Cash Flow Notes

Structuring Your Note For The Future Sale

2011-08-30T17:43:00.001-05:00

Sellers that offer owner financing would do well when putting together financing for a buyer to consider the future sale of the note even if selling the note in the future is not a consideration presently. We have no idea what the future holds so it is in the best interest of the seller to structure the financing in the beginning in such a way that top prices can be obtained should you decide you want to “sell my note” in the future.

Although a seller would like to obtain at least thirty percent of the sale price in the initial down payment, this is unlikely especially in the current economy. Twenty percent is the norm you should expect and in some cases, ten percent. If at least ten percent cannot be obtained, you should seriously consider finding another buyer since future potential for receiving a good price for your note if you sell will be seriously curtailed. Obtaining a higher percentage down payment reduces risks substantially since a buyer is less likely to walk away from a property or be foreclosed on with a higher rate of investment in the property. Future investors will also be less likely to consider your note with a low down payment since this elevates their risk levels as well.

Your buyer’s credit rating will also have a substantial evaluation impact when investors consider your note for purchase. Owner financing can often help people with less than perfect credit scores, but sellers considering the sale of their note to investors at some time in the future, should consider the impact of your buyer’s credit rating on a future sale. Investors will look at your buyers credit rating since their habits of paying in the past will determine how they will pay them should they buy your note. The interest rate of your owner financing note will also be a consideration and should be a minimum of two to four percent higher than what can be had a traditional lending institution.

It’s true, by offering owner financing to people that cannot obtain traditional financing gives you a wider market in which to expose your properties, it does have a down side if not structured properly. Working with your buyer and negotiating terms of the financing can be ideal for both parties. However, if you give too much a way in the structure of the financing, you may be severely limiting your ability to market the note properly in the future.

What Motivates A Seller To Offer Seller Financing?

2011-08-30T16:46:00.002-05:00

We all know cash is king and at the end of the day, most sellers would prefer to walk away from the closing table with the cash from the sale in hand without holding a note. However, we know this is not always possible so individual sellers take the next best option, owner financing. But what are the benefits of owner financing other than if you decide you want to “sell my note” eventually, that motivates sellers to offer owner financing?

The largest reason to offer owner financing is it exposes your property to a larger market. People that can’t get financing through traditional means are many times, very good candidates for owner financing. Although some of the people that fall into this category are not creditworthy for various reasons and not worth the risk, others are of acceptable risk and can be considered viable candidates for owner financing. Considering these people as possible buyers can open your marketing efforts up to a whole new segment of potential buyers.

You do however, need to consider the reasons they are unable to obtain a loan through traditional financial institutions. Small down payments or no money available for a down payment may be one of the reasons. These people usually have jobs with an extended history but have for various reasons been unable to save enough money for the necessary down payment. Less than stellar credit history is another reason they have been turned down by traditional financial institutions, especially with the current credit crunch we are now experiencing. A lack of credit history is yet another reason. A recent job change or a change in career with no established record yet or self-employment income which can be a substantial obstacle for obtaining credit.

Some properties do not lend themselves very well to easily obtainable credit for a potential buyer. Houses located in neighborhoods with low property values are always a challenge and owner financing may be the only option. Properties in need of substantial and essential repairs often require creative financing in order to be sold. Properties that have been rental properties or multi-unit properties can be difficult to obtain bank-approved financing. Properties located in mix areas of both residential and business zoning many times are difficult to obtain traditional loans for.

There is the traditional reason sellers may offer owner financing - Investment. The housing market has been slumping for a few years now but this does not negate the fact hat people still need a place to live and call home. Owner financing offers the seller the opportunity profit off his property in slow times as will as hard times. In hard times it may be just a little more difficult to find a suitable buyer and require extra effort, but the choice is simple. Choosing between your property sitting idle and giving you a return on your investment is a strong motivator to get out there and find a suitable buyer rather than loosing money every month and draining your portfolio returns.

Cash For Notes - Taking The First Step In The Cash Flow Business

2011-01-09T20:28:00.035-06:00

The Cash Flow Business

When the term cash flow notes is used, it generally refers to the entire notes industry as a whole, encompassing many different types of notes which are bought and sold. Private note investors as well as financial corporations specializing in the “paper” industry pay out millions in cash for notes to private note holders and other investors each year. Notes come in many forms and each transaction is unique. Although the real estate note is by far the most common type of note transaction, it is by no means the only game in town when it comes to the cash flow business. Below, we have compiled a list of the most common types of notes that are bought and sold.

Want to become a note broker? Click here and learn more

First things first as we begin. The Cash Flow Business can be very lucrative! Lucrative for those individuals willing to put forth the effort to build a business based on "paper" transactions which take place everyday. What makes this business so great is it is open and available to anyone. It doesn't require a four-year degree or a talent for accounting. One thing it does require though, is a willingness to do some hard work, especially in the beginning. If you are looking to get rich quick, then this business is not for you. There is a learning curve before you will be profitable for sure, as there is in any legitimate business venture. However, the beauty of this business is anyone can do it and there are readily available resources that can be purchased inexpensively in study course format that can help you get up to speed a great deal faster. One thing for sure is there is money to be made!

Mortgage notes or real estate notes are without question the cornerstone of the cash flow notes industry and rightly so. Note brokers and investors actively seek out private mortgage notes also referred to as owner carry-back or owner financing. With these types of mortgage notes, the owner acts as the bank and carries the note until the balance is paid in full by the buyer. Owner carry back financing is offered by the seller for different reasons but usually owners offer to be the bank to make their property more profitable and marketable, making the property available to a wider market than would be possible if traditional financing were used through banks and other lending institutions.

First time home buyers and buyers with less than perfect credit also benefit from owner carry-back financing since financing is generally easier to acquire through a private seller than through traditional lending institutions. Private seller financed mortgage note holders often decide they do not wish to hold the note for the term of the mortgage and often offer up the note for sale for a lump-sum payment and cash out of the note. Cash for notes of this type is big business and note investors search for quality seller financed private notes.

Note investors build cash flow notes portfolios with various types of notes, however, owner financed private notes are the cream of the crop and aggressively sought out. The private mortgage note holder may choose to cash out of the note for all manner of reasons. Other investment opportunities may arise and the note holder may need to free up cash. A family emergency or college tuition for their children may be needed, Whatever the case, owner carry-back privately held notes are excellent sources of cash flow business income for both note investors and brokers.

Structured Settlements

Structured Settlements are another form of cash flow notes sought out by investors that pay cash for notes to sellers so they can add to their investment portfolios. Structured settlements usually are settlements awarded by the civil court system to compensate the injured party in a lawsuit. First appearing in the 1970’s as an alternative to lump sum payouts as a result of lawsuits, structured settlements have grown in popularity as a structured financial solution of compensation for injured parties. Most often the settlement takes form as a annuity which guarantees future monthly payments to the awarded defendant until the total amount is paid in full. The awards may come in any variety of judgments including lawsuits, medical malpractice suits, personal injury lawsuits or wrongful death settlements.

In April 2009, Suzy Orman is quoted as saying that structured settlements provide ongoing payments and reduce the risk of blowing a lump sum payment through poor financial choices. However, structured settlements often do not meet the needs of those people that have been awarded settlements and lump sum payments are needed. People that have been awarded structured settlements can sell their structured settlements to a cash flow notes investor or a financial firm specializing in purchasing structured settlements. However, when choosing to sell a structured settlement careful financial planning should be utilized since once the lump sum payment is received, financial prudence should be the foremost consideration. Cash flow note investors or financial firms offer a lump sum payout for the balance of the structured settlement less a discount off the total balance. The discount is to compensate the investor for assuming the risk of collecting future payments and providing the lump sum pay out to the structured settlement seller. Note investors seek out these settlements on a daily basis to add to their cash flow business portfolios.

Lottery Winnings

We very often hear about people that win the lottery but we seldom hear that many times the winnings come in the form of an annuity that is paid out over an extended period of time rather than a lump sum payout. Because the winnings take the form of an annuity with a structured payout schedule, they are considered a note and are actively bought by cash flow notes investors, providing a lump sum payout option to lottery winners so they can receive most of their lottery winnings rather than waiting years. Again, sound financial advice should be sought before selling your lottery winnings for a lump sum payout. Not only can lottery winners cash out there future payments, but slot winners and contest winners can also sell their winnings to cash for notes investors.

Inherited Annuities

Many people receive inheritance in the form of an annuity rather than a lump sum payout. As above with lottery winnings and structured settlements, inheritance annuities can also be sold to a cash flow notes investors or financial institutions specializing in purchasing structured note payments. Although it is not recommended to sell a inherited annuity, in some cases there is no other choice available to annuitants. Medical or emergency situations may arise and other financial options may not be available to the annuitant and selling the inherited annuity may be the only choice. Whatever the case may be, inherited annuities are also another form of cash flow notes available to the notes investors.

Learn How To Get In The Cash Flow Business

Build A Cash Flow Notes Business Brokering Or Buying Discounted Notes

2010-11-24T18:01:00.011-06:00

The Discounted Bank Note Market Is RED HOT!

One thing is certain, cash flow notes come in many forms, but the notes backed by real estate will always be the cornerstone of this business. There has never been a better time to enter the notes business than now. Why? Because there are about $12 trillion in mortgages on the books with about half not securitized leaving $6 trillion in mortgages. Let’s say ten percent are defaulted notes which leaves a market potential of six-billion dollars on the table. That is a lot of market potential available to someone savvy enough to grab a piece of the pie.

Become A Note Broker - Learn How

Finding cash flow notes, or defaulted mortgage notes is when you act as a note broker and bring both buyer and seller together and don’t use your own money. This strategy is now the largest and most profitable real estate investment strategy made available to real estate investors in the last quarter century. You can become a note investor without ever touching a piece of real estate. There is no need to be a landlord, no late night phone calls from tenants, no property upkeep. Discounted notes are sold everyday by banks which are struggling with the economy and housing slump. Banks are holding millions of defaulted notes in their inventory they are eagerly waiting to get off their books to improve their balance sheets.

How does this apply to you? First, you need to ask yourself, what am I wanting out of the cash flow notes business? Although cash flow notes come in many forms, as we said above, real estate backed notes are the bread and butter of the industry, so you should focus first on mortgage notes and in this case, defaulted discount bank notes. Secondly, do you want to be an investor or a broker. If you don’t have any money to invest in notes, that’s OK, you can start out as a note broker bringing buyers and sellers together and collecting on the transactions. Many people are successful brokers and have never spent a dime of their own money on a discounted note. Whatever the case, you can be successful in the cash flow notes business as either a broker or an investor although it is best to start out as a note broker if you have no experience and gradually move up to a note investor.

Thirdly, you need an education. The note industry is filled with jargon you need to familiarize yourself with before starting out. Learning is the first step to success and many have succeeded in the cash flow notes industry starting out not knowing what a note was in the first place. You too can be successful. The Cash Flow Notes Business Overview

For those of you that are unsure what the cash flow notes business is all about, below is a brief overview of what the cash flow business is and how it works. Although notes come in many forms, the note backed by real estate is the most sought after and most utilized within the cash flow notes industry.

Mortgage notes or real estate notes are held primarily by two different entities, banks or other financial institutions and private sellers or private investors. In this instance, we will look at the private note holder since they are the primary source of traditional cash flow notes where note buyers and note brokers are concerned. Although there is a huge market at this time available to cash flow notes investors within the banking industry as we covered above, we are only going to focus on the traditional cash flow note bought and sold by note investors, the private owner financed note which is the individual acting as the bank and holding the mortgage for individual buyers of their property.

First, let’s define owner financing. When a individual property owner, or seller in this case, allows a buyer to purchase property and agrees to act as the bank, this is referred to as seller financing. Others names for this type of transaction is owner financing, owner carry back or private mortgage note. Whatever name for the transaction is used, they all are the same - the private seller is acting as the bank for the buyer and allows them to pay for the property over time in installments just as a traditional lending institution would. The seller collects the normal down payment, just as the bank would in a normal property transaction and the buyer agrees to pay the seller back over time for the remaining balance.

What the seller has done is created a cash flow note for himself. However, this may not be exactly what the seller was initially seeking, especially in today’s housing market. In fact, he may not have wanted to hold the note at all but had no choice. The housing market is in the dumps as most of us all know, presently. The seller may have been desperate to sell the property but potential buyers were unable to get financing through traditional means, which are banks and other lending institutions. Credit has dried up and banks aren’t lending the way they were a few years ago and there is an argument that supports their position. Although this fallout has resulted in a booming market for defaulted bank note investors and brokers as we mentioned in the beginning of this article.

However, desperation on the part of the seller is not always the case. Smart investors create for themselves cash flow notes income streams by holding owner financed notes by doing what banks won’t do which is offering liberal financing terms to buyers that otherwise would not be able to get financing. These seller financed mortgages are the foundation of the cash flow notes business and create a huge secondary market within the real estate industry.

Cash flow note investors and cash flow note brokers actively seek out owner carry back financing to increase their on cash flow notes portfolio. Note brokers seek them out to collect a commission from the transaction by bringing a note seller together with a cash flow notes investor.

Selling A Structured Settlement To A Cash Flow Notes Investor

2010-11-21T22:33:00.004-06:00

Cash Flow Note Brokers And Notes Investor Answers

Doubled edged swords come in many forms and structured settlements can fit very well into this description as many structured settlement holders would agree. Although they are designed to pay out a certain amount each and every month, in many cases the structured settlement holder needs more money than what is allotted in the monthly payment. In these instances, structured settlement holders may choose to sell their remaining payments to a cash flow notes investor, or utilize the services of a cash flow note broker to locate a suitable note investor to purchase their structured settlement.

If you are considering selling your structured settlement in return for a lump sum payout of cash, there are some important details to consider. First and foremost, it is up to you as the note holder (structured settlement owner) to do as much research as possible until you have a complete understanding of the note selling process. You don’t need to be an expert, however it is advised that you the very least educate yourself so you will have a basic knowledge of the cash for structured settlements business and how it operates.

Seeking the advice of a financial advisor is strongly suggested. Your accountant or financial advisor are acceptable choices since the chances are very good they have experience in advising other clients about their structured settlements. The possibility also exist that they may even know individual private cash flow note investors which could be suitable note buyers to purchase your structured settlement. Note investors as well as note brokers already know the power of networking in the cash flow notes business and most likely have many accountants and financial advisers in their own networks which send them steady streams of business. Also your attorney is an acceptable source to consult before deciding to sell your structured settlement.

Once you have located either a suitable cash notes broker or a note investor, you should first ask for and be freely given a list of references. Current and former clients are the best sources of information. Also, when the term note investor is used in this article it refers to both individual private note investors and firms which buy structured settlements. There are an abundance of both individuals and firms which specialize in buying structured settlements within the cash flow notes industry.

A reputable note broker will insist on explaining every detail of the cash for structured settlements process to you so a complete understanding of the transaction is not in question. Once you have chosen a note broker on note investor, be prepared to provide detailed information about your structured settlement to the broker or investor. They will need this information to ascertain the guarantee on remaining payments owed to you. You will also need to know how much you expect in return for selling your structured settlement. Structured settlement holders choose to sell for various reasons with most selling for reasons of meeting obligations such as paying off debt, medical problems, college or in some cases to expand a business.

Whatever the case may be, it is important that you understand the whole cash for structured settlement process before committing to any broker or note investor. As with anything which involves money, there will be unscrupulous characters unfortunately in the mix. Due diligence on your part as the note holder will most certainly result in you receiving a fair price for you structured settlement from a cash flow notes investor.

Small Business Factoring And Improving Cash Flow With Accounts Receivable

2010-11-09T16:11:00.005-06:00

Small Business Factoring Solutions

Cash flow is the life blood of any business, big and small. But smaller businesses tend to experience cash flow difficulties more so than larger businesses. Small business factoring is a source of funding available to improve cash flow problems and keep the business running, even in difficult economic times. When the economic cycle is at a low point, credit tends to become unavailable from traditional business lending institutions, even for midsize to larger companies with solid creditworthiness. If this is the case, what options does a small business have if credit is unavailable? Invoice factoring in many instances is the solution for many hard-pressed businesses.

Small Business Factoring Defined

Most businesses operate on Net 30 terms, meaning payment is expected within 30 days for goods or services given. In a perfect world, the invoice would be paid within the 30 calendar days as specified on the invoice. However, as a business owner, you realize your customers are probably experiencing the same cash flow problems as you so payment of the invoice is often extended for more than 30 days. Larger companies usually have the resources to sustain the payment delays. Small companies don’t.

Small business factoring or invoice factoring as it is primarily called, was created as a financial solution for cash flow problems within the business world. Although small business generally operate on a net 30 form of payment, they seldom can wait thirty days or more to collect these payments from their customers. Small businesses rely on cash flow to pay their own operating expenses: Payroll must be paid, their own vendors expect payment, current work projects must be funded, the light bill, equipment must be maintained and purchased, the list goes on. As you can see, smaller businesses with few financial resources available often have to rely on the one major asset they have - accounts receivable.

Small business factoring is not at all complicated and is easily obtainable by most mid-size to smaller businesses providing they have a solid customer base and no unforeseen obligations on their assets. How small business factoring works is simple. A small business delivers goods or services to one of their customers, an invoice is produced to bill the customer for the goods or service rendered. Normally, the invoice would be sent directly to the customer with payment expected within 30 days. However, in this case the invoice would be sent to a company or individual investor that specializes in this type of funding called the factor or factoring company.

Remember, small business factoring is utilized to improve cash flow and reduce the amount of time it would normally take to receive payment on the invoice. Once the factoring company receives the invoice, the factor will assess the credit worthiness of the customer responsible for paying the invoice and if the customer meets the factor’s credit criteria, they will purchase the invoice from the small business at a discount. In most cases there are two transactions which take place between the factoring company and the small business. The first transaction is usually a payment to the small business for eighty percent of the total amount due on the invoice. This payment provides the much needed cash flow to the business to meet operating expenses on a timely basis. The second transaction, called the reserve, is the remaining twenty percent, less the factoring company’s fees. This second payment is made once the invoice is paid by your customer to the factoring company in full.

The Advantages Of Small Business Factoring

By far the largest advantage associated with small business factoring is improvement of cash flow. Turnaround time from invoice generation to payment of at least eighty percent of the total amount is reduced from weeks to a few days, substantially increasing needed cash flow to keep your business operating at it’s full potential. The scrutinizing financial examination which is normal operating procedure form traditional lending institutions like banks is not necessary. Invoice factoring is easily obtainable, which makes small business factoring ideal for businesses which normally have to wait weeks or even months for payment on an outstanding invoice. Working capital is quickly available, keeping you and your employees in business.

A Note About Small Business Factoring For Investors

Our next article will cover the potential available for cash flow note investors to create a new market and increase their portfolio with small business factoring.

Psychology In The Cash Flow Notes Business

2010-07-14T16:26:00.001-05:00

Negotiating With The Note Seller

Marketing will be and should be the largest aspect of your cash flow notes business once you become a note broker and is the engine that keeps your business going. However, once you find a note that is marketable the negotiations begin. Negotiations are just one step in the process of closing the note transaction. To be successful it is essential that you be prepared to negotiate with the note seller.

Once the negotiation process begins many enter with a static idea of what the outcome will be and this is the only acceptable result. This is a fundamental mistake since the end result of any negotiation should be a equally satisfactory commitment to the note sale agreement by both you and the seller. Never enter into a note negotiation without considering what you want as the broker, three possible outcomes - the best outcome and what you would ultimately want, the realistic end result for both parties and the ultimate bottom line which is anything less would be unacceptable.

You as the professional note broker in the cash flow business should always be prepared before beginning note negotiations. Be thoroughly prepared with important facts and of course the numbers. Being prepared not only confirms you as a professional but having them written down can help you illustrate your point and aid in the negotiation process.
Professionalism is of utmost importance. Note sellers are generally under pressure from forces outside the negotiations with you. They obviously are either needing cash or have some other issue they are dealing with or they wouldn’t be selling their note in the first place.

Always be polite and keep the discussions on the business at hand. We are all human and humans are blessed with emotions which help us relate to each other. However, keeping your emotions under control and avoid any indications of irritation or frustration with the note seller. These emotions will only cause the note seller to withdraw and become more rigid. Always have a positive attitude and keep the negotiations flowing smoothly. If a brick wall is reached, try to find another route to move toward a solution to the objection raised.

Remember the three possible outcomes mentioned above? Be willing to compromise and have them ready to offer in relation to compromise offered by the note seller. Demonstration that you are willing to compromise allows the cash note seller to you are willing to reach an agreement satisfactory to both parties. Learn the to listen. Let the note seller do most of the talking during negotiations and keep mental notes to access and utilize when you do speak.

Always let them make the first offer. Find out why they have chosen to sell their note. Ask them point blank what they believe to be a fair price for the note. Do they need to sell the entire note or part of the note. These are important questions you can ask that can give you clues as to what the notes seller’s ultimate outcome may be. Once you have this information, you have a point at which you can begin negotiating price. Never offer a price first or you may end up shorting yourself of money you could have made. Until you ask, you have no idea what the note seller wants for his cash note.

The cash flow notes business can be lucrative. Professionalism, preparedness and learning the art of negotiation is what determines success once you have located a marketable cash flow note. Although most of your time as a note broker will be spent marketing, it is important you hone your skills a negotiator.

Marketable And Unmarketable Cash Flow Notes

2010-07-13T15:51:00.002-05:00

Knowing The Difference Is Crucial

Generally when people get into the cash flow notes business they start out as a broker searching for notes, any note! It’s true, there are notes on just about anything where money is paid to one party to another over a set period of time. By far the most well known within the industry and most utilized are real-estate secured notes. These are the staple of the cash notes industry. Although there are investors that do specialize outside the traditional real-estate secured area, as a new note broker it is recommended to concentrate on real estate in the beginning.

Brokering notes should be the first step you take into the business since brokering is essentially risk free. By risk free we mean there is little if any cost to you other than your time and whatever you choose to spend on marketing which can be entirely free for marketing savvy people. Once you begin the process of locating mortgage notes you will quickly realize not all notes are marketable. In fact, some of the people that contact you through your marketing efforts will believe they have a note they can sell. As it turns out, they are the debtor on the note responsible for paying the party which actually owns the note. However, these very people can provide you with a potential lead to follow up on by contacting the party that does own the seller financed note.

As you move along over the first few weeks and months, you will quickly begin to recognize which notes are marketable and those which are not. Apart from marketing, which almost all your time should be spent doing, recognizing potential notes is the most crucial area in the beginning. As a note broker with no risk associated with your efforts, it is important to understand the cash note investors which will buy the mortgage notes you find are assuming all the risk involved. Wasting their time with unmarketable notes is a quick way to find yourself on a investor’s ignore list. When we speak of investors we are talking about the large paper buying firms or individual private investors.

Don’t assume note investors will screen your note for you. They fully expect you to have completed all of the screening work before they receive a phone call or fax from you with details about the potential cash note. The screening process is vital to your success as a note broker. You will need to obtain important information from the mortgage note holder such as what kind of property secures the note, are all the payments current, what was the sale price when the property sold (many investors have limits), how much money did the buyer put down, what is the balance on the mortgage. These are all important issues you will need to already have been answered before you ever contact your investors.

Establish relationships with your investors. Know their limits and what their criteria is for possible purchase of a cash flow note. Do as much of the preliminary groundwork as you possible can so the investor can quickly look over your note worksheet and quote you a price so you can begin negotiations with the seller. Other than marketing, acquiring the skill to quickly determine if a mortgage note is marketable or not will increase your chances of success as a cash flow notes broker exponentially.

Owner Carry Financing - How Do I Sell My Mortgage Note

2010-07-12T18:12:00.001-05:00

Locate A Reputable Note Buyer

Most outside of the real estate industry would be surprised at just how many owner carried mortgages are in place throughout the United States. Even more so since lending institutions have for the most part cut-off just about anyone with less than perfect credit.
Individuals are now more frequently, in essence, becoming the “bank” to many home buyers. Either out of necessity or to simply increase market interest in their property, offering owner will carry finance increases the odds of receiving a return on their investments.

But what about the mortgage note holder that is considering freeing up the cash he has tied up in the owner carry mortgage? He may be asking himself, “How do I sell my mortgage note?” Fortunately for the mortgage note holder, there is an entire industry devoted to buying and selling paper transactions called cash flow notes. Note investors buy various kinds of notes including owner carried financing notes just like the one held by the mortgage note holder. Interestingly enough, the transaction can be structured just about any way the mortgage note seller chooses. He can sell the entire mortgage to a note buyer or he can sell a selected number of monthly notes in exchange for a lump sum cash payment.

All cash flow notes deals are different depending primarily on the reason why the mortgage note holder wants to sell in the first place. Reasons vary from they want to make investments elsewhere and need to free up the cash, or maybe they have just tired of collecting monthly payments from the buyer or an emergency situation has created a need for immediate cash. Whatever the case may be, the mortgage note holder has flexibility in determining in which way he needs to structure the sale of the mortgage note.

Once you have determined you do in fact want to sell your mortgage note either in full or partially, you need to first locate a reputable note buyer. Knowledge, reputation and experience are the three key factors when seeking out a note broker before selling your mortgage note. A knowledgeable note broker will explain the entire process from how much you can expect to receive for your note, the necessary paperwork and closing. All that will be involved in the transaction can be handled professionally by a seasoned note broker.

Of course, when you first begin considering how to sell my mortgage note, the most important question to be answered is how much can I get for the owner carried note? This is where it becomes necessary to make sure you are dealing with a seasoned note buyer. All seller financed mortgages are different. You may have a personal relationship with the people you have financed residing in the house. However, on paper, they may be a higher risk than normal for the note buyer. Before the note buyer makes you an offer for your mortgage note, he must consider many factors including the risk involved.

Creditworthiness, age of the note, how many mortgage payments have been paid on time as well as late, appraisals, etc. Many factors go into the equation before the note buyer can make an offer. He is will be offering you a lump sum payout for the mortgage note at a discount. It may sound as if finding out how much can expect to receive for your mortgage note is difficult. An estimate can often be obtained within a day or so once you have provided the necessary information for the note buyer to make an informed evaluation.

Selling your mortgage note is not difficult but can be a bit overwhelming if you begin the process without doing some research and gaining a working knowledge of how the paper business works. Transactions are bought and sold within the cash flow notes industry everyday and not just real estate transactions. Odds are the note buyer you will be dealing with has experience in buying and selling many different kinds of notes including structured settlements, lottery winnings, insurance lawsuit settlements, land contracts and even maybe accounts receivables from small businesses. The key to obtaining the best price for your note is dealing with a professional note buyer that has the knowledge to get you the best price you can possibly get for your owner carried mortgage note.

Seller Financed Mortgage Buyers - The Market Is There!

2010-07-12T00:09:00.002-05:00

Marketing Your Cash Flow Business To The Right Prospects

When the housing market becomes weak as it is currently, credit tightens and available money from lending institutions becomes almost non-existent for those with less than perfect credit. This becomes a double-edged sword, affecting both buyers and sellers. Individuals hoping to purchase a house can’t and sellers holding property are unable to sell. Fortunately, sellers often become the bank themselves and finance the deal directly with the buyer. This often is the case when the country experience and economic downturn.

Property owners employ and offer seller financing to increase the market to a wider array of possible buyers. Bypassing the lending institutions allows both seller and buyer to work an agreement which is beneficial to both based on their terms. However, you may be asking what does this have to do with the cash flow notes business? EVERYTHING!
Seller financed mortgage buyers love owner carry back notes. Because of the downturn in the economy, owner carry back financing is at high offering the savvy cash notes buyer plenty of opportunity to profit.

Remember, people that offer seller financed mortgages are just like you, the note investor. They want steady income coming in every month. However, they also sometimes want to free up their cash and invest elsewhere or simply want to get their cash in lump sum and move on, and forget the worries of carrying a note. This is where we come in as seller financed mortgage buyers. But, always follow your guidelines when evaluating the note before choosing to make an offer.

Check the creditworthiness of the buyer and see if the payments have been made in a timely manner. Check the amount of equity the homeowner has in the house, the length of the remaining term on the seller financed mortgage. These are just a few of the guidelines you should check before making an offer. Due diligence is always necessary to avoid costly mistakes.

In a lean economy it is important that we think outside the box and become creative. Eighty percent of the cash flow notes business is marketing and building your list of contacts and potential contacts with this list of contacts including both possible notes sellers and note investors. Contact mortgage brokers and your local banks. Don’t forget title companies and of course real estate agents. All of these have access to potential leads for owner carry back note holders that may be willing to sell their mortgage note.

Seller financed mortgage buyers, get to work and follow up with your marketing protocols - the market is there!

Expanding Your Mortgage Notes Business With Defaulted Loans

2010-07-09T17:09:00.002-05:00

Working With Distressed Homeowners And The Bank

As a note buyer or broker, you should always be in the look-out for ways to expand your business or portfolio. Purchasing mortgage notes is great but there are many different ways to profit in the mortgage industry, you just need to think outside the box. With the amount of homes going into foreclosure as a result of the current economy, the local bank could be a valuable asset if one were to apply a little critical thinking. Your competition may or may not be already capitalizing on this untapped market.

Houses in pre-foreclosure are ripe for the picking if you know how to go grasps this low hanging fruit. However, this approach does take a bit of specialization on your part in the fact you must approach the homeowner that is default and the bank holding the mortgage. It can be difficult to locate a homeowner who already is facing one of the worst episodes they can possibly face - the loss of their home. But, you as a potential buyer have a solution that can help remove some of the stigma of foreclosure. Avoidance of foreclosure for the homeowner and assisting them in ever having to deal with a foreclosure on their credit report.

It should be noted that the window of opportunity is time sensitive for pre-foreclosure mortgage note buying. The time between default and foreclosure is short so working fast is important. Since the nature of the issue is fragile, it is best to first try to contact the homeowner by mail. If contact is not forthcoming, then a phone call or direct approach may be necessary however, it is best to attempt contacting the homeowner through mail first.

Once you have contacted the homeowner it is important to get them to agree you are buying the house from them while you negotiate with the bank holding the mortgage. You don’t want the homeowner selling the house to someone else while you are in bank negotiations.

After an agreement has been reached between you and the homeowner, you should then approach the bank. First and foremost the bank does not want o foreclose on the homeowner and take a loss on the mortgage note. However, at this point they really do not have a choice but to foreclose on the property owner and put the house on the auction block where they will surely take a substantial loss.

Drop by the bank or make an appointment to see the loan officer and make it very clear what you are offering. The proper term within the industry is a short sell. Simply put, you are making an offer on the mortgage to buy it from the bank at a reduced price. In many cases they will be more then willing to accept your offer. However, we want to add investment to our portfolio and add cash flow notes to our monthly income streams.

At this stage, you make an offer to effectively become the bank and offer to buy the note itself from the bank at a reduced price. Everybody is a winner! You and the bank because you have added another valuable asset to your property or as a broker, you have negotiated a deal to offer your list of investors. The homeowner can win as well. Although they will lose their home, they can avoid the stigma of foreclosure with a Deed in Lieu of Foreclosure which we will discuss in another article here on the Cash Flow Notes Blog.

Pre-Foreclosure Investing - A Market To Consider As A Investor

2010-06-18T16:41:00.002-05:00

Is There Anything Good About Foreclosure?

Investors that specialize in buying existing notes to enhance and grow their monthly cash flow streams might consider a market which sadly, is booming - the foreclosure market. When one market is booming, another market is created. In this case and one you may have interest in is, pre-foreclosure investing. It was announced in May 2010 that a record high of bank repossessions was reached. A staggering 93,777 properties were taken back from homeowners in May, up one-percent from the previous month, April, and up 44% for the same time period last year. However, as gloomy as it may be, there is money to be made as a note investor and possible salvation for some homeowners sitting in the sites of their mortgage holder.

Avoiding a foreclosure can help save the credit rating of homeowners. In this case, although they will lose their home, they can avoid the mark of foreclosure on their credit report if a savvy investor chooses to buy up the property before the evil banker swoops in like a bird of prey and sinks their talons into the homeowners exposed credit rating.

Pre-foreclosure investing is specialized to be sure but also lucrative with discounts as high as thirty percent off market value being obtainable. But first, we need to understand the basics of a foreclosure. Banks and other financial institutions really don’t want to foreclose on property owners, contrary to popular opinion. It’s a loss for them plain and simple. However, since the economy is in shambles, homeowners can’t keep up with their payments, falling further behind each month until the bank has no choice but to foreclose and take the property back.

What this means for you as an investor is money! Banks don’t want these foreclosed properties on their books and are willing to unload them at auction. With pre-foreclosure investing there is short window of opportunity for an investor to take advantage of the opportunity. Once the homeowner defaults on their loan, the clock begins to tick toward repossession which is the ideal time for the investor to make his play.

Fortunately for you as an investor, foreclosures are frequent and rather easily to find given the amount of services available that monitor foreclosures on a day to day basis, listing them each day. If you decide to enter the pre-foreclosure investing market, you need to monitor these publications daily. Once you find a property of interest, the first order of business is to contact the homeowner and make an offer for them to sell you the property.

This may be the most difficult part of the whole process - making contact with the homeowner. Once you make contact, it can be difficult to deal with people that don’t understand the real estate industry on top of the fact they are already stressed and overwhelmed because they are losing their home. However, at this point they have probably accepted the reality of the situation and with you, the investor, offering them the opportunity of avoiding a foreclosure mark on their credit report can make you the hero.
Another thing to consider, you may need to approach and negotiate with any lien holders which they may have placed on the property.

Whatever the case, pre-foreclosure investing in a booming market with readily available profits is nothing more than another income stream for you as cash flow note investor to increase your portfolio.

Notes Cash Flow Income Streams - Unraveling The Mystery

2010-06-14T13:43:00.002-05:00

Understanding Notes Cash Flow Income Streams

If you pause and take a few seconds and consider the amount of monetary transactions which take place daily it will boggle the mind. Transactions take place everyday in various forms. A transaction is more than likely taking place at this very second down the street at the local market or gas station. Your next door neighbor may even be involved in a transaction purchasing an item over the Internet. The point being: Some type of transaction is taking place every second of everyday all around the world where goods or services are transferred in exchange for money or something of value to an individual or society as a whole.

This has taken place since the beginning of man and the introduction of the barter system. However, transactions serve different purposes. At the corner market, a transactions takes place between a customer buying an item and the merchant. The merchant receives the item or product from a vendor at which time the merchant marks up the item to make a profit. The difference between what he paid the vendor or supplier and what he sells the product to the customer for is the merchant’s profit, less any additional cost incurred by the merchant. Other cost could include the stock boy he had to pay to place the item on the shelf, electricity, the lease on the building, etc. All these additional cost are factored into each an every item in the merchant’s store to balance out and provide the merchant with a profit at the end of the sales cycle.

But, there are other types of transactions other than the point of sale transaction described above and what this website is all about. This type of transaction is the installment plan. An installment plan is an agreement between two parties, buyer and seller, where the buyer agrees to pay the seller in increments or installments over a set period of time. This time period can vary widely in length on the fulfillment of the agreement, in most cases years. However, the payment schedule is usually based around the thirty day or monthly cycle. The buyer agrees to pay the seller an agreed upon amount set in a contract every 30 days until which time the agreement or contract is fulfilled. This monthly payment is called a note.

New installment plan transactions take place everyday between various parties. Homebuyers and financial institutions. Car dealers and car buyers. Furniture stores and furniture buyers. Vendors and businesses. Even gyms and people buying gym memberships. What many people are not aware of is there is an entire underlying industry that exist where investors buy these installment plans at a discount and in return pay the original seller a lump sum of cash. The investor, in most cases, owns a number of these in his portfolio creating what is called notes cash flow income streams.

When the notes investors buys his first note, he has created an income stream. Each month when the original buyer pays on the installment plan, it now goes directly to the investor rather than the original seller. Notes are bought and sold between original sellers and investors or between note investors all the time. You may be asking yourself, “ Why would the original seller be willing to sell the note to someone else for less than the original value of the transaction?”

The value of the transaction is tied up within the contract between the original seller and the buyer. In effect, the original seller’s money is in many cases tied up for years. It could be decades before the seller sees all of his money. Sometimes the seller does not want to wait years for his money for various reasons which are too numerous to attempt to name. If he decides he doesn’t want wait for his money, he can approach a note broker or a note investor and offer up the transaction for sale.

The reason he must sale the note at a discount is the note investor will be assuming all the risk involved with carrying the note as well as tying up his money for years. The benefit for both parties, the original seller and the note investor, is the seller frees up a discounted amount of cash he had tied up in the contract and the note investor added another notes cash flow income stream to his portfolio. Successful notes investors can and have created monthly income streams of thousands of dollars. Passive income that comes in every month while he pursues other cash flow notes or whatever he chooses to do with his time.

The cash flow notes business is a lucrative business for note investors and can be for note brokers as well. For those willing to apply hard work, discipline, dedication and willing to spend about eighty percent of their time marketing for notes, success is almost a given for creating notes cash flow income streams.

Seller Financing - Benefiting Both Ends Of The Mortgage Industry

2010-06-10T07:01:00.002-05:00

Solutions And Opportunity With Seller Financing

Whether you are a home buyer or a note broker one of the great aspects of this industry is seller financing. However, let’s cover first things first and explain how seller financing can benefit both a home buyer on one end of the equation and a note investor at the other end.

People that have less than perfect credit know the possibility of acquiring a home mortgage through conventional methods, mainly banks and other financial institutions, is not very good. In fact it is almost impossible, especially in the current economy. Becoming a home owner can seem like an unobtainable dream for many. Financial institutions, for the most part, will only do business with people that have good credit ratings. It all comes down to an individuals number, your credit score. If you’ve ever felt as if you have been reduced to a number, applying for a mortgage is one area where you ARE reduced a number.

Making the effort to improve you credit score is always a good idea and should be an important goal. However, purchasing a home will become a secondary goal and depending on your circumstances and your timeline for purchasing a home, this may not be an option. There is an another option which offers an alternative to doing business with financial institutions - seller financing.

Seller financing or owner will carry is common is probably the only solution for people no established or bad credit. This option is also available to people with no savings to speak of or jobs that are low paying. By seeking out real estate property owners that own multiple rental houses, you may be able work out a seller financing agreement. Very often, property owners with rental properties have grown weary of the rental business and may welcome an opportunity to still collect a monthly note but from someone that is buying rather than renting the property from them. It is a win-win situation for both parties. The person with bad credit or low paying job gets to own a home and the seller still has a cash flow stream coming in on a monthly basis.

On the other side of the equation in terms of seller financing, there is also opportunity for note investors and note brokers to potentially gain a new prospect. Individuals holding owner will carry mortgages many times would welcome the idea of freeing up the cash they have tied up in the property. Lump sum cash is a powerful motivator to many seller financing note holders, even at a discount. If you happen to be a note broker or a cash flow notes investor, these individuals offer an opportunity for you to make some money and add another income stream to your portfolio.

Seller financing is one of the exceptional features of the cash flow notes business as well as the home buying market by providing both opportunity and benefits to a wide variety of individuals. Home buying solutions for those with very little financial means and portfolio growth for note investors as well as commissions for note brokers.

Becoming A Land Contract Buyer To Reap Hefty Rewards

2010-01-13T15:34:00.001-06:00

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?

2010-01-04T20:38:00.003-06:00

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.

Brokering Notes And The Key To Success With Your Cash Flow Notes Business

2009-12-25T08:22:00.002-06:00

Marketing For Note Brokers

All businesses survive off of sales. Sales of their products or their service and brokering notes is no different. The more prospective leads you have, the larger the potential for closing the deal. If you are an old hand at the sales game, you’ve by now figured out sales is a game of numbers in more ways than one. For those of you new to the note brokering business, you will soon find prospecting is the key to your success.

Learn how you can become a note broker...

The word prospecting many times creates the frightening image of hours upon hours of dialing number after number cold calling and constant rejection. Fortunately it doesn’t have to be this way since cold calling seldom produces the results needed when you time can be better spent developing leads using better techniques in the cash flow notes business.

If you have just started in the note brokering business you probably don’t have a network in place. Advertising your services should be your first step. Although not as fruitful at producing results as an existing established network, you have to start somewhere if you are going to find cash flow notes. However, don’t be alarmed when the word advertising is suggested. With the advent of the Internet, advertising doesn’t need to cost a cent. There are thousands of websites in cyberspace which will allow you to place your advertisements and cash flow note listings and note brokering services.

Using websites such US Free Ads and Craig’s List are just a couple of places on the web you can list your note brokering business. There are even websites dedicated entirely to the cash flow notes business which allow note brokers to list their notes or solicit for business both free and fee based. So you can see, with a little imagination, you can quickly get your name and business in front of potential clients and customers.

Using local government court and property websites is an excellent way to find potential cash flow notes such as mortgage notes or real estate notes and structured settlements such as judgments awarded to lawsuit winners. The use of local city and county websites can greatly enhance your note brokering sales leads and increasing sales.

As you continue to prospect and utilize free services, your list of prospects for both buying and selling notes will increase. Which leads us to one of the most important prospect tools you can utilize in the note brokering and cash flow notes business. Networking is by far the most important sales tool you can develop as a note broker. Creating a network of like individuals within the cash flow notes business takes time and effort but is the key to long term success. Once you build your network you will find your prospecting efforts will soon decrease since you will have established yourself within the business and potential clients will be calling you for your services.

The beauty of an established note brokering network allows you go back to the same contacts many times for new referrals. What the network effectively does is eliminate the need for cold calling entirely and all your calls will be warm calls based on an established relationship or a referral based on a recommendation from someone you have established a relationship.
Prospecting is the key to your success in the note brokering and cash flow notes business. By committing yourself to the sales process of prospecting and building your networking, you will soon find you will have plenty of customers.

Mortgage Note Brokers Can Enhance Your Cash Flow Notes Business

2009-12-24T22:15:00.001-06:00

Find Your Bloodhound And Profit

Real estate note brokers are the one place you can find lucrative deals on real estate notes if you are in the market for mortgage notes to enhance your cash flow notes portfolio. For investors with sufficient cash on hand, now is the time to find some of the best notes since the housing market is at a all time low and there are many distressed properties available for savvy note buyers. People holding distressed properties or distressed mortgage notes are searching high and hard for ways to unload their notes at bargain basement prices.

Because of this, huge opportunities for mortgage buyers and cash flow notes small business owners are available. If you are a small note buyer who has specialized in structured settlements such as annuity cash outs, lottery winnings, lawsuit awards and insurance settlements, now would be a perfect time to branch out in the real estate note market. If you are considering expanding into this market, it is advisable to enlist the services of a reputable note broker that specializes in mortgage notes, both residential and commercial.

By utilizing the services of a mortgage note broker you can effectively reduce the amount of time you would otherwise spend beating the bushes trying to locate notes that fit your criteria. Although a note broker will charge you a fee for his services, the amount of money you can make on the transaction will make the fee insignificant. Brokers that specialize in how to broker mortgage note deals have already done the ground work and have a network in place and can quickly bring you together with people holding notes which fit within your pricing range.

The note broker also has the expertise needed to conduct the transaction, including all the proper paperwork to insure the transaction proceeds smoothly. As you can imagine, there are many forms which need to be processed to complete the transaction and the real estate note broker has the expertise, staff and connections to conduct a error free transaction.

Real estate note brokers can also facilitate the process of collecting and transferring the monthly note payment, alleviating you of this worry and all you need to do is check you account each month to ensure the payment is placed in your bank account. Of course these are fee based services although it is not necessary to employ a mortgage note broker for these services.

Although utilizing the services of a note broker can help you quickly locate mortgage notes and real estate notes for sale, they are not necessary. If you are already an experienced cash flow notes player, you probably will quickly learn the ropes of the mortgage notes business. The Internet is an ideal place to start your search. Think about it for a second. Every state and every town or city within each state has properties which go up for sale each day, both commercial and residential.

By employing the skills you already use to locate cash flow notes such as structured settlements you can readily convert to the mortgage notes business. By using local government websites which provide property and real estate information, you will quickly be on your way to establishing yourself in the mortgage notes business and growing your cash flow notes portfolio.

Purchase Structured Settlements To Increase Your Cash Flow Notes Portfolio

2009-12-23T19:42:00.001-06:00

Note investors who purchase structured settlements have long known how this sector of the cash flow notes business can greatly increase the bottom line of your company. Most note buying companies focus exclusively on mortgage notes in the commercial and residential note markets. The real estate note market is lucrative, no doubt, but by diversifying and allowing your company to branch out into other areas of the market, you will effectively double your company’s income producing capabilities.

When your purchases structured settlements such as lawsuit judgments awarded to victims who have been injured or hurt by another party, your company offers them a lump sum of cash at a discount for the balance of the payments. By providing the note holder with a lump sum of cash, you are providing much needed cash that is usually needed for important financial needs. As is often the case, many people that are awarded judgments when the lawsuit is won in their favor, very often find the monthly installments are not enough to meet the financial needs of their family.

Personal injuries suffered as the result of malpractice, accidents or various other reasons are most often very large awards and the courts allow the payments to setup in installments over a set period of time. These time periods can be a series of months, years or in some cases, over the lifetime of the lawsuit winner. Although this type of structured settlement equates to guaranteed income, in many cases this income does not replace the income the person made while working a full time job as before the injury.

If the awarded judgment and subsequent structured settlement is large, many times the award winner prefers to receive all their money at once. Unfortunately, the terms of the award (judgment) do not allow for a lump sum payment so the person will seek out the services of a company such as yours to facilitate a lump sum payment when you purchase structured settlements.

Whatever their reasons for needing or wanting a lump sum payment, your company can be there to offer services for people in such situations. In some cases the structured settlement may have been in place for sometime and has been sufficient in meeting family needs. However, one thing we can count as a constant and this is change. Family financial needs change. Kids may need college tuition, bigger housing may be needed as family grows. Another bread winner in the household may have become disabled and unable to work. Whatever the case, the structured settlement may need to be converted to a lump sum payment to better fit the family financial plan.

As you can see, from a cash flow note buyer’s point of view, when your company open up other avenues of income streams such purchasing structured settlements, you increase the potential for an exceptional increase in your company’s bottom line. When you purchase structured settlements and add them to your cash flow notes portfolio, you are not only diversifying your portfolio, but also making your company stronger.

Structured Settlements Cash - Are You Diversifying Your Cash Flow Notes Business?

2009-12-23T15:47:00.001-06:00

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.

Find Cash Flow Notes With Networking

2009-12-22T15:50:00.004-06:00

Cash For Notes

One of the most difficult task within the cash flow notes market for those new to the industry is locating notes which are on the market. A working knowledge of the note business is necessary in order to succeed. A transaction between two parties is what allows all of this to happen first and foremost, in order to bring these two parties together, we must first find a note and match a buyer to the note we have found.

Although the cash flow notes industry is synonymous with the real estate industry, and rightly so since mortgage notes are by far the most popular form of transaction, there are many other types of cash flow notes that can be located and sold. Once you begin your search, you will find cash flow notes mostly within the real estate industry in both commercial and residential property. On the commercial side of the business, many small business owners struggle with financing for various reasons ranging from meeting payroll, funding jobs or buying equipment. In an effort to meet the business needs many times they will use their property as a means to meet these obligations.

On the residential side, to find cash flow notes, networking with people within the mortgage industry is an exceptional way to increase your chances of finding mortgage notes for sale. Once you begin rubbing elbows an networking with mortgage professionals, they will very often being to introduce you in mortgage note buyers and cash flow note investors who are always trying to find cash flow notes. This will be your greatest asset as a note broker and a tool you will utilize daily as your cash flow note business grows.

Ultimately however, to find cash flow notes, you have to locate a note holder who is in need of cash and is ready to liquidate their note and turn it into readily available cash for whatever reason. The reason is not important but you can be very important you them if you can provide them with the service they require to meet their need. If you stop and think about the amount of transactions made daily all over the world in just the real estate industry, it will boggle the mind. Notes of all types: mortgage notes, lottery winnings, annuities, insurance settlements, judgments or any type of structured settlement are ripe for a transaction facilitated by you - the note broker. All you need to do is being networking and using you imagination. This is the key to how successful brokers find cash flow notes.

Bringing a note seller and note buyer, with acting as the note broker is a wonderful feeling. Not only have you helped two different parties meet their needs, you have also collected a nice fee to deposit in your bank account. Remember, networking and building a database of mortgage professionals and investors takes time, but if you are willing and committed, you will have a ready source to always find cash flow notes.

Cash flow notes, as an industry, has seen exceptional growth over the past half decade as more people with drive and a determination to succeed have discovered. What is so mind boggling about the note business is the fact that the business has been around since man completed the first transaction between two parties. In it’s simplest terms, a cash flow note is nothing more than contract between two parties with one party agreeing to sell something at a set price with the other party agreeing to pay in monthly installments over a set period of time until the obligation of the contract is met, or paid in full.

However, there is another factor involved with the transaction. Since the seller has agreed to allow the buyer fulfill the contract over time, the seller is also compensated in the form of interest on the contract since the seller must wait the set period of time to collect his money. An this is where finding cash flow notes can be so rewarding for those willing to learn the cash flow notes business.

Many times note holders find after a brief period of time of holding the note that they need their money now rather than later. Fortunately for them, there is an entire industry devoted to cash for notes which allows them the option of selling the note for a discount to an investor in return for a lump sum of cash. This allows the note holder the luxury of receiving a large percentage of the original contract amount while relieving him of the obligation of holding the note until contract fulfillment. The party paying the monthly installment is not inconvenienced in any way other than changing whom they pay their monthly note. The investor which buys the note increases his net worth as well as his monthly income.

And you as the note broker collects you commission because you learned how to find cash flow notes and bring buyer and seller together. Cash for notes has been around for millenniums with only a select few being in the know. This however has changed, so get out there and beat the bushes and find cash flow notes!

Cash Flow Note Buying And Selling

2008-11-30T12:54:00.007-06:00

A Summary Of The Notes Business

`````````````````````````````````````````````````````````````````````````````
With the state of the economy and the dire straits in which many individuals and families are finding themselves, many people are searching out ways to increase their monthly income and one choice is the cash flow notes. There are many people that have been awarded judgments in malpractice suits or insurance settlements due to a car accident or some other form of injury at no fault of their own with money from the awarded judgment coming in each month.

However, very often this awarded cash flow note is spread out over many years and does not provide enough income to meet monthly bills or other unexpected expenses. Wouldn’t it be great if the bulk of these awarded judgments be collected all at once? You could payoff medical bills or other pressing bills that are causing stress in your life and reduce the amount of worry that is associated with a stagnant economy.

Others have a monthly cash flow notes in the form of a lottery winnings that are paid out over many years. In some cases this is an excellent choice for lottery winners since statistics show that lottery winners given a lump sum payment of winnings very often end up broke and in debt. However, if you are a lottery winner and have the discipline to control spending and invest wisely, selling your monthly cash flow note may be a wise option.

Another group of people that can benefit from selling a cash flow note are mortgage note holders. There are many people that have real estate holdings either in private residential property (houses) or commercial property (buildings) that could benefit immensely by freeing up cash that could be invested elsewhere to increase profitability.

Pit Falls Of Cash Flow Note Selling

Although people that have a structured settlement that provides them with a monthly income, some people are not candidates to sell their note. It should be emphasized that when selling a cash flow note that the seller will not receive the entire amount of the original balance. Note buyers offer lump sum payouts for cash flow notes at a reduced amount, usually around 80% or lower of the sum total. Note sellers will receive a lump sum at the discount but for people that are undisciplined in financial matters will very often find themselves in financial distress once they blow through the lump some paid out.

Although the initial cash flow note settlement is not enough to make a significant impact on monthly bills, the note holder will still have this money coming in each month. Before selling your structured settlement, careful consideration should be given to the possible financial implications once the note is sold and the lump sum payout is spent.

The Best Reason For Selling Your Cash Flow Note

People that are schooled in financial matters that have a cash flow note are the best candidates for selling a note that is currently in place. These people usually have cash flow notes generating income from real estate holdings and usually sell a note to free up cash for other investments to increase their monthly cash flow.

Other candidates include structured settlement holders that need to sell their settlement in order to meet obligations such as emergency medical situations or to avoid foreclosure on their homes. Another acceptable selling situation would be in order to pay for a child’s education once all other forms of funding have been exhausted.

Selling a structured settlement, lottery winnings, annuity payments or real estate notes can be profitable for the note holder, but careful consideration should be given to the financial health of the seller once the sale is final. Many times note sellers regret selling their cash flow notes because they have not taken the time to do the proper research to make an informed financial decision.

Information For People That Choose To Sell Structured Settlements

2008-09-16T17:19:00.005-05:00

______________________________________________________________________________
Structured Settlement Broker - Understanding How Structured Settlement Brokers Work

The goal of a structured settlement broker is to help you put together and negotiate a settlement that makes sense for you.

Just to be sure we're on the same page... a structured settlement is a way of compensating someone who's been injured.

They're also used to pay out lottery winning jackpots... (that's of course, for most people, the preferred reason for getting a structured settlement!)

How Exactly Does A Broker Operate?

Part of what a broker will do is work with attorneys to find the best structured settlement plan for their client. They can also help with the sale of a structured settlement.

A broker will have the total description of exactly what a settlement is offers and will be able to answer questions about them.

A big benefit to having a broker is that they are typically affiliated with multiple companies, which means they can shop around with you for the best deal.

The Most Important Part Of Planning A Structured Settlement

A broker will help you answer and address the most important parts of your situation: getting you a structured settlement based on your current and future financial needs.

Far too many people make the mistake of not thinking enough about what they really need and regret it later on!

Exactly What's Included In A Structured Settlement

Most people think a structured settlement just pays out to the victim over a longer period of time.

While this is true, structured settlements will often include cash up front to pay your attorney and any immediate medical expenses.

Keep in mind: Once a structured settlement has started, there's no way to change any of the terms or payment amounts - so make sure you do all the right research beforehand so you get the best deal.

That being said, you can always "cash out" our structured settlement by selling it for a lump sum cash amount.

A broker can be a tremendous help to you if you're thinking of selling your structured settlement.

Broker selection tip: DO NOT work with a broker who has an exclusive arrangement with one company. There are plenty of honest brokers who can work with multiple companies to get you the best deal.

Qualifications Of A Good Structured Settlement Broker

Do your homework up front and make sure your broker is registered with the Department of Justice. Also - and this next part is huge - make sure they're insured!

To learn much more about the pros and cons of structured settlements, including how to buy structured settlements, visit http://www.Structured-Settlement-Tips.com

Five Reasons To Sell Structured Settlement Payments

A structured settlement is a legal payout where someone who's been injured and otherwise hurt is given monetary compensation. A structured settlement annuity come in the form of a series of payments made over the course of a period of time. The bonus to this type of payment is that the aggrieved gets a steady stream of income coming in for a long period of time, the downfall of this type of settlement is that the person getting the funds might find themselves in a situation where they need a lump-sum for unexpected expenses or a big ticket item they might have their eyes on.

To consider the nature of some of the unexpected expenses someone receiving settlement payments can incur, one needs to consider the nature as to why people receive a structured annuity. Often, the settlement comes as the result of a court case where the claimant receives money as a result of some accident suffered. Often, these injuries can be severe enough the claimant could have serious medical conditions arise, conditions that might only show up after the person has settled there case.

They might need some quick money for an operation and selling off settlement annuity payments is a good way to get the cash owed to them in as little as 6 to 8 weeks. Of course, medical emergencies can quickly arise with any member of a family as well.

Another reason to sell off a structured settlement rings with a more positive note. As there are no legal reasons why a claimant cannot decide to sell off this asset, some of the more shrewd claimants keep an eye on the stocks and other markets to see if they can't transfer a lump sum from an annuity into another kind of moneymaker. Still, when considering this, it's important to realize that selling off a structured settlement will include a fee to the company helping you with the transaction.

Some of the people receiving a settlement annuity think about investing in something that's a little more tangible. A fair number of these claimants decide to buy homes with the proceeds from a structured settlement factoring transaction because the investment is something they can enjoy and pass along to their families when they pass on. Again, selling off these payments for this purpose demands careful attention to detail. Often, first time homeowners don't factor in all the little 'hidden' expenses that go with homeownership and these expenses can be especially worrisome when there's no stream of income coming in.

The final reason to sell off a structured settlement is perhaps the most realistic but at the same time the saddest. Often due to the nature of their injuries, people receiving structured settlements have shortened lifespans. So, it's not unusual for these people to want to take care of their families and cashing in a portion of their settlement annuity can help their families live a better life.

Read more articles at Settlement Quotes structured settlement blog. To sell structured settlement payments visit us and we can offer you 6 cash offers from competing investors and funding companies. If you would like to sell annuity payments Settlement Quotes will provide upfront quotes from the industries top annuity funding companies.

Article Source: http://EzineArticles.com/?expert=James_Grace

Structured Settlements - The Benefits of Having Cash in Hand

Mr. Lane, a business associate and friend of my in-laws retired this year. In addition to Social Security, he began collecting monthly payments on two different annuities he started many years ago. And though the income from these annuities is enough to allow him to continue his lifestyle, he doesn’t seem to be very happy.

I overheard a conversation this man had with several people at a family gathering. He was saying that he thought retirement would be more exciting. Mr. Lane has been a widower for more than 10 years and wants more from life than the same routine he has had for the last 40 years. He said he wanted to see the world, really see the world. He was talking about non-stop traveling for the next year or more. He also spoke of buying a vacation home in the tropics. He secretly told my father in law that he didn’t have the funds to do these things. But he may be mistaken.

The annuities he holds are valuable assets. He receives monthly payments from the annuities for a pre-set number of years. If he dies before the term is over, the payments may be received by his heirs. The monthly income from both annuities is significant but it seems this man would rather have cash to have some fun in his retirement. Is there a way to achieve this? Yes.

There are both companies and investors willing to pay cash up front in exchange for receiving payments on private real estate mortgages, lottery winnings, structured settlements annuities and other ‘cash flow’ assets. Such companies often have a variety of options available and are eager to meet the needs of their clients. There are several options available to Mr. Lane. Let’s take a look at a few:

He could receive a single lump sum for one or both of his annuities. In this case he would assign his rights to receive future payments to an investor and end up with all cash.
He could assign an investor the right to receive a portion of his payment for the entire term of the annuity or for only a specified time, say five years. In this case he’d get a lump sum up front and part of a monthly payment while the remainder of the payment would go to the investor.
He could assign his right to receive payments for a specified time. In other words, he might choose the term of seven years. So, for seven years an investor would receive payments from the annuity. At the completion of the seven year term, payments would revert back to Mr. Lane.
There are many companies in the business of purchasing income streams or investments. Some can be very creative in structuring a plan where the holder of a cashflow asset receives the funds they need while maintaining a portion of the payments for the future.

Hey, I just got a post card from Belize. It’s from Mr. Lane. He says, I’d love it there. I think he’s right.

FutureAnnuities of America helps people who need to sell their structured settlements for a lump sum of cash. We help our clients get a fair price for their payments. Get more information regarding structured settlements.

Invoice And Purchase Order Factoring

2008-09-02T13:16:00.002-05:00

Factoring vs Invoice Discounting

Both factoring and invoice discounting can be described as ways to get immediate cash by selling accounts receivable to a third party, usually a finance company. In fact, the two methods are more similar than they are different.

Factoring, also referred to as asset securitization, is an outright sale of receivables to the finance company. The business gets cash and the finance company collects the debt, keeps the interest and gets a discount fee on top of that for its trouble. Invoice discounting can also be termed a sale of receivables, but in this case administration of the receivables and their collection does NOT change hands. The business that earned the income still holds that responsibility.

Here are some questions to consider in order to choose which method is best for your company:

1. Are you concerned with the cost of collections in your company? Are they getting out of hand? Is your collections area fully staffed with competent and reliable personnel? If you think your company would be better off reducing the amount of resources devoted to this function, factoring is the better choice for you, as a lot of it, but not all, can be offloaded to the finance company. If you already have a well-working collections department you might rather choose invoice discounting. That way your staff and procedures regarding collections remain in place.

2. Knowing that the finance company will undoubtedly treat your customers with the utmost courtesy, respect and professionalism, are you nevertheless concerned that he may prefer to be dealing directly with your company? Perhaps billing requests often come together with customer service requests. Your customer is generally not aware of the sale of his receivable to you with invoice discounting. Not only is he aware of a factoring arrangement, but also he is subject to confirmation calls on individual invoices by the finance company on occasion. If this is something you know would disturb your customers you may need to choose invoice discounting.

3. What are your current informational needs with regard to collections efforts and your customers? Do you currently collect this data and rely on it to make future credit decisions for this customer? Can the finance company provide it in the format and frequency you desire? If not, invoice discounting may be the right choice, so all your current data collection techniques will not be disturbed.

4. What are your cash requirements? With either factoring or invoice discounting, you are paying for the immediate cash. Doing the collections yourself at a normal rate would return you more actual cash. But invoice discounting returns you more cash than does factoring. This is, obviously, because the finance company takes on more responsibility and more duties with factoring than with invoice discounting.

5. How large a portfolio of unsecured receivables does your company hold? How diverse is it? Are there any single customers who hold more than 20% of the total receivables balance? Generally, companies using invoice discounting tend to be larger and have a more diverse portfolio. This could be why they chose invoice discounting, however, rather than a characteristic. They already have the collections efforts and data collections methods in place and the cost and difficulty involved in changing them might be prohibitive for a factoring arrangement. Diversity in the portfolio is something finance companies look for under both arrangements.

Making an honest assessment based on these factors will allow you to make the right choice for your company. You’ll soon be on the way to a healthy cash flow, no matter which you choose.

Michael Russell Your Independent guide to Factoring

Article Source: http://EzineArticles.com/?expert=Michael_Russell

How Do You Factor Your Accounts Receivable?

So what exactly is accounts receivable factoring? Well very simply it is the process of obtaining funds by selling your company's accounts receivable. To go into a little more detail a company takes the outstanding invoices it is owed and sells them to a third party company called a factor. By doing this the company selling the invoices receives an up front payment on the invoices instead of waiting thirty or more days to be paid. When the invoice does come due the payment is sent to the factor instead of your company. Sounds great right? Well it's not all roses. If you're considering going this route you'll need to do your homework. If you don't you might pay a pretty hefty price.

Now depending on who you talk to accounts receivable factoring can be a great thing or it can feel like you are borrowing money from a loan shark. Each experience is different and some companies are on the up and up while others you won't want to touch with a ten foot pole.

So you can better understand the experience we'll walk you through what happens. Now assuming you've got a factor you're intending to work with we'll start from the point of the sale. You've just finished a large project for a customer. You issue your bill to them. The first thing the factor is going to want to see is someone's signature that shows they were satisfied with the work. But let's say you sold them a product that was delivered at the dock. A receiving clerk's signature is not going to cut it. You are going to need to get the signature of the person that authorized the purchase to begin with. They are going to need to sign the invoice and probably another document that verifies the purchase was legitimate and they plan to pay for it.

Next you are going to need to fax those documents to the factoring company. But you can't do this from your office because you might have forged those signatures. No they need to be faxed from the customer's office. And once the factoring company does receive the documents they may still want to call and verify the purchase. Now if the purchase was for a significant amount of money all this hassle may be worth the trouble but what if the purchase was for a few hundred bucks. Not worth the trouble you say? Well we have a problem with that too.

You see when you first sign up with a factoring company they want to know what companies you do business with. And which of those you want to have the invoices factored. This is because those companies that you decide are worth factoring have to be notified that this is going to be the case. And the factor will want to run a credit check on the company. Your customers will also be notified that they must now send their payments to the factoring company instead of you. This task also will be left up to you. The problem is that if you do not factor an invoice the company you are billing must still send its payment to the factoring company and not to you. This will actually cause that particular payment to take longer than necessary to reach you because it will go to the factor first and they have to release it to you.

Once your invoice has been submitted to the factor from your customer's location you need to check and make sure it was actually received and there are no problems with it. After the factor receives the invoice it should only take about twenty-four hours to be approved. Most factors have a cut off time each day to receive an invoice if you want to receive your money the next day.

After the factoring company has approved the invoice you will receive a wire transfer to your bank. From there the money is yours to do as you will. Many factoring companies want you to believe that using accounts receivable factoring is the perfect way to get the money you need to grow your business. The truth is that it is not suitable for many types of businesses. Your billing methods need to be very straight forward to help make factoring work. And it helps if you issue fewer invoices but for large amounts of money. Otherwise having to do all the leg work can take you away from what really matters. And that is focusing on your business.

Cash Miller is an experienced entrepreneur and speaker who has spent over a decade as a small business owner. His years in small business have provided experience in a variety of topics. If you are looking for more small business information you can go to http://www.smallbusinessdelivered.com

Article Source: http://EzineArticles.com/?expert=Cash_Miller

Purchase Order Factoring - Short-Term Solution to Finance Large Purchase

The first aspect to acknowledge when seeking purchase order financing is that most factoring companies are very choosy when dealing with this type of financing. There is not a firm set of regulations to follow concerning invoice financing because each situation is very unique and has to be assessed as such. It is typically very difficult to find purchase order financing however, there are factoring companies out there that are willing to take that type of risk.

Purchase order factoring provides existing businesses with a financial solution to continue operating. However, it should be mentioned that these companies typically will only finance those businesses with a proven track record in their said industry. Turning purchase orders around into account receivables is a business solution that will free up working capital and extend finances to the business in a timely manner.

Purchase order factoring should be considered a short-term solution to finance a large purchase or to manufacture specific goods that are already sold. For example, if a company manufactures iron staircases and a popular building company has given a invoice to order a set number of them, factoring can come in extremely handy. It is unlikely that the manufacturer of the staircases has an over abundance of operating capital to purchase materials and manpower for all of these staircases. Most often, banks won't touch this type of financing so the feasible and low cost solution is to seek out a reputable purchase order company that can advance cash on that invoice.

When purchase order financing companies assess a specific invoice financing request, there are several determining factors that have to be understood. If the company that has issued the purchase order is not credit worthy, it is likely that the invoice factoring company will not lend assistance. Purchase order financing is a very risky business due to the nature of the business. The company is lending money on the premise that the company that has issued the invoice will pay for the goods or services. It is easy to see that any purchase order company would have to be very stringent with their rules surrounding this area in order to be successful. These companies are sticking their necks out to supply a potential customer with the funds required to fulfill their end of a invoice agreement. It is completely understandable that they would be picky and selective in choosing this set of clients.

In order to be considered to qualify for purchase order financing the business seeking financial help must have been in business for no less than a year. The type of transaction that is being considered for invoice factoring must be prominent in the business history and have at least a $100,000 transaction minimum. There are several issues that will depend on the type of industry the business is in and the credit history of the business and the customer.

Troy Degarnham is the author and webmaster of http://www.accounts-receivable-financing.info an informative website about Invoice Factoring.

Extensive help and tips on factoring companies, assets, small business, purchase order factoring, non recourse and other factoring financial services.

Article Source: http://EzineArticles.com/?expert=Troy_Degarnham

Insights And Tips About Invoice Factoring

2008-08-23T12:59:00.002-05:00

Invoice Factoring is a financial transaction whereby a business sells its accounts receivables, also known as invoices, at a discount. Factoring differs from a bank loan in three major ways. First, the emphasis is on the value of the receivables, not the customer's credit worthiness. Second, factoring is not a loan, it is the purchase of an asset (the receivable). Third and finally, a bank loan typically involves two parties whereas factoring involves three. Companies which offer factoring services will provide you with a factoring quote as to what your accounts receivables are worth.

A company sells its invoices, even at a discount to their face value, when it calculates that it will be better off taking less of a profit than it would be by attempting to function as its customer's "bank." In other words, it figures that the return on the proceeds will exceed the income on the receivables.

The three parties directly involved are: the seller, debtor, and the factor. The seller is owed money the debtor. The seller then sells one or more of its invoices at a discount to the third party, the specialized financial organization, the factor, to obtain cash. The factor will give the seller a factoring quote as to what the receivable is worth. The debtor then directly pays the factor the full value of the invoice. Factors make funds available by focusing first on the credit worthiness of the debtor, the party who is obligated to pay the invoices for goods or services delivered by the seller.

In contrast, the emphasis in a bank lending relationship is on the creditworthiness of the small firm, not that of its customers. While bank lending offers funds to small companies at a lower cost than factoring, the terms and conditions under which the small firm must operate differ greatly. Bank relationships provide a more limited availability of funds and none of the bundle of services that factors offer.

From a cost and availability of funds perspective, Invoice Factoring creates wealth for some but not all growing small businesses. For these businesses, their choice is slowing their growth or the use of external funds beyond the banks. In choosing to use external funds beyond the banks the rapidly growing firm's choice is between seeking angel investors for equity or the lower cost of selling invoices to finance their growth. The latter is easier to access and can be obtained in a couple of weeks compared to the six months or more that securing funds from angel investment typically takes.

Invoice Factoring - Acquiring The Financing You Need To Run The Business

Looking for small business financing has always been a challenge for company owners. Even in good times, qualifying for the financing you need has been difficult. As a rule, most banks require that your company has a track record of success and they need a few years worth of financial history. Most importantly, institutions want to make sure you have collateral - things like equipment and real estate - to back your business loan. Because of this, many industries with no hard assets such as staffing and consulting have a hard time obtaining business loans.

There are others form of financing that can help business owners - at least in some specific situations. One form of financing that has been gaining traction in the past few years is invoice factoring. It can be an ideal solution for companies that are waiting 30 to 60 days to get their invoices paid, but need the money sooner.

For example, let's say that a construction company invoices $150,000 to a client that will be paid in forty-five days. In the meantime, the construction company needs to pay employee salaries every two weeks. If the company does not have enough funds to pay employees while waiting to get paid, then it have problems meeting payroll and a very real possibility of losing contracts and clients. In this case, a solution is to get an advance on the invoice by factoring with an invoice factoring firm.

In a invoice factoring transaction, the factoring company advances funds against an invoice. The advance is usually 70% to 90% of the invoices and varies by industry. The advance provides working capital that enables the owners to meet payroll and other business expenses. Once your client pays the invoice in full, you get the remaining funds, less the factoring fee. The fee varies based on a number of parameters but can range from 1.5% to 4.0% for an invoice payable in 30 days.

Qualifying for invoice or accounts receivable factoring is relatively easy, when compared to other business financing products. To qualify, the company must be in good standing, free of any liens and have a roster of good paying customers. Invoice factoring companies consider your invoices to be your biggest asset and are very happy to use those as collateral. That makes their services accessible to companies of all sizes, including start ups. More importantly, it provides funds to companies whose biggest assets are a good reputation and a list of solid clients.

What you Should Look For In A Invoice Factoring Company

Invoice factoring companies are companies that fully manage a business’s sales ledger, and ensure collection of all the debts due. Invoice factoring companies buy invoices or receivables from a business and advances 80 to 90 percent of the invoice amount. The remaining amount minus the charges will be paid when the customer clears the debt. The invoice factoring company takes the responsibility of informing the customer about the service. The seller receives the amount within 24 hours in most cases.

Invoice factoring companies are advantageous to businesses in that they provide the working capital needed when the clients fail to pay on time. They demand no collateral and are therefore hassle free.

Invoice factoring companies gain from the service charge and the interest charge for the cash advanced to the business. The service charge is usually a certain percentage of the sales factored and the service charge is calculated usually depending on the annual turnover of the company, the number of invoices and the number of customers. The interest charges are along the lines of normal secured bank overdraft rates. Some invoice factoring companies provide bad debt protection whereas some do not. While this is termed non-recourse factoring, recourse factoring is the policy when the bad debts remain with the business.

Invoice factoring companies are a large group, existing as units within many commercial banks, as sections of large financial institutions, as companies, and as services offered by individuals. When choosing a factoring company, extreme care is to be taken regarding its terms and conditions, reputation, service, bad debt protection, service and interest charges. It is also best to verify whether the company chosen provides Internet access to one’s account so that the sales ledger and customer details can be constantly monitored. It is also crucial to ensure that they promote a good customer relationship.

Structured Settlement - Definitions, Do's and Don'ts

2008-08-04T09:09:00.002-05:00

Structured Settlements

What is a Structured Settlement? A Structured Settlement is a Settlement in which you receive "Structured" payments on a regular basis. In other words, it is a payment plan, in which, instead of getting a large lump sum, you receive smaller payments in increments. These increments go on weekly, monthly or yearly cycles. These settlements are often known as a win-win situation because the payer needs to come up with a lot less money up-front and the payee has a steady stream of income coming in at all times. This process can also be described as Annuity.

When are structured settlements used? Structured Settlements are often, but not limited to, these common situations:

1. Lottery Winnings - Often times, in the Lottery, you can opt to receive numerous smaller payments in exchange for a single larger payment. 2. Malpractice Cases - In situations where a family member is lost or left crippled due to medical malpractice, the party may be entitled to a structured settlement over the span of the victim's life or as a grievance payment. These payments don't fix things, however, they are meant to make living a little bit easier for the victims and families. 3. Insurance Cases - In many insurance cases, this form of settlement is used. This is because it is easier to make smaller payments over a longer period of time as well as the damage left behind may be better dealt with over time.

Understanding these concepts are important in the process of properly handling your income. It is important also to understand how money works over periods of time. Over long periods of time the value of the dollar is likely to decrease. This means if one was to receive, for example, $1000 a month for 20 years, that $1000 dollars could only be worth $500 at the end of the term. This is one reason some people decide to sell their structured settlement for a large lump sum.

One people decide to sell their structured settlement there are numerous reasons behind it. The first reason may be that, due to their immediate needs, they need a larger amount of money right away. A good example of this would be when buying a new car or home. Another reason people decide to sell is because they would like to invest it into something that gains equity over time and actually grows in value rather than decreases. Some people want to fight the cost of inflation and take the monthly payments and re-invest. This is the wiser choice of the two most of the time.

When selling your structured settlement or selling Annuity, it is almost always advised that you do your homework first. Don't sell to the highest bidder right off the bat. Before hand you should read up on what your options are. Seek the help of a broker, a financial advisor and a legal professional first. By doing this, you can protect yourself from scam artist to defend yourself from transactions lacking in integrity. It is always smarter to take the safest route possible. Selling Annuity can be dangerous so it is always wise to make slow and steady steps.

Strategies for Handling a Structured Settlement Cash Award

Many consider research to be dull and often boring. But some people love doing it. And few in this rare group are also skilled writers who present their results in an engaging and entertaining manner. Like the author of this article on structured settlement cash award.

Read it, and you'll see how nicely fact and skillful writing are woven into a nice little article that is instructive and useful.

A structured settlement involves cash payments on a regular schedule from one party to another as a result of a legal judgment or binding arbitration (or even a simple agreement between the two parties to avoid a legal confrontation). For many recipients, the lure of a big lump sum of structured settlement cash in their hands right away is overwhelming.

Enter structured settlement cash companies. They offer to buy structured settlements in return for one big payout to the recipient of the settlement. They make their money, of course, by offering only a percentage of the total settlement amount in return for giving the recipient a bundle of cash at one time. This happens all the time, although some critics believe it is borderline illegal, or at the very least distasteful.

If you're in this situation and you decide to pursue a lump sum alternative, do your homework! Investigate the structured settlement cash company's history thoroughly. Check with the Better Business Bureau, search the Internet, and by all means, hire a competent attorney. There are some tricky legal issues at play in these cases, and you don't want to have problems later on with the law or the structured settlement cash broker with whom you've made these arrangements.

It's smart to take some time after you learn that you'll be getting structured settlement cash to get over the emotional high and return to more rational thinking. There is much to recommend keeping the structured settlement as is - that is, taking regular payments over time instead of selling the settlement for fast cash. One advantage is the tax shelter an annuity provides. You can set it up, with the help of a skilled attorney, so that it provides you with payments that are tax-free.

Now, pay attention closely. What you're about to read will help you save hours of frustrating, wasted hunting, and let you hone in on some of the best material on this subject of structured settlement cash award!

However, often there are high fees associated with the management of an annuity. While the fees seldom come close to equalling the tax advantages, some people simply prefer a large lump sum in hand. Reasons include wanting to make a big purchase they've been putting off, such as a new home, or to pay down delinquent taxes or medical bills.

If you choose to sell your structured settlement cash award for a lump sum payout, it's vitally important to hire a lawyer. Don't let the $ signs in your eyes overrule the reasoning part of your brain. Slick companies have been known to settle with some folks for as little as one-third of the total amount of the structured settlement cash award! Those companies rely on a significant number of people who jump before thinking it through. This is why an attorney is so crucial. He or she can help keep you in the right frame of mind.

Other reasons to enlist the aid of a trained structured cash settlement lawyer include dealing with certain legal restrictions, tax implications, and related obstacles. It varies from state to state, so be careful. Whatever you decide to do with your structured settlement cash, arming yourself with the correct information for your situation is the key.

Now that you've learned something about structured settlement cash award, maybe you want more information or need greater detail about certain specific issues. Please visit Structured Settlement Tips for more information.

Ideally, you will leave this article with an enriched perspective on the topic of structured settlement cash award. The facts and analysis presented here were written with a single goal: to help you the reader to learn more about this fascinating topic.

Ken Austin is the webmaster at Structured Settlement Tips and Structured Settlements and Annuities.

Article Source: http://EzineArticles.com/?expert=Ken_Austin

Tips for Selling Structured Settlements

2008-08-04T09:02:00.001-05:00

Consumers choose to sell their legal settlements (also referred to as structured settlements) for many reasons. While many sell their payments to help with college tuition, debt reduction, medical expenses or mortgage payments, most people sell their settlement to gain financial flexibility when personal or financial needs change. "The long payout periods of most structured settlements - typically up to 30 years - work well for many holders, but not all," said Andrew Torre, Chief Compliance Manager for J.G. Wentworth. "Many people find that they need access to their money now to pay for legitimate needs."

However, consumers often are unaware of their options when selling their structured settlements. What price is too low? Which company is reliable? Can I sell just part of my settlement? These are just some of the many questions that arise when considering selling your structured settlement. Torre recommends doing thorough research ahead of time. He offers these 5 tips to consider before selling a structured settlement:

1. Search for specialty finance companies that are able to purchase your structured settlement. Be sure to research their reputation and testimonials - what clients (past and current) say is invaluable.

2. Torre recommends not accepting the first offer to purchase your policy. Why? Browse multiple companies to make sure you're getting the most value for your settlement.

3. Evaluate your current financial standings, and then decide whether you need to sell all or part of your structured settlement.

4. If you can't understand the legal jargon, consult an attorney. Make sure you understand the documents and any tax ramifications that occur with liquidating your structured settlement.

5. Evaluate your financial obligations that will accrue in the future. Re-consider whether selling all or part of your structured settlement will be beneficial for you. Also, consider how accessing your assets will affect your income.

Bonus: Additionally, before you sell your structured settlement, be sure that the company you've chosen addresses all legal ramifications, Torre adds. Prior to purchasing policies, J.G. Wentworth seeks approval from a judge who examines the appropriateness of the transaction, including state legislation.

About the Author
J.G. Wentworth is the nation's oldest, largest and most respected buyer of deferred payments for illiquid financial assets such as structured settlements, annuity payments and life insurance policies. For more information about J.G. Wentworth, visit www.jgwentworth.com.

Structured Settlements: Should You Sell?

2008-07-22T10:17:00.004-05:00

Should you sell your structured settlement? The answer to this questions is complicated at best because there are so many questions that must be answered before a decision can be made. There are various reasons people choose to sell their structured settlements, but do they always make the correct decision?

The decision to sell should not be made under pressure which often times is the case due to a unforeseen financial emergency or hardship. Making a choice under these circumstances many times leads to further financial problems later. A structured settlement is guaranteed for the life of the contract with payments coming in each month until the contract is fulfilled and is worth far more over the long term; selling early can in some cases cut the value of the settlement in half.

In fact, most of the time it is not a wise decision to sell a structured settlement unless there is no other choice such as emergency cases and even then other avenues should be exhausted before selling.

One valid reason to sell is for other investment purposes. People that have the experience and discipline to invest wisely are often candidates for selling a structured settlement. They realize that they may be able to receive a greater Return On Investment(ROI) by liquidating their settlement and placing the funds in other investment ventures as opposed to letting the money sit for years. However, it should be noted that there is substantial risk involved with any investment and caution should be exercised. A financial planner should be utilized in this case.

Whether you choose to sell your structured settlement or not is a decision only you can make. Expert advice from a financial planner or someone within the financial industry should be sought out before the final decision is made. It is far better to pay a one time consulting fee if services cannot be located for free, rather than living with regret over your decision to sell your structured settlement.

Cash Flow Notes | Factoring

2008-07-21T19:31:00.002-05:00

The cash flow notes business is as lucrative as it is wide. By wide mean there are various note instruments for investors to purchase and add to their portfolio and cash streams. One area that has not yet been discussed on this blog is factoring.

Cash is the go juice that makes businesses run! Without a steady cash flow stream, payroll would go unpaid, vendors would be pounding the door down trying to collect, utilities and leasing companies would be shutting off basic services and locking the doors...the business would no longer be a business if the flow of cash ceases. Fortunately, there are options available to business to keep the flow of cash maintained and flowing.

Loans are an option but loans require repayment but are a viable option. Many companies have a source of funding to improve cash flow without getting a loan. This is called factoring. Factoring allows you to sell your accounts receivable to a finance company that specializes in factoring.

Factoring allows a company to sell part or all of it's account receivables to the factoring company. In return the for the accounts receivable, the company receives lump sum cash which can be used to expand, buy new equipment, hire new employees for servicing new clients or projects....the list goes on.

Retail business are not usually prospects for factoring, however businesses that sell to other businesses are candidates for factoring since payments for their services often extend from 30 days and in some cases up to 120 days before receiving payment. For projects that required a large outlay of cash for completion, 90 to 129 days is a long time to wait for payment and this is where factoring is a viable option for business to business companies.

Factoring companies will take over the accounts receivable after checking the credit worthiness of the customers and cut a check to the business. The business is now free to grow, expand or meet payroll, whatever the need may be now that cash flow has been restored.

Factoring is just another part of the lucrative cash flow and cash flow notes business.

Anatomy Of Cash Flow Notes

2008-07-20T20:06:00.003-05:00

As you may already know there are many different types of cash flow notes with the most common being real estate and mortgage notes, business notes, invoice factoring, accounts receivable, structured settlements etc.... The list includes more than sixty various types of notes that can be bought and sold. To recap, cash flow notes are legal and binding contracts between two or more entities. These entities could be financial institution an individual or a corporation. All of which have one common characteristic; one side pays the other a installment payment over a set period of time until the balance of the note is paid.

With real estate notes, the note itself is attached to the mortgage with the real property itself acting as collateral should the borrower default on the payments or loan. With many other types of notes, property can be used to secure the note such as boats, mobile homes, buildings land and airplanes.

Cash flow notes are also available in the business sector with the assets of the business acting as collateral. These notes include factoring and purchase order funding with factoring be the most common of business notes. Selling accounts receivables to a financial institution or investor with the Factor purchasing up to eighty percent of the notes receivable in return the business receives a loan form the funding source.

In this type of transaction, the business receives a loan for whatever the percentage is that is agreed upon between the business and the funding source. The finding source gives the business a loan and collects a transaction fee with the accounts receivable acting as collateral for the loan. Once the business receives the money owed from their clients, the business pays the funding source back. The business received the loan to use as cash flow to run the day to day operations or for other varying reasons which could include expansion of the business or even to meet payroll in lean times.

Purchase order funding is the opposite of Factoring but similar in that a business uses outstanding purchase orders as collateral to receive funding or a loan from a funding source. However these transactions are dependant on the credit worthiness of the customers of the business.

As you can see there are many different forms of notes that can be utilized for attaining cash in a lump sum depending on a varying reasons. We will learn more about this in further post here at Cash Flow Notes.

Establishing Yourself In The Cash Flow Notes Business

2008-06-03T22:01:00.006-05:00

Late night television is the realm of the infomercial and no doubt most everyone has seen the infomercials touting the big money that can be made in the discount cash flow note business. It is possible to make big money in the cash flow notes business, however it does take time and effort while acquiring the skill to become successful. As in any business, perseverance, discipline and dedication to a well thought out business plan is the key to success in the discount cash flow notes business.

By far the largest obstacle to being successful in the discount note business is locating people willing to sell their notes at a discount since they probably are only holding the note in the first place to get terms within limits that were acceptable to them. Usually in these cases, they preferred to hold the note themselves, agreeing to accept payments over time rather than take a discount on the property.

Only when they reach a point that they need the cash for various reasons do they consider selling the note at a discount. This is where it is very important to make these people aware of the service you provide, especially when they reach a point where they are considering selling the note for a discount. Marketing to a select group of note holders rather than a a wide range is imperative in the discount notes business as this approach allows the note broker or note buyer to build credibility. Marketing to a select group allows the note buyer to build long term relationships based on experience and trust.

The discount note business is highly competitive and is not a get rich quick gimmick as portrayed on late night television. Hard work, building relationships around trust and experience are all attributes of the cash flow notes business lending itself to success for people with drive and focus and a willingness to go the extra mile to provide a trustworthy brand name.

Structured Settlements And How They Work

2008-05-27T10:02:00.004-05:00

Structured settlements are a financial arrangement oftentimes used when an individual is awarded a large sum of money. This might stem from monetary awards used to compensate a person who has been seriously injured or from lottery jackpot winnings. Structured settlements are oftentimes used in cases involving automobile or workplace injuries, medical malpractice and injuries sustained due to the negligence of another.

There are several types of structured settlements with each being designed to suit the individual's financial needs. Typically, they are offered when damages exceed $10,000. In the case of a minor child, damages must exceed $5,000. Annuity payments are paid to the recipient (Annuitant) over a specific period of time.

Depending on the circumstances and amount of monetary award, Annuitant's might receive payments over the course of 10 to 20 years or for their entire lifetime. Much depends on the type and duration of medical care required, as well as living expenses.

Structured settlements are also arranged to compensate individual's who win jackpot lotteries. For instance, if someone wins $5 million, they can elect to take a lump sum payment or receive the money over a period of years. By accepting a lump sum payment, they will receive a lesser amount than if they elect to accept a structured settlement.

Similar to Certificate of Deposits (CDs) sold by banks, structured settlements are backed by an annuity held by a life insurance company. Annuities are invested to expand the Annuitant's financial portfolio. When annuity payments are paid as a result of injury or negligence, they are tax free. When they are paid for lottery winnings, they might be subject to taxation of both state and federal levels. Additionally, investment proceeds are subject to both state and federal taxes.

When structured settlements are paid for a specific period of time, they are referred to as "Designated Period" or "Period Certain Annuities." The Annuitant receives a set amount of money at a specific time for a certain number of years. Should the Annuitant die before the structured settlement is paid in full, the balance will be paid to a designated beneficiary.

In cases where annuity payments are paid for life, they are referred to as Life Annuity structured settlements. It's important to note that "life" may actually refer to a certain number of years based on the Annuitant's life expectancy. Also known as "Period Certain", this type of structured settlement allows the Annuitant to name a beneficiary. If the recipient dies prior to the number of designated years, the beneficiary will receive the remaining payments.

Lump Sum structured settlements provide a lump sum payment at a future date. This type of arrangement is well-suited for minor children, as it can provide for future educational expenses. Two types of lump sum are available -- "Lump Sum" and "Life Contingent Lump Sum." The first allows transfer of the annuity to a designated beneficiary, while the second does not.

Life Annuities structured settlements pay monthly annuities for life. There are two types of life annuities -- "Life Only" and "Joint Survivor." The first offers no provision for assigning a beneficiary, while the second will pay the beneficiary for the remainder of their life.
Last, but least, is Temporary Life Annuity structured settlement which pays regular payments for a specific number of years. There is no beneficiary provision and the annuity ends when the recipient dies.

Simon Volkov is a private Note Investor who specializes in structured settlements and helps individuals who need to liquidate their assets. Learn more about buying and selling annuity payments at http://www.simonvolkov.com/forms/structured-settlements.html.

Immediate Cash With Real Estate Notes

2008-05-27T09:52:00.003-05:00

Untold numbers of Americans are, in effect, acting as private bankers and lenders. They may have sold homes and provided the buyers with financing, in essence holding mortgages just as a commercial lender would. Instead of paying their mortgages to a bank, the homeowners pay their mortgages to the people from whom they bought their homes. Often, however, these individual private lenders find that their circumstances change, and that they need immediate cash for their real estate notes. Perhaps other joint ventures have gone poorly and they are facing bankruptcy, or maybe they want to make a large purchase and need liquidation options to improve their cash flows.

When this is the case, these private lenders often turn to professionals who act as brokers, finding investors who want to buy discounted notes and trust deeds. Although the investors pay less than face value for the real estate notes, the holders of the notes gain the advantage of being able to liquidate the paper asset and get immediate cash.

Real estate notes aren't the only type of notes that investors buy. They also buy mobile home paper - a promise to the seller that the new mobile home owner will send a monthly payment. Further, investors are interested in virtually any kind of promissory notes, which are basically any kind of IOUs. A note is simply a written promise to pay, along with the length of time the borrower has to pay the note, the interest rate of the note, and the amount of the note.

The broker will act as a go-between for the people who hold annuities, business notes, real estate notes, and other forms of promissory notes and a group of investors who are eager to buy those notes. Ideally, the broker provides premium support for people who need cash for their notes by personally connecting them to the cash sources they need to get the most cash quickly.

Many people who hold notes are relieved to receive cash for them, rather than having to wait for monthly payments year after year. After selling their notes, holders can buy their dream home, consolidate their debts, go on an exotic vacation, purchase a new car, or simply rest easier knowing that they have a cushion of cash should they fall on hard times.

Real estate notes are just the tip of the iceberg when it comes to selling notes for cash. It pays - literally - to explore your options if you have one or more promissory notes in your possession. The paper you hold could, indeed, be cash in the bank.

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Visit this FinancingInvesting Website and Majon's FinancingInvesting directory.

Selling Real Estate Notes

2008-04-18T12:29:00.005-05:00

Real estate notes are probably the most common in the cash flow note business, or probably the most discussed for both business and conversational purposes. Almost everyone that has purchased a house understands the concept of a mortgage and what their responsibilities are for paying the "house note". On the other hand, someone that is holding a note as a private individual may not be aware that it is possible to sell this note to someone else for a lump sum of cash.

Many individuals, when selling property, decide that they can act as the bank or traditional lending institution and provide the financing for the buyer. In doing so the owner acts as the note holder and the buyer pays the owner/note holder in monthly installments until the entire amount is paid off or in this case, sells the real estate note to a private investor or company. Many individuals have income streams set up through these type of notes, collecting a month income from each one. However, circumstances may sometimes require that the note holder sell the note and receive a lump sum of cash for a myriad of reasons including financial upheaval to acquiring cash to expand their cash flow note business.

Selling real estate notes is not difficult but does require research and due diligence. There are perhaps thousands of note brokers and note buyers within the United States that specialize in buying cash flow notes. Just as you would do your research before engaging the services of a real estate agent, insurance agent or financial planner, researching a note broker or buyer is just as important. Asking the note buyer for proof of qualification is recommended along with a transaction history. A reputable note buyer should have no problem providing information the information you require and providing the comfort you desire when selling real estate notes.

Most importantly, all records and language of the transaction should be in writing. If you, as the real estate note seller, do not understand some of the language ask questions. Attain full knowledge of the transaction before agreeing and signing off on your real estate note. As humans, we sometimes have a internal radar that alerts us when a situation may not be in our best interest. More times than not, these internal warnings are correct and should be heeded. If for any reason you are not comfortable with the transaction, express you misgivings to the note broker and call an end to the session until you have time to research your misgivings about the transaction.

Remember, you are selling your real estate note for a reason. Acquiring the best possible price for you note is paramount to both your portfolio and piece of mind. Research is the best possible way to finding the best deal and attaining the cash you desire. Selling real estate notes is not difficult, bit does require some effort on the part of the seller.

What Are Cash Flow Notes?

2008-04-17T22:33:00.003-05:00

Cash flow notes come in many forms and formats but all have one unique characteristic and principle. All notes are a promise to pay. Almost everyone has entered into an agreement to purchase something and pay for it over a set period of time. For example, when someone buys a new car, they will give the seller a down payment and sign a contract(this is a note) to pay for the car in monthly installments at an agreed upon interest rate. Once the buyer has met his obligation of paying for the car over the life of the note, the car is now the property of the buyer.

This example can be applied to anything from furniture to multi-million dollar real estate transactions. Whenever a contract is signed to pay for something over a set period of time, this process creates cash flow notes. These transaction are not always between a buyer and a commercial entity such as a bank or lending institution. Often these transactions take place between a buyer and private individuals, whereas these private individuals act in the same capacity as a bank or lender.

Real estate transactions are probably the most common form of cash flow notes between a buyer and a private individual. Many individuals may own homes they have placed on the market and provide the financing for a buyer rather than a commercial lender. In this case, the buyer would pay the monthly note to the original owner of the house. Once the contract or note is agreed upon by both the buyer and seller, the seller has now created a cash flow stream that pays him every month for the life of the note, or until the mortgage is paid in full.

Real estate is just one example of cash flow streams that can be generated to create a monthly income for private individuals and investors. In following post, we will discuss other contracts and transactions that are also cash flow notes and income streams.

The Cash Flow Note Blog Privacy Policy

2008-02-09T21:28:00.003-06:00

This website/blog uses third-party advertising companies to serve ads when visiting this site. These third parties may collect and use information (but not your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to
you. If you would like more information about this practice and to know your choices about not having this information used by these companies, you can visit Google's Advertising and Privacy page.

If you wish to opt out of Advertising companies tracking and tailoring advertisements to your surfing patterns you may do so at Network Advertising Initiative.

Google uses the Doubleclick DART cookie to serve ads across it's Adsense network and you can get further information regarding the DART cookie at Doubleclick as well as opt out options at Google's Advertising and Privacy center.

Privacy

I respect your privacy and I am committed to safeguarding your privacy while online at this site cash-flow-note.blogspot.com The following discloses how I gather and disseminate information for this Blog.

RSS Feeds and Email Updates

If a user wishes to subscribe to my RSS Feeds or Email Updates (powered by Feedburner), I ask for contact information such as name and email address. Users may opt-out of these communications at any time. Your personal information will never be sold or given to a third party. (You will never be spammed by me - ever)

Log Files and Stats

Like most blogging platforms I use log files, in this case Statcounter. This stores information such as internet protocol (IP) addresses, browser type, internet service provider (ISP), referring, exit and visited pages, platform used, date/time stamp, track user’s movement in the whole, and gather broad demographic information for
aggregate use. IP addresses etc. are not linked to personally identifiable information.

Cookies

A cookie is a piece of data stored on the user’s computer tied to information about the user. This blog doesn't use cookies. However, some of my business partners use cookies on this site (for example - advertisers). I can't access or control these cookies once the advertisers have set them.

Links

This Blog contains links to other sites. Please be aware that I am not responsible for the privacy practices of these other sites. I suggest my users to be aware of this when they leave this blog and to read the privacy statements of each and every site that collects personally identifiable information. This privacy statement applies solely to information collected by this Blog.

Advertisers

I use outside ad companies to display ads on this blog. These ads may contain cookies and are collected by the advertising companies and I do not have access to this information. I work with the following advertising

companies: Google Adsense and Clickbank. Please check the advertisers websites for respective privacy policies.

Contact Information

If you have any questions or concerns please contact Phil at prhten@gmail.com This privacy policy updated September 2011.