Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

THIS is the strategy that helped me find cash flowing deals 💸🏘️

2 Mar 2026 · 1 min

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1:10

Christian Osgood explains the interest rate ladder, a financing technique where the seller's interest rate starts low (4% year one) and increases gradually (5%, 6%) over time. This lets buyers meet the seller's price while keeping cash flow positive enough to cover rising payments.

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Struggling to find deals that cash flow? Well, if you can get a little bit of creative finance, this strategy has helped me so many times. So instead of negotiating price, you negotiate the interest rate. Now sometimes the seller will get back and they still want a high interest rate. They want 6, 7, 8%. If your deal doesn't sustain that day one, you can still say yes to everything they want. You can give them their price, you can give them their down payment, you can give them their interest rate, but if the property doesn't cash flow enough yet, you do what's called an interest rate ladder. Year one, going to be 4% interest only. My deal cash flow is there. Year 2, it's going to be 5%. Year 3, it's going to be 6%, and so on. You build a ladder to get them exactly where they want to go. That way, in the negotiation, you're not saying no to anything they want. If your deal can sustain it, figure out what price it works. This is for deals that are value-add or have some upside, but do not go into cash flow negative deals. It is too easy to lose money or lose the real estate. Always be paid to own real estate. This is an easy way to do it. Just say yes to the price, the down payment, the terms, but give them a timeline on when their terms will be met.