Christian Osgood bought an RV park for $300,000 with a broken septic system, borrowed $600,000 at 13.5% interest, and renovated it into a $1.6 million asset. He used no personal cash and no investors. Rental income covered the loan payments the whole time.
Chapters
This patch of land behind me just made exactly $1 million. Show you how I did this. If you look in the background there, there's an RV park that's 25 RVs. It used to be 28, and they were all parked back here. We bought a property that had a failed septic system, so we needed a brand new drain field. We needed to re-engineer the whole thing. So the purchase price— I bought this for $300,000. The loan was for $600,000. So we bought this 200% loan to value and was able to cash flow the entire time because all of these rentals pay more than the note even at 13.5% interest. So we had expensive debt, we had a lot of debt, but we got the project done. We have a new septic tank, we fixed the well, we went to the clubhouse and fixed it, got new laundry machines in there. Now we have a 25-unit campus. Appraisal came in at about $1.6 million. We're all in $600,000. We got $1 million of upside. I spent exactly zero of my own dollars. No investors needed to come in for the project. We simply got a loan, finished the project, made a cool million dollars, and called it a day.