Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How We Own 100% of Our Deals

27 Jun 2023 · 1 min

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In this excerpt, Christian Osgood explains the various ownership and financing structures he uses for real‑estate acquisitions. He describes three main approaches: (1) owning 100% of a deal or the majority (80‑90%) when possible; (2) entering a 50/50 partnership where the partner provides capital and receives half ownership, while the remaining half is treated as a loan that Osgood pays off and eventually buys out; and (3) structuring a 5‑year buyout deal where an investor contributes $90,000 for three duplexes, with a promise to double the investment to $180,000 after five years. The cash flow from the properties exceeds the buyout amount, allowing Osgood to make no payments during the period and acquire the properties outright with essentially zero out‑of‑pocket cash. The segment showcases creative financing tactics that enable acquisition with minimal initial capital.

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You own probably 100% of your deals or 80-90% of your deals, right? Yep. Either I have 100% ownership or like we have some more I've gone in 50-50 where I'm like, you, I've done one where they come with the capital, they own 50% of the deal, they lent me the other 50%. So I own 50% that I've put in, it's just a loan to them. I pay it off over time and then I'll buy them out. I've done that structure. We've done one where it's just a straight, hey, in 5 years I'm going to double your money. So it was a little deal, 3 side-by-side duplexes. I needed $90K down to close them. And I went, look, I'm going to buy you out in 5 years at $180,000. However, all the cash flow is going to go to the operators and managers. So I got a deal, $0 out of pocket. The property will cash flow more than the $180,000 that I need to buy them out in a 5-year period, which means I have 5 years of absolutely no payments to anyone. The property will buy the property, and they're completely free duplexes.