Cash Flow Notes For Sale - Are They a Safe Investment?

Cash flow notes for sale encompass a variety of opportunities for both buyers and sellers. Currently, more than 60 types of cash flow notes exist. The most common include real estate notes, land contracts, business notes, structured settlements, and seller carry back notes.

Cash flow notes used to document real estate transactions are secured by tangible property. Nearly any type of property can be used as collateral including single and multi-dwelling properties, pre-fabricated or mobile homes, and condominiums. Investing in real estate notes can be somewhat risky. Experts recommend consulting with a real estate attorney to ensure proper legal documents are executed. Considering today's recessed economy and housing crisis, careful consideration should be given when investing in real estate notes.

On the flip side, keep in mind that real estate has always rebounded from previous economic disturbances. Investors willing to wait it out could potentially yield a hefty return on their investment. Business notes are another popular choice amongst investors. The three primary cash flow notes in the business sector include Factoring, Purchase Order Funding and Seller Carry Back Financing. Each uses business assets as collateral for funding.

With Factoring, account receivables owed to the business are used to secure the note. Receivables are sold to a funding source, known as the 'Factor'. The Factor can be a private investor, group of investors, bank or other lending institution. Purchase order funding uses the same principals as Factoring. The only difference is upcoming purchase orders are used as collateral. Seller carry back financing is quickly moving to the forefront of cash flow notes for sale. Seller carry back can be used to fund real estate or business transactions. With the current credit crunch, more investors, business owners and property owners are turning to owner financing. Seller carry back goes by many names including "owner will carry" and "owner financing".

In essence the owner carries all or part of the financing to close the deal. Some owners finance 20-percent of the purchase price, while others will finance 100-percent of the deal. Seller carry back notes can be sold to investors. For instance, Sam Smith owns a business valued at $1 million. He sells the business to Joe Jones and carries back 50-percent of the note, or $500,000. Sam Smith can then sell the note to a private investor and assign payment rights over for the entire note, or part of it. Chances are Sam won't receive 100-percent of the note value. However, he will have access to a lump sum of cash instead of waiting years for repayment. Real estate investors might offer Sam $750,000 toward his $1 million cash flow note. The investors now carry the risk and must collect the payments. They also must wait for repayment of the note unless they sell it to another investor; which is unlikely. In the end, the investors will earn a profit of $250,000, plus any new property value.

Many investors appreciate the value of structured settlement cash flow notes. Structured settlements are used to compensate individuals who have been injured due to negligence, as well as lottery jackpot winners. Structured settlements are paid out through annuity payments backed by life insurance companies. Annuitants (individuals who receive payments) can sell all or part of their structured settlement to an investor. In order to sell annuity payments, Annuitants must receive authorization from the court.

A true need to sell the structured settlement must be proven to the judge. Structured settlements are generally arranged to provide individuals with consistent cash flow to pay for medical expenses and healthcare. Judges usually will not approve the sale of structured settlements if they feel it will cause financial harm to the Annuitant. Buying and selling cash flow notes can be beneficial for both parties. However, it is imperative to work with credible professionals and obtain proper legal documentation. Doing so will help to ensure profitable investment opportunities.

Simon Volkov is a professional Cash Flow Notes for Sale Investor who specializes in helping individuals liquidate their assets. Simon offers numerous investment opportunities via RSS feed and email subscription. His website provides resources and articles on today's cash flow notes and investing industry. Learn more about services offered by visiting http://www.SimonVolkov.com.

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Structured Settlement Company - Why Would May Need One?

A structured settlement company is a group whose main objective is to help people who are eligible for annuity or settlement payments. There are various kinds of structured settlements and the most common is those awarded to people who have been badly injured. Scores of structured settlement companies hire professionals who are adept in certain fields. Usually, their staff is composed of people who are knowledgeable in casualty claims, finance, medical malpractice, law, worker's compensation, and commercial liability. These specialists deal with both the claimants and defendants in order to discuss a payment scheme for the offended party. Rather than paying a full amount as payment, the structured settlements offer steady income over a certain period of time. The payouts can be monthly, quarterly, bi-annually or yearly.

When an individual is hurt while at work, or got involved in a vehicular accident, he or she might be eligible for a structured settlement. In general, a person must sustain losses of around $10,000 to be able to qualify for this kind of settlement. Moreover, if minor children is also involved in the case and incur a loss of at least $5000, then they may be eligible for a settlement too. When it comes to settling the amount owed, the structured settlement payouts is usually fixed and paid in a preset time period. Every settlement is different and can be agreed upon in whatever ways that will best match the needs of the claimant. The payments are financed by an annuity acquired from a life insurance company and not from the structured settlement company. Nonetheless, it's the duty of the defendant to buy the annuity.

A structured settlement company can definitely help the claimant in getting the money that he calls for, when he needs them. Often, a group of different professionals will get their heads together on the case to make sure that the claimant will be compensated well for both present and other expenses that are yet to come. In addition, the company will also handle the account files and make some investments for the client. Surely, working with a settlement company can guarantee that the claimant will get all the benefits due to him.

For more information on Structured Settlement Company and Structured Settlement Cash, visit GetStructuredSettlementCash.com.

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Getting Quick Cash for Your Structured Settlement

Just because you received a structured settlement for your lawsuit, it doesn't mean you have to wait for years to get the money. There are many settlement purchasing companies that will give you instant cash for your structured settlement. These companies can pay cash for the entire structured settlement or purchase your remaining periodic settlement payments. You can spend this lump-sum payment on anything-a house, college tuition, business investments or debts.

What Is a Structured Settlement?

A structured settlement, which typically results from a personal injury lawsuit, is an agreement where you consent to accept payments over time in exchange for the release of liability for your claim. A structured settlement can provide payments in almost any manner you choose. For example, the settlement may be paid in annual installments over a number of years or in periodic payouts every few years.

These payments are generally awarded through the purchase of one or more annuities from a life insurance company. Structured settlements can also be used with lottery winnings, contest prize money and other situations with substantial cash awards.

Structured Settlements Not Always the Best Fit

In theory, structured settlements are designed to provide long-term financial security to injury victims through tax-free payments. And for most people, the agreed-upon structured payment plan initially makes sense. However, a financial emergency, a business opportunity, an unforeseen medical expense, or a house purchase can put a strain on the injured party's finances.

And the structured nature of the settlement may become too restrictive to cover major financial purchases. Also, a structured settlement may not be the best option for investing. There are many other investment vehicles that can generate greater long-term return than the annuities used in structured settlements. Therefore, some people may be better off getting cash for their structured settlement and then building their own investment portfolio.

How Getting Cash for a Structured Settlement Works

If you receive an award from your injury case, an attorney or financial advisor will likely recommend setting up periodic installment payments instead of giving you a lump sum of cash up front for your structured settlement. Then, an independent third party will purchase an annuity that will provide you with tax-free periodic payments.

Companies that offer cash for structured settlements have a variety of programs that can allow you to access any portion of your annuity. For example, you may want to sell as little as four year's worth of payments or receive a lump-sum payment while still enjoying some portion of your monthly payment. Or you can sell your settlement for a large payment that is five or six years in the future. You can also customize an arrangement to get cash for a structured settlement based on your unique needs.

Here's an example of how obtaining cash for a structured settlement works: Let's say you were in an accident five years ago. The accident caused you to be hospitalized for several months and undergo nearly a year's worth of physical therapy. So you hired an attorney and sued the responsible individual-or, rather, the person's insurance company. Ultimately, your attorney advises you that you'll be awarded a substantial sum of money.

After several months or years of negotiation, you receive a sizable settlement. However, the cash you get upfront is only enough to cover the medical expenses. The rest of your compensation is scheduled to be paid out in regular installments through an annuity over the next 15 to 30 years. Rather than being restricted to monthly or annual payments, you contact a settlement purchaser to secure immediate cash for your structured settlement. You're then able to use the cash to enhance your current cash flow-rather than waiting on periodic future payments.

Legal Issues of Receiving Cash for a Structured Settlement

If you're contemplating getting cash for your structured settlement, it's important to contact a financial advisor. Most states have regulations that limit the sale of structured settlements, so you'll need court approval to receive cash for your structured settlement. Federal restrictions also may affect the sale of structured settlements to a third-party individual. And some insurance companies won't transfer annuities to third parties.

Also, before you attempt to obtain cash for a structured settlement, be sure to do your homework. Check out multiple companies to see which one can offer you the most cash for your structured settlement. You also want to examine their integrity, reputation and track record. This will help ensure you have the most positive experience obtaining cash for your structured settlement.

Receiving cash for a structured settlement is an ideal option if you need a lump sum of money to meet your immediate needs.

David Springer is a consultant for Sovereign Funding Group. Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing, including providing cash for your structured settlement.

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The Advantages and Disadvantages of Structured Settlements

A structured settlement is an arrangement where instead of a lump sum of cash being awarded to a claimant, a tax-free periodic payment is agreed. Structured settlements are often used in guardianship cases, workers compensation cases, wrongful death cases and severe injury cases. Research has indicated that the more severe the injury, the more likely it will be that a structured settlement will be used.

The first thing that you may be asking yourself is, what are the advantages of taking a structured settlement over a cash settlement? The first reason is that it offers long-term financial security and protection to the plaintiff. It has been estimated that 90% of all large cash awards are spent within 5 years due to poor financial management skills.

The main advantage of structured settlements is the tax-free status of the payments and capital growth. For an example, let us suppose that a claimant has been awarded a settlement and can either take a $1 million lump sum, or $2 million spread over their lifetime. If they opt for the $1 million, although the sum itself is tax-free, any interest earned on it will be liable to income tax. However, the $2 million paid over their lifetime will not be liable to income tax.

One of the disadvantages associated with structured settlements is the perceived inflexibility of its structure. It is not possible, for example, to add your spouse's name to the settlement agreement without the exception of a court order. If the claimant is risk averse, they may believe that they can create a higher yield by investing the money themselves. However, it can also be argued that the monthly payments of the settlement give the investor a great way to "dollar cost average" their investments.

If you are awarded a structured settlement, there are companies that give you the option to sell structured settlement payments for a lump sum cash fee. In this situation, you should always seek the advice of a trusted attorney. In recent years, this type of transaction has become increasingly popular and has resulted in more than 35 states and the federal government increasing consumer protection statutes and setting in place strict rules and regulations for these types of transactions.

Caroline Smith is a regular contributor to SettlementsCash.com - An online resource providing information on structured settlements including life settlements and cash for structured settlement payments.

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Disadvantages of Structured Settlements

Structured settlements are an agreement on settlement payments between a plaintiff (claimant) and a defendant where the plaintiff agrees to the dismissal of the case in exchange for a financial settlement to be paid by the defendant.

The defendant will direct a third party/assignee (usually an insurance company) to execute the annuities on its behalf and provides it with funds necessary to do so. The process of arriving at the amount of the settlement is through negotiations concerning the annuity value and payment schedule. The negotiation process will primarily be between the claimant and the life insurance company; if litigation is involved the defendant will also be present.

Disadvantages of Structured settlements:

1. Insufficient Cash: The periodic structured annuity payment made to the plaintiff may not be sufficient to cover medical emergencies or major life purchases such as a house, car, or business investment.
2. Slow and Lengthy Process: the process of closing the settlement case can be long typically ranging from 3-6 months and then an additional 1-2 months before you receive your first payment
3. Restrictive policies: it is very important that the defendant ensures that he fulfills all conditions of the annuity for the settlement duration. This is especially true when dealing with structured annuities with tax-free status.
4. Current Economy: It's no surprise that the current down trending economy and near collapse of major insurance giants like AIG is placing a lot of pressure on the structured settlement industry. Although, most insurance companies are supported by reinsurers. It pays to be extra careful in these times and really watch your investments closely.

Because of the aforementioned disadvantages of structured annuities, there are many plaintiffs who sell a portion or their entire annuity stream. With a reputable funding company, anyone may sell their structured settlement annuity for a lump sum cash payment today. For more information on how to sell structured settlement contact a professional advisor at Fairfield Funding today.

Fairfield Funding is a structured settlement company, engaged in purchasing structured settlement payments and lottery annuity payments. We provide lump sum cash for structured settlement and cash for lottery winnings.

Stefano Grossi
http://www.FairfieldFunding.com

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Is It Time To Sell Your Structured Settlement Payments?

Structured settlements are financial agreements allowing compensation to be paid through an annuity in regularly scheduled payments, for either a fixed period of time or for the life of the claimant. Since it is suitable for individual plaintiffs, the structured settlement may also include an up front payment to cover any contingency.

Structured settlement payments are normally funded by annuities. These annuities are established to protect recipients of legal awards, insurance settlements, and lottery winnings. A great percentage of structured settlements are prearranged to provide for long term care and living expenses of plaintiffs who have been injured and are unable to work.

Structured settlements have not always been accessible. The Periodic Payment Settlement Act of 1982 was enacted to make large awards more agreeable to all parties and protect claimants. It also affords the insurance company and the plaintiff certain tax advantages.

Some situations are well suited for a structured settlement. For example: Cases that involve catastrophic injuries Wrongful death lawsuits that include replacing the lost income of the deceased Disabilities, either permanent or those requiring extensive recovery time Workers Compensation cases Gambling and lottery winnings

Many people choose a structured settlement over a lump sum payment, and courts often award them in civil actions where there are long term living and health care expenses. The anticipated need of cash at some future date is taken into account when setting up a structured settlement agreement.

Structured settlements can be established in a number of ways, according to the needs of the damaged party. The most basic structured settlements provide regular periodic payments for the life of the agreement; for example, a fixed payment every month for 10 years. Structured settlements do not pay interest, so anticipated gains in the underlying annuity are factored into the amount of the periodic payments and are non-taxable.

Claimants choose structured settlement agreements over lump sum awards for a number of reasons. The idea of guaranteed regular payments offers a feeling of security for many people who have been injured and are unable to earn a steady income. Instead of having to worry about how to invest a large cash award, the details are handled by the attorneys and the insurance company.

An important benefit of a structured settlement agreement is that it is tax free. The tax consequences of receiving a lump sum of cash can be staggering, turning what seemed like a fortune into an amount that may not meet future living expenses. A structured settlement relieves the claimant of the responsibility of planning a tax shelter for their award.

Because of the many benefits structured settlements offer both plaintiffs and defendants, the case can often be settled out of court, saving both parties a great deal of expense. Since the agreement is beneficial to both parties, the process is usually completed quickly, and there is no time lost to a prolonged battle in court.

There are some cases for which structured settlements are not suitable. An award for a minor injury sustained in an accident would probably not warrant the use of a structured settlement. In situations where extended hospitalization or long term treatment is not necessary, a lump sum award may be sufficient to provide for the needs of the damaged party.

Once a structured settlement agreement is enacted, the terms are fixed, and there is no allowance made for unanticipated circumstances. This is one reason many people choose to sell their structured settlement payments. Life situations change, and people may decide to buy a different home, start a business, or return to school and train for a new career. A lump sum of cash offers greater flexibility and more control over the money than a structured settlement.

Perhaps the most persuasive argument for selling structured settlement payments is that over time, inflation can severely erode the value of the periodic payments. A dollar today is worth more than the same dollar in the future. A lump sum of cash properly invested today could surpass the future value of a structured settlement.

When selling your structured settlement payments, you can choose to cash in only a portion of your future payments. This option offers immediate cash, while preserving some of the long term security of a structured settlement. If you decide to cash in a structured settlement, sell only the portion of your future payments necessary to meet your financial need.

Finally, you should carefully choose a structured settlement buyer that has been in business for at least several years. Check out potential buyers with the Better Business Bureau, and do some research to determine if past customers have been pleased with the company's services. Doing the research now will insure that you get the most cash for your structured settlement.

Gregg Pennington writes articles on a number of topics including structured settlements and selling structured settlement payments. For more information and resources related to structured settlements visit http://www.onlinemoneysources.net/structured-settlements.html

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A Structured Settlement Annuity: Comparatively Speaking

In earlier articles, we've seen the benefits of structured settlement annuities over lump sum payments. For some, this protects them from the temptation of spending the bulk of their payment on unsound or unwise investments. Protection and incoming cash flow over the long haul are what structured settlement annuities provide. However, not every person faced with a lump sum payment necessarily will be tempted to spend the money rashly. Obviously, there are people who are savvy investors and think that given the opportunity with a lump sum payment over a structured settlement annuity, they will be able to make more money investing on their own.

With that in mind, let's take a look how a structured settlement annuity compares with one of the most popular investment vehicles, the equity income mutual fund.

First, let's look at who issues the annuity and the mutual fund.
A structured settlement annuity is issued by a life insurance company. An equity mutual fund is issued by and investment company that pools the assets of multiple investors in equity securities.

Next, let's look at the long term capabilities of each to provide a lifetime income.
An annuity payment plan is created up front and is a predictable and dependable source of income that can not be outlived. A mutual fund can be a high paying investment. However it can also be highly volatile and unpredictable based on market conditions and can actually lose money and stop your earnings if the fund performs poorly.

What about guaranteeing the payouts?

An annuity is guaranteed by the issuer of the annuity based on the terms of the structured settlement. A mutual fund is solely dependent on market activity and thus can not be guaranteed.

What about costs?

The annuity has no cost associated with it. A mutual fund can be subject to a number of fees, like a sales load, yearly management fee, and marketing expenses. Even the lowest cost index funds have some costs associated with them.

What about keeping up with inflation?

A structured settlement annuity can have a cost of living adjustment incorporated into the annuity at the time it is designed. An equity mutual fund can outperform inflation based on how the underlying securities perform. However it is difficult to predict what the return will be and remember "past performance is not and indicator of future results."

But what about the dreaded T-word....Taxes??

A structured settlement annuity is tax free as long as the money received is the result of personal physical injury or physical illness. As income is earned from an equity mutual fund taxes, capital gains, income etc, must be paid.

What about flexibility?

A structured settlement annuity payment amount and schedule may not be altered at any time. Conversely, money can be moved in and out of mutual funds. However, taxes, sales loads etc may be applicable with each transaction.

Michael DeGeorge has done extensive research on structured settlements and shares a wealth of information on his website http://structsettle.gitgoingnow.com. Download your free Structured Settlement Annuity information today from http://structsettle.gitgoingnow.com.

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