Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Sounds Like a Debt Product is a Good Long Term Write It Out Forever

25 Jun 2026 · 2 min

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1:44

In this conversation, Christian Osgood discusses a 35‑year debt product and the challenges of maintaining it when some partnership investors want to exit. He explains that a cash‑out refinance may become unavailable if a buyout is planned, making the long‑term financing vulnerable. Osgood outlines three primary options for handling exiting partners: (1) reaching consensus among all investors to extend the original long‑term deal, which is unlikely with many partners; (2) accumulating cash over time to purchase the departing partners’ stakes, which may be feasible depending on deal size; and (3) re‑syndicating the partnership—raising new capital from new investors to buy out the old partners and effectively creating a new entity that holds the same property. He clarifies that re‑syndication is not a new syndication but a restructuring tool that allows the original owners to transfer the asset to a new partnership while preserving the long‑term debt product.

Chapters

So it sounds like that debt product is a good long-term, ride it out forever type debt product, right? Yes. So if your plan is to keep assets forever, but you have some partners that might want to get out, just plan a buyout or you would just— You would plan a, yes.
Okay, this is actually fun 'cause this is the conversation I had with Caleb today. It's a perfect example. It's something we're looking at. It's a product that has a 35-year horizon on it. You really don't want to lose that product ever. However, you had a planned buyout So all of a sudden that cash-out refinance, if you were to go with that product, the cash-out refinance might disappear. So your options are either at that point, uh, all of the investors agree, hey, we're good with a longer-term deal. Unlikely unless you have very few investors. If you have like 3 or 4 partners on a deal, you probably all hop together in a meeting and come up with an idea. Uh, option B, you buy them out through a, um, with money, you save up money throughout that time and you allocate that money towards buying them out. Depending on the size of the deal, that might be feasible for you, that might not. The deal that I'm looking at, I probably won't personally just have that cash just sitting on the side. The third deal is what they call re-syndicating, which by the way, re-syndicating a deal doesn't actually mean you're syndicating. It's a term that you can use for partnerships or syndications. But re-syndicating simply means we do a new capital raise with new partners to buy out the old partners., which you absolutely can do. So that's another option. If there's a— you hit year 5 and you're like, hey, we have a new debt product that doesn't want to be bought out. You can ask people who wants to stay in, who wants to be bought out, and you can basically run a new, a new, completely new partnership, transfer it from one to the other. You essentially purchase the property from yourself in a new entity. Effectively, it's the same thing as that.