Overview Of Three Common Cash Flow Notes

Cash Flow Notes-Hidden Source Of Cash

Are you receiving contractually obligated payments from someone or a legal entity? In other words do you have a debtor creditor relationship with anyone?  You can sell those cash flow notes or paper for a lump sum of cash up front.  In other words stop receiving smaller payments amortized over a long period of time and receive a large amount upfront.  There are many reason why people choose to walk away from cash flow notes, they may need the money for to buy another home or business, they may have increased expenses like children going to college or perhaps a business or investment opportunity.  It does not matter why you want to sell only that there is a market for just about any type of cash flow note.

What Are The Most Common Types of Cash Flow Notes

Real Estate Cash Flow Notes are extremely prevalent there are millions of homeowners and millions of transactions each month.  Many homes or other types of real estate are sold with the seller financing all or a portion of the sale.    These are secured cash flow notes, in other words if the debtor defaults the creditor can foreclose, this adds extra security and hence higher value to investors.  If you own this type of paper you can sell this cash flow note on the secondary market to investors for a lump sum of cash.

Structured Settlements like annuities, lottery winnings and payouts from lawsuits are also cash flow notes, there is a contract for a payout over time for a specific amount of money, this can be assigned to another investor and sold for upfront monies as well.

Seller Carry Back Notes are also popular cash flow notes.  Small businesses are often sold with creative terms where the seller receives a certain amount up front and then an income over time.  These carry back notes are cash flow notes and as such can be sold to investors as well.