The Cash Flow Clarion

When most people consider selling a note, they generally think about selling the entire note. And, in some cases, that may be the best solution to a cash flow problem. One of the advantages of selling the entire note is that once you've sold the note, you no longer have to worry about collecting the payments. You have your money and collecting on the note is now someone else's problem. If the note defaults, you aren't affected by the default.

But what about the situations where you may need a smaller amount of money immediately and enjoy having the monthly payments as extra spending money. Did you know that you have the option of selling only part of your cash flow and continuing to collect the monthly payments on the portion you do not sell?

Partial purchases can be structured in many ways. You can sell the next 12 payments and have the note return to you when those 12 payments have been paid. Or you can sell 24 payments, or 36...you get the picture.

Another option is selling a portion of each payment and continuing to collect the unsold portion. For instance, you could sell 1/2 of each payment and still collect 1/2 of each payment. In this way, you get a lump sum of money and still continue to collect a monthly payment as well.

On the down side, partial purchases mean you are still involved with the note and if it defaults, you are likely to be affected by the default. Make sure what happens in the event of a late payment or default is clearly spelled out in your agreement with the investor before you finalize the sale of the note.

That being said, many times a partial purchase will actually allow you to collect a much larger total sum of money for the note than a full purchase will allow. You may actually end up collecting more than the face value of the note in some instances.

If you are considering selling a cash flow note, or have questions about the best purchase option for you, please call us at (401)-258-7158 or contact us. We will consult with you about your individual cash flow needs and make sure that we come up with the option that best suits your situation.

Structured Settlements

What is a structured settlement? A structured settlement is usually an insurance settlement and most often the result of a court judgment or out of court settlement. It may be the result of an accident, illness, or some other type of cause. Most often, the settlement and the resulting periodic payments seem like a windfall at first and help ease the financial burden many people collecting a settlement experience. However, as time passes, you may find that your monthly payment is no longer adequate to cover your financial obligations. You may find that you have an unexpected need for cash for medical treatments or other needs that were not anticipated at the time your case was settled. Selling all or part of your structured settlement may be the solution to your cash flow problems.

Most structured settlements can be sold for cash. Unfortunately, work related claims are the exception and generally cannot be sold.

In reality, when you sell a structured settlement, you are not selling the settlement itself. You are actually selling the right to receive the payments on the settlement. In practicality, you are exchanging your monthly payments for a lump sum of cash paid immediately, with the note buyer purchasing the right to receive the future payments. If your settlement is paid in quarterly or yearly payments, you can still sell that note for cash.

First Class Cash Flow Handlers will be happy to consult with you about your structured settlement and your individual cash flow needs. We will find a solution for you that will help you meet your financial responsibilities. If you have cash flow needs that you didn't realize you would encounter when you accepted the settlement, there is no reason you should not be able to use your settlement to meet those needs. After all, the money is supposed to belong to you, not to the insurance company who is holding your funds.


The Cash Flow Clarion
February 19, 2006
Full Purchase Vs Partial Purchase When most people consider selling a note, they generally think about selling the entire note. And, in some cases, that may be the best solution to a cash flow problem. One of the advantages of selling the entire note is that once you've sold the note, you no longer have to worry about collecting the payments. You have your money and collecting on the note is now someone else's problem. If the note defaults, you aren't affected by the default. But what about the situations where you may need a smaller amount of money immediately and enjoy having the monthly payments as extra spending money. Did you know that you have the option of selling only part of your cash flow and continuing to collect the monthly payments on the portion you do not sell? Partial purchases can be structured in many ways. You can sell the next 12 payments and have the note return to you when those 12 payments have been paid. Or you can sell 24 payments, or 36...you get the picture. Another option is selling a portion of each payment and continuing to collect the unsold portion. For instance, you could sell 1/2 of each payment and still collect 1/2 of each payment. In this way, you get a lump sum of money and still continue to collect a monthly payment as well. On the down side, partial purchases mean you are still involved with the note and if it defaults, you are likely to be affected by the default. Make sure what happens in the event of a late payment or default is clearly spelled out in your agreement with the investor before you finalize the sale of the note. That being said, many times a partial purchase will actually allow you to collect a much larger total sum of money for the note than a full purchase will allow. You may actually end up collecting more than the face value of the note in some instances. If you are considering selling a cash flow note, or have questions about the best purchase option for you, please call us at (401)-258-7158 or contact us. We will consult with you about your individual cash flow needs and make sure that we come up with the option that best suits your situation. Structured Settlements What is a structured settlement? A structured settlement is usually an insurance settlement and most often the result of a court judgment or out of court settlement. It may be the result of an accident, illness, or some other type of cause. Most often, the settlement and the resulting periodic payments seem like a windfall at first and help ease the financial burden many people collecting a settlement experience. However, as time passes, you may find that your monthly payment is no longer adequate to cover your financial obligations. You may find that you have an unexpected need for cash for medical treatments or other needs that were not anticipated at the time your case was settled. Selling all or part of your structured settlement may be the solution to your cash flow problems. Most structured settlements can be sold for cash. Unfortunately, work related claims are the exception and generally cannot be sold. In reality, when you sell a structured settlement, you are not selling the settlement itself. You are actually selling the right to receive the payments on the settlement. In practicality, you are exchanging your monthly payments for a lump sum of cash paid immediately, with the note buyer purchasing the right to receive the future payments. If your settlement is paid in quarterly or yearly payments, you can still sell that note for cash. First Class Cash Flow Handlers will be happy to consult with you about your structured settlement and your individual cash flow needs. We will find a solution for you that will help you meet your financial responsibilities. If you have cash flow needs that you didn't realize you would encounter when you accepted the settlement, there is no reason you should not be able to use your settlement to meet those needs. After all, the money is supposed to belong to you, not to the insurance company who is holding your funds.	In This Issue: Full Purchase Vs Partial Purchase Structured Settlements Important Links: The Cash Flow Clarion Home First Class Cash Flow Handlers- Home page for First Class Cash Flow Handlers Note Submission Page- Submit your cash flow note on this page if you would like to sell your note FAQ's Page- Questions relating to First Class Cash Flow products and services Note Holders Page- Information and answers to questions frequently asked by note holders Realtors Page- Information for realtors explaining how owner financing can increase sales and commissions Real Estate Professionals Page- Dedicated to attorneys, CPA's, financial consultants, mortgage brokers, and any other professional whose clientele hold cash flow notes Products Offered- Information about specialized products such as "How To Sell Your Home Fast In Good Or Bad Markets" training course, the "Note Holders Manual", the "Cash For Paper" audio course, and the "Update On Real Estate Newsletter" In Next Issue: Sell Your Home Quickly For Top Dollar Selling Your Lottery Winnings Contact Information: First Class Cash Flow Handlers www.firstclasscashflow.com loriehuston@firstclasscashflow.com (401)-258-7158