Becoming A Land Contract Buyer To Reap Hefty Rewards

The Money Is In The Land

Although the financial industry is by far the worst hit sector because of the current economic crisis, a savvy land contract buyer can do very well in these tough financial times. In the cash flow notes business, many people only consider the act of finding note sellers and hooking them up with potential note investors and collecting a middleman fee on the transaction as the major part of the business - this is brokering notes. However, if you have cash, you can become one of many land contract buyers whom have reaped hefty rewards during this economic turmoil

What is a land contract buyer and what do they have to do with the cash flow notes business. The note buying and selling business can be looked at from both sides of the transaction, the selling side and the buying side, since both intend to make money on the deal. Land contract buyers are primarily investors that invest in land. Land can be defined as property which has a dwelling or building located on the property or land which is just that - land, with nothing built on the property.

Property is at an all time low due to the financial crisis which has caused property values to plummet, making this a prime for land contract buyers to swoop in a pick up land for sale. The reasons can vary as to why the owner of the property wishes to sell, ranging from financial stress or another investors looking unload a property and turn it into a monthly income stream. Traditionally with land contracts, the middleman is eliminated and the transaction takes place between the buyer and seller, further lowering added cost associated with closing and the sales process. The seller actually holds the title on the property, eliminating the need for a mortgage company and reducing cost.

The seller will hold the title of the property and the land contract will become an income stream for them since payments are made on a monthly installment basis, in essence, a cash flow note for the seller. A buyer or investor that purchase property via a land contract can benefit since third party fees are removed. For those of you holding property and considering selling them to land contract buyers, there is another benefit you should be aware of…the contract can be structured how you wish. The traditional down payment for property which in many cases eliminates many candidates form purchasing property can be removed allowing you as the seller to ask for a higher selling price, which allows you to make more money in the long run by removing added cost when using a land contract as the instrument for the sale.

The guidelines of a this type of land contract is a simple agreement where the seller holds the title until all monthly installments are paid at which point the seller transfers the legal title of the land to the buyer. During the term if the installment agreement, the seller agrees to allow the buyer full access to the property. If for some reason the buyer defaults on the land contract, the seller has the right to re-posses the property.

Although higher asking prices can be had, the current financial economic crises favors the land contract buyer since there are so many distressed properties available. We will cover how to finding motivated sellers and buy a land contract from the in a future article here in the cash flow notes blog at a later date.

What Are Cash Flow Notes And How Can They Make You Money?

A Viable Business For Investors And Note Borkers

If you have seen the late night infomercials about creating an extra income from the
cash flow notes business, you are probably asking yourself what are cash flow notes and how can they make me money. Then you’ve found the right article. In this article we are going to learn what cash flow notes are an how people create a sustained and continually income form both buying and selling notes. Not only can you make money buying and selling them, you can also create a business by bringing buyer and seller together and reaping the benefit of nice fees associated with the transactions taking place between the two parties.

First, let’s discover what cash flow notes are and what forms they take. Transactions take place everyday all over the world and take on differing characteristics. When you go to the market and purchase an item, in exchange for the item you’ve purchased you most likely give the sales clerk cash. Basically the listed price is paid in full and you walk with the item with no more obligation since you have the item and a receipt proving you paid for the item. This is the simplest form of a business transaction. However, there is another type of transaction we familiar with which falls under the umbrella of cash flow notes.

The most notable and popular type of cash flow notes is the mortgage note. Residential and commercial real estate changes hands from one party to another everyday. In most cases, these transactions are not concluded with the total cost of the property being transferred to the seller. Usually the buyer will negotiate a installment contract with the seller where the buyer will pay for the property over a set period of time. In most cases these installments will be paid over months and years until the installment agreement is paid in full at which point the buyer owns the property outright.

Most people who own a home understand the basic concept of a mortgage. Commercial and residential mortgage notes are bought and sold by note investors to make money. Investors buy mortgage notes and create and income stream called cash flow by adding these notes to their portfolio. Sellers make money selling the notes by selling the note to investors for a discounted lump sum. Although the seller takes a loss on the total amount of the note he would have collected had the seller held the note until the contract was paid in full. He now has a lump sum of cash to invest elsewhere such as other properties.

Structured settlements are another form of cash flow notes in which buyers, sellers and note brokers create a full time income as well as growing their portfolio. A structured settlement could be a lawsuit award paid out to someone that was injured. Or a annuity paid out over time and even lottery winnings can fall under a structured settlement. Note brokers and note investors spend their time locating these structured settlements in order to turn them into investments that generate cash flow for the investor and fees for the note broker that facilitates the transaction between buyer and seller.

As you can imagine, there are hundreds of thousands of notes out there since the installment note is the way we do business as a culture for items that need to be paid for over time. Making cash flow notes an excellent way to build a business providing you are willing to work hard and build a note network. You asked what are cash flow notes now you know. Learn how you can make money brokering notes.