Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How to 7x your Money in 5 years

24 Apr 2023 · 1 min

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In this segment, the speaker outlines a value‑add real‑estate investment approach that can generate 5‑7× returns over a five‑year horizon. The model involves acquiring a roughly $3 million property with a modest down payment of about $250 k (8‑10% of the purchase price). By actively increasing the property’s net operating income (NOI)—for example, doubling it—the investor can leverage the low equity base to achieve venture‑style multiples while holding a tangible, lower‑risk asset in a strong Denver submarket. The speaker contrasts this with typical venture‑capital investments, which require similar returns but carry substantially higher risk, emphasizing that the real‑estate strategy offers comparable upside with a more stable underlying asset.

Chapters

let's say a $3 million asset with $250,000 down. That's ridiculous. And so one of the things we've discussed and kind of framed that to our partners in our fund is, you know, you basically put 8 to 10% down and then grow the NOI. Let's say you can double the NOI, right? You know, you're basically going to get 5, 6, or 7 times your money over 5 years. So you're talking about a venture-type return, right? Venture capital buying you know, startup tech or something in software with very little revenue, so really high risk. Typically when you're going to get 5 to 7 times your money on any deal, it's very risky. But here you get to buy a real asset in a strong location in a submarket of Denver, Colorado.