Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

What is happening to all the big names in real estate?

6 Jul 2026 · 1 min

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0:34

Christian Osgood explains why major real estate deals are failing: operators borrowed at variable rates, and when interest rates spiked, debt service became unaffordable. Investors faced cascading capital calls and significant losses as operators demanded more money to stay afloat.

What's the downside? What can happen if you don't know what you're doing?
If you don't know what you're doing, you raise $300,000 from 3 people you don't know and you lose all their money. We've seen this happen all over the market, especially when interest rates spiked. People who were borrowing on variable rate debt, a bunch of them got wiped out. They had to go back to their investors and ask for more money to mitigate the losses. It wasn't even to secure the gain. They're like, hey, we need to raise more capital so we don't lose this deal, so you guys lose less money.
And it was all because of the interest rate going up?
It's because people didn't lock in their variables. There's only two questions to underwriting: how do you buy it, how do you never lose it? You answer both those questions, you've done it.