Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

In What Ways is Right to FIrst Refusal Advantageous

24 Jul 2026 · 1 min

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In this segment, Christian Osgood explains why a right of first refusal (ROFR) is a powerful advantage for investors dealing with promissory notes. He outlines a typical scenario where a note with a face value of $100,000 is being sold at a discount—say $80,000—by the original holder who wants to cash out early. Osgood points out that the holder of the ROFR can step in and purchase the note at the discounted price, thereby acquiring the full claim to the $100,000 repayment while only paying $80,000. This creates immediate upside, protects the investor from losing the note to an external buyer, and can improve portfolio returns. The explanation is concise, using a concrete numerical example to illustrate the financial benefit of exercising the ROFR.

Chapters

How does adding right of first refusal, and if you end up buying that note, in what ways is that advantageous? Right of first refusal is awesome because if someone sells their note, they don't sell it at the full, uh, the full note value. So if I am looking to cash out of my note, so let's say I owe a— or I have a note and I'm owed $100,000. If I'm owed $100,000 and I want to cash out of my note right now, I can probably sell that to someone for $80,000, just as an example. If I'm going to sell the original debt at $80K, me as the investor, the one who owes them, I might actually want to buy that note at $80K. Hey.