How to Win Big With Cash Flow Notes
You can win big and make a lot of money with cash flow notes. It is relatively easy to sell them; though, it is harder to locate note holders who are willing to sell their notes at a discount. Cash flow notes are notes that are privately held and represent a loan between private parties, usually for real estate. Commercial institutions such as banks and credit unions are not involved. Oftentimes, the person giving the loan needs to or wants to sell their note before it is paid off in order to get cash now. You can make a lot of money in commissions as a broker if you are successful in locating note holders who want to sell their notes right away.
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Instructions
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Find note holders. Ask all the people you know and ask them to ask their friends and families if they know anyone who has a note they may wish to sell. You also can find sellers by placing ads in newspapers or searching the Internet on free classified ad websites or on note selling websites, such as nbdc.net and topix.com.
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Ask the note holder how much the note is worth and if the payments are current. Tell the note holder that in order to get cash now, they have to sell their note at a discount. A discount is negotiable but it can range anywhere from 10 to 60 percent of the value of the note.
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Find a private investor to buy the note. Tell the investor about the note you have found and, if he is interested, ask him to make an offer. A good place to look for a private investor is to look on-line for hard money lenders.
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Take the offer back to the note holder. If the note holder accepts it, make both parties sign a non-circumvent agreement, before you introduce the note holder to the private investor, to ensure that you will receive your commission.
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Introduce the buyer and seller, take your commission and let the parties close the deal.
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- Photo Credit rising dollar bills image by Brent Walker from Fotolia.com
