Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How To Identify a Good Deal

7 Oct 2023 · 0 min

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Christian Osgood breaks down what makes a real estate deal worth doing: positive cash flow and long-term fixed-rate financing. Money-losing projects drain your capacity to buy more. Build on deals that generate more income than expenses.

How do you know when you have a good real estate deal? Well, first of all, it's going to cash flow. That is important. It's going to cash flow on long-term fixed rate debt. You don't want any variables. You just want to lock it in. So I buy this property, it pays me more than I pay into the property. That means every time you close on a deal, your income goes up, which means you can afford more deals. If you have a deal that loses money, you can only buy so many of those before you're completely out. You have to be able to get through your projects, build your base on cash flow. That is what a good deal is— long-term fixed rate cash flowing debt.