Real estate notes vs. NON real estate notes

non-real-estate-notesIt used to be that the only cash flow that we could make a fee on was a real estate note. That’s no longer true because of institutional funders. According to the federal reserve, today there’s at least $600 billion (that’s billion with a “b”) in real estate notes out there. That’s a big number, but it’s almost nothing as compared to NON real estate notes (i.e. lawsuit awards and lotteries are a big part of our business —and there are trillions of dollars worth of those out there). So, you’re never going to run out of product. It’s just impossible. With this in mind, you should also have the ability to broker specialty cash flows (like delinquent debt, for example, which is huge today– or life settlements, to take another example. You should have at least one of these in your basket of tricks. It makes you a much more effective broker and makes your business much more profitable.

In the next Tip, I’ll discuss the MARKETING angle you should be taking when pursuing these types of cash flows.

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