Here’s your Cash Flow Business Tip of the Week

When you receive a quote back from the funder, in many cases they will quote a “partial” purchase in addition to a “full” purchase. Partial means the noteholder has the option of selling SOME of the remaining payments on the note, but not ALL. So they “get the note back” after X # of payments. This is oftentimes a very attractive option for the note-holder-soon-to-be-seller because we help our Elite members point out to them that (and many times the numbers line up this way) that they would NOT lose ANY of their principal (that is, the present value (PV) of the note) if they accept the partial offer. Reason for that is INTEREST makes up most of the monthly payment amount that the funder will collect on the earlier payments before they turn the note back over to the seller later on.
I’ve seen sellers jump at this type of offer but just as often they will sell the REST of the payments down the line (so you make ANOTHER fee at that time because you are the broker of record– and you didn’t have to do anything more!)Get a stream of these going and you’ll have paydays cropping up in the future. This is VERY powerful.
Next tip, we will continue.

This entry was posted in Main blog, Tips. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>