Scaling to 300 multifamily units - creative finance live

That's amazing. There we are. Well, hello YouTube, I'm Christian, behind me is Cody. We are driving back from our resort, the Robin Hood Village Resort, which by the way you guys need to check out. It is sunny, it is gorgeous, the kayaks are ready for you, and the cabins are clean. So get down there and hang out. Today we're going to be talking about our plans for the year, scaling from where We're sitting, if you count the Robin Door, like 140-some-odd units. We're gonna be scaling to over 300 this year. We're gonna be talking about how we plan to do that.

It's gonna be one deal at a time, but the way that we're doing it, I'm gonna take the phone, is we're doing a lot of networking with owners and brokers. I'm working with a couple owners over in Central Washington to try and buy 50 units. We're working on buying another 80 units from the housing authority, and that has just been through our awesome real estate agent out of Seattle, but some people say, Why would you use a real estate agent? Well, they bring you deals, and those deals are worth a heck of a lot more than the 3% fee that we can make. Because both Christian and I have been real estate agents, I'm still a real estate agent, but I don't know about you, Christian, but I'll trade the 3% for a deal.

Would you? Yeah, 110%.

So that is a really good trade. That is the reason that we work with real estate agents. When they make money, they bring you more deals. So I am about 100 and, uh, 100-ish of those units that we need from agent and about 50 from the ownership relationships that we've built.

In addition, last week we hopped off a plane from a property we're viewing in another Central Washington market, a little south Central Washington. But, um, yeah, there's lots of opportunities out there. We're still meeting with owners, we're still building relationships, and we still have brokers who are looking for opportunities for us. So that is really the way to play the game, is if you know how to things creatively and you can play with or without money. When you have money, buy real estate. We just put money down on a deal, uh, what was that, last Friday? Uh, yeah, yeah, $32,000 down. Not a huge down payment, but creative finance deal. You have money, put it in real estate. You don't have money, buy more real estate. Then you have money again. That's pretty much the game that we're playing, and we're going to scale a lot this year, and we're going to be keeping it that simple. Meet with owners, network with the brokers.

Now, someone asked you a question.

First thing that we do is you set a target. That target is up to you. So for me, it was about $15,000 a month. I ended up upping it to $20,000. Uh, for a lot of people, $10,000 is going to be enough. Whatever your goal is, figure out what you want to do in life and what that costs you. Once you hit that goal, start paying down debt. It's about that simple.

We—

for Cody and I, it was getting to 100 units together, had enough cash flow. It's like, well, we whacked the debt on this and we are done. So that is what we're doing. We're buying new stuff with new debt, but we're paying off the original 100 units.

All right, our next question, um "By chance, am I able to showcase a potential seller finance deal that I came across and have your guys' thoughts on?" Absolutely, feel free to drop it in the chat or you can send it to us on Instagram because we are happy to discuss deals anytime.

That's @ChristianOsgood and @DoingCodyThings.

Because I am in fact Cody doing Cody things.

That is a fact.

We have no questions in the chat.

All right, so we're gonna keep talking a little bit about this scaling thing, how we're getting debt, raising capital. We're gonna talk about the actual methodology. But as always, keep asking questions in the chat. We're gonna let a couple of them get backed up so we can start rolling. And as always, hit that like button, share with a friend, and let's get this chat rolling. All right, so for all these deals, and we're doubling our portfolio size, Cody, that's awesome. Where is all the money coming from? Because we're not liquid for— Anything. Yeah, I was gonna say, if we're buying another $25, $30 million of real estate, we're not liquid for all that, are we? Nope.

So we're gonna have to figure out how to borrow it. And the most logical way to borrow it is seller financing. Because that's all made-up money anyway. So the first thing, we find the deal, then we find the debt. So we go find 150 units. It's gonna be mixed up, 25-unit deals, 50-unit deals, 10-plexes, 12-plexes, 100, maybe 100-plex. We don't know, we're not there yet. Once we line up the deal, we have to line up the debt, because if we don't have the money, we have to borrow it. So we're gonna figure out how do we get the big piece of the money from either a bank or from a seller, and if there's any money left over, then we're gonna have to go figure that out at that time. But the deal and the debt come first, so we are working on locking those down. Down in real time.

Perfect. That is how that works. And I saw a few things coming in the chat, so thank you for asking the questions. Cody, what do we got next?

Ryan asked, why is Cody in the back alone?

I'm not alone.

I have Charlie next to me. That's Chucko. So yeah, not by myself. Let's see.

From—

okay, when you start, is it better to start with properties under your name or an LLC?

Um, I will take that because I've done both.

The—

if you're buying a small property and you're just buying it without any partners, just put it in your own name. A lot of people have different opinions on that. There's a few reasons. One, you can have different financing options if you own it individually. And so first property— our second property I bought, actually put it in LLC, learned that to refinance it I had to take it out of the LLC and then put it back into my own name. I'm like, that was a waste of time. I think— oh, the counter started again. Oh, there we go. I'll say we're probably back. Oh, there we go. I'll say we're probably back. You could put it in your own name, or you could put it in your own name or an LLC. Unless bigger insurance, you don't have to try to hide it in an LLC or try to do anything else with asset protection. You can do with an umbrella policy and it costs very, very, very little. If you have partners on an LLC, you need an operating agreement and it has to be in a company, otherwise You're just owning a piece of it individually.

How are the numbers working cash flow with higher interest rates?

Well, the nice thing is with the creative finance, we're pretty much making it all up. Uh, the money's made up, so the interest rate is whatever we need to cash flow. That's pretty much the short answer. Cody, do you have anything to add to that?

I mean, that's— well, if you're borrowing more expensive money, you need to borrow less money. You actually have to put more down or get a better price. So you get to play with price, you terms, but you have to work with one to make sure it cash flows positive. If, uh, if it— if you can't get seller financing with your own terms, you're gonna have to get a better price or you're gonna have to put more money down. The same quality is terrible. Did Dion set it up?

Yes, he did. Actually, we're actually fairly close to Dion. We're pulling our way in through Tacoma, uh, pretty soon here. We are driving back from the Robin Hood Village Resort. I got another meeting that I have to get to, so we commit to 3, and no matter if we're on the road— I guess we're on a plane, we can't do it. But as long as we're not in the air, we will always meet our time, whether the stream quality is 100% or 2%.

Yeah, it's like 4 frames a second I'm watching.

There we go. As long as we have audio. And All Nighter is still one of the 2 people who hit like, so thank you, All Nighter.

We look like we're Minecraft characters, how pixelly it is.

I have not admitted this online, but I'm officially announcing I am a Minecraft character. Okay, next question.

Called my first donor today in the that we began investing in? That's our last question for this very spotty chat.

All right.

Yeah, we have bad connection.

Yeah, we may be just too remote.

We may need to call it a day.

All right, we can do that. It looks like we're reconnected. That's what we have for questions today. It's going to be a quick live because we are remote enough that internet doesn't want to obey. And like my Monday live, there's always some tech issue. That being said, if you guys have more questions, one, feel free to hit us up on Instagram @ChristianOsgood and @DoingCodyThings. Hit us up in the chat and we can tee up some, we can pre-tee up some questions for next week. So answer, ask us any questions there. We will start the next live and if we have time on Friday, I can commit to doing a bonus live.

Sounds like a plan.

From stable internet at Cody's brand new 1 gigabit internet. Um, one person asked when we can answer their question.

Uh, they didn't ask a question.

It didn't post through to the chat. So we can answer the question as soon as you text us on IG. All right, until then, we'll see you all soon.