Christian Osgood builds $2 million in annual net worth by buying multifamily properties below market rent, raising rents by $100-$200 per unit, then selling the equity gains. A 100-unit portfolio with a $100 rent increase generates roughly $120k annual cash flow, worth about $2 million in equity at typical cap rates.
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I use this exact method to make over $2 million of net worth every single year. This doesn't count my incomes, doesn't count for any of my business revenue. This is just $2 million of added net worth on autopilot. Anyone can do this with or without money. I'm going to show you exactly how to do this on this video, and it's easier than you think. Welcome back to the channel. My name is Christian Osgood. I've bought hundreds of rental properties starting with $0, and I did this using creative finance. Now my goal is to retire my wife, buy a house in Texas, and start a family there. If you've noticed, the shelves behind me are completely empty. That is because we're about 1 week out from the move to Texas. I'm just about to head out, pack up, move to the new dream house that the real estate bought with my wife, who I retired from teaching. And about 8 weeks later, we're going to have our first kid. We hit all of our goals. We reached financial freedom. We did this using creative finance. These steps made us multiple millions of dollars. This one strategy can make you a couple million dollars a year. Every single year like clockwork. It's crazy. I'll show you this exact math. Pretty easy. The first thing that you need to identify: are there markets around the US— by the way, the answer to this is yes. I'm going to give you a hint here, uh, the answer is yes. Are there markets where you can increase rent by $100 a month? Can you buy a building where you can increase rent $100 a month? Now, if you're looking for a market and you're unsure, I'll give you a little cheat sheet. If population is going up and it's a place where people like to live and there's reasonable job growth, like there's just Diverse jobs, population going up. You provide housing for humans. If humans are moving there and population's increasing, it's likely going to be a market that you want to invest in. Really simple metric. Worldpopulationreview.com is an excellent website that actually has a graph for every city and county for how population is doing. So cheat sheet there. Now, are there properties there that are behind on market rent at least $100? I find these in every market all over the US. The answer to that is absolutely. So you found a market. Now, I started with duplexes, about 2 of them, over the course of about 8 years. When I learned how to use creative finance, I bought a 38-plex, and in that same year, I got up to 88 units. So I went from 4 units to 88 units almost immediately. Every year since then, I buy a little over 100 rentals like clockwork. We're talking 10-plexes, 25-plexes. It only takes 1, maybe 2 transactions a quarter. Buying small to midsize multifamily properties to get 100 units. Now, I used to think I needed money for this. With creative finance, I don't. So if you understand anything about seller financing or raising capital, not from friends and family, just finding a deal, lining up the debt, and lining up the equity, you're golden. If not, I have 100 videos on this channel about how to use creative finance. Watch literally any of them, how to structure the deals. But you can find these deals. You can buy them no money out of pocket. And you can do this like clockwork again and again and again. I actually have a few sellers who are selling me their multiple hundred unit portfolios over like a course of 5 years. So my pipeline is set up for the next half decade, uh, just acquiring 100 rentals. Anyone can do this. You do that by meeting owners. Again, tons of videos on this channel exactly how to do this. By the way, I've had mentees all around the country of varying ages. Great example, Caleb Hommel, the kid started with $300 at 18. He's 21 today. He has over 80 rentals. He will be well over 100 this year. He's going under contract for about 100 units in the next few months. Crazy story. Kid going from nothing to a ton of rental properties. We've seen it coast to coast, all over the U.S. Anyone can do this part. If you do this, this is the math you need to understand. One piece, which is cap rate. If you're new to real estate, cap rate is your— is a metric of your actual return. Had you bought the deal, in cash. So if we remove debt from the equation, we just look at net operating income divided by the price that you purchased the property for. That is what a cap rate is. So, uh, for example, net operating income, that is my total income, all the rents, maybe utility reimbursements, laundry income, all of my income on the property minus all of the expenses, the operating expenses. So we're not counting debt here, but we're saying, you know, taxes, insurance, utilities, all the things that it takes to run your property, whatever that net operating income is divided by the purchase price is the cap rate. Now, each market that you invest in will have an average cap rate. What are people willing to pay for how much income? That's what the cap rate is a measure of. In the markets that I invest in, most of them end up being around a 5 to 7 cap, which means that is— if you bought a deal in cash, you'd expect it cash flow, 5 to 7% on cash. If you bought the deal in cash, that would be the annual return on the property. Here's where it gets really crazy. If you buy a property, even if you don't get a great deal on price, so you get market price for the income. So you bought a deal at a 6 cap in a 6 cap market, but you bought 100 units like this, which I do every single year, just like anyone else can buy 100 units and raise rent $100 a month. Little rent bump on 100 units. That is an additional $10,000 a month, which will be $120,000 per year. If you're following the math, divide that by 0.06, which is that cap rate. If we want to figure out what did we just add in new value, what is the new price of the property? If you add $120,000 a month in— or sorry, a year $120,000 a year in cash flow. Divide that by what the market's willing to pay for that new cash flow. You get an added value of exactly $2 million. Now get this, in Moses Lake, Washington, the first 100 units we bought, we raised by $200 over the course of the last 2 to 3 years. Just the original 100 units has made about $6 million of new equity. That is equity that you could borrow against. That's equity that you can sell. That's equity that you can just put on your balance sheet and pass on to your children one day. That is brand new net worth. And anyone can do this in any market as long as you can answer the questions: is population going up here, and are there properties that one could buy that are under market rent by at least $100? If so, all you have to do is do a few transactions a year. If you're buying duplexes right now, you're going to need to buy a little bit bigger. But I'm not talking about astronomical buildings. I'm talking about doing a few mid-sized transactions every year No to low money down. You're going to be able to buy these properties, manage them a little better than the last person. You can make a killing. I do this every single year. Outside of all that cash flow— which, by the way, you get to keep the $120,000 of cash flow that you just added— but in addition to the increased income, you push net worth by $2 million. This is how people get insanely rich in real estate. That is how the math works. So if you want to copy this exact strategy, learn creative finance, Learn how to structure the deal, the debt, and the equity. Not that hard to do, by the way. Very simple. If you need a hand, check out multifamilystrategy.com. We have courses and a mentorship group that only focuses on exactly how to do that. But however you figure out how to do it, buy the deals. Modest increases in under-rented properties can make you multiple millions of dollars every single year. Hope this video was helpful. If you want more just like this, like and follow, and give Give this a share to someone if they don't yet know how to make $2 million in real estate, or if you haven't done this yet, share with a friend, get the word out there. We're going to share every single step of how to do this on this channel all the time. Any questions, ask in the chat, and we'll see you all on the next episode.
