(PRWEB) February 27, 2005
There is a wide variety of privately held (and usually privately originated) debt and other cash flow instruments that are actively bought and sold. Operating somewhat like secondary markets in the banking and institutional lending arenas, the private cash flow market provides cash flow asset holders several huge advantages not often obtainable through traditional funding pipelines ? including flexibility, availability, and softer underwriting requirements.
For professional advisors representing holders of these cash flow instruments, awareness of these advantages, and a basic grasp of the possibilities, provides the opportunity to fulfill the most important service they have to offer their clients ? solutions.
Seller-financed transactions have existed for decades ? and potential buyers for these seller-originated cash flow debt instruments have existed right alongside. Essentially taking root in the private real estate note arena some 60 years ago, the private cash flow industry has gradually grown to encompass a wide spectrum of diversified debt instruments throughout the past few decades ? as more and more participants continue to explore, and underwrite, potentially profitable financial niches.
Alternative Cash Flows
Driven by small, independent cash flow professionals at the local level, the brokerage side of the industry has fueled the growth of investors purchasing alternative cash flows. As networking in the secondary market has grown and become somewhat more structured, a developing investor?s interest in purchasing non-debt related forms of cash flow instruments has been kindled as well. We have seen such esoteric cash flow instruments as annuity agreements, structured settlements, viaticals, lottery awards and similar prize entitlements, pension benefits, royalty agreements, deferred casino winnings, deferred sports contracts, and more, all joining the parade of purchasable cash flows.
Approximately 60 identifiable debt and cash flow instruments ? including the non-debt-related instruments above and others such as commercial receivables, business notes, medical receivables, automobile, marine and aviation paper, equipment leasing contracts, timeshares, government contract payments, retail installment contracts, manufactured housing paper, and the granddaddy of them all, real estate notes ? are all actively bought and sold in private secondary markets.
Liquidity
The ability to tap into the liquidity that these cash flow instruments represent creates a buffet of possible options for sellers, and their advisors, to access funds quickly. In addition, being aware of the various options available in the private secondary cash flow markets can assist in both forward planning and mitigating situations where liquidity may not be a primary issue, such as avoiding excessive taxation and other forms of transactional friction, estate planning, family law issues, partnership dissolutions, portfolio building, and even asset protection under the right circumstances.
The same concepts often apply across the whole spectrum of cash flow instruments and can frequently make a huge difference in solving a problem for your clients, whether they are doctors, debtors, investors, business owners, business buyers, developers, contractors, retirees, beneficiaries, devisees, or divorcees! And, as our secondary markets have grown and adapted, we have begun to see some crossover with traditional lending markets. With growing frequency, bank and mortgage company paper assets (including both performing and nonperforming portfolios) are being marketed through our services. And, we are seeing increasing numbers of loan origination packages coming through the door, particularly for the larger and more difficult to close lending transactions, including commercial, development, and residential related hard money and construction funding deals.
The crossover of these alternative cash flows trading into the private cash flow industry has allowed professional cash flow brokers to expand their product lines and greatly diversify the scope of solutions they may be able to bring to you and your clients? situations ? either as direct investors or as conduits to other viable funding sources who specialize in funding the type of transaction involved.
As cash flow professionals, we have the basic due diligence information gathering and evaluation skills to help create and present packages to a wide variety of cash flow buyers and investors.
Our network of investors is standing by, waiting to make estimates on notes of all varieties. So whether you need to cash out for legal reasons or you know someone who needs some extra cash up front, we can help. If you have notes or structured settlements you want to sell, click the (Sell Your Note) link in the left hand navigation bar of our web site. This can result in your getting a buyer within 72 hours, closing the deal and getting your money in 3 to 4 weeks. This service is free, fast and secure. Please feel free to visit our website. http://www.cash4cashflows.com/dpruitt
Also visit our 40 page index on buying Real Estate Notes and other related information at: http://www.dlppages.com/thadmin/Real-Estate/real-estate-note-investing.htm
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