And you thought the cash flow notes business was only for those in the residential and commercial mortgage notes business. Think again!!! There is a whole other sector of the notes business called structured settlements or in this case, structured settlements cash for you the note broker. Lawsuits, insurance settlements, lottery winnings, annuities or just about anything with a structured installment payout is ripe for the picking!
What makes structured settlements so appealing to the note broker is most of these types of notes are paid to people which would much rather have a lump sum of cash instead of having to be forced to accept a small portion of their money each month over a set period of time. Which makes you, the note broker, exactly the person they need for structured settlements cash. Now that we understand how note brokers can be an important part of a structured settlement holders life, let’s examine some of the different kinds of cash flow notes that fall under the heading of structured settlement.
Awarded judgments such as a lawsuit won by a victim which was injured resulting from dereliction on the part of another party. These cases can be won either by settlement outside the courtroom or within the courtroom. In most of the cases, the victim is awarded compensation in the form of a lump sum of cash. However, in most instances, the defendant agrees to pay a certain amount up front and then agrees to pay the balance over time in the form of monthly, quarterly, semi-annual or annual installments creating exactly what we are searching for as not brokers! A note deal for us to brokers and structured settlements cash for the victim.
Another cash flow note highly prized by note investors is the lottery winnings structured payout. As is the case for almost all structured settlements, lottery winnings are no different. People that have won lotteries often have no choice but to accept a installment plan for their winnings and seldom receive a lump sum payout, which most would rather be the desired payout. Lottery winnings over time are really not a bad deal since most people who win lotteries usually end up right where they were before wining the lottery.
However, since most insist on a acquiring a lump sum payment, we as note brokers are ready and willing to help facilitate the transaction a provide the with structured settlements cash.
When first approaching a potential prospect for structured settlements cash, one of their first questions may be is it legal for them to assign and transfer the installment payments to someone else. You should assure them that it is perfectly legal to sell their note to another party. They should also be informed that individual states have differing laws on transfer of rights concerning structured settlements.
They should also be made aware that only a portion of their structured settlements may be sold if they so choose. This choice is convenient for those people who need to meet emergency financial obligations and still keeping a portion of their original settlement intact. As a note broker handling structured settlements cash transactions, you find that many people fall into this category. For many notes holders, waiting for the entire balance of their payout is way to long, especially for those whom have other uses for their payments such investments, new homes, dream vacations or college tuition for their children. In many cases it could takes many years to received the total payout and by then, they may not me health enough to enjoy their money.
This is where you as the note broker will help them meet the people needed to help them receive the cash they desire by bringing them the right company or investor willing to provide them structured settlements cash for their installment plan. By diversifying your cash flow notes broker business to include structured settlements along with you mortgage notes business, you will greatly enhance your income opportunities in the cash flow notes business.
No comments:
Post a Comment