Christian Osgood argues that mid-size deals—boutique hotels and 5-to-50-unit multifamily properties—are actually easier to fund than cheaper ones because they attract more investors and require smaller per-person commitments. These 1980s-2000s assets generate cash flow and let buyers acquire them with little or no money down.
Chapters
it's easy to get in the mindset of, well, it costs less money, so it's easier for me to get in. I'm going to dispel that right now. The bigger the deal, typically the easier the raises until you get into the multimillion-dollar raises. It's more attractive for more people to invest in something that's bigger than they can do on their own. So your actual ability to buy these low to no money out of pocket is going to increase dramatically. And again, boutique hotel and mid-size multifamily, we're talking 5 to 50 units. We're not talking Titanic properties. We're not talking the 300-unit mega complex that just got built right down the street. We're talking about something built in the '80s, '90s, early 2000s. It's 5 to, you know, 50 units at the most. That is a sweet spot where you can operate. It's low capital raises, it's not capital intensive. You can track investors too, and it's designed very specifically to cash flow. So that's argument number one. Buy bigger will actually make it easier. So if you're stuck in the mindset of like, well, it costs less, so it's easier to obtain, I need to find less money. Stop doing that immediately.