals. So even my hospitality, I found a way to make them multifamily. Kind of cheating, but happy to do it that way. Coming outside, we have the spa. We have a hot tub right here, right next to our sauna. This sauna is freaking awesome. It gets probably too hot, but oh my gosh, it's amazing. Now when you're buying real estate, we're always looking at location. Here we are, you come out the back porch. Yeah, I know I still have to do a little bit of landscaping. Don't, don't beat me up too hard about it. But go to the back porch, you're right there in the woods, you're right off the water. Tide's out right now, but that's the Hood Canal right out there. And as an addition Guys, this is my yacht. You know all multimillionaires have a boat. Look at that thing. There's some square footage on it. It just happens to be a sunken ship. That sunken ship, that actually came with the property. So I own that boat. There's nothing really to do with it. All of the business ideas that you can think of, the answer is no. There is no cost-effective way to do that. Out there, that is the Hood Canal. Salt water right at the foothills of Washington State's Olympic Mountains. This is one of the prettiest places in the US in the summer specifically. We also have this little river that runs through Robin Hood, which by the way, we've just arrived at. Check it out. Boom. This is walking up on Robin Hood Village Resort. This historic building here, this is 90 years old this year. We hope to have Robin Hood on its 100th year. We'll see if we keep hospitality. I live in Texas. This is in Washington. But as you come into Washington, here it is. So it's a 20-cabin resort. Every cabin has an individual hot tub. I'll walk you guys through the wedding venue and the, uh, the concert space. But if you guys ever saw that video where we had a totally flooded out cabin right when we bought this, the sink blew up on this one. So this is Cabin 3, one of my favorite cabins on the whole thing, but looks like this. It's a 2-story cabin. I'll scroll up here so you can see. Look at that. It's a loft-style cabin right here in the woods. Your own secluded little spot. You got a patio, you got barbecues. Absolutely gorgeous. When we put this together, this was early in my career. I had $20,000 in my bank account. We purchased this for $4.5 million. White House was $900,000, so we're all in for $5.4 million on this entire project. All of it was seller financed, all of it was low interest. Robin Hood was an 8-year note, so long-term debt, not hyper long-term, but certainly long-term. And you open up the whole campus back here. We're sitting on about 13.5 acres over here and another 2 on the other side. It's about a 15-acre adventure here. Now, it used to be a restaurant, so what we're in right now is the laundry room. And this used to be the commercial kitchen right here. It is now an extension of our laundry room. That's where we headquarter a whole bunch of our stuff. Now we have a guest over in the Robin Hood Suite, otherwise I'd show you. It's my favorite unit in the whole building. But we will walk through to the historic pub. So welcome to the pub suite. This is where a lot of the indoor concerts are held, a lot of events are held. It's also where I do the catering when I run our Robin Hood real estate events. This is where I spend a lot I spend lots of my time when I'm at the Robin Hood. It's just a big open space. We'll do concerts up in here. You'd be amazed how many humans you can actually pack into this space. It is absolutely unbelievable. We have this mural that is about 70 years old of the Hood Canal. But really cool, extremely unique space. One thing that I do like about this particular project is that it is a one-of-one. It is in an amazing location and there is nothing else quite like the Robin Hood. Cabin 1, Cabin 2 also historic and original to the resort. These two shake roofs, real simple design but gorgeous little cabins. And look at the landscaping that we ended up doing here. We took this thing from a little bit, uh, crusty, I believe is the word, and we turned it into something actually quite nice. That was once a laundry room that is now two more cabins. This here used to be the old liquor store. We converted that also into a giant cabin. Now walking in the back here, I'm going to walk you guys over to the wedding venue. The wedding venue is a significant part of our revenue stream. It books out the entire weekend. They book the entire campus and the grounds. Pretty much runs all summer. If you were here and you're a guest, this is what you get to stay in. When I say one of one, I meant one of one. Now reminder, when I bought this, I had no money and I had no business in the event space or the wedding venues. So when we did this, we learned how to play the game at a different level. This forced us to grow. Going back in time, I would not recommend, if you have no experience in hospitality, spending $5.4 million assuming that you're going to knock it out of the park. And in fact, not all members of my team did knock it out of the park. We had to change around some of the ownership of this very early because my multifamily team was not necessarily the team for the job. I reached the little wedding venue. This can hold about 100 people, actually, pretty comfortably. I do want to replace this archway. It looks beautiful decorated, but if you don't decorate it, it kind of looks cheap. This river here has little salmon that run up and through it. Salmon run, I think, is in October typically, but just beautiful, beautiful creek that runs through the back. And now we get to the main area. This is the actual reception area. This stage is where we host a lot of our concerts. Here's our outdoor bar, so there'll be vendors here set up, buy drinks, sit here. We'll get 200 and— here and on the back lawn, run a few major, major concert series. We have some actual pretty big artists to come out here. Typically stay in those cabins right over there. Food trucks will get delivered into the back here. So right there on those pads, food trucks will line up in the back. We have hookups for each of them, so they'll hook up, power up. You got vendors, you got food trucks, you got live music, you have events going on. Each, each and every one of these cabins, we try to give them some privacy, but each one has their own hot tub as well. Mostly in the back of the cabins or under a covered area. But this is what we bought when we were in our first year of business. We just wrapped up year one. We'd bought the 38-plex, a 12-plex, 10-plex, a 6-plex, and another 12-plex. As far as we'd gotten in our portfolio, this was the next deal we did. I just went swinging for the fences. $5.4 million. And here's what we ended up with: the absolutely unique seller-financed Robin Hood Village Resort.
