Cash in your hands today, is worth a lot more than
"the check is in the mail" tomorrow.
If you enjoy receiving your periodic payments and do not need
cash, then you probably do not want or need to sell your note.
But what if you are in need of immediate cash? Many people find
themselves in a situation where a lump-sum of cash is either
required or highly desirable to . . .
Get the car you really want
To buy
a new home
Take a
special vacation
To pay for college
Other investment opportunities
To start a new business or invest
in a new project
Cash for major
purchases
Don't want to wait on your money
Inflation - Money is worth less in the future
Avoid trouble collecting payments
Save time, no more chasing your money
Pay off or consolidate debts or
divorce settlements
To pay taxes
Those who understand the present
value of money may have many reasons to sell . . . and more and
more people are choosing to take cash rather than wait for
future payments. The only way some people can sell their
property, or get their asking price, is to provide all or some
owner financing. For many FSBO’s, Investors, and Builders. . .
Temporary Seller Financing is becoming the strategy of choice.
Here are some of
the advantages of selling a note:
Access To Cash
- People need or want access to their cash. In some
cases, people want access to their cash just for peace of
mind. They no longer want to worry about liquidity issues,
collection hassles, or the financial strength of the person
who owes the debt.
Interest, Yield
or Capital Gains
- People will sell their notes - even for less
than face value - because they know that with cash in hand
today, they may be able to take advantage of an exceptional
investment opportunity that is available now, but may not be
available in the future, thereby possibly increasing their
return exponentially.
Thus, they can start earning
interest, yield or additional capital gains. It is those
components that gives you the ability to invest money this
year and turn it into an even larger amount of money in the
following years.
Inflation
- Inflation eats away at the future value or "buying
power" of money. You can buy more with a dollar today than
you will be able to in five, ten, or twenty years from now.
People sell their income streams because they realize that
over time, the payments they receive will drop in real
value. Time Value of Money refers to the change in the value
of money over time. A dollar today is worth more than a
dollar tomorrow. Just think about what you paid for a gallon
of gasoline a year ago, a couple of years ago, and what
you're paying today. Every day that goes by, the value of
your money is eroding.
A seller of a note may accept a
lesser amount than the total amount of the payments due to him
in exchange for cash now. But because of the time value of
money, the seller may actually save money in the long run
especially if he or she chooses to invest the cash.
For Example, a $1,000 payment
per month for 30 years is $1,000 per month today and is still
$1,000 per month 30 years from now. The buying power of that
$1,000 in 30 years from now will be far less than what it is
today. Small payments over a long period of time have less
buying power. A lump sum of cash today can provide you with
financial stability and flexibility. It gives you Purchasing
Power today!
Money is worth less
in the future.
You get the cash you
need now without going to the bank!
If you agree and have a desire to find
out more, you'll want to contact us right away!
Please click
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get your note appraised or
