Welcome to Real Cash Flow Advisors (SCM). Our mission is to provide private financing to buy 1st and 2nd trust deed debt on luxury, high-end, exquisite owner-occupied homes and to buy commercial notes, secured by 1st and 2nd lien trust deed debt instruments on commercial real property.
Our current focus is buying real estate notes:
- To buy performing or distressed notes secured by apartment buildings in recovering markets.
- To buy leveraged positions in the form of wraparound notes secured by high quality real estate.
- To buy 1st lien notes secured by high quality real estate.
- To leverage the equity purchasing power of our private financiers to acquire non-performing notes (NPN) secured by 1st lien trust deeds on commercial properties (mostly apartments) for rehabilitation and repositioning.
Our fundamental view about Radiant Wealth Creation is founded on our absolute certainty in free enterprise, and its abundance that radiates prosperity by delivering to society quality products and services. “Price is what you pay, value is what you receive.”
We always strive to deliver products and services that are more valuable than the price. There are no limits to wealth creation, because there are no limits to what life can create on this amazing world that we are so privileged to enjoy and share. We welcome all investors who share this fundamental view about free enterprise, radiant wealth creation, and delivering to society quality products and services that are more valuable than the price paid for those goods.
We borrow money from private financiers and then simultaneously invest that money at a marked-up yield to buy notes with well-qualified payors and collateral. The note is secured with a 1st or 2nd position lien (“trust deed”) security instrument. Our private financiers receive our promissory note and are secured by a hypothecation agreement that pledges the real estate note and trust deed as security for our debt. In the event of default, the hypothecation agreement conveys ownership of the real estate note and trust deed to our private financiers. Our private financiers may then pursue foreclosure as prescribed by statute, or renegotiate the debt with the note Payor, or sell the defaulted debt to a 3rd party note buyer. Or our private financiers can keep us involved on their behalf to handle the foreclosure or rehabilitation of the note and lien. Our legal team of attorneys is well-experienced in handling defaults, foreclosures, and rehabilitation of real estate notes. We use loan servicing companies, bank collections department, or CPA escrow services to process the note payments.
When we invest in 2nd lien notes, we focus on a special variation called wraparounds, that include the existing 1st lien debt. The wraparound note generates a much higher yield to our private financiers and lowers their investment amount, thus reducing their exposure to possible default. Would you rather earn 8% interest on, say, a $800,000 note, or would you prefer 14% interest on a $100,000 note? You can spread your $800,000 investment over 8 notes at $100,000 each and earn 14% yield, instead of 8%, and diversify your risk. The note has a well-qualified payor and is secured by a luxury, high-end, exquisite owner-occupied home or by a high quality performing commercial income property.
Also, your investment can be shared with other private financiers to further diversify your risk and spread your investment funds over more notes. If you need liquidity, then you can sell your note to a 3rd party or borrow funds against that note (similar to how we borrow funds from private financiers and secure that loan with the real estate notes that we buy with those funds).
Learn more about how we invest in notes to produce high yields and reduce risk by clicking here.
We also locate non-performing notes (NPN) secured by 1st lien positions on commercial real estate, like apartment buildings. We can gather together equity funding from our private financiers to buy NPN at very deep discounts, plus provide renovation funding to rehabilitate and repositioning the commercial income property. We won’t consider a NPN trust deed investment with less than 20% annualized net yield to our private financiers. We handle all of the negotiation, due diligence, project supervision, and final note disposition through refinancing or sale of the commercial property. Check the hypothetical example of the opportunities for investing in NPN by clicking here.
If you are already buying non-performing notes (NPN), then we can arrange to sell to you the NPN that we find, according to your preferred investment criteria. Just tell us your investment criteria and we can place you on our preferred note buyer list.
Standard disclaimer: These types of investments require a level of sophistication, financial literacy, risk tolerance, and financial capacity to withstand substantial or total loss of investment. While we manage the transaction on behalf of our private financiers, these investments are not intended for “retail investors” that are unable or unwilling to understand and to manage their portfolio risk.
We will pre-qualify your financial capacity, risk tolerance, and financial literacy before you are allowed to invest. Also, your first investment will be greatly limited to reduce your exposure to loss. After we establish a successful track record with you and we are comfortable in understanding your investment criteria and preferences, then we may offer to you larger investment opportunities.
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