In this solo YouTube explainer, Christian Osgood outlines why high‑net‑worth individuals favor multifamily real estate over other investment classes such as crypto, precious metals, office, retail, or self‑storage. He argues that multifamily offers unparalleled stability because housing is a basic need, especially in growing populations. Osgood then details how larger multifamily assets (10‑plexes, 38‑plexes, resorts) generate progressively higher gross income, allowing wealthy investors to leverage more capital and access superior debt products available for properties with five or more units. He illustrates a low‑down‑payment, seller‑financed scenario where $100 k can control $1 M of real estate, turning the initial equity into a ten‑fold return as tenants pay down the loan while the property appreciates due to inflation and housing scarcity. The video also covers significant tax benefits: standard 27.5‑year residential depreciation, accelerated depreciation via cost‑segregation studies that allocate portions of the asset to 5‑, 10‑, and 15‑year buckets, effectively reducing or deferring taxable income. Osgood explains that governments incentivize multifamily development to address chronic housing shortages, offering these tax breaks to attract private capital. He concludes that the combination of stability, scalable cash flow, leverage, debt flexibility, tax efficiency, and policy incentives makes multifamily the preferred wealth‑building vehicle for the affluent. The video ends with a call to like, subscribe, and a recommendation to watch the "Cody and Christian Osgood Multifamily Strategy" channel for deeper creative‑finance content.
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Why multifamily in general? You can invest in crypto, precious metals, office, retail, self-storage. Why multifamily? Stability. Why do the wealthy invest in multifamily? Hi YouTube, I'm Christian Osgood. Going to do a deep dive today on why the wealthy invest in multifamily real estate over a majority of other assets. Now, one of the first and most important things are the larger multifamily buildings are larger assets that you can park more money into. On a leverage standpoint, if you have a larger sum of money, if you're a wealthy person, or the ability to move a large amount of money, if you lack the money, you can get assets that generate more income. Just as a matter of fact, our 10-plexes make more money than our duplexes in gross income. Our 38-plexes make more than our 10-plexes, and so on. And our big resort makes more than any of them. As you start to stack larger multifamily properties, you get to lever your money at a higher level, and you get these awesome debt products on everything 5 units and up. As you get into the bigger buildings, what you're going to find is when you get out of residential loans, you have more debt options, which means you have more ways to pivot. In addition, you're going to have additional tax benefits. We're going to break into all of these. So number 1, why multifamily in general? You can invest in crypto, precious metals, office, retail, self-storage. Why multifamily? Stability. It is a predictable asset class. Why? Because people need a place to live, period. If you're in a place where population's going up, people need a home, they provide the home. If you're trying to protect wealth, you're going to put it in the most stable asset that you can find, and multifamily hits that. Let's talk about the leverage point. You can come in conventionally with bank products anywhere from 20 to 35-40% down depends on your market, your bank, and the actual underlying asset. But you can multiply money very rapidly if you can put less down. In our case, seller finance, we can take these things out 10% down. So my $100,000 can buy $1 million of real estate, and over time my tenants can pay that off. That is a really easy way to make another million dollars. You borrow $900,000, you let your tenants pay it off, you've turned your $100,000 into $1 million, you've 10x'd your money, and you've been paid to do so. Another fun fact, while you're paying off the property, it's going to continue to go up in value because housing prices, inflation, and with the inability to build housing fast enough are all a factor in most markets that drive up prices. So you're going to get cash flow and appreciation, and then you're going to get the tax benefits on these larger buildings. You actually get some extraordinarily high write-offs. All of your mortgage expenses are going to be a write-off on your actual depreciation of the asset. What the IRS says for real estate, 27.5 years, it's going to lose all of its value. So you get to write off 1/27.5 every single year. However, commercial real estate, it almost always makes sense to do what's called a cost segregation study. Now these rules change a little bit every year on how much you can actually take, but you can write off an accelerated depreciation schedule. A lot of it will be divided into 5 years, some of it 10, some of it 15-year buckets where you're taking all the economic value of that property and writing it off against your income, which means in many cases your income on this asset is tax-free or tax-deferred. If you lower your tax burden and you actually have a very high income, again, this is why the wealthy are buying multifamily. These are all special advantages that they have, leverage points, excellent debt products, ability to multiply money, and tax benefits. Why would the government give you these tax benefits? Well, historically, they're terrible— every government— at providing housing. They want to incentivize people to come in, renovate, push the market renting, build housing. So as cities expand, they want the investors to be attracted to this. It's a very expensive endeavor when you're talking building multifamily, especially on these large buildings. Huge projects, big timelines, they're big money things. They want to attract the wealthy and incentivize them to do so. Those are all reasons why you can buy multifamily, you can build wealth there. But that's why the rich are parking money there. They know that it's going to have stability. They know they have all these advantages. If this was helpful, like and subscribe. See you guys next week. Now, if there's one YouTube channel that you watch to learn creative finance, multifamily investing, I'm going to recommend Cody and Christian Osgood Multifamily Strategy.
