Cash Flow Note Questions and Answers
What is a cash flow note?
A cash flow note is a written document that states a promise to
pay, and the terms which includes the amount, the interest rate
and the length of time. A cash flow note may be a mortgage
trust deed, a deed of trust, a land contract, a business note, a court award (such
as a structured settlement), lottery winnings, annuities, etc.
Why would I want to sell my note?
There are many reasons you may want to sell your note. You may
prefer to have a lump sum of cash now, instead of small monthly
payments. You may need immediate cash to pay medical bills, tax
debts, credit card debts or other debts that charge you more interest than you're getting on your note. You may want to take your dream
vacation, or purchase a new car, truck, home or business. You may need money
for a college education or retirement. You may be involved in a
divorce, distribution of partnership, or division of inheritance.
You may have the opportunity to invest the same money in other
investments which may be more profitable. For example, you may want to cash out your note and use some or all of that money to purchase real estate now while the prices are lower than they've been for years. Buy a better more desirable property than you have now, perhaps in a better location too. Or you may simply prefer
not to worry about delinquent payments or having to foreclose if
the payor defaults on the loan.
How much is this going to cost me?
is no charge to you, the note holder. The buyers / investors pay our fees.
What kind of notes will you buy?
We can purchase any type of cash flow note, including mortgage
trust deeds and land contracts. We will purchase both 1st and 2nd
mortgages on any type of real estate, including residential,
commercial, and land notes. In addition, we purchase mobile home
notes and business notes (1st mortgages only). We can also
purchase structured settlements, lottery winnings, annuities, and
Why should I sell my note instead of taking out an additional
You can certainly take out a loan to cover any financial needs you
may have, and may even be able to use your note as collateral.
However, there are some disadvantages to this too. Firstly, it
increases your debt load, while decreasing your net worth. Both of
these factors combine to decrease your credit worthiness and
credit score. By selling your existing note, rather than taking on
additional financing, you increase your net worth without adding
any additional debt load. In the event that you need to pursue
financing in the future, this will increase your overall credit
score and credit worthiness.
How much will my note be discounted?
Many factors will affect the current value of your note. If you
are selling a real estate note, these will include: (a) where the
property is located, (b) the type of property secured by the note,
(c) the value of the property, (d) the interest rate on the note,
the terms of the note, (f) how long it will take to collect all
payments, (g) the equity in the property, (h) the payment history of
the note, (i) the amount of seasoning on the note, and (j) the payor’s credit rating. Similar factors will affect the value of
business notes, and other types of cash flow notes as well.
How do I go about selling my note?
Once you have decided that you would like to sell your note, we
will ask you a number of questions regarding the note itself and
the property or business secured by the note. Once we have
gathered all of the necessary information, we will locate a buyer
for your note and present the best offer to you for your
consideration. Once you decide to accept the offer we will assist
you with the process of closing your note sale.
How long does it take to receive my lump sum cash payment?
A typical sale takes 2 to 4 weeks to complete, provided
there are no unusual circumstances that arise during the sale.
Have questions? Need help?
If you have any questions we can be reached at: 1-800-922-5300 10AM - 8PM
You may also Fax the information about your note to
us toll free 1-866-798-2Fax (2329)
Mail your documents to us at: 640 Masonic Way # 511 Belmont, CA 94002-0511
We will be glad to help you; simply call or contact us via