At the age of 20, Jefferson Simmons faced an unexpected challenge: he was about to be homeless. His fraternity house was undergoing renovations, and finding a suitable rental in Manhattan, Kansas, proved to be a daunting task. Little did he know that this predicament would set him on a path to becoming a full-time real estate investor with a portfolio of 17 properties and 39 doors.
Simmons’ journey began with a simple toggle on Zillow, switching from rent to buy. This small action led him to discover a mismarketed three-bedroom house that turned out to be a 2,700-square-foot property with additional rooms in the basement. With the help of his parents, who co-signed the mortgage, and some clever negotiation, Simmons secured his first property. Nine years later, he has built a thriving real estate business, leaving behind a law school career to focus on his passion.
From Homelessness to Homeownership
Simmons’ first foray into real estate was driven by necessity. With no income and no credit, he relied on savings from high school and a full academic scholarship to pitch his parents on co-signing the mortgage. His negotiation skills shone through as he managed to bring the asking price down to $178,000 after seven rounds of back-and-forth. This property not only provided a roof over his head but also marked the beginning of his real estate empire.
The property’s mortgage payment remained steady at $1,300 a month, including taxes and insurance. Simmons rented it out for $1,600 in the first year and currently has it leased through 2027 at $3,100 per month. This initial success set the stage for his future endeavors in the real estate market.
The Power of Partnerships
Simmons’ second deal was a foreclosure auction property, which he purchased with the help of his uncle. This partnership allowed him to acquire a duplex next to his first house. The deal was unique because Simmons had to bid live from his laptop while his uncle was unreachable during a trip abroad. Despite not meeting the bank’s reserve, the property was sold to Simmons for $100,000.
This partnership was just the beginning of Simmons’ collaborative approach to real estate. He later formed a family joint venture (JV) equity partnership with his uncle, which allowed him to build equity without putting up much of his own cash. This strategy proved to be a significant unlock in his journey to scaling his portfolio.
Creative Financing and Strategic Moves
Simmons’ ability to think outside the box has been a key factor in his success. One notable example is when he turned a house sale into a line of credit. During an insanely competitive seller’s market, Simmons was working as an agent for a cash-buyer client who was frustrated with the speed of the market. Simultaneously, tenants in one of Simmons’ properties asked to break their lease early to buy their forever home.
Seeing an opportunity, Simmons offered his client two options: pay $25,000 more than he paid for the house or provide a $200,000 private line of credit. The client chose the latter, which Simmons used to purchase another property. This creative financing deal not only provided Simmons with the capital he needed but also fostered a genuine friendship with his client.
Simmons’ portfolio now consists of 17 properties, 39 doors, and a minority stake in a 15-unit property with a few partners. His portfolio generates approximately $20,000 a month in cash flow. His success can be attributed to his willingness to leverage family partnerships, private financing, and creative seller strategies.
From the brink of homelessness to a thriving real estate business, Jefferson Simmons’ journey is a testament to the power of creativity, determination, and strategic partnerships. His story serves as an inspiration for aspiring real estate investors looking to build their own portfolios.
