Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

The Power of Creative Financing

1 Feb 2023 · 1 min

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A real estate investor closes deals others think are impossible using creative financing: 4.5% down, 3% interest rates, and non-recourse debt even in markets like Seattle where seller financing seemed off the table. They bought a resort originally built by Don Beckman, who worked with Walt Disney, and plan to acquire $20 million to $50 million portfolios, pay them off completely, and hold them without re-leveraging.

Chapters

And we've done deals 4.5% down, 3% interest, non-recourse. Some people are like, that's impossible to get. Obviously not. They also said you can't do seller financing in Seattle. So we did. And then they said, well, you can't do bigger deals that are Class A-, Class B+. So we bought a resort that was built by Don Beckman, who partnered with Walt Disney. You know, we, we just did what people said couldn't be done. It's hard to play the game if you don't know the resources are available. If you play the game with the creative finance piece, you add another tool to the tool belt. You could do that if you have the systems. For us, we wanted to set out and do $20 million, pay it off, $50 million, pay it off. And in the meantime, we're only doing non-recourse debt. We are paying everything off and then not re-levering the stuff that we've built because we don't want to lose it. Right.