Cash Flow Isn't Dead in 2025: You're Just Structuring Deals Wrong

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0:00 is cash flow myth. Cash flow in real estate, this used to be a really easy thing to obtain. And more and more and more I'm hearing online that people are
0:08 not finding deals that cash flow. It's been harder and harder. And over the last few years, if you look at deal velocity, like you look at the number of multif family properties traded, it has
0:16 slowed down a lot. What I found is there's not actually that many people doing truly good deals right now. Why is
0:23 that? How are people having success? And is cash flow in real estate, like day one cash flow, really that hard to find?
0:30 Well, I'm going to share this in this video. Uh, by the way, new to the channel, my name is Christian Osgood. I have bought hundreds of rental properties. I run a mentorship group
0:38 called Multif Family Strategy where just this week, four people around the country bought their first deal. Four people, different markets. Super awesome. We saw over 44 units purchased
0:47 this week. On top of that, I purchased a few deals that cash flow day one this week while on vacation. How do we do it?
0:54 And why are these deals cash flowing?
0:56 It's not a myth. What is different about how we're buying deals and how can you do the same thing? Well, let's dive in.
1:03 Uh, but first, I've been sharing a journey with you guys. I want to continue to share that journey. Magic mind, this stuff keeps me absolutely awake, alert. It tastes delicious. Right
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1:34 love this. When you're negotiating your deals, when you're figuring out how do I find cash flow, it is a function of
1:43 becoming an insider in your market and understanding what the seller wants and understand what you need. If you go into every single deal going, okay, what do I need? What is an actual deal made of?
1:51 Well, for me, it's made of long-term cash flowing fixed rate debt. I'm going to buy a deal. It's going to cash flow day one out of the gates. It has to.
1:58 That's a rule. I'm not going to deviate on that. My income will go up permanently when I buy this deal. That means I'm raising enough money to
2:07 actually have a reserve. If I'm going in low to no money down, I have a reserve set up. I've allocated for the renovations that we need to do through this project
2:15 upfront. And it is structured in a way where it is going to pay me every month.
2:19 That is a goal for me. And I need to figure out what the seller wants and just write it down. So I need to figure out with the broker or direct with the owner, which is usually how my deals go.
2:29 Everyone in our group, we don't shotgun offers out, by the way. We're not just writing offers every day. I hate that model. One or two offers a month for
2:37 most people. We're finding deals that we actually think we have a good chance of getting accepted. We've talked to the broker or the owner. We've really mapped this out and we said, "Hey, I think I
2:45 have a solution where I get everything I want." They get everything they want.
2:47 One of my favorite books on negotiating of all time. Never Split the Difference by Chris Foss without explaining the entire book. The title Never Split the
2:56 Difference. Everyone gets 100%. It is always a win-win win-winwin win-win. I get long-term cash flowing fixed rate debt. All of my mentees get
3:04 long-term cash flowing fixed rate debt with margin, with a reserve, with your renovation budget all set up on the front end. We have to figure out what
3:12 the seller actually needs. Is it a specific price? Is it a specific interest rate? I did a deal where all they wanted to do is retire on $10,000 a
3:19 month. The property was only making $5,000 a month when they wanted to sell it. How would we pay them $10,000 a
3:27 month on a building that only makes five? The answer is we had a path to get it to make $30,000 a month. It was not there yet. We just set it so there were
3:36 no payments for the first 6 months while we fixed all of their collection problems. We came in with a mission. We came in with a budget. We came in with
3:43 the raised capital. We bought it very low down, 15% down. The rest of the money was structured with equity partners. This was one where the seller
3:51 wasn't able to finance 100% of it. They had a little bit of debt on it. We had partners come in. They wiped out that original debt. They helped fund the
3:58 initial renovation. And the only thing we had to map, the only creative piece, there's there's one takeaway here that's going to rock your world, by the way.
4:07 But the only creative piece of this thing was we said, "Hey, payments need to start 6 months from now so that we can run this property without losing
4:15 money, get paid day one to get the collections up, to get the leasing up, to finish a few renovations so that we
4:22 can pay you $10,000 a month, which is exactly what you want to retire on." We wiped out their debt. We gave them their $10,000 a month. They got the exact
4:31 price that they asked for for the property. We got income for the rest of our lives. One deal. And then, by the
4:38 way, we did another deal two weeks later, another deal two weeks later. Different structures, very similar.
4:42 Here's the one takeaway, and this is what everyone in multif family strategy is doing differently than really the rest of the country. One, we're not shotgunning offers out everywhere. We're
4:50 actually writing offers that we think can get accepted by really mapping out what do they want and what do I need and make sure that we find a way to say yes, even if it looks a little bit different.
4:59 It's yes to everything that you want. Here's what it's going to look like.
5:03 $10,000 a month, you got it. That's going to start in 6 months from now after we clear your debt right now. We're going to take over the property.
5:10 This is our game plan. This is how we're going to get you there. Notice I'm not giving to them immediately. We did a magical little
5:18 thing. We said, "What was the simplest answer to say yes to everything?" I've seen a lot of creative finance structures where people do one of two
5:25 mistakes. They either try to just absolutely hone in on one strategy and they always pitch the same strategy every single time. You might hear this
5:33 video and be like, "Oh, every time I need to pitch no payments for 6 months." That is not what I'm saying. You need to map out both sides and say, "What is the
5:40 least amount of change I can do to make sure that I get what I want they what they want?" We were off by $5,000 a
5:48 month of cash flow. So, all we did was say no payments. By the way, that $10,000 a month, we only had 4% interest on that deal. It was almost all
5:56 principal. That means when we write that check, our equity goes up and our debt goes down significantly every month. The property paid for the property, plus it
6:04 cash flowed additionally to us. This helped me retire my wife. But in addition, it gave the seller exactly what they had always dreamed of. They
6:12 got to truly retire from a property that was eating them alive. Everyone won. It was the simplest
6:19 answer. When you get too creative, one, your deal doesn't get accepted. Two, you make all sorts of mistakes. The deal doesn't look like how you wanted to.
6:27 I've gotten too creative before. Very costly to do. If you can find the simplest answer to say yes to everything
6:35 they need in a way that allows you to cash flow on long-term cash flowing fixed rate debt, you can buy infinite deals and every time you close, your
6:43 income goes up again and again and again and again and again. That's the magic. I mean, that's the secret sauce. Multi family strategy, I teach a whole lot
6:51 more than that. Well, you know, we'll teach you the analytics, the math, the strategy, the conversation pieces, how you actually structure these deals, how you write those offers, and how you
7:00 negotiate them to get them accepted. But if you distill it down to its simplest form, it is what is the least creative
7:08 creative finance method to say yes over here and yes over here. That is why cash flow is not dead. That's why every deal we purchase, cash flow is day one. And
7:16 that's why you need to copy the strategy to do the same. I hope this helped. This is multif family strategy. I'll see you on the next episode.