Christian Osgood breaks down his three-part method for buying real estate with little or no money: creative financing to lower down payments, option contracts to lock in prices and bring in partners, and the BRRRR strategy to refinance and repeat. He claims this combination lets investors scale deals infinitely without their own capital.
Chapters
What is the Osgood Method? This is a combination of 3 very simple methods, but this combination of these 3 has allowed me to buy infinite real estate with or without money for free and to scale. Piece number 1 is usually creative finance. I've bought plenty of deals conventionally, but often I want to get in low down. The less down payment I have, the more money I can actually make on the deal. So you can go very, very low percent down. It makes the cash-on-cash return ridiculous. Step number 2, the option contract. An option contract very simply is an option to purchase a piece of real estate at a fixed price at a fixed period of time. If I'm out of money, often Oftentimes we don't just take on additional debt, we bring on additional partners. However, I don't want to be partnered with everyone forever. I want to figure out what can I offer a partner where they are very happy with the transaction and they have a clear-cut exit. I'm gonna use an example. We buy a million-dollar property, it's 10% down. I need to find someone who has $100,000. They put $100,000 in the deal. I'm going to give myself a timeline in which to buy them out at a price that they are happy with, and we're going to agree on it before we go into a partnership. However, I don't want to use my own money. This is where the BRRRR method comes into effect. We're going to let the real estate buy the real estate. Buy, rehab, rent, refinance, repeat, or you just start on the property management flip. Sometimes you find properties that are just mismanaged and the rents are a little low. In that case, you buy, rent, refinance, repeat. I am left now with a cash-flowing piece of real estate in my hands with no partners and no money in the deal. Yes, it's an infinite return, but more importantly, it's infinitely scalable. I can do the same structure again and again.