Christian Osgood bought a seller-financed resort with no cash down and found it overgrown and neglected. He argues that regular on-site inspections catch problems early, a practice he calls "management by walking around." Properties decline fast when owners stop paying attention.
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All right, real estate investors, little trick here. I'm a multifamily guy, hundreds of multifamily units I bought starting with no money. However, I bought this resort also with no money in pocket. Now this thing's seller financed. Build something called management by walking around. I wish I knew about this earlier. Finally sunk in why you need to do this. I have been speaking about multifamily around the country here for the last couple of months. I'm back. I'm checking out the resort. This was done 2 months ago. This grass, it's not mowed. It's covered in weeds. The whole trail.— is just unweeded. The landscape— this thing looks terrible. Now we're getting crews in here and we're fixing it up. But you take your eye off the ball with real estate and it will catch up to you. This is not what I was hoping to come into. If you are buying multifamily, you're getting into the game, or you're trying to become a better manager, go out and visit your portfolio, walk around consistently. This is not fantastic.