Robin Hood Live

There we go. Hey, it's live.

We did it.

I hope there's audio.

In theory, there is. I lost my mic clip, so it's somewhere in my shirt. I'll move that. And now look at that. It's a live thing. Well, we're disorganized today because we're shoveling a whole lot of snow. We got absolutely hammered with snow at the resort.

Dumped on.

So I have no time to edit. I had to drive down here. We're filming this live slightly after 2:00 when we try to get these out. But we figured the easiest way to show up is to just film a live because it'll instantly post without editing. So welcome.

Today we wanted to talk about delayed gratification because that's, that's a big thing for us. We push a lot into the future. We're a long-term thinking group of individuals. However, when we bought the Robin Hood, the philosophy was this is going to be an adventure. This is going to be a journey. Nobody in our age demographic has done something like this before. We haven't verified this 100% in every country. However, it seems like I'm the youngest resort owner in the United States, at the very minimum.

The youngest that we could find publicly. We did a lot of searching.

And so what we're looking at doing, and just want to put this out there, is sharing the story of if we hadn't done the resort, we would just be financially rich right now. Yeah, we decided to choose the adventure over wealth because we're dumping a a ton of money into this. And it's part of the journey. You have to decide based on where you're at right now what you wanna do.

Yeah, if you have debt, you have obligations. And if you have real estate, you have expenses. That's just a fact, that's how this works. When you get way ahead of them like we were, like you pick up enough multifamily, it's stable, it's long-term, you're in a great spot. We could have just stopped held on to the cash flow. Heck, if we want to be liquid, we could have sold one of the little buildings. We just said, hey, look, we have money and cash flow and we're done.

Yep.

We have way more than the pieces that you need to retire. Just super blessed to be there. This isn't bragging, just facts. We chose to take on an even bigger project that really pushed us to the max and we re-rolled again and again and again.

Oh, Millennial Mike's live too. Cool.

No, we should have gotten that. We should have just partnered with this opportunity. Mike, stop taking our watches.

No, I'm kidding. However, we want to put this out there. As you're going on your journey, you're going to start building out your portfolio. You have to decide when enough is enough. For us, we wanted a big adventure. We wanted to be able to share something. Hopefully that doesn't mess this up.

Yeah, it lags for a second, and then I think we're still good to go. We should still be rolling.

Anyways, you have to decide on your journey where you want to take the adventure to. We decided we wanted an adventure over having money because If we didn't do this, we would have just had money. If you want to do the delayed gratification thing, typically you're going to have a lot more down the road. Yeah. When we get this thing paid off, we get the apartments paid off, we're going to have a lot more than had we just stuck with apartments. However, we could have opted to just be done and be financially— oh, someone asked if we can get the Tesla charged up. Yes, we got that Tesla charged up. I didn't die.

Yes. Oh yeah, yeah, we probably should do a live update on, uh, on that while we're live.

I didn't die. Live update.

Yeah, Cody got, uh, with this snowstorm— this is actually perfect, uh, for what's going on at the Robin Hood. But, uh, snowstorm, we got what, 8 inches of snow? Yeah, and it's like a really heavy wet snow. It's not the good powdery stuff that you— that's kind of fun and like, uh, we just have trees down and it's been a disaster. At the same time, tree blocked off the road, Cody got stuck, Tesla died. It's a long story of everything that went wrong with that, but everything that could go wrong did go wrong, as it tends to.

And, uh Yeah, finally get my car back and then someone backs into it. Nothing goes right as far as that front goes.

But when you take on the big projects, this ties right into the delayed gratification thing. We kept re-rolling it every time we had money. Your options are I can be rich and I can be done, or I can push forward and I can do something bigger. How do we scale so fast? We didn't take money out of the portfolio. We didn't spend the principal.

We rolled and rolled and rolled. Over and over. Like, that is it. I mean, if you want to grow really quickly, you re-roll everything and you risk losing everything until you decide enough is enough.

And I think that is about where we're at for right now. We've talked many times about stabilization. The goal that we had was 100 units.

We did it. And then we saw the resort, and this was the one last hurrah. We go build year, stabilization year, which we're shorting to 3 months. We're going to end stabilized mode on Christian's birthday, February 17th.

Making it happen.

And then we go debt hammer and we pay everything off and then we go back into build year. However, we've built enough now and this is where you got to decide for yourself what is considered enough of not just real estate, not just enough cash flow, but enough of an adventure. Because this adventure, this, if someone didn't have the right skill set or they didn't have the right cash flows or they didn't have the right companies, this could cause them to lose the other stuff. It could cause us to lose the other stuff if we weren't careful. Yep. And so I just want to put it out there that we are delaying all the gratification, taking all the income, all the cash flows to build something that no one's ever built.

Yeah, it is. Um, that's what I really don't see a lot of people doing is just having the discipline. I think a lot of people get stuck on like, hey, I want to do this really slow, I don't want to really risk too much, I'm going to buy it one duplex at a time, I'm going to do I'm going to invest in houses, I'm going to do short-term rentals, whatever the strategy is. We figured let's just skip to the good part. Let's go to the part where we own the real estate. That's the hard part, that's the big part people spend their lives scaling to. If we start there and work our way back with the stabilization and the principles, now we just have time on our side. I have, you know, probably 40 years of life if I'm lucky. You know, 40, 50 years of life that we have, I have to roll down. Cody has another decade pretty much. If we live an average lifespan, I mean, these assets are going to appreciate, their cash flow is going to get greater and greater, and the debt is going to get less and less because we're very, very strategic with our debt and we do pay down debt.

Yeah. So for the 10 people that are actually watching, if you want to build up your portfolio, do it as quickly as possible. And there's a saying that Gary told me over in Moses Lake. He was my— one of my mentors still to this day. He said, one day you're going to keep on building. If you do it right, you're going to build fast enough and you're going to look around and you're going to be barely floating above water. And then you're going to pay everything off and you're going to be rich. That is what we opted to do. And if you want to build your portfolio, we recommend you try and do it as quickly as possible, built off of cash flow. Do something no one's ever done before. Christian had a professor who said, what was it? You can be the best at one thing in the world.

Oh yeah. Yeah, you can be the best.

Try to be the best at one thing in the world.

It's choose whatever you do in life, choose the thing that you could be the best in the world at. Doesn't mean you're gonna make it, doesn't mean you're gonna be the best in the world at, but it's analyze your skills, analyze your passions, and go, I actually could be the best at what I am doing. For me personally, it's managing teams and managing businesses. I want to be the best possible manager alive at coordinating teams, operating business, and optimizing for cash flow.

I chose for buying real estate. You get to choose whatever it is for you. Could be commercial real estate, could be multifamily, then you're going to be competing with me. But pick one thing you think you could be the best at and then go make it happen. And then once you've actually done it, go share it with the world and make sure that you build this in cycles so you don't lose it. This could crush somebody if they didn't have cash flow. If we bought this as our first or second or third asset, guarantee you we would lose it.

Yeah, there's things that came up, surprise things with the septic, easy, easy fixes, but not, yeah, not fun. Like those come—

I'm gonna text him. Yep.

Uh, furnaces go out, septic lines have problems, you get snowed in, you get the hardest snow that you've had in 25 years early in the season before your snow equipment arrives from Amazon. These things happen. You scale up quickly enough to be able to do this And you can get really big. I start with a duplex, then another duplex, then a 38-plex. We filled out a bunch of mid-sized properties between there with 6 to 12-plexes.

Yeah.

And then we ended this on a resort. We're going to stabilize, put it on here.

But the key component of building this model to where you don't lose it— you know, how do you buy, how do you never lose it? Will it be fun? Yeah, the resort's fun, but we wouldn't be able to keep it. So the— how do you never lose it? You got to build a stable base first. You got to build up your cash flows. We did that with apartments. You could do it with triple net. We have a guy that's trying to get us into triple net. We keep telling him no, but, but you can do it in whatever asset class you want. You could do it just building some sort of cash flowing company. But if you're going to go do the really fun stuff, this resort is more fun than the apartments. The problem is when power goes out and we have to refund a whole bunch of people after we just spent, you know, tens of thousands of dollars fixing stuff up that all broke out once with a snowstorm that caused more power outages than the last two decades. You know, what do you do if you don't have the stability? That can happen to anybody who's watching this. So you have to build your business based off of cash flow day one so that you can go out and do the fun stuff.

Yeah, I'm really grateful that we bought this. This is a hard project, and that's the phase that we're at now. It's like, okay, we did what we set out to do. This is where it's like, okay, that was actually big enough for this phase. So what's next for us? We are hiring— I can announce it now because I actually wrote the darn offer letter. Gavin is this awesome new employee that we're gonna be bringing on start of the year who's gonna be helping us out boots on the ground in Moses Lake, our core market. That's where a majority of our income is. We are appointing the right people in the right positions here at the Robin Hood, and we're still doing adjusting because that's what happens when you take over a new crew.

We've got people in the seats, we just have to get them in the right seats.

Yep, they're all on the bus for getting the right people in the right positions, and that takes time. I like to use the analogy for that, you know, you buy something new, you run water through the pipes, you see where it leaks. We had some leaks, normal stuff. It's how you address those is how you move forward. So we're working on that, that's part of stability. Once we're there, I'm adding a couple systems to get our time back with additional support and bookkeeping and possibly some help on our videos here. And that's going to be what we do. That is the model. We're going to do that over 90 days. We'll share it here with you, and away we go.

Someone asked if we have internships or classes. If you want to do a one-on-one with us, we can look at doing something at the resort where you book a day, you come help us out, and you come learn how to play this game. Whether you want to do multifamily or resort, we could look at doing a one-day internship where you fly out here, we go to Moses Lake and talk shop. But, um, other than that, we've got our consulting company, themultifamilystrategy.com.

Yep, themultifamilystrategy.com. We got an online course which is your A to Z, exactly how we did what we did. We kept it pretty darn simple, but it's about 200 short videos that walk through creative finance structures, putting together your offer, talking to owners, and actually building the darn relationships that get you to where you're at. If you want an applicable step, we have a mentorship group. You should join it. Ping me directly. It's @ChristianOsgood on Instagram. You have a question about it?

Let's talk. I know that there's theory and then there's actual application. There's a lot of people that have reached out to us. I mean, even just talking on math stuff, they're like, that doesn't make sense. Well, in theory it doesn't make sense, but in practical application it does. Like you talk about the negative cap rate thing or the positive cap rate thing. If you just want to learn about it, you can do that online. But if you want to learn how to actually go apply it, like application is senior to information, always has been, always will be. And it's really vital if you want to go build a— you could build a property management company, you could build a resort, you can go build a massive multifamily portfolio, whatever you build, make sure you're not operating in theory because a lot of people do that, especially real estate brokers calling you out. Make sure they are working in actual practical application because when people work in theory, they operate in theory for the long term, they get burned.

Yeah, that's pretty much what I had for today. The reason we're doing this live is because I wanted to get this posted on time and I wanted some engagement here because we are in the middle of stabilization during a snowstorm.

If you'd like to come visit, we do have a lot of snow. It's really pretty. You should come book at the— at robinhoodvillageresort.com.

Yes, we are operational again. We will be— we'll be open. Hot tubs.

We're down for one day. What's the best advice you have for someone starting out? Square one, which would be finding a market to invest in. Okay, uh, we actually talked about this with David Green. If you're starting out square one, you should map out number one, your goals. What do you actually want to go accomplish? And then you should really focus on how you communicate. Communication is the number one skill of any entrepreneur, any investment career, any career in general. If you can communicate where you're coming from, where you're going, and why, that That will determine your likelihood of actually getting there.

And it has to be specific enough. It can't just be more money or I want to own real estate.

I want to have 1,000 rentals. Why?

What's it for?

Yeah, like even if you want to syndicate 1,000 rentals, there's no significance there.

Yeah, we put some rules for that in the course. You actually open the course with like, this is actually how you set a target that you can actually hit.

Yeah, but you should set a goal and then learn how to communicate that goal. Because your ability to communicate and to get that to be received to make relationships and bonds with other people. Like, other people have what you want. So if you want to go build this, you should do that. As far as picking a market to invest in, what do you look at as far as market conditions?

Well, with any business, you're looking at what is the supply and demand. You keep it super, super simple. Macroeconomics 101. You are providing housing for humans. Do humans want to live there? Is your demand going up? I want— that's the first thing I look at. Worldpopulationreview.com has a really easy-to-read graph. Take some historic census data and you look over time. What has population done? It's going up like this, probably a very good sign. If it's going down like this over time, you're losing people. You're not unbuilding a lot of buildings to maximize the demand again. So I would look for places where people want to live. That's the first thing. That's about 90% of my criteria is that one metric.

Yeah, pretty simple. Yep. People are moving there, people are starting to make more money, there's some solid employers, not just one, but there's maybe 3 or 4 or more if you're doing, you know, definitely if you're doing bigger areas. But just keep it that simple and then don't spend a whole bunch more time on it. Don't overthink it. There's going to be bad neighborhoods, there's going to be bad areas. However, I'd rather own a property in an up-and-coming area than own no property because I want to solve for X. I can try and fix a location if I buy enough there. Yeah. And most people get stuck there. I don't want to buy there because there could be a risk. Well, of course there's a risk. There's always going to be a risk. But the difference is, are you going to have an asset that could get you to a point of retirement or you not?

And in everywhere in the world, someone has to own the buildings. If you can come up with the right model and it cash flows and long-term fixed rate debt, it might as well be you. Millennial Mike, who's apparently live right now, uh, you can check him out after we hop off. Uh, he invests in Gary, Indiana, murder capital of the USA.

Yeah, it's a bit rough over there, so I've heard.

But he chooses the best neighborhoods and he has the right team and business model to take that out. If you can, I mean, you can own anywhere. People get really weird about the, I have to do this so we don't get demonetized, the political climate of your state and the leaning of either party. If you're in states that hate building and make it hard for landlords, you're probably gonna get more appreciation because, again, supply and demand. You have people moving in, and new builds are really hard and expensive to do. If you can operate in those markets, you'll get outsized returns, but you're gonna work harder.

There's also more voting for taxes to go up, which means rents go up. So cash flow goes up disproportionately despite what some of the objectives are. Then you have the other side, which you don't get as much appreciation, but it's easier to manage.

And they tend to start cash flow heavier in those markets too. So pick your poison, but buy for cash flow in a market that you want to invest in, And the only thing that I just make sure the darn population's going up over time. That's the one thing I don't violate.

Yeah, we will never violate that. And something that we've done, we don't like to just buy for cash flow or appreciation. The reason we love seller financing is one of the metrics. There's 4 key ways to improve your cash flow, and one of them is borrow cheaper money. You can borrow less money, you can borrow cheaper money, you can improve an income or decrease expenses. Like, those are the 4 ways you can improve cash flow. That's it. And so you just have to figure out which function can you control most readily with seller financing. You can always put more money down, but if you don't have more money, you don't have more money. So you can borrow cheaper debt. And what we opt to do is buy in those higher appreciating markets where, you know, we just talked about the political stuff, but we want to buy in appreciating areas and we just need to figure out how do we borrow cheap enough debt to where we can get more cash flow than most people could get. In the other states. So we get more cash flow and we get more appreciation. We're getting the best of both worlds because we're controlling one of those four functions. When we don't have a whole bunch of money, the number one obvious thing to do day one is borrow cheaper money. Yep.

That's what I have for today.

Ta-da.

Yep. Thanks for joining. If you guys want more live content, by the way, I love shooting these. Live is my favorite format because if I run out of content, you guys fill out more content for us. It's fantastic. Um, every single Wednesday at 3 PM Pacific, we are on and we go till the questions stop. So if you guys have 5 hours of questions, I will stay there. Cody might get hungry, so we'll, we'll give him a protein bar, but we will get snacks.

I'll be like David Greene last night.

If you guys haven't seen that live, by the way, we're on, uh, David Greene's channel. Um, that live just posted last night. We had a lot of fun with David. It's a really good episode.

He's awesome.

I really liked the content and how they guided it. If you guys want to hear good stuff on partnerships and things that have just gone wrong with, with working with other people. Yeah. David, Kyle, Cody and I had a lot of good war stories there. I think it's a really good episode. You guys should check it out.

All righty. Well, that's it for today. So everybody have a phenomenal weekend and if you want to come visit RobinhoodVillageResort.com, we just got a new website. Let us know what you think.

Hot tubs are hot.

Unless or not— That was not the right button.

That's the right button. This would be a good ending. Okay, peace off.