Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How to Get The Most Potential Out Of Real Estate

3 Mar 2023 · 1 min

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Build cash flow from rental income, use it to borrow for renovations, then aggressively pay down debt. The order matters: income first, debt second, paydown third. This approach turns underperforming properties into stable, high-value assets.

Chapters

We are able to get the incomes up to where we have more cash flow. More cash flow allows us to take on new debt products, and we use that new debt to fix up all the assets. At that point, we are where we are stable. We get everything to its highest potential. So like, we're talking about development right now, highest and best use for that land. We're borrowing to do that. And then when it's optimized, then we debt hammer, we pay everything off, and then it's bulletproof. And that's just the order of operations. But we, we have to get the income up, which is what we did, so that we could borrow more money to complete the projects because we don't have the cash.