$25M at 23… A Less-Known Real Estate Investing Strategy!!
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- Опубликовано: 14 янв 2024
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Christian and Cody started investing in real estate to gain financial freedom and help themselves and their loved ones break free of the rat race. To date, they’ve bought more than $25 million worth of property, generating a gross revenue of nearly $300,000 a month. In this interview, learn the strategies they used to build their real estate business from scratch.
Neither Christian nor Cody had a ton of money before they started investing. Christian’s dad worked all the time to provide for them growing up, leading Christian to look for ways to make more working less when he was ready to start his own family. For Cody, a lack of financial resources derailed his dreams of an athletic career. Both looked to real estate as a means to achieve their financial goals.
One of the biggest factors in Christian and Cody’s success is their focus on relationships over deals. In this interview, they’ll share their winning strategy for building a rapport with sellers, opening doors for deals to come to them. They also emphasize simplicity in their process, creating repeatable systems for securing strong investments. You’ll hear how they accomplish that, along with their other top strategies for growing a multi-family real estate portfolio.
If you want more insights into how to start a real estate business, check out some of our past interviews with successful investors:
$100M in Real Estate from Scratch ►
• $100M In Real Estate F...
Here’s How I Make $2M Working 2 Hours/Day ►
• Here's How I Make $2M ...
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I had to look up what seller finance was. You basically sign a legal contract with the seller to pay them an agreed monthly repayment plus an initial deposit until the entire debt is paid off. Like a bank loan but with the seller.
100% correct!
a win win for the wealthy who have already depreciated their real estate asset...theyre going to have a hell of a tax burden if they sell through traditional means and get a full check at closing...thats the biggest incentive to convince someone to owner finance - "hey, lets both win, and reduce your tax burden."
it's never easy you have to be big man to even seek it!
Ah so this is what Grant Cardone did during his 90 day challenge
Keyword cash flow
I saw this young guy years ago on biggerpockets, then on his RUclips channel. He is richier every year and I am always the same idiot watching videos and not taking action 😂
Take it one day at a time. Starts with 1
@@Multifamilystrategy Is it possible to do seller finance with a house hack?
@@Evermorecuriousyep. Our buddy lives in his seller financed 26plex
@@Evermorecuriousyes! It might be easier b/ interest rate are high causing slower sales traditionally
@@MultifamilystrategyI’m 23 trying to become a multimillionaire before 30 where can I learn from
You guys
Great Interview!!! Nobody really dives into Scaling a real estate business. I feel like these boys dove into it a little bit. I found it very helpful. These guys are putting folks onto serious game..you just have to listen, take notes..and go apply this shit. These guys are incredibly bright people. I intend to follow their bull print.
the ole saying is "it takes money to make money" ....well, them days are changing! Creative Finance is changing the game!
Phenomenal interviewer. Excellent questions. Thank you all for putting this together.
This video killed it!!! The most in-depth detail I've seen by far. Every aspect of this particular video is impressive and professional.
My 1st time here. Beautiful and informative interview; straight forward answers for good questions asked, no bs👌🏾.
Thank you brothers 🙏🏽
Real estate investors losing money is music to my ears. They are a major reason why the real estate market is the way that it is now.....
You can also blame the Fed but most of it goes to those investors that have made life difficult for the 61% of people that are living paycheck to paycheck and can’t afford to buy a home because of these investors that gobble up the properties and jacking up the rent and buying price for a home. That’s BS..........
@@sarahmark979no most of the blame goes to the govt for making restrictions and useless regulations
Well no Investors no homes. Or do you cry about P&G for earning billions with toilet paper and tooth brushes? No
@@victoriajonas44agreed
@@sarahmark979you could also blame most people for not using everyday readily available tools to learn for free how to do it themselves. What the problem is, is that most people won’t take action and that’s where the entrepreneurs and investors win. They take action that others won’t, and they sacrificed time to learn how to do those things that others won’t take time to learn.
Christian and Cody are awesome. Glad to see you feature them on this channel
It's an honor to have them! 🙏
That's high praise coming from Spenser!
amazing, i relate on a personal level with introversion i also training myself to become an articulate speaker building rapport with individuals finding solutions to problems. the insight of strategy and structure as always is invaluable
Introverts seem to do really well in this industry even though there are a lot of social skills required!
I've always heard real estate is the way to go to get rich. But whenever I try to watch videos about it or read basic info about it, my eyes glaze over when I hear all these real estate terms. It seems so complicated and foreign to me. But these guys - and other people as well - make it all seem so easy and a piece of cake. I wish I understood all this and make big money like everyone else seems to make that is involved with real estate. It's like you never hear anyone fail in estate. Does everyone end up making money in real estate?
Correction: Ben Mallah promotes selling your deals and tax differing the profits by rolling over it into a different property of equal or great value (1031 exchange). He does promote cash out refinancing if after running your numbers you make a 9% or more cap rate, because you never sold you do not get taxed on the proceeds of this event.
Ben has done well
Time to tax block the 1031 😂
What an amazing interviewer. Props to these two investors of course, but let’s give props to these questions and the structure of this video. Great work!
Your appreciation means a lot to us and motivates us to continue producing content like this. 🙏
Incredible episode! The insights shared by Christian and Cody are nothing short of a game-changer! Their strategies and success journey are beyond inspiring-truly a masterclass in achievement. 🏆 Thank you, Upflip, for bringing us this phenomenal content! 🔥 Looking forward for more nuggets of wisdom in future episodes. Keep raising the bar!
Thank you!!
Great episode these guys are very generous with their knowledge great interviewing also
Super fun to be invited on the channel
We learned a lot from them, that's for sure! Hope you did too. 🙏
Thank you for this! No gatekeeping just real conversation and advice.
Glad you appreciated it! 🙌
Great episode.
Thanks for the openness
We do our best
We hope you enjoyed the video! ☺️
Excellent chat. Makes me wonder if I’m thinking too small. Still like 2-3 units. Have 5 right now. Would have to compare and contrast with apartments
Wow that's awesome! How long have you been in this business?
I'm 1.5 years in. Just getting started really. I'm going through a gut rehab in 2 of the units and documenting it all on RUclips@@UpFlip
You are. You shouldn't touch anything of less than 32 units, the scale just isn't there.
I'd need to learn more about how the debt is structured. I prefer long term fixed. I think for my next deal I can give apartments a try and work on seller financing.@@illuminated2438
Cases like these don’t happen often because believe it or not this kid got a lot of help from other experienced people, so yes he did put in the work to say “make his own luck” but again everyone starts somewhere and if you stay consistent your luck will come also
High interest rates are the best times to go for seller financing if they’re a serious owner. Just have to find out who is legit trying to sell and who only has their property listed super high to see if they can cash out on the market. Don’t be discouraged by the ones who flat out say no or have aggressive terms on the seller financing
100% agree
How does one find deals that Are willing to seller finance? I am always hearing how cash is king and nice properties always go to the all cash offers or whatever is closest. It just seems like a huge disadvantage to have to educate and sell a seller on this kind of a deal. I wonder what their deal exploration/offer vs completion ratio looks like?
That was a lot of great information. Great questions and answers.
Thank you! It's been a fun adventure. Grateful to get to share the story!!
This interview provides great insight and pitfalls to avoid. THANK YOU!! Much Success!
Thanks
These guys are a amazing in person! Lets go guys!!!
Thank you!!!!!
Couldn't agree more! 🔥
amazing info
who loans 19 year olds a million dollars with no experience , no job, no credit and no assets. Asking for a friend
Someone with the right collateral. Cody's first deal was fantastic and if he failed to pay the debt the investor got his equity. He didn't fail but if he did the collateral was better than the interest rate
@@Multifamilystrategy What was his collateral?
@@christopherpalmer4243the equity of the home
@@christopherpalmer4243the ownership of the real property and the LLC
@@christopherpalmer4243probably his pants down and bent over
The best real estate video I have ever seen!
Hurray!!! Glad we got to be in it!
We appreciate you tuning in! Thank you! ☺️
You would love grant cardone aswell. his free lives he has up on his channel are so informational
Really great content!
great episode:
Amazing mentorship! Thank you so much.
Where are the best markets to start buying
This is so insightful and inspiring! I actually want to get into Real Estate now.
Fastest way to become an investor is to buy property
Between Blackrock and smalltime investors like this i now understand what they mean when they say "you will own nothing and be "happy"
Much simpler life that way.
@@Multifamilystrategylol, communist bot.
There is a guy here who started at 19 just as i was starting to get a two family. He was dealing with 3 million dolllar deals. I was like wtf. It is all about connections. Go meet with people who are doing what you want to do.
Awesome ❤ guys, great success
Thanks!!!
Multifamilystrategy, with a seller financed deal if the property appreciates are you able get equity loans from a traditional bank?
Yes. We have several conventional bank loans that we have pulled cash out with
Deals on Wheels - where can I find this book for a normal price??! $45 used for 200 pgs. is the cheapest I could find. From there, it jumps to $160, $250 and on up! My libraries, nor it’s affiliates carry it. The authors website is down OR I have to be a member for $300 or something like that. Can I borrow your copy? (I’m reading his 2nd book on Kindle)
best interview I've seen on real estate
Thanks!
that boy is very smart and focused
They drop some serious knowledge bombs that blows your mind! 🔥
He is. Also some luck. Because where im at, the rich are stingy and dont plan on selling anything of theirs 😂. Even if its some land just sitting
Love this channel, definitely going to try colossis for my moms condo. Fingers crossed!
best channel
Colossis changed everything for my brother, pics really do sell. Gonna share their link
Where do you find investors who will work with you?
4ra ke events Finch ke saath aur bhi dhamakedar ho gaye hain, can’t wait to join in
Great video! It was so sweet how they wanted to retire their mom and wife 😢❤
And my wife is very happy about it!!!
Great interview
Glad it was helpful! Were you inspired to venture to real estate? ☺️
Love them boys good episode new channel that I will be able to watch h
What is your strategy with owners on mid sized portfolios who (without you even asking) say they wont hold paper.
Always Deal then debt and equity. If you can't negotiate the debt then you will need to win on price.
@@MultifamilystrategyI was offered a 23 unit off market property and on our 1st call in the 1st 10 mins the owner blurts out he wont hold paper. I made no reference to $ at all at that point, I was trying to learn about the property. I'm thinking of trying to build trust over some time and conversations to see if that will change. What would you suggest?
Dude, thse guys are so smart!
Ty. We keep thinks simple!!! Makes us look smarter that we are!
Just a small takeaway from the choice to refinance or to own outright. Owning a property outright could make you a target for predators in the event they have a case to sue you. The less equity you have the less reward for them.
The most correct answer is create a separate holding company pay off the property and place a new mortgage against the property with the holding company. You owe yourself the debt but the property appears leveraged to predators. Just make sure you file that LLC in Nevada or Delaware
What you mean? You can own it in an llc or a trust just bc you own it don’t mean anything outsides of no payments, payments or no payments you own it
@@Multifamilystrategywhy
Noted
@@Multifamilystrategy Game!!
wow such a great interview.
Thanks
As a not really experienced real estate agent with only 5 years working in the sector, I was curious to know how he bought it without a down payment.
From what I understand there was a downpayment, it just wasn't his, but there was (from an investor and a seller). Min 4:40
I've been trying to figure out how to buy a property without a down payment for long 5 years ... in the past (before the 2000s) it was easier. Nowadays I haven't figured it out yet but I hear there's a way, I just haven't figured it out yet
What guarantee does he have that you will pay on time? If there is no collateral, no one lends money. If you don't have a car or another property with the same or greater value as the property you want to buy, no one in their right mind will lend you money.
How will the seller assume a debt for you (whether credit or money) if you don't have a guarantee, such as an excellent score, salary or secure annual cash inflows?
Or I simply didn't understand what he said he did.
It doesn't add up. As an owner, why would I sell you without any money?
Yeah, what collateral did he have to secure the hard money loan? Confusing
BoxBrownie is awesome but have you seen what colossis can do with staging? Next level
Nice!
I absolutely LOVE Ben Makkah. He is such an awesome dude who is very successful in real estate.
Very smart partnership!!!
I am ready to get started and have been working on it but need a partnership like these guys to come in with me!!!
Congratulations Cody Davis and Christian 🤝 , I need to take the dive as well and do my first man 😎 let's keep in touch
Let's do it
good video. Can you make an epoxy floor blog?
We actually have one! Check out episode 143 on our channel 👉 ruclips.net/video/q6mghjqijuU/видео.html! ☺️
You guys bought the Robin Hood in Union? Great property, good numbers! Kudos!
They did! What a stunning property. 🙌
Yes we did! Just hosted an event down there too. We love the property- Christian Osgood
Amazing!
Thank you!
Its now 6months down the road am watching videos like this reading books searching this and that but all i get is to get more and more motivated but am still failing to take important action
This is Christian - I took 8 years studying without buying real estate and found that after the first deal I still didn't know enough and figured it out anyway. The takeaway of you want to be a real estate investor - buy real estate. The books and videos won't get you there!
@@Multifamilystrategy wooow I love this, thanks Soo much ❤️😍
my first time seeing this channel. great info guys! thank you.
This was super fun to put together with upflip
Bhai 4rabet ka interface aur Finch ka presence, dono milke events ko next level pe le gaye hain
Love to see young people crushing in Real Estate !!!
Thanks
Great Video ❗
Glad you enjoyed! 🙏
Young. No equity. No capital. Nothing to lose if they go broke since they were pretty much broke already.
About 8MM in equity between the 2 of us. Definitely no capital, we spent it all on renovation and expansion. There are phases build and stabilize phase everyone stays pretty much broke. We are just now starting to stack cash reserves again as we start to optimize.
@@Multifamilystrategyyou guys are my inspiration 🙌 I also am going to be a millionaire in my 20’s so it’s heartwarming to see that people can do it despite the odds
not fully understanding the "can get started with not having the capital to begin with". I get you can finance, but don't you have to have at least little equity or capital in order to pay off your first few months of the debt? it's not like you will be able to get cash flow right away from your property. Can someone please explain?
You can get cash at close or otherwise fund the first few months. Another structure is to have the payments start 3-6 months after close. Many many ways to play with new money on a seller financed deal
Fantastic video.
Glad you enjoyed it! 🔥
I think his point to refinance the Ben Mallah way is he's not doing multi-unit, single family, and air B&B. Ben mall is doing Triple-NET (NNN) deals that scale quite considerably which means the taxes and etc are on another level of getting money. Although Ben has some residental communities, those are usually from what I can tell Elderly Section 8 niche's that offer some sort of tax write off. Hes also on top of his real estate by ensure the little things are taken care of.
They are both masters of their craft, with unique strategies and approaches. No doubt both are crushing it in the industry! 👏
Carlton Sheets was selling these ideas back in the 70s.
I studied Carlton sheets
What would be the best way to have someone on a recurring basis to both mentor me, keep me more accountable and not scam me.
I am very wary of a lot of gurus out there to even ask them for help.
I’m happy with my income and business success but I have reached a plateau and would rather go back to real estate only.
How do i find a mentor to teach me how to do the part that you didn't explain when you dont work at a brokerage or real estate agency?
Being a broker or agent does not help being an investor. Totally different jobs. One does not relate much to the other
Nice video ❤
Thanks!
Thanks for watching! ☺️
I don’t know anything about real estate, but doesn’t owner financing mean the owner has the deed until the loan is paid in full? If so, isn’t he 25m in debt?
They’ve got a note and DOT against the property. I get title
13:54 what are some ways to do this “lower cost of money”? Banks dictate the cost of their money, mostly take it or leave it, right? Sellers would have more flexibility but no more motivation to take a low rate?
You missed their whole approach man, seller financing. The motivation for below market terms for lending on the part of the seller is the desire to sell. If desire to sell = high, you can get a deal
"I made 20million from my first 40 deals and then started buying RE with no money". That is so helpful.
You have done better than us. We had to start with $0 and 0 rentals and bought our first 15 deals without ever having liquidity. This year is the first year we started to have any money. Took a few years of projects and stabilization to get rolling. Congrats on your success
😆😆🤣🤣👌
( 0:45 - 0:56 ) = daddy’s money
Unfortunately no dice. Had to find private investors
@@Multifamilystrategydo you have an email I can reach out to you at? I want to get a coffee with you soon
I KNEW IT!!
better act before all the secrets become public
We wish you the best on your new venture! 🔥
There are no secrets in this game!
Mujhe 4RA pe games khelna pehle bhi pasand tha, ab Finch ke saath aur bhi maza aayega
*Stability of an asset explained to equity investors
*Emphasize downside protection to debt investor: worst case-scenario, still a profitable outcome for a lender? (magaliti: multiple current offers indicating high mkt price / offering high wholesaling commission, desirability.
*Communication ability = most important personal skill
Great links @24:05
Hope it helps! 🙏
Seller fiancing is very rare atleast in markets I follow. So what am I missing?
Perhaps you don't need money but you do need a really value asset, the key that was not highlighted very much.
So this works only if you either have existing wealth in an asset or a guarantor, but with nothing and no skills in negotiating it is a stretch to get such funding for the average Joe.
hmmm well done but, seller financing comes with extra risk imo. Not hating, they are doing extremely well. I would rather own my properties outright. To each their own.
But $1,800 for a class?? Crazy, newer investors will spend this type of money on a class and never do anything with the knowledge.
Everyone has their own way of doing things, and they all have their merits. Diversity is awesome! 😎
Seller finance is the same as bank financing but you can set your own terms. We acquire with seller financing, pay it all the way off and hold it outright.
@@Multifamilystrategy I understand seller financing, more risky for the seller though.
Not nearly as simple as it seems, there is a reason the sellers do those seller financing Deals instead of just running it themselves especially on those big properties. They just need to run into one bad deal and they're deep in the hole from all the monthly payments they are still obligated to make and can't declare bankruptcy on. Also another case of, when you discover a Gold mine you don't tell anyone else. There is some other revenue stream at play here, they're not talking about
Real estate is hardly a secret and we can't buy all the properties in our city let alone the country. Plenty to go around. We want to provide affordable housing and help others escape the 9-5 while doing the same!
Yaar, Aaron Finch ke 4ra ambassador banne se pura 4ra experience bright ho gaya hai
real state isn't all what it seems. Nobody talks about the headaches, stress, no sleep and basically the risk you are taking. I am going on my third property and my first rental was a headache with tons of stress but I dealt with it and learned from my mistakes. If you don't take action you will never know what is out there for you!
Hope things continue to improve for you from here on out!
@@UpFlip we are always hoping for the best, staying positive at all times. Wish you the best and continue with your success ! Thank you
The concept of buying with little or no money has been around for a long time, but so have real estate booms and busts.
That's why you need long term fixed rate debt. Markets change but fixed rates do not.
Also interest rates fluctuating 😂😂 high risk has been my comment from the start. Very high risk I’m changing it
They talk about fixed rate debt cause I know USA has 30 year fixed but they don’t tell you that they have partners that want their money back who aren’t staying in it for 30
Years then they have to refinance the deal at what ever the rates are today and oops now it’s not cash flowing and force a sale on a depreciated asset
@@b-rare if you have money partners, then build those safeguards into your offer If it doesn't appraise at such and such than the money stays in. if you want out then you lose points. there's always a way.
First property at 19 placing him at the height of the market… yeah mommy and daddy should be interviewed here 😂
Buying in a tertiary market with a deal that sat on the market 500+ days. The difference between you and us is we do due diligence before sharing opinions 🙂
@@Multifamilystrategy You don’t even deny it 😂
I still dont get how people can get so much loans... after your own home if you are in a traditional loan, youre kinda stucked because banker will say you are already in debt and too much debt correlated to your wage + style of life + assets (which does not count ...if you have average wage)... kinda vicious circle! so when people say you dont need money wellllllll I have difficulties to seize that!
We didn't use banks. I think that is a major first thing. Banks are very difficult to work with.
@@Multifamilystrategy I agree nowadays they might not be the preferred partner, but if not bank, did you find investors/partners for the 1st operations of your beginnings? I might listen the video again without kids beside! and I subscribed to your YT channel to see if i can find some hints. Thanks!
Banks are the tip of the iceberg in the lending world. Find yourself a great mortgage broker and you'll be amazed at the possibilities@@christopheboswell3198
Then the interest goes up buy one percent and the whole thing falls over if there's no capital growth real estate doesn't always go up
Yes it does. Over the long term it always goes up. Get long term fixed rate debt and the changes in interest rates have no effect.
My question is why do you need so much?? I feel they have enough to go live dream lives with people managing the properties. I need a few rentals and I'm going to the islands lol
I bought a few rentals and found that is is actually not enough. To be fair we have more than we need but I think 25-50 units is enough to set someone up for life.
We kept buying for the love of the game and we have become very very good at providing hosing for those in need so that is also very rewarding.
Wow this kids a prodigy
Very promising indeed!
Seller financing sounds like the secret sauce here. It's all about building trust and relationships.
You're absolutely correct!
When you hear the words, no education and no money are required; run as far as you can.
If the goal is to get and stay broke... the above comment is fantastic advice!!!
The guy in the green sweater is smart. He's going to become very wealthy.
Thanks!
Wow great they sell a course
What is the name of thier property management company?
Kensho property management
25M split in half and funded with 100% leverage is not nearly as much as it sounds on You Tube. Being generous they may have 30% equity so each of them has maybe 3 MiL net worth, and thats tied up in rentals which might cash flow 1.5%. So they are each likely making about 4,000 per month.
We each cashflow about $25,000 per month with about 4.5MM in net worth. We have much more than 30% equity and deals cashflow astronomically more than 1.5%
There is just no seller finance deals in Cali lol. I have over 80,000 down and can’t get a loan bc I’m self employed (2+ years on books)
false. lol
Watch the video again and challenge your belief. Don't work with banks, work with finding the deal. The hard part isn't digging out the treasure, it's finding it first.
How do you find investors?
Meetups, Facebook groups, google maps