Thousands of people in this country are currently receiving monthly payments from privately held promissory notes. Some of these are owner financed mortgage contracts, owner financed business notes, “auto paper” portfolios, inheritance notes, and all other cash flows. The notes create a stream of income that should come in regular installments. This is great for extra monthly income, depending on several factors.
First, the terms of payment between you and the debtor affect how much money you receive with each payment. Second, the size of the original loan or purchase, and the agreed upon interest will change the payment you should receive each time. Then there is the risk factor- not everyone is going to keep up their payments. It is not a guarantee that the person who owes you money is going to make timely and accurate payments.
What this all adds up to is holding these notes can be more trouble than it’s worth. Unless the amount of money owed you comes from multiple sources, or from one very sizable sale, you may not have a very large payment coming in.
Add to that the risk of missing payments, and you may not be getting an income stream that’s worth very much.
It can be hard to use money wisely when it comes in small amounts. Larger amounts of money are easier to invest in other accounts where it will earn interest faster based on a greater balance deposited from the beginning. In this scenario, a lump sum may earn you more in interest than several years’ payments on a note. What many people don’t realize is the notes they have are assets that can be sold and converted into a lump-sum payment.
This has several advantages. You could have a larger sum of money to invest wisely and begin letting the money work for you. You could use it to quickly pay off a debt and potentially save yourself a lot more interest than a note will earn you. Perhaps most importantly, by converting your note into cash by selling it, you erase the risk of someone defaulting on your note in the future. That in itself can save you exorbitant amounts of timeand worry!
About the author
Jose Raul Rodriguez, Cash Flow Specialist, is found of DSCash, LLC. Based on its Actual Cash value (ACV) today, DSCash may buy owner financed mortgage notes, owner financed business notes, “auto paper” portfolios, inheritance notes, lottery & casinowinnings, insurance settlements, and all other cash flows.
For more information, please visit the DSCash web site at www.DSCash.com or call Jose Raul Rodriguez at 1-866-895-3026.