Real Cash Flow Advisors is the website presence for Real Cash Flow Advisors LLC – A Nevada Limited Liability Company.
Our mission for Real Cash Flow Advisors is private trust deed investing. Through our private syndication channels, we gather together private financiers (accredited or sophisticated) for specific projects to fund on commercial apartment (not less than 5 dwelling units per parcel) income properties and luxury, high-end homes with hypothecated 1st lien and 2nd lien (wraparound) trust deeds (secured by the real property).
This is very similar to hard money lending, but with a slight twist to amplify yields and reduce risk through low Loan to Value (LTV) ratios and high Cash Flow Margins (CFM). As direct funding source lenders, rather than equity participants, our private financiers get paid first, rather than last. Getting paid first means lower risk and lower yields compared to equity participants. See our sister company website SmithSyndication.com for more information on equity participation and how we manage and minimize risk while achieving high yields on distressed income property.
We only buy notes secured by 1st position liens on distressed income properties that we would buy according to the investment criteria for Smith Syndication, or we buy 1st lien or 2nd lien (wraparound) notes on quality commercial property or luxury, high-end, owner-occupied homes. If we would not buy the property, then we will not buy a note secured by that property. Take a look at our video pitchbook for more details.
Our private financiers lend funds to us and we provide a note (general obligation). We immediately invest the funds to buy the promissory note and deed of trust (security instrument). Our private financiers receive a Hypothecation Agreement as a security instrument for our note to them. For 1st lien investments, our Loan to Value ratio (LTV) never exceeds 65% of the After Repositioning Value (ARV), including acquisition, repositioning costs, and points rolled into the loan amount. For 2nd lien (wraparound) investments, the Investment to Value (ITV) ratio never exceeds 80% of the purchase price. The transaction is handled by licensed professionals, and a title company or escrow company to handle the simultaneous closings. Our attorneys review the note, trust deed, other binding contracts, and the title report, and then advise us as part of our due diligence before we commit to the transaction.
For example, Real Cash Flow Advisors can borrow funds from our private financiers at, say, 8% to 10% for 6 to 120 months, then simultaneously invest those funds at a mark-up rate of, say, 11% to 20% plus points to calculate a bid price to buy a note secured by high-end owner occupied home or by quality commercial property with well-qualified payor. We use licensed professionals to borrow the funds from our private financiers and then to invest the funds at a mark-up rate plus points to buy well-structured notes. All of the funds are wired directly to the title or escrow company for the simultaneously closing.
We buy 1st position secured notes for commercial and residential income properties, either performing or non-performing, at strong discounts. Residential income properties must have not less than 5 dwelling units per parcel. We buy 1st lien and 2nd lien (wraparound) notes secured by quality, luxury, high-end owner-occupied homes.
For notes secured by distressed properties, our relationship with Smith Syndication supports taking over distressed properties, renovating and repositioning, then refinancing with institutional long-term fixed rate debt.
Go to our Wealth Creation page for more details.