Cash Flow Notes for Sale
Cash flow notes for sale include real estate notes and land contracts, structured settlements, seller carry back financing, and business notes. Overall there are around 60 variations of cash flow notes. Today, we'll review the most common and provide a brief overview of how they work.
Realestate cash flow notes for sale are secured by real property. A variety of property can be used including single and multi-family dwellings, condominiums, and mobile or manufactured homes. The seller can sell all or a portion of the property to a private investor
Real estate cash flow notes are oftentimes sold when the homeowner requires a large sum of cash and does not want to obtain a loan through traditional lending sources. In the past, real estate notes were a relatively safe investment. With today's shaky housing market, careful consideration should be given before buying real estate notes.
Structured settlements are a type of cash flow note used to compensate people who received injuries caused by negligence of another. Structured settlements are secured by life insurance annuities. Once a settlement is reached a contract is executed outlining the payment schedule.
Structured settlements are also used to compensate lottery jackpot winners. Instead of receiving a lump sum cash payment, recipients receive annual payments instead. Considering the majority of lottery winners are broke within a year, annuity payments help winners better manage their winnings.
Structured settlement payments can last for several years or a lifetime. Some annuity plans continue paying the spouse of the recipient, upon the recipient's death.
Investing in annuity payments is usually a safe bet. Investors can purchase annuities in whole or part. For instance, a seller is entitled to structured settlement payments amounting to $100,000; payable annually at $10,000 for ten years.
He needs $50,000 for his daughter's college tuition. He can sell five years of annuity payments to an investor in exchange for a lump sum cash payment. The investor is guaranteed return on his investment and the seller obtains the cash he needs. Win-win!
Many types of business notes are available including Factoring, Purchase Order Funding and Seller Carry Financing. These types of cash flow notes for sale are backed by business assets.
Factoring is the act of selling account receivables to a funding source referred to as the 'Factor'. The 'Factor' can be a bank, private investor, investment group or lender. Funds are provided using receivables owed to the business.
Purchase order funding uses upcoming purchase orders as collateral. This type of cash flow note for sale is generally reserved for businesses with creditworthy clients. This is particularly true in today's recessed economy. Few investors are purchasing purchase order cash flow notes today.
Seller carry back financing is used in both real estate and business transactions. Also known as owner will carry and owner financing, this type of cash flow note is beneficial for people unable to obtain loans through traditional lenders.
People who own real estate or a business can provide seller carry back financing to anyone they choose. These cash flow notes can then be sold to investors in whole or part.
Buying and selling cash flow notes can provide benefits to both parties. If you own cash flow notes and are in need of cash, contact Simon Volkov today to see what options are available. Simon specializes in helping individuals liquidate assets and provides numerous investment opportunities to private investors who want to expand their financial portfolios.
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