My name is Jeffrey D. Smith. I am a professional real estate syndicator. I create great real estate deals and use cash from my private financiers to acquire, reposition and stabilize, then refinance or sell the property to generate great returns for my private financiers.
Let me give you a brief summary of my background.
I grew up in a family of real estate investors and business owners. I learned by watching how my parents and grandparents ran their businesses and their real estate. On looking back at their results, they were quite successful and I am grateful for that learning experience. I learned the most from their mistakes, so I wouldn’t make those same mistakes later.
Of course, real life being what it is, I came up with own new mistakes and learned some expensive lessons in real estate investing. It seemed like I couldn’t make a go of real estate investing as a private financier for other people.
So, I chose to become a highly skilled mainframe software engineer, because of its mathematical precision and I didn’t need many social skills to program a computer. I threw myself into software engineering with a passion, because I wanted that steady paycheck for my family and I was very good at it.
I was a mainframe software engineer for over two decades. I was awarded a United States patent for a data compression algorithm for a software process that performed data compression and expansion faster than the IBM hardware compression service. During my decades as a software engineer, I wrote over two million lines of commercial-grade software for business to business applications and systems. I was the Chief Executive Officer and a contributing principal software engineer of a successful software development company for the IBM mainframe. That company was nearing failure and I saved that company by re-structuring the business model, re-writing contracts, negotiating with clients’ attorneys, and personally contributing state-of-the-art software to the product line.
Then I started my own company for software development and consulting. I personally developed an IBM mainframe software cryptographic server and a mainframe software debugging server. I eventually sold the debugging server to a competing business for six figures. I like to think that I am smarter than the average software engineer in the software business. However, there are some events that cannot be predicted…
The IBM mainframe software industry cratered.
I switched to real estate. My expertise in software, analytics and logistics fit nicely into real estate financial analysis. I earned my real estate broker license in 2004. I studied real estate finance and the intricacies of real estate contracts, I intensely trained in real estate law classes, and I developed many custom real estate forms and dozens of software spreadsheets for real estate finance and analysis. I automated my syndication business with “smart” forms and spreadsheets for quickly analyzing deals and generating forms.
I started a wealth creation education company that is focused on creating wealth through real estate and the Time Value of Money principles. My customers have earned hundreds of thousands of dollars through the investment principles that I teach in my low cost courses at Ultimate Online Bargains. Teaching financial literacy has freed them and changed their family trees forever.
I am fully trained in all aspects of private commercial mortgage finance. Real Cash Flow Advisors LLC (a Nevada Limited Liability Company) is my real estate investing entity for the state of Nevada. I started Real Cash Flow Advisors LLC as an adjunct company to focus on creating wealth through syndicating private financing for buying notes secured by distressed apartments and commercial income properties, or investing in Non-Performing Notes (NPN) secured by 1st lien position trust deeds on such properties. We also buy notes secured by 1st or 2nd lien (wraparound) on luxury, high-end- exquisite owner-occupied homes.
In 2011, I allowed my real estate broker license to expire to give me more freedom to pursue real estate investing. Now I focus on projects for repositioning and stabilizing income properties to create cash flow and to create equity in excess of the actual cash invested. This is called “value add” investing in commercial real estate.
My investments in notes secured by 1st and 2nd lien (wraparound) on luxury, high-end, exquisite owner-occupied homes generates high-yield cash flows and reduces risk by designing a financial structure that has protective equity and protective margins for cash flow.
My team is composed of accredited investors (private financiers) with hands-on experience turning around distressed apartments and commercial business venues. I also welcome more accredited investors and sophisticated investors (private financiers), who simply want to write a check to invest in my projects, and then go out to their mailbox every quarter and collect a check.
My private financiers receive from my deals the lion’s share of the profit, both cash flow and created equity. They get paid before I get paid, because that seems to work out better for everyone. I have a “subordinate equity” position in the property, which means my private financiers must receive their agreed yields before I receive income from the property.
Now I specialize in pursuing distressed commercial properties, mostly apartment buildings, using my small group of accredited investors. These accredited investors are my private financiers that provide the financing, both debt and equity, to acquire, reposition and stabilize, and then to refinance the property to recover the private investment; all with net positive cash flow with no net investment in the stabilized property. (Tip: That’s an infinite yield.) That’s how to legally print money. Sometimes, depending on the circumstances, we will want to sell the stabilized property and use an IRC 1031 tax-deferred exchange to trade up to a larger property in order to leverage our gains.
We can work with your custodian of your self-directed retirement account to achieve compounded yields, when you want your investment to work continuously, rather than receive periodic returns.
On every project, I receive a syndication fee, a percentage of the cash flow, and a percentage of the exit strategy (cash-out refinance or proceeds from the sale). My cash flow and profit splits are subordinated to a minimum preferred return for my private financiers. If you’re uncomfortable with me receiving compensation, then please do not invest in my projects. I will not work for free, my services are not on sale, and I am not a charity for your benefit. I must feed my family, too, just like everyone else. My contribution to the project is my expertise and management skills, also known as “sweat equity“.
My business model is not new. I am simply copying the business model of successful real estate entrepreneurs. My specialty is crunching numbers to compare various ways of structuring financing. My number crunching is equal or better than the big players, because I have intensely studied commercial real estate finance. So, I know the difference between a good deal and great deal. My target properties are physically or managerially distressed, with economic occupancy rates usually below 70%. My target Non-Performing Notes (NPN) must offer at least net 20% annualized yield to my private financiers (most NPN deals offer much more than 20%). My private financiers must be risk tolerant, because their funds are usually locked-in for 1 to 3 years (sometimes up to 5 years) before we can refinance or sell the property.
My persistence, focus, and passion for problem solving are my critical keys to success.
Watch my video pitchbook for more details on our business model by clicking here.
Go to the Wealth Creation page, review the questions for accredited investors, and if you qualify, then send an email through the provided form to get on my private list of accredited investors. Our attorneys will privately ask for more information to verify your eligibility to invest. Your information will remain confidential.
Please understand that there are some situations where a financially literate and sophisticated private financier may participate without qualifying as an accredited investor. Our attorney can work with your attorney to determine whether and how you can work with us as a private financier. Such situations usually involve private lending with secured debt on the subject property or possibly a private loan to our LLC as a general obligation. Such opportunities must be evaluated on a case by case basis with attorneys to ensure proper compliance with all applicable laws and regulations. You may contact us on the Wealth Creation page and ask for more details on working with us as a sophisticated private financier and be sure to include your attorney’s full contact information, because we must include your attorney in all correspondence.
I cannot and will not guarantee any kind of return on your investment, or even the return of your investment (according to the rules of the Securities and Exchange Commission — SEC). I can assure you that you will know everything that I know about the deal. I only focus on deals where my private financiers can reasonably expect double digit returns. Just be sure to let your own legal and accounting advisors review each deal to advise you on the merits relative to your own situation.