ED FRANklINS CASH FLOW NOTE SALES

Crafting Cah Flow Notes For Buyers cash-flow-notes-sales

December 06, 2008 - 9:13 am

Crafting a Note for Buyers « Cashflownotesales’s Blog

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ED FRANKLIN�S cash flow note sales get cash now

Crafting a Note for Buyers
In previous issues, the best method for selling a home in a tough market with seller financing was explained. The benefits to the seller from involving a qualified cash flow finder with a seller financed deal and having a note buyer “on board” before the note is created were also covered. While using seller finance techniques to sell a property are no more difficult than a traditional real estate closing, following a logical and proven plan is the best method for ensuring a successful real estate sale with seller financing.
The sellers’ misconception
Many property sellers stay away from seller financing because they mistakenly believe that creating a note is not a viable solution for selling their home. After all, if they can’t walk away with enough cash to provide the down payment on another property, they’ll be powerless to replace the property they’re selling.
As a consequence of this common misunderstanding, many sellers feel compelled to stick with conventional real estate methods, limiting their options and missing out on the benefits that seller financing could offer them.
In actuality, many notes created through seller financing are quickly sold and the seller ends up with the cash they need. Even better, if the note is created with buyers’ purchasing criteria in mind, the seller could walk away from the closing table with cash in hand. This means that the net result is almost exactly the same as with a conventional real estate sale!
In the cases where the note holder does have a problem selling their monthly payments, the difficulty in liquidating the note is typically a result of one general problem: the note was not created with the buyer in mind. Instead, it was created with only the payer in mind. To ensure that a newly-created note will be attractive to potential buyers, it is important to recognize that their purchasing criteria are important as well.
Too good of a deal
For property sellers looking to sell their note immediately, it would be a grave mistake to create the note by prioritizing only the payer’s demands. A buyer must have a compelling reason to agree to collect payments in order to buy a note, such as a substantial down payment, a respectable payer’s credit score (to minimize risk), a competitive interest rate, or a fairly short term.
An example of a “bad note” from a buyer’s point of view would be a seller financing situation where no down payment was collected, the payer’s credit score was not checked, and the interest rate is fixed at 3%. Basically, this is TOO good of a deal! Even payers that qualify for loans from traditional lending institutions would jump at this offer with no out-of-pocket money required and a rate below prime.
Clearly, the note payer and note buyer are looking for very different things. Payers would love a “no money down” purchase with financing at a low interest rate, but most buyers wouldn’t want anything to do with this sort of note simply because it is a bad deal for them.
In a situation without a reasonable down payment there is nothing holding the payer to their obligation. After all, a payer involved in a “no money down” purchase could walk away and lose almost nothing financially. Abandoning their obligation to pay may hurt their credit score, but it was their substandard credit that forced them into a seller-financing situation in the first place.
When there is no equity in the property (buyers will use the lower of the property value or the sales price to calculate equity), all offers to purchase the secured note will be discounted substantially in order to compensate for the buyer’s risk of default. A heavily discounted buyout offer often means the seller will not be able to get the money they need.
If the seller of a private note needs a large amount of cash immediately, they must be able to sell the note as soon as it has been created. And to quickly find a buyer, the note must meet the general buying parameters of these people, which include a solid down payment, a decent interest rate, and typical terms.
Creating notes that can be sold
Every buyer has their own criteria that determine what they will or won’t buy, but a down payment of at least 10% is a good minimum figure when creating a note. This upfront payment immediately creates equity in the property which acts as the buyer’s safety net in a foreclosure. A competitive interest rate is important because it will make it easy for the buyer to purchase the note and yield the desired profit without much of a discount to the note holder. Finally, keep in mind that people typically avoid notes that do not follow a traditional term (amortized over 120 months, 180 months, etc). A two-year, interest-only balloon term is a perfect example of a note that most buyers would avoid.
The points described above are only a rudimentary starting point for note creation; there are certainly other things that buyers look for when considering a note. It is always a good idea for the seller to contact a qualified note finder in order to get the specific information they need.
The finder will be able to utilize their experience in working with buyers to give the seller general guidelines about what should meet most buyers’ parameters. Of course, there are no absolute guarantees of a quick sale, but when the seller creates a note with the buyer.s needs in mind, it should not be a problem to locate an interested buyer who will give the seller the cash settlement they need.

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Sell Long term structred Lottery Winnigs wore press

December 06, 2008 - 3:16 am

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Sell Long Term Structured Lottery Winnings

December 6, 2008 by cashflownotesales

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Land note/contract sales

December 3, 2008 by cashflownotesales

ED FRANKLIN�S land note/contract sales get cash now

land contract
A land contract is a contract between the buyer and a private seller of a property, wherein the seller holds the title or deed to the property until all agreed upon payments have been made in full
This property may be improved or unimproved, vacant, or a home or a commercial
Land contracts began to disappear when loan requirements softened and rates dropped below 8%
But they have not vanished all together and, in fact, tiptoed back into the market in 2006
Land contracts or contracts for deed are a security agreement between a seller, called a Vendor, and a buyer, called a Vendee
The Vendor agrees to sell a property by financing the purchase for the Vendee
Sue Heimbichner, an escrow officer at Chicago Title in Sacramento, has been in the business since 1976 and has watched the popularity of land contracts come and go
An agreement between a buyer and seller of property in which the buyer makes payments toward full ownership (as with a mortgage), but in a land contract, the title or deed is held by the owner until the full payment is made
This type of contract is technically not a legally binding agreement and, therefore, many different types of payment formats can be found
As in a standard mortgage, there is an agreed upon price and payment schedule, but the payments are often not amortized evenly, so that a large balloon payment may be required to complete the purchase
Also known as an installment purchase contract or an installment sale agreement
A land contract can be thought of as a “lease with an option to buy”
Certain states have more generous legal rights for land contract holders than others
As a result, the world of land contracts can be difficult to navigate
As such, as land contract buyer must be very careful to ensure that the terms of the contract are legally binding in case a dispute arises in the future
Land contracts are often used by purchasers that would not otherwise qualify for a mortgage, or by investors who wish to complete a purchase faster than a regular mortgage would allow
In some parts of the country it is known as a “Contract for Deed” and in other areas it is known as an “Installment Contract
” This form is designed as an agreement between the Seller and the Buyer for the purchase of real property in which the payment of all or a portion of the purchasing price is deferred
The purchase price may be paid in installments over the period of the contract, with the balance due at maturity
When the Buyer completes the required payments, the Seller must deliver valid legal title by way of a deed
During the period of the contract, the Buyer makes installment payments on the purchase price and to possession and equitable title to the property
The Seller holds legal title and continues to be liable for payment of any underlying mortgage or loans
The Buyer may assign and convey his/her interest in this “Contract” or any part thereof provided, however, that such assignment or conveyance should not result in any impairment of Seller’s position
Under no circumstances shall any assignment or conveyance release the Buyer from obligations under this “Land Contract” unless the Seller specifically releases the Buyer in writing
Can you read an existing agreement or contract and tell the difference between what and what is not
If you don’t understand all that legal language, you’re not the only one
Whether you are the buyer or seller, the language of any LAND CONTRACT can be confusing
Unfortunately, most of us cannot afford to hire an attorney to help us
Unless you know and understand contract law, it is very hard to write or sign any kind of agreement and be sure you won’t be in trouble later
You don’t have to know all the rules, because our easy-to-use land contract form contains all the legal language you need
All you have to do is fill in your information
Don’t be mislead by all the free and cheap real estate forms available on the Internet
Most are not worth your time or effort and will ultimately get you in trouble
Our Official LAND CONTRACT forms contain all the legal language and protection you need
That old saying about “how you get what you pay for” has never been more valid
The entire process to obtain a valid land contract form is quick, easy, very affordable and most of all USER FRIENDLY
Keep reading and we will explain how everything works
Your land contract is only a click away
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Often times, home buyers are in a financial position to afford the monthly payments associated with home ownership, but they lack the down payment necessary to purchase a home
Or, the buyer’s credit score or rating may prevent he or she from obtaining traditional bank financing required for the purchase of a home
In those cases, it often makes sense for the buyers to consider purchasing a home or piece of real estate and have the owner/seller provide the financing for the purchase
Likewise, selling a home by way a land contract can prove beneficial to the seller in many ways
Likewise, real property sold on a land contract can often be priced higher than sales with bank financing since the seller provides the all-important financing and the buyer is often times not required to come up with a large down-payment, thereby permitting a higher asking price for the property
So how does a land contract work
Land contracts are common throughout the United States
In some states, they are called Trust Deeds, Contract for Deed, Deeds of Trust, Notes, or (privately held) Mortgages, but they all represent the same thing: a way of selling property where the buyer “borrows” from or relies upon the seller for the financing rather than paying cash up front or borrowing from a bank
The seller and buyer enter into a contract that normally states that the seller shall transfer ownership of the property to the after the buyer has fully paid the seller the agreed upon purchase price
In most cases, the contract requires the buyer to make a modest down payment and then to make monthly payments over time
The land contract can require the buyer to pay the seller interest on the money owed (just like a bank would)
During the term of the land contract (i
while the contract is in force and effect, the buyer is not in default and until all of the payments are made), the buyer holds legal possession of and occupies the property
The land contract can call for transfer of the property once the seller has received all of the required payments or can call for the transfer at some time sooner, with the seller then holding a mortgage on the property to ensure that the balance of the purchase price will be paid in full
Whatever the terms agreed upon for transferring ownership, when the agreed upon transfer date is reached, the seller tenders (or gives) a deed to the property to the buyer who then records the deed in the county recorder’s office or the real property office of the county where the property is located
While the benefits of land contracts are many, there are some potential pitfalls to a land contract that the parties must be aware
If the buyer misses any payment under the land contract, he or she may lose the property (the right to have the deed transferred to him) and the seller may keep the money paid up to that point as rent
Thereafter, the seller would not be required to transfer the deed to the buyer
Some states have laws providing that if a buyer makes a majority of the payments under a land contract (which cover a large percentage of a purchase price of the property), the seller may not be able to keep or refuse to transfer the deed if the buyer can make payments on the contract price at a later date (known as the right of redemption)

Typically, the original contract will have a provision allowing amendment of the contract and may also set out an amendment procedure
This assignment is designed for those situations where the purchaser of residential property decides to assign all his rights and interests is
As one of the nation’s undisputed high volume mortgage acquisition companies Land Contract
We are the buyers of land sale contracts
When we buy your land sale contract, we put CASH in your hands
Formerly, the buying of land contracts was just a tool for banks, real estate agents, mortgage brokers, attorneys and financial planners
Now we offer YOU the ability to sell your note directly to us, the buyer, via this site (LandContract
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Land Contract InformationA land contract is an agreement for the sale of an interest in real estate in which the purchase price is to be paid in installments and no promissory note or mortgage is involved between the seller and the buyer
Generally under such agreements, the seller is called the vendor and the buyer is called the vendee
Buyer DefaultWhen a buyer default occurs (failure to make payment or other breach of the contract) a seller should look to the remedies provided in the land contract
It should be read carefully to determine the parties rights and obligations
Generally, a land contract will give the seller at least three remedies to pursue if a buyer has failed to meet the requirements of a land contract:
Specific performance of the land contract (If the seller does not want to regain possession of the property, then the seller may sue for the balance due under the land contract or to enforce the provision breached
);Forfeiture of the land contract; or Foreclosure on and sale of the land contract property
Generally, a seller must use the court system in order to regain possession of the property and evict a land contract buyer who has failed to meet the requirements of the land contract
Land Contract Forfeiture Seller may regain possession of land contact property by forfeiture if:
The land contract expressly provides for forfeiture and termination of the contract; and The buyer has failed to make payment of any moneys required to be paid under the land contract, or has materially breached the land contract (Example: a failure to pay real estate taxes or to keep the property insured)
Before a seller may begin the procedure to regain possession of the land contract property the seller must:
Provide the buyer with a written notice of forfeiture describing the default; and Provide the buyer with a minimum of fifteen days (or more if the land contract provides for a longer period) to correct the default
It is important that a buyer respond in writing to a notice of forfeiture even if it may have been sent by mistake
If the buyer fails to respond to the notice of forfeiture or otherwise fails to come to an agreement with the seller within the time stated in the notice, the seller may take legal action
To do this the seller must file a summons and complaint, together with a copy of the land contract, the notice of forfeiture and proof of service with the appropriate court
The court will deliver or mail to the buyer (defendant) the summons and complaint
The summons states the date and time on which the court will hold a hearing (usually called a summary proceeding)
The seller and buyer should appear at the court on the date and time state in the summons and should be prepared to state their positions to the court
At the court hearing, if the seller is successful the buyer will have a certain amount of time (90 or 180 days depending upon the amount the buyer has paid on the contract) in which to pay the missed payments and court costs and/or to correct any other material breach of the land contract
A buyer who fails to pay or correct the breach within the stated time period may be evicted in the same way a tenant is evicted from rental property
Generally, when a seller has regained possession of the property after forfeiture the buyer has no further liability under the land contract
Land Contract Foreclosure Land contract foreclosure is generally a more complicated and lengthy remedy to regain possession of the property than forfeiture
A significant difference; between forfeiture and foreclosure is that in a forfeiture a buyer may prevent the loss of the property by merely paying past due installments, while in foreclose the buyer may be required to pay the entire balance due under the land contract
In addition, in foreclosure even if the property is returned to the seller the buyer may remain liable to the seller for the portion of the balance due under the land contract which was not satisfied by the sale of the property
Seller DefaultGenerally, upon a buyer’s fulfillment of the land contract the seller should give the required deed conveying the property free of liens created by the seller
A seller who fails to provide the required deed may be in breach of the contact
If the seller is unwilling or unable to give the required deed the buyer may have various options including legal action for:
Specific performance of the land contract (including a court order directing the seller to give the required deed);Quiet title;Cancellation of the land contract (seeking the return of then money paid by the buyer in exchange for all of the buyer’s rights in the property);Money damages
Above all, both the buyer and the seller may be able to avoid problems if they talk to each other when questions or concerns arise regarding the land contact
This should not be used in place of legal assistance
In the event of a land contract dispute, seek legal advice
Legal Services of Northern Michigan may be able to assist you with land contact problems
Click for free Michigan legal help and legal aid, or go to lsnmirp
Land contracts vary widely from transaction to transaction
In most cases, no grant deed is recorded
The buyer rarely obtains a new mortgage loan at the time of purchase
Instead, the new owner makes payments to an intermediary, who then makes payments on the sellers mortgage, which is still in place
Keep in mind that such an agreement usually violates the lender’s guidelines
If the lender becomes aware of a transfer of title on the property (which is why you usually don’t record the grant deed), they can exercise the “due on sale” clause of the note
This would require you to refinance the loan or sell the property
Since many who buy on land contracts have problems qualifying for a mortgage, you can see how this can lead to problems
At the same time, lenders generally only check for transfers of title if the loan becomes delinquent
Within a certain number of years, it is expected the buyer will be able to qualify for a loan
At that time, they will obtain a new mortgage and pay off whatever amount the land contract requires
Then a grant deed is recorded and full ownership is conveyed
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contract for deed or “installment sale agreement”) is a contract between the owner of the real property (called the “vendor” or the “seller”) and a person who wants to buy the property (the “vendee”, “contract purchaser”, “purchaser” or “buyer”)for an agreed-upon purchase price
Under a land contract the vendor grants equitable title to the vendee (which consists of virtually all rights and benefits to the property), and the vendee agrees to pay the purchase price to the vendor over time, usually in monthly installments, by a certain date
When the full amount of the purchase price is paid, the vendor is obligated to deliver legal title to the vendee by an actual deed, and upon delivery of the deed, the vendee owns equitable and legal title to the property
Equitable title, for all intents and purposes, makes the purchaser the “owner” of the property
There are several “land contract friendly” states in the US, while other states make it extremely difficult to sell or purchase real property by means of a land contract
Michigan is a “land contract friendly” state and has a long history with land contracts
It is estimated that about 18% of all real property (residential & commercial) in Michigan transfers by way of land contract
Often a Vendor will also collect 1/12th of the estimated property tax payments with every monthly installment
The Vendor will then pay the property taxes when they become due
It is a way for the Vendor to make sure that taxes are paid and do not create a lien on the property
Closing costs, prepaid items, and other fee’s are typically a lot lower when purchasing real property through Land Contract
Most all of the costs paid at closing, directly benefit the purchaser in one way or form
The most important feature of an agreement like this is the Seller does not deliver the deed to the Buyer at closing
When the contract is fulfilled, the Seller, or Vendor, gives the Buyer, or Vendee, the deed
The widest use of an Installment Contract occurs when the Buyer does not have the full purchase price in cash or is unable to borrow it from a lender
Historically, a Conditional Sales Contract was used to sell vacant property, or land, where the Buyer put modest amounts of money down and the Seller agreed to receive the balance as installment payments
Additionally, an astute Buyer will require that a collection account be used to collect the Buyer’s payments
This is done using a neutral third party
The Seller may insist that the Buyer place one-twelfth of the annual property taxes and hazard insurance in the escrow account each month to pay for these items
The Buyer will want to record the contract to establish the Buyer’s rights to the property
If a Land Contract agreement is used for the purchase, or sale, of real estate, it should be done with the help of legal consul
When the final payment is made to the Seller (or the property refinanced through an institutional lender), title is conveyed to the Buyer
land contract noun a contract in which a purchaser of real estate, upon making an initial payment, agrees to pay the seller stipulated amounts at specified intervals until the total purchase price is paid. If you’re buying or selling land, try to finance the property through an installment purchase contract, known as a land contract
Flag Article Instructions Difficulty: Moderate Things You will Need: Legal Counsellors Purchase Agreement Tax Services Paper And Pencils Writing Pens Business Plan Software Step1Agree on a sales price for the property with financing terms that provide a designated number of payments at predetermined intervals at a specific interest rate
Step2Realize that in a land contract, the buyer receives the legal deed to the property only after the seller receives most or all of the installment payments
Step3Include a clause in the land contract that allows you to prepay the contract amount without penalties
This allows you to improve the property and pay off the loan early or at the time of resale
Step4If the seller does not agree to prepayment terms, negotiate a release clause that permits you (the buyer) to subdivide and sell lots while allowing the seller to release the land to the lot buyers and accept the money from lot sales as installment payments
Step5Review the terms of a land contract with a real estate attorney or agent before making or accepting any offers
Tips & Warnings Because income from the sale of land is taxed as ordinary income, many sellers prefer receiving payment in installments through a land contract instead of receiving payment in a lump sum
Seek legal advice about the terms of a land contract to avoid potential problems
on 10/11/2007where do I get a form for land contract sales or see a sample
This Comment this comment has been flagged
on 7/18/2007 When selling land by owner, I used a pre-filed land contract to get me started
This form is what I use now to sell with owner financing
Just change the form to fit the property description
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‘land contract’ appears in the definitions of these other terms on Business Dictionary
Learn the steps how to make a sound financial decision when buying a house
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BAE Systems in West Manchester Township is part of a $538 million contract from the Department of Defense to remanufacture Bradley fighting vehicles and provide spare parts through June 2010, the company said today
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Thexton (May 2008), the California Court of Appeal ruled that a particular purchase agreement containing a discretionary, unilateral “entitlements” contingency, is void
Start New SearchView the full text of this article� The views expressed in this article are solely the views of the author and not Martindale-Hubbell
This article is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance
Except in counties where deeds or other instruments are required as provided in this section, a land contract that is recorded in the office of the county recorder may be cancelled, partially released by the vendor and vendee, or assigned by either of them by writing the cancellation, partial release, or assignment on the original land contract or upon the margin of the record of the original land contract, and by signing it
That cancellation, partial release, or assignment need not be acknowledged, but if written on the margin of the record, the signing shall be attested to by the county recorder
The assignment by the vendee, whether it is on the land contract or upon the margin of the record of that contract, or by separate instrument, shall transfer the right held by the vendee under the land contract in the premises described in the contract unless otherwise stated in the land contract or in the assignment
For copying the cancellation, partial release, or assignment upon the margin of the record, or for attesting it, if written upon the margin of the record, the recorder shall charge the fee provided by section 317
A land contract that is recorded in the office of the county recorder may also be cancelled, partially released, or assigned by deed or by other separate instrument, acknowledged as provided in section 5301
Unless in the form of a deed, a separate instrument of cancellation, partial release, or assignment shall be recorded in the book provided by section 5301

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December 3, 2008 by cashflownotesales

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Crafting cash Flow notes For Buyers

December 04, 2008 - 1:15 pm

Cashflownotesales�s Blog Just another WordPress.com weblog ________________________________________ Protected: Crafting a Note for Buyers ED FRANKLIN�S cash flow note sales get cash now Crafting a Note for Buyers In previous issues, the best method for selling a home in a tough market with seller financing was explained. The benefits to the seller from involving a qualified cash flow finder with a seller financed deal and having a note buyer �on board� before the note is created were also covered. While using seller finance techniques to sell a property are no more difficult than a traditional real estate closing, following a logical and proven plan is the best method for ensuring a successful real estate sale with seller financing. The sellers� misconception Many property sellers stay away from seller financing because they mistakenly believe that creating a note is not a viable solution for selling their home. After all, if they can�t walk away with enough cash to provide the down payment on another property, they�ll be powerless to replace the property they�re selling. As a consequence of this common misunderstanding, many sellers feel compelled to stick with conventional real estate methods, limiting their options and missing out on the benefits that seller financing could offer them. In actuality, many notes created through seller financing are quickly sold and the seller ends up with the cash they need. Even better, if the note is created with buyers� purchasing criteria in mind, the seller could walk away from the closing table with cash in hand. This means that the net result is almost exactly the same as with a conventional real estate sale! In the cases where the note holder does have a problem selling their monthly payments, the difficulty in liquidating the note is typically a result of one general problem: the note was not created with the buyer in mind. Instead, it was created with only the payer in mind. To ensure that a newly-created note will be attractive to potential buyers, it is important to recognize that their purchasing criteria are important as well. Too good of a deal For property sellers looking to sell their note immediately, it would be a grave mistake to create the note by prioritizing only the payer�s demands. A buyer must have a compelling reason to agree to collect payments in order to buy a note, such as a substantial down payment, a respectable payer�s credit score (to minimize risk), a competitive interest rate, or a fairly short term. An example of a �bad note� from a buyer�s point of view would be a seller financing situation where no down payment was collected, the payer�s credit score was not checked, and the interest rate is fixed at 3%. Basically, this is TOO good of a deal! Even payers that qualify for loans from traditional lending institutions would jump at this offer with no out-of-pocket money required and a rate below prime. Clearly, the note payer and note buyer are looking for very different things. Payers would love a �no money down� purchase with financing at a low interest rate, but most buyers wouldn�t want anything to do with this sort of note simply because it is a bad deal for them. In a situation without a reasonable down payment there is nothing holding the payer to their obligation. After all, a payer involved in a �no money down� purchase could walk away and lose almost nothing financially. Abandoning their obligation to pay may hurt their credit score, but it was their substandard credit that forced them into a seller-financing situation in the first place. When there is no equity in the property (buyers will use the lower of the property value or the sales price to calculate equity), all offers to purchase the secured note will be discounted substantially in order to compensate for the buyer�s risk of default. A heavily discounted buyout offer often means the seller will not be able to get the money they need. If the seller of a private note needs a large amount of cash immediately, they must be able to sell the note as soon as it has been created. And to quickly find a buyer, the note must meet the general buying parameters of these people, which include a solid down payment, a decent interest rate, and typical terms. Creating notes that can be sold Every buyer has their own criteria that determine what they will or won�t buy, but a down payment of at least 10% is a good minimum figure when creating a note. This upfront payment immediately creates equity in the property which acts as the buyer�s safety net in a foreclosure. A competitive interest rate is important because it will make it easy for the buyer to purchase the note and yield the desired profit without much of a discount to the note holder. Finally, keep in mind that people typically avoid notes that do not follow a traditional term (amortized over 120 months, 180 months, etc). A two-year, interest-only balloon term is a perfect example of a note that most buyers would avoid. The points described above are only a rudimentary starting point for note creation; there are certainly other things that buyers look for when considering a note. It is always a good idea for the seller to contact a qualified note finder in order to get the specific information they need. The finder will be able to utilize their experience in working with buyers to give the seller general guidelines about what should meet most buyers� parameters. Of course, there are no absolute guarantees of a quick sale, but when the seller creates a note with the buyer.s needs in mind, it should not be a problem to locate an interested buyer who will give the seller the cash settlement they need. Click Here For More Information Hyperlink Text http://www.prlog.org/rss/world-all-top5-headlines.xml Edit this entry. Leave a Reply Logged in as cashflownotesales. Logout � � � Pages o About  Crafting a Note for Buyers  Sell Financing Real Estate Sales o Promissory Notes � Archives o December 2008 � Categories o Uncategorized (2) � Blogroll o Eddie Franklins Cash Flow Note Sales o WordPress.com o WordPress.org � Meta o Site Admin o Log out o Valid XHTML o XFN o WordPress ________________________________________ Blog at WordPress.com. Entries (RSS) and Comments (RSS).

What Mortgage Holders Should Know

December 04, 2008 - 12:39 pm

Seller Financing to the Rescue The Problem When it comes to selling real estate, one of the most difficult and frustrating situations for sellers is when market conditions make it nearly impossible to sell at the desired price point. A high initial listing price might be because the seller simply has an unrealistic idea of how their house stacks up against the competition in the area, or because the owner needs to sell for a set minimum price in order to pay off their loan against the property. With traditional property sales methods, the only way to prevent the property from sitting on the market indefinitely is to keep dropping the price. Unfortunately, this technique doesn't always work - especially if the seller is unwilling to "discount" their house by much. In areas flooded with homes for sale, reducing the asking price slightly will not bring the desired result. In fact, it's common that the property will continue to sit on the market without offers, alongside the multitude of other unsold properties with similarly reduced prices. Anyone experienced in sales understands that making your product stand out from the crowd is a critical technique for success. But if there's too much competition offering the same attributes, the only logical way to attract the attention of serious buyers is to drop the price so that your property is a much better value than the competition. In cases where the seller is too inflexible with their asking price, this is not a practical solution. Without an alternative strategy, the seller is forced to keep the house on the market for an extended period of time with an unrealistic asking price, hoping for the right buyer to come along. And as you know, that "Mr./Mrs. Right" might NEVER materialize! The Seller Finance Solution Property sellers who want to both obtain their desired price and close on the deal quickly should consider seller financing. Seller financing is a powerful tool to remedy real estate situations that otherwise look grim. Many home sellers (and their real estate agents) do not see seller financing as a viable option. In actuality, seller financing can bring new attention to the listing and invite a different group of potential buyers - thereby opening up a unique, untapped market. A large percentage of people throughout the country cannot get approved for bank funding to buy real estate because of their credit situation. Many of these people are still in the market to buy a house, however. The "credit-challenged" are often frustrated with the limitations of apartment living or being renters; as a result, many are willing to pay a higher price just for a chance to get seller financing and improve their quality of life. A savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it into a bonafide seller's market. By using this type of creative financing, the seller could actually end up getting more than the original asking price - without resorting to the questionable strategy of patiently waiting for the "right buyer". Seller finance can enable homeowners to receive a favorable selling price despite bad market conditions. In addition, the real estate agent (if any) gets to close a deal and move on to other sales, while a home buyer with poor credit is able to become a home owner. It's one of those rare situations where everyone at the negotiating table gets what they want. Paper Tigers Many home sellers never consider seller financing because they don't understand the benefits. There are also common misconceptions that it's much too complicated to attempt to orchestrate a seller financed deal, or that there are no buyers willing to sign a private note. Once a property seller takes the time to learn about the basic process, the advantages of offering financing instead of a lower price to sell their property become very clear. Plus, a little education about seller finance will make it apparent that drafting a secured private note is actually a very straightforward process. The bottom line is seller financing can enable a home owner to "have their cake and eat it too" - i.e., sell at the desired price, close the deal quickly, and even receive additional income from interest payments as well. Call Eddie Franklin At 312 638 0922 Click Here For More Information Hyperlink Text http://www.prlog.org/rss/world-all-top5-headlines.xml

Sell Your Real Estate With Seller Financing

December 02, 2008 - 12:33 pm

Sell Your Real Estate With Seller Financing

December 02, 2008 - 12:33 pm

Strategies for selling Cash Flow Notes

November 29, 2008 - 1:23 pm

Strategies For Strong Selling Of Cash Flow Note

Saturday, November 29, 2008

Strategies for Strong Selling Of Cash Notes

Strategies for Strong Resale
When property sellers need to receive as much cash as possible immediately for the down payment on their next house, it is critical to anticipate this need in order to use seller financing to their advantage.
Getting top dollar for a note
In a typical seller-financed closing, the seller only receives cash from the down payment at the time of sale. This amount could be used to pay the real estate agent and put the remainder toward their own down payment on another house, but in many cases, the amount received is not enough. In addition, sellers who uses private financing to close the sale will not get the full amount financed when the note is sold.
Most sellers need as much money as possible when they "cash out" their newly created note, so their objective is to sell the note at the lowest discount possible. And to do this, they will need to create a secured cash flow that is attractive to note buyers.
Note pricing factors
The size of the discount - i.e., the difference between the purchase price and the remaining balance - depends largely on factors such as the specifics about the payer, the property/price, and the note terms. If the note is created without these important criteria in mind, the seller may have a difficult time finding a buyer to pay the amount that the homeowner needs.
The Payer

Clearly, there isn't much the seller can do about the "quality" of the payer because most people interested in accepting seller financing are higher-risk borrowers. Still, if there is more than one party interested in buying their property, sellers offering financing can still discriminate based on credit history or the amount of the down payment offered.
The Property/Price
Similarly, the seller can't change the basic facts about their property - where it's located, the type of structure, or its age or condition. But, the seller can control the price they set for their property.
Most sellers have a specific amount in mind that they need to get out of a sale. In traditional real estate sales, getting that money usually is determined by the property's price. But with seller financing, there is another step that is taken before the seller ends up with the total amount of money they were looking for - the note must be sold.
Since private notes are typically sold at a discount, the seller must set their price higher than the amount they were looking for to compensate for the drop that will come with the buyer's offer. By setting the price slightly higher than market value, the seller can create a note that sells with a minimal discount. Individuals that don't qualify for conventional funding are motivated to buy real estate, even if the price is somewhat higher than market value.
Increasing the sales price and the implied value of the property will not actually affect the buyer's discount, but the adjustment could lead to more money in the seller's pocket.
A higher sale price means a note with a larger unpaid balance, which could still bring the seller the desired net amount after discounting. Keep in mind that higher sale prices can also lead to larger down payments (as a set percentage of the price), resulting in more money in the seller's pocket.

The Note Terms
The most important thing for sellers to do is to structure their note so that the buyers won.t be forced to incorporate a deep discount into their offers. From the buyer.s point of view, higher interest rates and shorter terms are preferred. The actual offer made is based on the yield the buyer is looking for; in general, higher yields are associated with riskier notes. The discount is directly related to the difference between the interest rate on the note and the buyer.s desired yield.
While sellers can.t know exactly what a buyer.s required yield will be, the seller can certainly create a note that could minimize the expected discount. Generally, buyers will want to receive a yield anywhere between 12% and 20% on a note. While yield parameters will fluctuate with the market, a 10% yield is typically the lowest they will accept for new notes.
A note creation example

Because buyers usually want to earn a yield above 12%, creating a note with an interest rate under 10% would automatically mean a steep discount when the note is sold.
For example, creating a cash flow with a 3% interest rate doesn.t make any sense if the seller needs to get top dollar for their note, because there is already a seven-point difference between the interest rate and the buyer's desired yield. In addition, most buyers will create a gap in their favor by yielding at least one point more than the interest rate.
Sellers can also avoid unnecessary discounts by reducing the terms of their notes. Another part of a buyer's discount is based on the time-value of money principle, meaning that notes that take longer to be paid off will usually be discounted accordingly. An ideal term for a private secured note is between five to ten years (60 to 120 months).
Conversely, it isn't a good idea to shorten the term down to two years or less because a foreclosure situation will be created - the monthly payment will likely be too steep for the payer to keep up with for long.
By keeping the eventual note buyer's criteria in mind when creating a private note, property sellers can ensure that their real estate note deal works out the best for them. and that they net the highest amount possible when a cash settlement is reached.

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Sell Lottery Structured Long Term Winnings

November 28, 2008 - 12:55 pm

Sell Lottery Sructured Long Term Lottery Winnings

Friday, November 28, 2008

Sell Lottery Structured Long Term Winnings

ED FRANKLIN’S Lottery Winnings Annuity sales get cash now

ED FRANKLIN’S Lottery Winnings Annuity sales get cash now

How can I insure a $50 million lottery win
FDIC insurance deposits with a bank only insures up to $100,000 per account holder
Will any bank accept a $50 million dollar CD and insure that money

The first thing I'll suggest is that with $50 million you can afford to pay for advice from a financial service professional
It's just that you'll need more help than you're going to get in this column
, or FDIC, insurance on $20 million of the $50 million is to use CDARS, the Certificate of Deposit Account Registry Service
You deal with one bank and CDARS works with that bank to ensure that all of your deposit is FDIC-insured
I've written about CDARS before and suggest that you read that column and also check out the CDARS Web site
Treasury securities are considered risk-free investments when held to maturity
You do face some price fluctuations day to day with changes in market interest rates, but the government guarantees the face value of the security at maturity
You can own these securities in a brokerage account or in a Treasury Direct account
The brokerage firm in most cases will be a member of the Securities Investor Protection Corp

The SIPC is much different from the FDIC, but it does provide a measure of protection from fraudulent brokerage firms
" SIPC helps individuals whose money, stocks and other securities are stolen by a broker or put at risk when a brokerage fails for other reasons
The SIPC doesn't guarantee that your investments won't lose value, it just steps in to protect you from theft of your securities or the failure of a brokerage firm
Investments held as cash are protected only up to $100,000
If it were my millions, I wouldn't hesitate to invest in U

Treasury securities in an account with a national firm, many of the large regional firms, a brokerage account with one of the large mutual fund companies or Treasury Direct
Finding a home for this money while you're deciding how to invest is one thing
Treasuries will protect your principal, but you can do a lot better without taking on a lot of risk, and you're probably going to want to expand your approved list of investments
Municipal securities, for example, can provide tax-exempt income, but alternate minimum tax considerations means you'd want to consult with a tax professional about investing in municipal securities
Try to get the big picture about what life goals you want to achieve with this money and what you'd like to accomplish with the remainder of the money after you're gone
I'd actually focus on the life goals aspect before getting too deep into the how-to-invest-it part
To that end, the Treasuries and CDs are fine for the short-term

I wish I had someone to recommend for you on the life-goal side, but I started out telling you that you'd need more advice that I could give you in this column
A life coach seems like a reasonable place to start

Just don't listen to any advice about investing in a life-coach franchise
Don, go to the "Ask the Experts" page, and select one of these topics: "financing a home," "saving & investing" or "money
DonAsk a question � RESOURCES Find out when CD rates hit your target Hey, you
Unlucky lotto winners who lost the money � TOP INVESTING STORIES Fame & Fortune: Jennifer Love Hewitt12 investment mistakes couples makeInvesting: To risk or not

Which is better -- a rebate or special dealer financing
Develop a savings plan Every kind of CD explained Treasury bonds and more Pros and cons of annuities All about IRAs GUIDES Real Estate Guide What will $400K buy

This new statute overrides the constructive receipt doctrine and permits lottery winners to consult with their family, attorneys, accountants, and financial planners after winning the lottery in order to determine which payment option is most consonant with their goals and objectives
The tax and financial considerations associated with a Section 451(h) election are discussed under "Planning," below
The new law, which is effective for individuals winning the lottery after 10/21/98, creates a "qualified prize option" and a "qualified prize
"6 A "qualified prize" is "any prize or award which (i) is awarded as a part of a contest, lottery, jackpot, game, or other similar arrangement, (ii) does not relate to any past services performed by the recipient and does not require the recipient to perform any substantial future service, and (iii) is payable over a period of at least 10 years
" A "qualified prize option" is an "option which (i) entitles an individual to receive a single cash payment in lieu of receiving a qualified prize (or remaining portion thereof), and (ii) is exercisable not later than 60 days after such individual becomes entitled to the qualified prize
" Section 451(h)(1) provides that, for a cash-method taxpayer, a "qualified prize option shall be disregarded in determining the taxable year for which any portion of the qualified prize is properly includible in gross income of the taxpayer
" Section 451(h)(3) also instructs Treasury to issue Regulations for the application of the new rules to partnerships or other pass-through entities consisting entirely of cash-method individuals
A significant transition rule gives previous lottery winners a one-time option to receive a lump-sum cash payment
105-277 provides that, for an 18-month period commencing on 7/1/99 and continuing to 12/31/00, previous lottery prize winners receiving payment in the form of an annuity may elect a lump-sum distribution equal to the present value of the remaining annuity payments
Nevertheless, it is anticipated that most lotteries will begin offering the qualified prize option to prospective lottery contestants and prior lottery winners on 7/1/99
Unfortunately, Section 451(h) creates a class of prize winners who are not afforded its benefits

Under the statute, there are three classes of prize winners:Prize winners prior to 10/22/98 ("pre-effective date winners")
Prize winners after 10/21/98 and before 7/1/99, the date on which it is anticipated that most lotteries will begin to offer a qualified prize option ("interim winners")
Prize winners after 6/30/99 ("qualified prize option winners")
Thus, as of 7/1/99, the pre-effective date winners can make the one-time "18-month election" to receive a lump sum
Similarly, all qualified prize option winners will be given 60 days to choose between a lump sum or annuity prize
But the interim winners are not permitted to make the 18-month election because their lottery prize was won after the effective date of Section 451(h); similarly, they are not permitted to make a 60-day election because the local lottery rules have not been changed to provide for a qualified prize option

The omission of the interim winners was most likely unintentional
While legislation may be needed to cure the defect, it may be possible for the IRS to rule that it will not apply the constructive receipt doctrine to interim winners who are given an 18-month election to choose between a lump sum or an annuity
First, many lotteries already offered a choice between a lump sum or an annuity
In order to avoid the constructive receipt doctrine, the lottery contestant had to irrevocably elect the form of the prize prior to purchasing the ticket
Regulations should clarify that pre-effective date winners and interim winners who chose to receive their prize as an annuity may nevertheless make the 18-month election to receive a lump-sum payment of the unpaid lottery prize
Second, Section 451(h)(2)(b)(iii) requires that the lottery prize in the form of an annuity be payable over at least ten years
Regulations should clarify, with respect to pre-effective date winners, that the annuity must be initially payable over ten years, as opposed to having at least ten years remaining on the annuity
Example: On 3/15/87, Harold won a lottery prize payable in 20 annual installments
On 7/1/99, the lottery board gives prior lottery winners a one-time 18-month election to receive a lump-sum payment
Since Harold received 13 annual installments from 3/15/87 to 3/15/99, there are only seven remaining payments with respect to his annuity prize
Regulations should clarify whether Harold is entitled to make the 18-month election
Arguably, he should be, because his prize was initially payable over 20 years
Other Constructive Receipt IssuesThe constructive receipt doctrine has been applied in other contexts with respect to lottery prize winners
In Paul, TCM 1992-582, the taxpayer won the New Jersey lottery on 12/29/87 but did not receive payment until 1/22/88

The Tax Court held that winnings were includable in income in 1988, the year in which the payment was actually received
In arriving at its decision, the court rejected the Service's argument that the taxpayer could have driven 68 miles to Trenton in the last two days of the year to demand payment "on the spot
" The court considered such a requirement a "substantial limitation," thereby negating the application of the constructive receipt doctrine
The treatment of the constructive receipt doctrine in Paul raises an issue with respect to lottery winners after the enactment of Section 451(h)
If a lottery contestant wins on December 15th and is given 60 days to choose between a lump sum or an annuity, the contestant may argue that she is not required to include any portion of the lottery prize, whether a lump-sum distribution or an annuity installment payment, until the date on which she makes an election, possibly in January or February of the following year
The IRS presumably would argue that the lottery contestant is given an election that may be exercised immediately, and therefore the existence of the election does not create a substantial limitation on the lottery winner's control or receipt of the lottery prize, in whatever form
Economic Benefit DoctrineThe economic benefit doctrine is a related but separate income tax accounting concept that also should be considered

This doctrine provides that income is taxable under Section 61 even though it is not actually or constructively received in the form of cash
Unlike the constructive receipt doctrine, it is not necessary that the taxpayer's interest in the property be assignable or for the taxpayer to be entitled to immediate possession; rather, it is only necessary that there be an identifiable property interest over which the taxpayer's rights have vested
The Tax Court held that the winnings were taxable to the minor in the year they were deposited into the account for his benefit, not in the year of actual receipt
Fortunately, certain restrictions in the lottery statute or rules avoid the application of the economic benefit doctrine
Moreover, lottery rules typically provide that the winner has only an inchoate, contractual right to receive annuity payments from the lottery
Withholding on Lottery WinningsSection 3402(q)(1) provides that "[e]very person, including the Government of the United States, a State, or a political subdivision thereof, or any instrumentalities of the foregoing, making any payment of winnings which are subject to withholding shall deduct and withhold from such payment a tax in an amount equal to 28 percent of such payment
"15 Generally, proceeds exceeding $5,000 are subject to withholding
Individuals who receive lottery winnings won by someone else or members of a group of winners on the same winning ticket must report their winnings on IRS Form 5754
Many lottery winners, especially large prize winners, are often dismayed to learn that, even after their lottery prize is substantially reduced by income tax withholding, they may be required to pay additional income tax
Given the disparity between the 28% federal withholding rate and the 39
Gambling LossesLottery winnings are considered gambling gains
" Therefore, gambling losses may not offset other income or be used as an NOL carryback or carryover
The gambling loss deduction can be applied two ways:If a taxpayer's gambling activities constitute a trade or business, substantiated gambling losses are deductible in arriving at the taxpayer's adjusted gross income
If a taxpayer's gambling activities do not constitute a trade or business, the IRS takes the position that the taxpayer must deduct such losses as itemized deductions

A limited federal credit for state death taxes is available
Similarly, for lottery winners receiving payments as an annuity, the present value of the unpaid annuity payments is included in the lottery winner's gross estate
In addition to the income taxes payable with respect to the lottery prize, Elizabeth's estate is required to pay estate taxes on the lottery prize included in her estate
Assuming that the lottery prize is the only asset in Elizabeth's estate, that she made no taxable gifts during her lifetime, and that she is subject to a flat, combined 45% income tax rate, she would be required to pay income taxes of $4
After receiving the first five payments, Ann died on 11/1/98
Under Sections 2031, 2039, and 7520, Ann's estate is required to include the present value of the remaining 15 annuity payments, calculated to be $10,104,600
" This is an annuity, income, remainder, or reversionary interest that is "subject to any contingency, power, or other restriction, whether the restriction is provided for by the terms of the trust, will, or other governing instrument or is caused by other circumstances
" Taxpayers have argued that lottery rules which prohibit or limit the assignability of the remaining annuity payments cause the annuity to be a restricted beneficial interest, thereby permitting a departure from the requirements of Section 7520
In TAM 9616004, the IRS rejected this argument, however, noting that Reg
Because there is no restriction on the payment of the lottery prize annuity, the taxpayer is required to use the standard Section 7520 annuity factors
, 1998), suggests that, for lottery winners dying between 4/30/89 and 12/13/95, departure from the Section 7520 annuity tables may be warranted

In Shackleford, the taxpayer died in 1990 after receiving the first three annuity payments of his lottery prize
His estate reported the value of the remaining annuity at $2
The court concluded that a factual issue regarding the value of the annuity was in dispute, and therefore denied the Service's motion for summary judgment
The taxpayer and her sister-in-law won a state lottery with a lottery prize payable as an annuity over 20 years
The taxpayer's sister-in-law executed an affidavit stating that they regularly pooled their money, that they had a preexisting agreement to share their lottery winnings, and that the winning lottery ticket was purchased on behalf of their preexisting partnership
The parties formed a limited partnership in which each was a 2% general partner and a 48% limited partner
The limited partnership claimed the winning lottery prize
After the first annuity payment was made to the partnership, the taxpayer died; it is significant that, as in Shackleford, the taxpayer died before 12/13/95, the effective date of Reg
The taxpayer's estate listed the partnership interests on the estate tax return
The partnership interests were valued by first computing the sum of the underlying assets, cash and 19 lottery payments receivable
The estate then discounted the payments to present value using a discount rate based on the AAA-rated general obligation bond yield, as opposed to the Section 7520 factors

The estate further discounted each payment by 39
Finally, the estate took an additional 20% discount for the partnership interests for lack of control and another 25% for lack of marketability
The Service rejected the estate's argument that the Section 7520 factors should not be used and found that the annuity payments were not restricted beneficial interests
Based on the same rationale used in TAM 9616004, the IRS found that the nonassignability of the lottery prize did not affect the payment of the annuity
In addition, the Service found that the right of the partnership to receive payment of the lottery winnings had not been restricted in any way
The IRS concluded that the taxpayer's estate was required to use the standard Section 7520 annuity factors to value the annuity payments and that discounts for lack of marketability and income taxes could not be applied to the valuation of the annuity payments
The Service expressed no opinion on entity discounts for lack of marketability and lack of control that were applied to the partnership interests
Alternate ValuationOrdinarily, assets subject to the estate tax are valued as of the date of the decedent's death
Section 2032(a), however, provides that the executor may elect to value the assets in the gross estate on an "alternate valuation date," typically six months after the date of the decedent's death
If the property was distributed, sold, exchanged, or disposed of earlier than that date, it is valued on the date of disposition
In TAM 9637006, a lottery winner was entitled to receive 16 additional annuity payments of $112,500 each at the time of his death
On the day he died, the Section 7520 interest rate was 8
On the alternate valuation date six months later, the Section 7520 interest rate was 9
The estate valued the decedent's interest in the 16 annuity payments as of the date of death, but used the 9

The IRS ruled that an annuity is an interest that is affected by the mere lapse of time
Valuation changes due to interest rate fluctuations, however, are not changes due to the mere lapse of time
Changes due to mere lapse of time include changes attributable to the time value of money, the depletion of an asset, or the receipt of a benefit by an estate during the alternate valuation period
The IRS concluded that the estate properly valued the interest as of the time of death with the adjustment for the difference in its value as of the alternate valuation date due to the change in the applicable federal rate
Liquidity IssuesMany lottery winners and their families are discouraged to learn that, along with the return, estate taxes are due nine months after the date of death
The estates of winners who received their prizes as an annuity are often placed in the difficult predicament of not having sufficient cash to pay estate taxes
Example: The facts are the same as in the previous example, i
, the present value of Ann's remaining lottery annuity is $10,104,600
Assuming that this is the only asset in Ann's estate (and that Ann made no taxable gifts during her lifetime), the estate taxes due will be $5,001,510
Ann's estate will not receive another lottery annuity payment until 10/31/99
Because of the illiquid nature of the annuity, there is simply insufficient cash to pay the estate taxes

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eddie Franklins Networking Sites

November 28, 2008 - 12:07 pm

Ed Franklin Networking Sites

Monday, September 15, 2008

Edward Franklins Networking Sites

ED FRANKLIN’S DIRECT MATCHES is the largest and fastest growing internet marketing site for networking, socializing, and business on the internet. http://www.directmatches.com/efranklin1
Direct Matches has grown 700% (seven hundred per cent) each year, from 80,000 last year to almost 500,000 (five hundred thousand) today worldwide.
The best features of the site are a 14 DAY FREE TRIAL, GROUP EMAIL which allows you to send up to 60 (sixty) emails at a time per day at once, and many as possible
Individual emails to it’s over 500,000 members.
(Five hundred) like minded member on a closed site without SPAM. Member sorting which allows you to sort member s by group, country, zip code, business type, and location within a certain distance of a zip code, AUDIO /VIDEO tools which allow you to add streaming audio and videos to your web sites and emails, posting of profile, and listing of a least 3(three URL links) to your other web sites, Traffic Exchange with free text ads for customer members with ranking determined time you use the site online, news letter which allows automated construction of NEWS LETTERS which are distributed throughout the internet, BEST COMPENSATION PLAN in cash payments for manager and executives which pays 50% (fifty percent) for sign up refers in your down line up to $6000.00 (six thousand dollars). You post your profile FREE. Join as a customer for $ 9.99 month.

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Complte Guide to working At Home

November 26, 2008 - 10:29 am

Veretekk affiliate leads, marketing and income technologies ED F ED FRANKLINS VERETEKK marketing system is a site that provides a complete system for interent marketing and working at home and some of the best free training online for newbies to old pros from copying and pasting, setting up POP3 to search engine optimization. Your 23 (twenty three) marketing portals some of which are free such as FFAs (free for all) The feature of some of the portals are LEADSOMATIC which allows you to blast your web site to be hoisted on 40 search engines weekly , BLASTOMATIC which allows you too submit your Ads and URL to over 12 million search engines and internet directories. It also allows you to get 1000s of free email leads daily that you can to email market and also sell. The third is ED FRANKLINS LEADSOMATIC which is one of the most cost effective ways of search engine submission on the internet submitting as many URLS as you have for only $ 10.00 {ten dollars} per month to up to 40 search enginesCLICK HERE

Search Engines are a kind of DUEY decimal system which is used in libraries to index and locate books that is used to locate your website on the internet once it is hosted on to the internet by using KEY WORDS ., words that pertain to the content and nature of what your website is about. There are millions of search engines worldwide. The most commonly know are Google which has 60% of the market and Yahoo with about 20% of the market, in order to get your website on the internet it must be hosted or submitted to a search engine. Google will do this free go to http://www.google.com/addurl/
The problem is not getting on the internet, it is getting seen on the internet out of 1,000,000,000 (billions) of other websites on the internet. One way is to gain exposure is buying paying for clicks by buying the use of key words. This find if you have lots of money to spend in getting your business started, but what we will discuss here is Traffic. The ranking for a search engine is determined the popularity of the website as measured by Traffic or the number of visitors to the website. The way to get a higher ranking or position on a search engine is to have the content as it relates to key words be what people are looking for through the use of Meta tags and key words.
Listed below are some low cost or free search engine sites.

1-FAMILY Classifieds Portal: Post this monkey to all the remote submission services. 1-Family Classifieds has been on the Internet longer than all the other classifieds and allows remote submission. A virtual Premium Lead dynamo! The submission services love us: http://e60628.1-family.com

Traffic Portal Control: NOW 2 BILLION plus Ads with one click! Give away the original 12 million ads Blast-O-Matic. It is the most powerful AD submission system in the world - and best of all, you get to give it away for FREE! No other AD submission service can compare to the "high-tech" service your prospects will receive from Blast-O-Matic. Most companies charge a fee and provide an inferior service! You get to provide top notch service with a great product for FREE!!! Your ads can claim "We dare you to take the challenge of finding a better deal than Blastomatic". Your Blastomatic site's address is: http://e60628.blastomatic.com

Leadsomatic: Legendary website submission tool and now Profit Portal! Online submission systems have come and gone over the years. Only Verettekk's submission technology offered through The Hammer has endured the test of time. Generate leads and now profit too!http://e60628.leadsomatic.com

ED FRANKLINS EMAIL SITES

The main way to get email leads is to have a website that attract people and have them submit their email address.

ED FRANKLINS VERETEKK SITE has many sites that attract individuals and encourage them to post their email address. This information can be used to reverse market these prospects for your product or service. Some of them are as well as a Veretekk account is Free as a Silver member. Sign up below.

CLICK HERE http://e60628.veretekk.com

Veretekk Affiliate Website: The home of your Veretekk system! The address matches your vanity email. Your affiliate site is a compelling entrance into the power and source of your Veretekk system. This site promotes your free for life Veretekk Silver system. This is the center attraction of your system! Your Affiliate Site's address is: http://e60628.veretekk.com

Working at home with Veretekk has many marketing portal websites which are available to gold members that can be used for search engine submission.

Traffic Portal Control: NOW 2 BILLION plus Ads with one click! Give away the original 12 million ads Blast-O-Matic. It is the most powerful AD submission system in the world - and best of all, you get to give it away for FREE! No other AD submission service can compare to the "high-tech" service your prospects will receive from Blast-O-Matic. Most companies charge a fee and provide an inferior service! You get to provide top notch service with a great product for FREE!!! Your ads can claim "We dare you to take the challenge of finding a better deal than Blastomatic". Your Blastomatic site's address is: http://e60628.blastomatic.com

BlogFather - The World's First Self-Replicating Blog System! Your BlogFather site is a powerful Traffic Portal allowing you to give away free weblog pages (aka Blogs). It comes complete with all of the publishing tools needed for anyone to set up and maintain their very own personal Blog. Your BlogFather site's address is: http://e60628.blogfather.net

Leadsomatic: Legendary website submission tool and now Profit Portal! Online submission systems have come and gone over the years. Only Veretekk's submission technology offered through The Hammer has endured the test of time. Generate leads and now profit too!http://e60628.leadsomatic.com

ED FRANKLIN�fS working from home with Veretekk also has many marketing portal website that can be used to capture email address for the use in your reverse marketing program as a gold member.
These are listed below.
Computer Giveaway: Marketing promotion meets lead generation. One of the oldest promotional giveaway sites on the Net. Periodically a random entry is selected to receive a free computer laptop. Everyone who signs up from your site becomes a lead:http://e60628.computer-giveaway.net

Daily Message Online: Viral newsletter system. Simple newsletter system with a powerful viral webmaster program hidden inside. Promote it directly yourself, or let others do the work for you:http://e60628.dailymessageonline.com

eTracking: Your Very Own Search Engine! The world's first self-replicating search engine is an extremely viral tool that allows you to generate massive leads directly, as well as indirectly by giving away additional eTracking search engines. Your eTracking web site address is: http://veretekk.etracking.net/e60628

FFAfarm Portal: The only permanent link ffa system. FFafarm is a hybrid ffa system and permanent link exchange system. FFAfarm is also the oldest ffa system on the Internet and offers far more benefit then any other ffa system does today:http://e60628.ffafarm.com

FreeFFAs Portal: Free Leads For Life! This site is as valuable and has better quality leads than other FFA lead systems like FFAnet, Links2u and others that sell for as much as $50 per month, but you give this away for free. Talk about a Traffic Portal, what POWER! And the Flash for this one will blow you right out of your chair, but then all of Veretekk does that!http://e60628.freeffas.com

Free-Mart Portal: Free software... Free ebooks... Free newsletter... Free live seminars...! A class act site ready for promoting the heart of what entreprenuerial webmasters and aspiring webmasters are looking for. Put this lead magnet into a search engine result and watch the mega results!:http://e60628.free-mart.net

Free-Page Portal: Give away the best SEO marketing tool on the net. Free-Page gives away free webpages that can be optimized to build search engine popularity with Free-Pages ability to add links:http://e60628.free-page.net

ISP-4-FREE Profit Portal: Viral lead generation and lucrative affiliate program to boot! This is the first in Veretekk's series of Profit Portals. ISP-4-FREE allows you to give away discounted Internet access through a leading provider. For more information on the associated affiliate program, click the "Affiliate" button above. Your ISP-4-FREE portal is located at: http://e60628.isp-4-free.net

Money Machine Portal: Survey entrance to your Market Center! The Money Machine is a stunning Flash presentation and survey then takes the visitor to your Market Center. This site promotes access into your center and also promotes your free and pay services. Your Money Machine Portal site's address is: http://e60628.money-machine.net

Sohomatic: Free downloads giveaway portal. This system offers tons of great software for all types of business applications. People can sign up to download as much as they want for free:http://e60628.sohomatic.com

Spam-Wars: Petition for Responsible Email Marketing. This is a compelling site (with a fun theme) for any/all online marketers. Promote this site and you will get LOTS of leads! But first - go sign the Petition against Spam yourself!http://e60628.spam-wars.net

Vacation 4 Free: Giveway free 3 day/2 night vacations.Visitors can choose from a wide range of destiations. You simply sign up and print our PDF coupon to get the free vacation:http://e60628.vacation-4-free.com

VereConference: Ultimate live online VoIP conference system. Every online marketing professional needs a powerful, easy-to-use tool to communicate with their team and customers. You have the ability to give exactly that away to generate massive leads!http://e60628.vereconference.com

Veremail: World Class, Spam-Free Bulk Emailing System In addition to the back office functionality Veremail provides, it also comes with its own Traffic Portal as well. Prospects who sign up through your Veremail portal receive a full Veretekk Silver system and are labeled as a Veretekk Silver lead. Your Veremail website address is: http://e60628.veremail.com

VereTracking: Free website statistical system. This portal offers visitors a free website monitoring service so that they can evaluate the traffic to their own sites:http://e60628.veretracking.com

Webcatch Portal: The world's first and only self replicating web directory. Webcatch is a Yahoo style directory that receives 1000s of submissions from around the world. Webcatch receives submissions through thousands of individual replicated subscriber's Webcatch sites:http://e60628.webcatch.net

Veretekk Down Under: The power of community through regional portals!Designed specifically to support your downline in the Australian and New Zealand markets - or help you to grow your business into them! An entire community within the Veretekk community!http://e60628.veretekk.com.au

ED FRANKLINS WORKING AT HOME SEO SITEL
The sites listed below can be used to increase a home owner website ranking on the search engines and internet; this is done by posting your ads and URL hyperlink in the various forums
SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.4F500.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.almost-rich.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.anzaland.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.blogfreeradio.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.blognewsradio.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.blogomatik.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.generate-leads.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.epopmail.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.incomeomatic.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.iwealthonline.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.lead-sources.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.my-free-biz.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.myfreesearch.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.seo5.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.seo9.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.success-leads.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.success-leads.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.tincashcan.com

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.voip-4-free.net

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.xelr8it.biz

SEO Portal Technology! Specifically designed to help you dominate the search engines, SEO portals give you full control over the critical content for search engine marketing without all the fuss of lead generation normally associated with other Veretekk portals. http://e60628.zerodebtgroup.com

Promissory Note Sales

November 26, 2008 - 9:25 am

Promissory Note Sales

Wednesday, November 26, 2008

Promissory Note Sales

A promissory note, also referred to as a note payable in accounting, is a contract detailing the terms of a promise by one party (the maker) to pay a sum of money to the other (the payee)
The obligation may arise from the repayment of a loan or from another form of debt
For example, in the sale of a business, the purchase price might be a combination of an immediate cash payment and payments against one or more promissory notes for the balance
The terms of a note typically include the principal amount, the interest rate if any, and the maturity date
Sometimes there will be provisions concerning the payee's rights in the event of a default, which may include foreclosure of the maker's assets
Demand promissory notes are notes that do not carry a specific maturity date, but are due on demand of the lender
Usually the lender will only give the borrower a few days notice before the payment is due
For loans between individuals, writing and signing a promissory note is often considered a good idea for tax and recordkeeping reasons
In the United States, a promissory note that meets certain conditions is a negotiable instrument governed by Article 3 of the Uniform Commercial Code
Negotiable promissory notes are used extensively in combination with mortgages in the financing of real estate transactions
Other uses of promissory notes include the capitalization of corporate finances through the issuance and transfer of commercial paper
At various times in history, promissory notes have acted as a form of privately issued currency
In many jurisdictions today, bearer negotiable promissory notes are illegal precisely because they can act as an alternative currency
All Scottish and Northern Irish banknotes are effectively standardized demand promissory notes.
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Stop Foreclosure And Stay In Your Home

November 11, 2008 - 2:02 am

PRLog Free Press Release + Bookmark This Page Preferences | 12:01 PM 1. Home 2. Latest News 3. Submit Press Release 4. Search Jobs 5. Search Businesses 1. News Home 2. News Archive 3. By Category 4. By Location 5. By Date 6. By Tag 7. Newsletter 8. 40,000 RSS Feeds 9. 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Investors will negotiate a fair price for your home with CASH and pass on saving FOR IMMEDIATE RELEASE PRLog (Press Release) � Nov 09, 2008 � Cash flow notes can be the answer to keep you in your and forestall foreclosure. A cash flow note is a promissory note. Every mortgage has a promissory note that you sign at the tine of the closing of the mortgage sale, if you are on the verge of foreclosure and want to stay in your home. We might be able to help. CNN recently showed the story of a woman in Dallas Texas, who was in foreclosure and the faith to go the foreclosure sale, where her home was been sold. CNN showed her in the foreclosure building site sitting on the floor in the hall way of the building praying to stay in her home. A woman saw her and had compassion for her. She purchased the home and leased back the home to her with an option to repurchase it after a period of time where she would have time to rebuild her credit. The purchaser gave the foreclosure victim a fixed rate mortgage that she could afford. Oh, sure, we hear anecdotes about folks who stopped paying their mortgages simply because their homes were worth less than they had paid, or less than they owed, even though they could still afford the payments. Some people are thinking of buying another home at its new, lower price and then mailing in the keys to his current home. But there's little hard evidence that this is happening on a large scale, as Los Angeles Times writer Michael Hiltzik recently reported in "'Walk away' borrowers might be an urban myth." Although lenders warn about the moral hazard posed by solvent walkaways, and Treasury Secretary Henry Paulson has branded any borrower who would do so a "speculator" who is "not honoring his obligations," others say mortgage bankers are trying to shift the blame for the foreclosure crisis onto borrowers' shoulders. EDDIE FRANKLIN'S, CASH FLOW NOTE SALES is part of the most successful worldwide cash flow note multiple listing service. Stop foreclosure with lease with option to repurchase We are a part of a worldwide network of investors that are for long term cash flow note streams of income. Some of them are willing to pay cash for your promissory note from your mortgage holder and reselling your home using seller financing, which will lease back your home to you with a lease with option to buy contract. These investors are interested in long term of stable cash flow income from your lease payments Some people believe that walking away from a mortgage is immoral. They believe you should do everything in your power to repay your loan, including draining your retirement funds, racking up credit card debt and selling your firstborn. In their view, the lender should have to pry the house keys from your cold, dead -- or at least bankrupt -- fingers. Others insist that reneging on a mortgage obligation is no big deal. It's a business decision, they say, and nothing more. As usual, both extremes are wrong . Most of us know money is more than a matter of numbers. There are ethics involved. Most people feel, or should feel, an obligation to pay their debts. (So should business people, by the way. When ethics depart business, the result is Enron A promissory note, also referred to as a note payable in accounting, is a contract detailing the terms of a promise by one party (the maker) to pay a sum of money to the other (the payee) The obligation may arise from the repayment of a loan or from another form of debt For example, in the sale of a business, the purchase price might be a combination of an immediate cash payment and payments against one or more promissory notes for the balance The terms of a note typically include the principal amount, the interest rate if any, and the maturity date Sometimes there will be provisions concerning the payee's rights in the event of a default, which may include foreclosure of the maker's assets Demand promissory notes are notes that do not carry a specific maturity date, but are due on demand of the lender Usually the lender will only give the borrower a few days notice before the payment is due For loans between individuals, writing and signing a promissory note is often considered a good idea for tax and recordkeeping reasons In the United States, a promissory note that meets certain conditions is a negotiable instrument governed by Article 3 of the Uniform Commercial Code Negotiable promissory notes are used extensively in combination with mortgages in the financing of real estate transactions Other uses of promissory notes include the capitalization of corporate finances through the issuance and transfer of commercial paper At various times in history, promissory notes have acted as a form of privately issued currency In many jurisdictions today, bearer negotiable promissory notes are illegal precisely because they can act as an alternative currency All Scottish and Northern Irish bank notes are effectively standardized demand promissory notes In fact, the IOU is simply an acknowledgment of the existence of a debt owed; in contrast, a promissory note , that is, it contains an affirmative undertaking to pay the amount stated by a date, or subject to other specified conditions. The lease with the option to repurchase is the key to circumventing the payable on demand clause in most promissory note contracts. We have cash flow note buyer that are willing to help. Click Here For More Information Hyperlink Text http://www.prlog.org/rss/world-all-top5-headlines.xml # # # We help individuals get cash for cash flows, annuities,real estate notes, promissory notes, purchase money mortgages,and other structured long term cash flow payments.. They want liquidate and cash out early. # # # + Share This Article Click to see PDF Version of this Press Release Email to a Friend Email to Author Visit Press Room Previous News Next News Issued By : Eddie Franklin Email : Click to contact author Phone : 312 638 0922 Address : 11572 South Perry Ave City/Town : Chicago State/Province : Illinois Zip : 60628 Country : United States Categories : Finance, Real Estate, Accounting Tags : Promissory Note, Mortgage Note, Carry Back Note, Commercial Note, Land Contract, Mobile Home Note, Real Estate Note Disclaimer: Issuers of the press releases are solely responsible for the content of their press releases. PRLog.Org can't be held liable for the contents of the press releases. Report Abuse Related Stop Foreclosure, Home Mortgage, Refinance, Loan Restructuring, Pre-Foreclosure, Short Sale Options Commercial Property Search Solved Amador County REALTOR� Michael I. Pulskamp earns County's first EcoBroker Certified� designation! Michigan Mortgage Modification launches new website to help fight foreclosure Capital Financial Bancorp�s team supports the Political Action Committee and the IAMP Most Viewed (Last 7 days) President Barack Obama T-Shirts On Sale - 2048 views Diverse Media Group Inc. (DVME) Ranks 10th largest talent talent agency in the WORLD. - 1805 views UFO contactee abducted from 100 Mile House to speak in Nelson, Canada - 783 views Historic Washington D.C. Hotel Prepares for 2009 Presidential Inauguration - 424 views Miley Cyrus glams up with Whiteflash�s Fashion Jewelry - 376 views Previous News Next News Are you a Journalist? For Businesses ... Tutorial on Free Marketing 1. SiteMap 2. Contact PRLog 3. Privacy Policy 4. Terms of Use 5. Copyright Notice

STOP FORECLOSURE WITH LEASE BACK OTION STAY IN YOUR HOME.

November 09, 2008 - 8:14 am

STOP FORECLOSURE WITH LEASE BACK OTION STAY IN YOUR HOME. Cash flow notes can be the answer to keep you in your and forestall foreclosure. A cash flow note is a promissory note. Every mortgage has a promissory note that you sign at the tine of the closing of the mortgage sale, if you are on the verge of foreclosure and want to stay in your home. We might be able to help. CNN recently showed the story of a woman in Dallas Texas, who was in foreclosure and the faith to go the foreclosure sale, where her home was been sold. CNN showed her in the foreclosure building site sitting on the floor in the hall way of the building praying to stay in her home. A woman saw her and had compassion for her. She purchased the home and leased back the home to her with an option to repurchase it after a period of time where she would have time to rebuild her credit. The purchaser gave the forclosure victim a fixed rate mortgage that she could afford.

Oh, sure, we hear anecdotes about folks who stopped paying their mortgages simply because their homes were worth less than they had paid, or less than they owed, even though they could still afford the payments. Some people are thinking of buying another home at its new, lower price and then mailing in the keys to his current home.

But there's little hard evidence that this is happening on a large scale, as Los Angeles Times writer Michael Hiltzik recently reported in "'Walk away' borrowers might be an urban myth." Although lenders warn about the moral hazard posed by solvent walkaways, and Treasury Secretary Henry Paulson has branded any borrower who would do so a "speculator" who is "not honoring his obligations," others say mortgage bankers are trying to shift the blame for the foreclosure crisis onto borrowers' shoulders.

EDDIE FRANKLIN'S, CASH FLOW NOTE SALES is part of the most successful worldwide cash flow note multiple listing service. Stop foreclosure with lease with option to repurchase We are a part of a worldwide network of investors that are for long term cash flow note streams of income. Some of them are willing to pay cash for your promissory note from your mortgage holder and reselling your home using seller financing, which will lease back your home to you with a lease with option to buy contract. These investors are interested in long term of stable cash flow income from your lease payments

Some people believe that walking away from a mortgage is immoral. They believe you should do everything in your power to repay your loan, including draining your retirement funds, racking up credit card debt and selling your firstborn. In their view, the lender should have to pry the house keys from your cold, dead -- or at least bankrupt -- fingers. Others insist that reneging on a mortgage obligation is no big deal. It's a business decision, they say, and nothing more. As usual, both extremes are wrong

. Most of us know money is more than a matter of numbers. There are ethics involved. Most people feel, or should feel, an obligation to pay their debts. (So should business people, by the way. When ethics depart business, the result is Enron

For example, in the sale of a business, the purchase price might be a combination of an immediate cash payment and payments against one or more promissory notes for the balance The terms of a note typically include the principal amount, the interest rate if any, and the maturity date

Sometimes there will be provisions concerning the payee's rights in the event of a default, which may include foreclosure of the maker's assets Demand promissory notes are notes that do not carry a specific maturity date, but are due on demand of the lender Usually the lender will only give the borrower a few days notice before the payment is due

For loans between individuals, writing and signing a promissory note is often considered a good idea for tax and recordkeeping reasons In the United States, a promissory note that meets certain conditions is a negotiable instrument governed by Article 3 of the Uniform Commercial Code Negotiable promissory notes are used extensively in combination with mortgages in the financing of real estate transactions

Other uses of promissory notes include the capitalization of corporate finances through the issuance and transfer of commercial paper At various times in history, promissory notes have acted as a form of privately issued currency

In many jurisdictions today, bearer negotiable promissory notes are illegal precisely because they can act as an alternative currency All Scottish and Northern Irish bank notes are effectively standardized demand promissory notes In fact, the IOU is simply an acknowledgment of the existence of a debt owed; in contrast, a promissory note , that is, it contains an affirmative undertaking to pay the amount stated by a date, or subject to other specified conditions. The lease with the option to repurchase is the key to circumventing the payable on demand clause in most promissory note contracts. We have cash flow note buyer that are willing to help.

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Eddie Franklins Purchase Money Mortgage Sales

November 08, 2008 - 5:42 am

New Document EDDIE FRANKLIN�S Cash Flow Sales We will counsel individuals and companies in structuring private paper transactions and turning private paper assets into cash Cash flow notes, mortgage notes, real estate notes, annuity notes First Class Cash Flow Handlers offers services that include: assisting other professionals with structuring quick sales of difficult properties for their clients, through the creation of notes which can be liquidated for cash at the close of escrow ('simultaneous closings'); disposing of existing notes to achieve cash liquidity for clients; and structuring transactions whereby private paper can be used in lieu of cash toward achieving investment or personal acquisition objectives

We specialize in helping people solve their cash flow problems We buy and sell cash flow notes of any type, including mortgage notes, real estate notes, trust deeds, business notes, mobile home notes, structured settlements, inheritance notes, auto notes, airplane notes, boat notes, lottery winnings, presettlement funding and annuity notes It explores current topics within the cash flow field and answers frequently asked questions about cash flow notes and owner financing

You can subscribe to The Cash Flow Clarion. If you are a realtor or other professional (attorney, CPA, financial professions advisor, mortgage broker, developer or contractor, etc), you can also receive free reports relating directly to your

Please visit the 'Realtors' or 'Other Professionals' pages to subscribe There are many reasons you may want to sell your note You may prefer to have a lump sum of cash now Have you ever had a buyer who couldn't qualify for a loan, but had the down payment and decent credit First Cash Flow Handlers will buy any type of cash flow, including mortgages, trust deeds, and deeds of trust on residential

We also offer products and services designed to help a home owner sell their home quickly using owner financing and to help people who hold cash flow notes protect and secure their investment in the note By using owner financing, a home owner can sell their home for top dollar and close the sale much more quickly than is possible with traditional home sales techniques For a note holder, not having the information necessary to maintain and secure the note could mean losing money on the note

Information is the key to financial success and we can provide you with the information you need to fulfill your financial goals. You may prefer to have a lump sum of cash now in order to pay bills or buy Our sales techniques will significantly increase your production, earn you more commissions, make you more competitive If you are an attorney, CPA, financial advisor, mortgage broker, real estate contractor or developer, rehabber, or mobile home dealer We, at http://www.cash4cashflows.com/efranklin5 Eddie Franklins Cash Flow Note Services provide services to buy and sell � seller-held mortgages, offering cash for your trust deeds and land contracts both purchase money and hard money mortgages all over the country The � terms used for these types of notes are real estate note, real estate notes, promissory notes, or even privately held notes but rest assured all the terms refer to the same type of transaction We have been buying and selling the mortgage note buyers � for many years Eddie Franklins Cash Flow Note Sales Services is a business which assists in private real estate financing Services offers services that include: assisting other professionals with structuring quick sales of difficult properties for their clients, through the creation of notes which can be liquidated for cash at the close of escrow ('simultaneous closings'); disposing of existing notes to achieve cash liquidity for clients; and structuring transactions whereby private paper can be used in lieu of cash toward achieving investment or personal acquisition objectives We buy and sell cash flow notes of any type, including mortgage notes, real estate notes and trust deeds Right now, people like you all across North America are stuck with investments that they don't want They would rather sell cash flow notes for cash now

Whether it's a real estate note created when selling a property, a business note created when selling a business or even a structured settlement, there are thousands of notes out there that could be turned into cash From Note to Cash is a Eddie Franklins Cash Flow Note Sales service that helps private individuals to: Liquidate Cash Flows. Few people know that they can sell cash flow notes TODAY for cash 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 the owner of a property is holding the mortgage for a buyer who couldn't get financing on his own, that owner would be holding a cash flow note. If someone is a participator in a trust and is receiving or will be receiving monthly income, he is holding a cash flow note Lottery winners, those who have an annuity and those with court awards paying out monthly or yearly, are all holders of these notes

There is a whole business dedicated to buying cash flow notes from people so that they can have a lump sum of money immediately (relatively speaking) rather than wait for years or decades for the entire amount Let's take the case of the man who tried for three years to sell his parent's house in a large Eastern city Look, the place was not exactly the Ritz and five realtors tried and failed, so the man decided to sell to a couple who wouldn't have passed the bank's sniff test, but the owner liked them and really liked the idea of selling the place So the guy is now holding the mortgage

Five hundred dollars a month of steady income for thirty years, but the guy's sixty eight with a bad heart, and the wife is begging for an African safari. So the man puts an ad in the paper that he is willing to sell cash flow notes And soon the man has a prospective buyer

When the two got together to talk turkey, the buyer set down the ground rules His offer for the note would be based on the new owners' credit score, the value and condition of the house as well as its location

When all the facts were assembled, the notes buyer was willing to pay the man forty five percent of what the owner had originally asked for the house with a realtor While it was a real disappointment, the man had an epiphany Since the value of the dollar seemed to be dropping every year and inflation climbing, the realization came that in ten years the five hundred each month might be worth four hundred dollars and by the time the thirtieth year came, the five hundred could easily be worth a hundred dollars

Better to get money while it still had a value of five hundred in today's economy The note was sold and the new mortgage owner was now paid by the couple each month A contract specifically laying out the amount of the loan to purchase an object, the interest rate, the amount and frequency of payments and any penalties for late payments or early payoff is a cash note Airplanes, cars, boats and mobile homes are all ways that a cash note can be secured And if the cash flow notes holder longs for credit card relief or a medical treatment or for any reason, there are investors ready to buy the note, but it will be at a tidy profit for them, not for the note holder

After telling us that the greatest commandment is to love God with all our heart, soul, mind and strength, Jesus added, 'Thou shalt love thy neighbor as thyself. There is none other commandment greater than these ' (Mark 12:31) Christian business people should approach each customer with this commandment in mind

Sell Cash Flow Notes

November 08, 2008 - 5:12 am

Sell Cash Flow Notes 7

November 06, 2008 - 7:01 am

Sell Cash Flow Notes 1 EDDIE FRANKLINS� cash flow sales get cash now We will counsel individuals and companies in structuring private paper transactions and turning private paper assets into cash First Class Cash Flow Handlers offers services that include: assisting other professionals with structuring quick sales of difficult properties for their clients, through the creation of notes which can be liquidated for cash at the close of escrow ("simultaneous closings"); disposing of existing notes to achieve cash liquidity for clients; and structuring transactions whereby private paper can be used in lieu of cash toward achieving investment or personal acquisition objectives We specialize in helping people solve their cash flow problems We buy and sell cash flow notes of any type, including mortgage notes, real estate notes, trust deeds, business notes, mobile home notes, structured settlements, inheritance notes, auto notes, airplane notes, boat notes, lottery winnings, presettlement funding and annuity notes By using owner financing, a home owner can sell their home for top dollar and close the sale much more quickly than is possible with traditional home sales techniques For a note holder, not having the information necessary to maintain and secure the note could mean losing money on the note Information is the key to financial success and we can provide you with the information you need to fulfill your financial goals If you are an attorney, CPA, financial advisor, mortgage broker, real estate contractor or developer, rehabber, or mobile home dealer We, at Eddie Franklin�s Services provide services to buy and selling seller-held mortgages, offering cash for your trust deeds and land contracts both purchase money and hard money mortgages all over the countryThe� terms used for these types of notes are real estate note, real estate notes, promissory notes, or even privately held notes but rest assured all the terms refer to the same type of transaction Right now, people like you all across North America are stuck with investments that they don't want They would rather sell cash flow notes for cash now Whether it's a real estate note created when selling a property, a business note created when selling a business or even a structured settlement, there are thousands of notes out there that could be turned into cash There is a whole business dedicated to buying cash flow notes from people so that they can have a lump sum of money immediately (relatively speaking) rather than wait for years or decades for the entire amount Let's take the case of the man who tried for three years to sell his parent's house in a large Eastern city Look, the place was not exactly the Ritz and five realtors tried and failed, so the man decided to sell to a couple who wouldn't have passed the bank's sniff test, but the owner liked them and really liked the idea of selling the place So the guy is now holding the mortgage Five hundred dollars a month of steady income for thirty years, but the guy's sixty eight with a bad heart, and the wife is begging for an African safari So the man puts an ad in the paper that he is willing to sell cash flow notes And soon the man has a prospective buyer When the two got together to talk turkey, the buyer set down the ground rules His offer for the note would be based on the new owners' credit score, the value and condition of the house as well as its location When all the facts were assembled, the notes buyer was willing to pay the man forty five percent of what the owner had originally asked for the house with a realtor While it was a real disappointment, the man had an epiphany Since the value of the dollar seemed to be dropping every year and inflation climbing, the realization came that in ten years the five hundred each month might be worth four hundred dollars and by the time the thirtieth year came, the five hundred could easily be worth a hundred dollars Better to get money while it still had a value of five hundred in today's economy The note was sold and the new mortgage owner was now paid by the couple each month A contract specifically laying out the amount of the loan to purchase an object, the interest rate, the amount and frequency of payments and any penalties for late payments or early payoff is a cash note Air planes, cars, boats and mobile homes are all ways that a cash note can be secured And if the cash flow notes holder longs for credit card relief or a medical treatment or for any reason, there are investors ready to buy the note, but it will be at a tidy profit for them, not for the note holder After telling us that the greatest commandment is to love God with all our heart, soul, mind and strength, Jesus added, "Thou shalt love thy neighbor as thyself There is none other commandment greater than these" (Mark 12:31) Christian business people should approach each customer with this commandment in mind Some people don't want to sell entire cash flow notes because the security of having a monthly income is comforting, but the holders still need a quick cash infusion For example, a man has sold a three hundred thousand dollar plane and is holding the note for it The man runs into tax problems and needs forty thousand dollars to clear a lien on his house The guy offers a buyer of notes the next sixteen monthly payments on the airplane in return for most of the money upfront to cover his liability The investor agrees to a seventy cents on the dollar lump sum to the note holder for those sixteen months of monthly payments The note holder gets the forty thousand, and the investor makes almost ten thousand dollars on the deal Not a bad deal for both and the man get back to his monthly income in a year and five months Not everyone has an annuity, which can certainly be considered in the family of cash flow notes. But if you have any structured payments over a period of time you can get cash now. Click Here For More Information Hyperlink Text
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Sell Cash Flow Notes 6

November 05, 2008 - 2:33 pm

The cash flow note sale, or any kind of sale, is ultimately about the customer You need to identify with their problems, and provide a solution for them Provide compelling reasons that your business provides the best way to address that problem, and acknowledge the customer�s belief that they are the most important part of the business transaction Do this well, and your marketing efforts are sure to be a hit Also, remember to keep in touch with customers If your business deals with a limited number of clients with highly personalized service, consider calling them a week later If you have hundreds or thousands of people in your leads list, mail a follow-up marketing piece or email that reminds them of the special offer you made previously Use the above eight tips to make your cash flow note sale compelling, and then help your customer to take the next step in completing the buying process Be sure to monitor and adjust your marketing You�ve invested both time and effort you�re your marketing strategy Maybe you�re convinced it�s the best campaign possible However, always take a hard look at the results, track how your marketing performs over time (don�t make a decision to change things too quickly), and be open to making adjustments if necessary Take control of your cash flow and use your money when you decide. Sell a real estate note or other income stream or cash flow and get Tomorrows cash today. Are you receiving payments from the sale of residential or commercial real estate, but need more CASH. Let us help with your cash flow. Find out what your real estate note is worth, try our FREE on-line quote. You are in total control when you work with us and your buyer will never know. Right now thousands of people across North America are stuck with investments that they don't want, they would rather have the CASH now Our Network believes in fast, efficient service. We are dedicated to helping you get the "Best Possible Price" for your note. All of your dealings with us are strictly confidential and you are in complete control of all transactions. We help individuals and businesses to more effectively manage their cash flow by converting money that is due in the future on real estate notes, business sale notes, structured settlements, annuities and other future instruments into Fast Cash that can be used to pay current obligations or make the most of opportunities right now. If you plan to sell a business and offer owner financing to facilitate the sale, we can cash you out Property owners are choosing to provide financing to new buyers when they sell their home or investment properties in order to facilitate a quick sale Often referred to as owner financing, seller financing, owner assisted financing or owner carry backs, this method of private financing is often done for many reasons If your considering the possibility of selling your real estate note, mortgage note, trust deed or deed of trust we can structure a creative solution to get you the CASH that you need NOW We've heard many different reasons from people why they want to get access to CASH in exchange for all or part of the payments they are receiving on their Notes, Annuities, Mortgage Notes, or Structured Settlements If you need to sell a real estate note or get CASH NOW for your real estate notes, mortgage notes, trust deeds or business notes, we will pay TOP dollar for your notes. We are national buyers of real estate notes and other types of cash flows. We attribute our success to outstanding customer service and competitive pricing Our friendly and efficient staff will see you through to the finish. We are premier cash flow specialists who work with private individuals to liquidate any of their cash flows or Sell Real Estate Notes. Sell Real Estate Note Real Estate Note Buyer Our network of investors are 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 are a prime buyer of Estate Notes, Privately Held Mortgages and Deeds of Trust We are available to assist you with the structuring, purchase, or sale of real estate notes and help you with your cash flow Sell Real Estate Note If you are looking to sell real estate note, you're probably in need of cash for a new investment, a payment or a special purchase Whatever the case may be, it is crucial that you find a reputable note buyer, someone with extensive experience that you can trust to execute the sale properly and give you the money that you deserve These days note buyers are just a click away; you just have to know where to find them Many people who sell real estate notes go into the process blindly, not knowing what to look for and ultimately getting less than they deserve for their notes Others are not aware that they can sell just a percentage of the note, called a partial, rather than the entire note This allows you to receive a lump sum for a certain number of payments For example, if you are receiving $50,000 over 10 years, you can sell a portion of the payments, say $10,000 worth, and continue to receive the rest of the payments There are many different ways to sell real estate note, so don't let a buyer tell you have to sell the entire note Although it will often yield high payments, there are many advantages to retaining some of the note On the other hand, selling off the note in its entirety is also an option to consider as well An experienced, reputable buyer will explain all of your options So you've decided to sell a real estate note, so what should you look for in a buyerA reputable buyer will be more than happy to answer any questions you have and let you know what your options are when it comes to selling your note. Choose the option that makes the most sense for you Ask the buyer how long they have been in the business, how many transactions they have done Chances are if someone has been doing this a long time they know what they are doing When you sell real estate notes, you should not have to pay any initial fees, points, closing costs or anything else Everything should be including in the price you are getting paid for the full or partial note Everything should be in writing so you know exactly what you're agreeing to If upon reading the agreement you don't understand one or more of the terms, feel free to ask for clarification The most important thing when you sell a real estate note is to go with your gut You should feel comfortable with the note buyer and with the entire process If you get a bad vibe or the note buyer is unwilling to answer all of your questions or seems to be giving you conflicting information, don't go ahead with the sale There are plenty of reputable, honest buyers out there that you can work with that will answer all of your questions and make you feel confident about the sale of your real estate noteNow when it comes time to sell real estate note, at least you'll know what to look for And remember, money now is always worth more than money later, so if you need cash, selling your note always makes sense more than sell real estate note on our Selling Your Note home page Real Estate Note Sales Sell Real Estate Note Sell Real Estate Note, Promissory note, real estate note, mortgage note, cash flow note, sell cash flow note, sell annuity, buy annuity, sell promissory note, buy promissory note, commercial note, land note, land contract, carry back note, business note, mobile home note, structured payments, structured settlement, lottery winnings, mortgage securities Sell your cash flow note, promissory note, commercial note, land note structured, settlement, lottery winnings Click Here For More Information Hyperlink Text
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Sell Cash Flow Notes 5

November 05, 2008 - 1:54 pm

A Cash flow note sale is no exception to this There are basic concepts behind marketing that always apply, regardless of the company or marketing method Perhaps the most important part of marketing and a cash flow note sale is getting the attention of your client While using seller finance techniques to sell a property are no more difficult than a traditional real estate closing, following a logical and proven plan is the best method for ensuring a successful real estate sale with seller financing Many property sellers stay away from seller financing because they mistakenly believe that creating a note is not a viable solution for selling their home After all, if they can't walk away with enough cash to provide the down payment on another property, they'll be powerless to replace the property they're selling As a consequence of this common misunderstanding, many sellers feel compelled to stick with conventional real estate methods, limiting their options and missing out on the benefits that seller financing could offer them In actuality, many notes created through seller financing are quickly sold and the seller ends up with the cash they need Even better, if the note is created with buyers' purchasing criteria in mind, the seller could walk away from the closing table with cash in hand This means that the net result is almost exactly the same as with a conventional real estate sale In the cases where the note holder does have a problem selling their monthly payments, the difficulty in liquidating the note is typically a result of one general problem: the note was not created with the buyer in mind Instead, it was created with only the payer in mind To ensure that a newly-created note will be attractive to potential buyers, it is important to recognize that their purchasing criteria are important as well For property sellers looking to sell their note immediately, it would be a grave mistake to create the note by prioritizing only the payer's demands A buyer must have a compelling reason to agree to collect payments in order to buy a note, such as a substantial down payment, a respectable payer's credit score (to minimize risk), a competitive interest rate, or a fairly short term An example of a "bad note" from a buyer's point of view would be a seller financing situation where no down payment was collected, the payer's credit score was not checked, and the interest rate is fixed at 3% Basically, this is TOO good of a deal Even payers that qualify for loans from traditional lending institutions would jump at this offer with no out-of-pocket money required and a rate below prime Clearly, the note payer and note buyer are looking for very different things Payers would love a "no money down" purchase with financing at a low interest rate, but most buyers wouldn't want anything to do with this sort of note simply because it is a bad deal for them In a situation without a reasonable down payment there is nothing holding the payer to their obligation After all, a payer involved in a "no money down" purchase could walk away and lose almost nothing financially Abandoning their obligation to pay may hurt their credit score, but it was their substandard credit that forced them into a seller-financing situation in the first place When there is no equity in the property (buyers will use the lower of the property value or the sales price to calculate equity), all offers to purchase the secured note will be discounted substantially in order to compensate for the buyer's risk of default A heavily discounted buyout offer often means the seller will not be able to get the money they need If the seller of a private note needs a large amount of cash immediately, they must be able to sell the note as soon as it has been created And to quickly find a buyer, the note must meet the general buying parameters of these people, which include a solid down payment, a decent interest rate, and typical terms Every buyer has their own criteria that determine what they will or won't buy, but a down payment of at least 10% is a good minimum figure when creating a note This upfront payment immediately creates equity in the property which acts as the buyer's safety net in a foreclosure A competitive interest rate is important because it will make it easy for the buyer to purchase the note and yield the desired profit without much of a discount to the note holder Finally, keep in mind that people typically avoid notes that do not follow a traditional term (amortized over 120 months, 180 months, etc) A two-year, interest-only balloon term is a perfect example of a note that most buyers would avoid The points described above are only a rudimentary starting point for note creation; there are certainly other things that buyers look for when considering a note It is always a good idea for the seller to contact a qualified note finder in order to get the specific information they need The finder will be able to utilize their experience in working with buyers to give the seller general guidelines about what should meet most buyers' parameters Of course, there are no absolute guarantees of a quick sale, but when the seller creates a note with the buyer It should be obvious that any marketing materials should be clear, powerful, and 100% free from typos and grammatical errors Judging by the technical problems found in many small business� websites and advertising materials, many businesses apparently still haven�t realized this Don�t just use an electronic spell check, because many word substitutions won�t be caught (such as using your instead of you�re) After you�ve checked it yourself repeatedly and think it�s perfect, run it past some friends and family Good advertising copy will attract people interested in cash flow note buying Your copy has to do more than just publicize features and benefits In fact, leading off with a headline that touts how amazing and wonderful your product is might have the opposite effect and instantly turn off the reader If you use a headline or sub-headline, remember that the purpose is only to grab the reader�s attention and compel him to keep reading The following copy must make some kind of emotional connection with your prospect You might consider starting with a story or anecdote that seems to have nothing to do with what you�re pitching An involving story (one with people or animals in it) sucks your reader in and makes him forget that he�s reading an advertisement It also plays to the reader’s emotions, perhaps sparking their interest in cash flow note buying Make sure whatever you�ve written isn�t too long Again, try it out on acquaintances and get their input Ask them how it makes them feel, or if they got bored or easily distracted while reading it Ask them if they came up with any objections to performing the call to action What do they think about the company behind the ad after reading your piece You can find out all you need to know about marketing and cash flow note buying at NoteNetwork Peer-to-peer financing is a convenient way to purchase real estate, especially today when loan regulations are tightening Due to the fact that real estate is an extremely safe investment, many people are interested in purchasing the financial instrument that results from peer-to-peer financing That financial instrument is known as a cash flow note While the purchase of a cash flow note can be beneficial for investors, it can also be beneficial for the individual who matches buyers holding cash flow notes and prospective investors interested in purchasing cash flow notes Such a match creates benefits for both the seller as well as the buyer In addition, the person who creates the match can collect a fee in return for making the deal possible The amount of the fee that can be received provides a method for individuals to establish financial freedom Click Here For More Information Hyperlink Text
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Sell Annity Cash Flow 6

November 05, 2008 - 1:39 pm

Here we look at differences, advantages and disadvantages It's time to shop for peace of mind We can put you in touch with a representative that can find an annuity that fits your personalized needs How would you like near stock market returns with no risk Discover the secrets of auto-pilot investing:run with the bulls, hide from the bears Free Booklet Estate Planning Articles Life Insurance Plans and Options: The Basics Various forms of term plans and traditional life policies as well as combinations 10 Estate Planning Success Tips Keep your will or trust up to date Annuities Vs CDs Both have guaranteed rate of returns, both issued by large financial institutions Discover ways to manage your IRA once you reach age seventy Make sure you understand the level of risk involved in the fund's investment strategies Insurance Ratings Long Term Care Insurance Ratings Long Term Care Real Estate Investment Trusts REITs allow small investors to share in the both the risks and rewards of real estate investing Social Security is Not Gender Specific A man or a woman with the same wages incur the same benefits Tips to Fully Understanding Variable Annuities What you should know about variable annuities Access the equity in your home and receive a lump sum, a tax-free monthly income, or a credit line Read More Articles » This FREE non-biased, no obligation information and suitability assessment is designed to show you exactly how annuities work and how to judge for yourself the benefits and the pitfalls All annuities are tax-deferred, meaning that the earnings from investments in these accounts grow tax-deferred until withdrawal Annuity earnings are also tax-deferred so they cannot be withdrawn without penalty until a certain specified age Fixed annuities guarantee a certain payment amount, while variable annuities do not, but do have the potential for greater returns An annuity has a death benefit equivalent to the higher of the current value of the annuity or the amount the buyer has paid into it If the owner dies during the accumulation phase, his or her heirs will receive the accumulated amount in the annuity This money is subject to ordinary income taxes in addition to estate taxes Definition 2 More generally, a series of payments of set size and frequency, often to a retired person Related terms:equity-indexed annuity, preretirement survivor annuity, qualified joint and survivor annuity, deferred annuity, hybrid annuity, immediate payment annuity, joint life annuity, life annuity, single-life annuity, single-premium life insurance and Here we cover the fundamentals of Social Security and how it affects you Topics include retirement, disability, family benefits, survivors, Medicare, taxes, and health care Learn all you need to know about annuities Includes a description of fixed, variable, and equity-indexed annuities, with emphasis on taxes, distributions, payments, and fees of each Provides a guide to the estate planning process Includes information on wills, living trusts, irrevocable trusts, and future healthcare decisions Give this definition a rating from 1 to 5 (5 being the best) Unauthorized duplication, in whole or in part, is strictly prohibited So youre thinking about purchasing an annuity; with so many options available to you, how do you know which is the right annuity for your individual needs This article will give you a birds eye view of the various annuities available to you, along with their purchase options, payment options, and benefits When purchasing your annuity, will you choose a single versus flexible-payment annuity Do you want a fixed rate of interest, or variable Do you want a deferred or immediate annuity, and how does each of these pay out If you find yourself facing these kinds of questions, you will find the answers here Dissecting How Annuities Work As the time for retirement approaches, or as youre planning your retirement strategy for the years ahead, one option of many to consider is the purchase of an annuity Many other strategies and savings vehicles exist, so in order to help you determine if an annuity fits into your game plan, we have provided this article to give you a general overview of annuities, how they work, and who they can benefit The article also discusses how an annuity can fit in with your already established retirement savings plans, such as your 401(k) Finally, if you decide to consider an annuity, you will learn some tips that will help you discover and purchase the annuity that is right for you What benefits do annuities have to offer This article uses the strategy of a mnemonic device to help you remember and understand the many benefits you will gain by purchasing an annuity as part of your retirement planning With guaranteed rates and a rating safety net, an annuity is one of the safest places around to invest your money Tax deferral ensures that you dont pay a dime on your interest earnings until the funds are withdrawn Annuities also outshine CDs and other savings plans in terms of the yield you will see on your investment Many penalty-free annuities provide you with easy access to your money, thus allowing your funds to retain liquidity Finally, without being subject to probate, annuities are easily transferable to your loved ones upon your death, making annuities a valuable part of any estate planning strategy History of Annuities This article provides the curious investor with a brief overview of the history of annuities First developed in a raw form by Lorenzo Tonti in 1653, annuities have been around for hundreds of years in one form or another From their inception, they have remained a popular and powerful investment tool Deferred Annuities Deferred Annuities If you are thinking of purchasing a deferred annuity, this article is a must-read It will provide you with the tools you need to purchase, use, and pass on your annuity Deferred annuities have various stages, and this article outlines each stage and what you can expect from it purchasing the annuity, getting through the savings and investment stage, reaping the benefits during the retirement income phase, and making sure your investment continues to benefit your loved ones with a guaranteed death benefit Stock Investment In todays economic climate, many Americans are finding themselves less and less willing to take risks with their investments With the stock market behaving erratically, you might find yourself among this group of investors, but did you know that by investing your funds in an annuity rather than in the stock market, you will be placing your hard-earned cash into one of the safest financial vehicles around, while still earning a guaranteed income No matter what happens to the stock market or the economy, you will receive steady payouts from your annuity, and yet even with this kind of safeguard, your investment options remain flexible What more could the cautious investor ask for While providing the security and flexibility that are the hallmarks of an annuity, the indexed annuity also keeps up with the stock market, earning you money when the market rises, but safeguarding your money when it falls through a guaranteed rate of interest Before you take advantage of an indexed annuity, though, you should learn the basics of how they work by reading this article You will discover how interest rates are set and maintained, how the annuities are managed, and some of the pitfalls of purchasing this kind of annuity Indexed annuities are complex, so if you go in with your eyes open, you will reap the greatest reward For those thinking about purchasing an annuity, this article serves as a great introduction to one of the most popular insurance products of the day: the indexed annuity This type of annuity is tied to the stock market, and with it, an investor is guaranteed a minimum market return, with a cap on the maximum return; in a nut shell, while you will see less growth, your potential for loss is minimal This security, along with tax deferral and other benefits of the annuity, makes an indexed annuity a great way to invest your money, no matter the economic climate This article will give you an idea of how interest rates are calculated, how to best apply these rates to your individual situation, and whether the indexed annuity is the right choice for you The variable annuity is only one kind of many annuities that you can purchase If you are considering buying an annuity, this article will give you a rundown of the variable annuity its benefits and disadvantages What kinds of fees can you expect, and will a variable annuity work with other retirement plans, such as your 401(k) Certain financial situations make the variable annuity a very attractive plan, and this article will help you to determine if a variable annuity is the right plan for you If you have been planning for your retirement with an IRA, then good for you You�re one step in the right direction However, creating and contributing to your IRA, while important, is not enough You must be aware how your IRA will be distributed in the event of your untimely death Choosing a beneficiary, and the right beneficiary at that, is almost as important as establishing your IRA in the first place By appointing a beneficiary, you will ensure that your estate is distributed according to your wishes, while also avoiding certain roadblocks and pitfalls, such as probate This article discusses the benefits of naming a beneficiary of your IRA Frequently asked questions about the Roth IRA First introduced in 1997, the Roth IRA is a valuable adaptation of the traditional IRA that allows investors to save after-tax dollars toward retirement, with no tax penalty upon withdrawal The Roth IRA also allows investors to use retirement savings for major expenses These questions and more are answered within this informative article Your 401(k): Is it still a great way to save The 401(k) is an increasingly popular retirement savings plan offered by employers around the country, but is it the best way to save In the 25 years since the 401(k) was created, has it kept pace with changes in tax laws This article takes a look at a set of hypothetical families at different earning levels and ages to determine whether the 401(k) is the best savings vehicle for them Click Here For More Information Hyperlink Text
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Sell Annity Cash Flow 5

November 05, 2008 - 1:19 pm

Sell annuity examples of payments Your average account value during the year is $20,000, so you will pay $250 in mortality and expense risk charges that year Administrative fees The insurer may deduct charges to cover record-keeping and other administrative expenses This may be charged as a flat account maintenance fee (perhaps $25 or $30 per year) or as a percentage of your account value (typically in the range of 0 Example: Your variable annuity charges administrative fees at an annual rate of 0 Your average account value during the year is $50,000 You will pay $75 in administrative fees Underlying Fund Expenses You will also indirectly pay the fees and expenses imposed by the mutual funds that are the underlying investment options for your variable annuity Fees and Charges for Other Features Special features offered by some variable annuities, such as a stepped-up death benefit, a guaranteed minimum income benefit, or long-term care insurance, often carry additional fees and charges Other charges, such as initial sales loads, or fees for transferring part of your account from one investment option to another, may also apply You should ask your financial professional to explain to you all charges that may apply You can also find a description of the charges in the prospectus for any variable annuity that you are considering tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying any tax on the income and investment gains in your current variable annuity account These tax-free exchanges, known as 1035 exchanges, can be useful if another annuity has features that you prefer, such as a larger death benefit, different annuity payout options, or a wider selection of investment choices You may, however, be required to pay surrender charges on the old annuity if you are still in the surrender charge period In addition, a new surrender charge period generally begins when you exchange into the new annuity This means that, for a significant number of years (as many as 10 years), you typically will have to pay a surrender charge (which can be as high as 9% of your purchase payments) if you withdraw funds from the new annuity Further, the new annuity may have higher annual fees and charges than the old annuity, which will reduce your returns If you are thinking about a 1035 exchange, you should compare both annuities carefully Unless you plan to hold the new annuity for a significant amount of time, you may be better off keeping the old annuity because the new annuity typically will impose a new surrender charge period Also, if you decide to do a 1035 exchange, you should talk to your financial professional or tax adviser to make sure the exchange will be tax-free If you surrender the old annuity for cash and then buy a new annuity, you will have to pay tax on the surrender Bonus Credits� Some insurance companies are now offering variable annuity contracts with "bonus credit" features These contracts promise to add a bonus to your contract value based on a specified percentage (typically ranging from 1% to 5%) of purchase payments Example: � You purchase a variable annuity contract that offers a bonus credit of 3% on each purchase payment You make a purchase payment of $20,000 The insurance company issuing the contract adds a bonus of $600 to your account Variable annuities with bonus credits may carry a downside, however higher expenses that can outweigh the benefit of the bonus credit offered Frequently, insurers will charge you for bonus credits in one or more of the following ways:Higher surrender charges Surrender charges may be higher for a variable annuity that pays you a bonus credit than for a similar contract with no bonus credit Longer surrender periods Your purchase payments may be subject to surrender charges for a longer period than they would be under a similar contract with no bonus credit Higher mortality and expense risk charges and other charges Higher annual mortality and expense risk charges may be deducted for a variable annuity that pays you a bonus credit Although the difference may seem small, over time it can add up In addition, some contracts may impose a separate fee specifically to pay for the bonus credit Before purchasing a variable annuity with a bonus credit, ask yourself and the financial professional who is trying to sell you the contract whether the bonus is worth more to you than any increased charges you will pay for the bonus This may depend on a variety of factors, including the amount of the bonus credit and the increased charges, how long you hold your annuity contract, and the return on the underlying investments You also need to consider the other features of the annuity to determine whether it is a good investment for you Annuity A offers a bonus credit of 4% on your purchase payment, and deducts annual charges totaling 1 Annuity B has no bonus credit and deducts annual charges totaling 1 Let's assume that both annuities have an annual rate of return, prior to expenses, of 10% By the tenth year, your account value in Annuity A will have grown to $22,978 But your account value in Annuity B will have grown more, to $23,136, because Annuity B deducts lower annual charges, even though it does not offer a bonus You should also note that a bonus may only apply to your initial premium payment, or to premium payments you make within the first year of the annuity contract Further, under some annuity contracts the insurer will take back all bonus payments made to you within the prior year or some other specified period if you make a withdrawal, if a death benefit is paid to your beneficiaries upon your death, or in other circumstances If you already own a variable annuity and are thinking of exchanging it for a different annuity with a bonus feature, you should be careful Even if the surrender period on your current annuity contract has expired, a new surrender period generally will begin when you exchange that contract for a new one This means that, by exchanging your contract, you will forfeit your ability to withdraw money from your account without incurring substantial surrender charges And as described above, the schedule of surrender charges and other fees may be higher on the variable annuity with the bonus credit than they were on the annuity that you exchanged Example: � You currently hold a variable annuity with an account value of $20,000, which is no longer subject to surrender charges You exchange that annuity for a new variable annuity, which pays a 4% bonus credit and has a surrender charge period of eight years, with surrender charges beginning at 9% of purchase payments in the first year Your account value in this new variable annuity is now $20,800 During the first year you hold the new annuity, you decide to withdraw all of your account value because of an emergency situation Assuming that your account value has not increased or decreased because of investment performance, you will receive $20,800 minus 9% of your $20,000 purchase payment, or $19,000 This is $1,000 less than you would have received if you had stayed in the original variable annuity, where you were no longer subject to surrender charges In short: � Take a hard look at bonus credits In some cases, the "bonus" may not be in your best interest Ask Questions Before You Invest� Financial professionals who sell variable annuities have a duty to advise you as to whether the product they are trying to sell is suitable to your particular investment needs Don't be afraid to ask them questions And write down their answers, so there won't be any confusion later as to what was said Variable annuity contracts typically have a "free look" period of ten or more days, during which you can terminate the contract without paying any surrender charges and get back your purchase payments (which may be adjusted to reflect charges and the performance of your investment) You can continue to ask questions in this period to make sure you understand your variable annuity before the "free look" period ends Before you decide to buy a variable annuity, consider the following questions:Will you use the variable annuity primarily to save for retirement or a similar long-term goal Are you investing in the variable annuity through a retirement plan or IRA (which would mean that you are not receiving any additional tax-deferral benefit from the variable annuity) Are you willing to take the risk that your account value may decrease if the underlying mutual fund investment options perform badly Do you understand the features of the variable annuity Do you understand all of the fees and expenses that the variable annuity charges Do you intend to remain in the variable annuity long enough to avoid paying any surrender charges if you have to withdraw money If a variable annuity offers a bonus credit, will the bonus outweigh any higher fees and charges that the product may charge Are there features of the variable annuity, such as long-term care insurance, that you could purchase more cheaply separately Have you consulted with a tax adviser and considered all the tax consequences of purchasing an annuity, including the effect of annuity payments on your tax status in retirement If you are exchanging one annuity for another one, do the benefits of the exchange outweigh the costs, such as any surrender charges you will have to pay if you withdraw your money before the end of the surrender charge period for the new annuity Remember: � Before purchasing a variable annuity, you owe it to yourself to learn as much as possible about how they work, the benefits they provide, and the charges you will pay Much of this information applies to variable annuities, as well Mutual Fund Investing: Look at More Than a Fund's Past Performance Describes some of the factors you should consider in choosing a mutual fund Mutual Fund Cost Calculator Allows you to compare the total costs of owning different mutual funds Ask Questions Questions you should ask about all of your investments, the people who sell them to you, and what to do if you run into problems Click Here For More Information Hyperlink Text
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Sell Cash Flow Annuity 4

November 05, 2008 - 10:53 am

Other investment vehicles, such as IRAs and employer-sponsored 401(k) plans, also may provide you with tax-deferred growth and other tax advantages For most investors, it will be advantageous to make the maximum allowable contributions to IRAs and 401(k) plans before investing in a variable annuity In addition, if you are investing in a variable annuity through a tax-advantaged retirement plan (such as a 401(k) plan or IRA), you will get no additional tax advantage from the variable annuity Under these circumstances, consider buying a variable annuity only if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection The tax rules that apply to variable annuities can be complicated before investing, you may want to consult a tax adviser about the tax consequences to you of investing in a variable annuity Remember: � Variable annuities are designed to be long-term investments, to meet retirement and other long-range goals Variable annuities are not suitable for meeting short-term goals because substantial taxes and insurance company charges may apply if you withdraw your money early Variable annuities also involve investment risks, just as mutual funds do How Variable Annuities Work as variable annuity has two phases: an accumulation phase and a payout phase During the accumulation phase, you make purchase payments, which you can allocate to a number of investment options For example, you could designate 40% of your purchase payments to a bond fund, 40% to a U stock fund, and 20% to an international stock fund The money you have allocated to each mutual fund investment option will increase or decrease over time, depending on the fund's performance In addition, variable annuities often allow you to allocate part of your purchase payments to a fixed account A fixed account, unlike a mutual fund, pays a fixed rate of interest The insurance company may reset this interest rate periodically, but it will usually provide a guaranteed minimum (e Example: � You purchase a variable annuity with an initial purchase payment of $10,000 You allocate 50% of that purchase payment ($5,000) to a bond fund, and 50% ($5,000) to a stock fund Over the following year, the stock fund has a 10% return, and the bond fund has a 5% return At the end of the year, your account has a value of $10,750 ($5,500 in the stock fund and $5,250 in the bond fund), minus fees and charges (discussed below) Your most important source of information about a variable annuity's investment options is the prospectus Request the prospectuses for the mutual fund investment options Read them carefully before you allocate your purchase payments among the investment options offered You should consider a variety of factors with respect to each fund option, including the fund's investment objectives and policies, management fees and other expenses that the fund charges, the risks and volatility of the fund, and whether the fund contributes to the diversification of your overall investment portfolio Another SEC online publication, Invest Wisely: An Introduction to Mutual Funds, provides general information about the types of mutual funds and the expenses they charge During the accumulation phase, you can typically transfer your money from one investment option to another without paying tax on your investment income and gains, although you may be charged by the insurance company for transfers However, if you withdraw money from your account during the early years of the accumulation phase, you may have to pay "surrender charges," which are discussed below In addition, you may have to pay a 10% federal tax penalty if you withdraw money before the age of 59½ At the beginning of the payout phase, you may receive your purchase payments plus investment income and gains (if any) as a lump-sum payment, or you may choose to receive them as a stream of payments at regular intervals (generally monthly) If you choose to receive a stream of payments, you may have a number of choices of how long the payments will last Under most annuity contracts, you can choose to have your annuity payments last for a period that you set (such as 20 years) or for an indefinite period (such as your lifetime or the lifetime of you and your spouse or other beneficiary) During the payout phase, your annuity contract may permit you to choose between receiving payments that are fixed in amount or payments that vary based on the performance of mutual fund investment options The amount of each periodic payment will depend, in part, on the time period that you select for receiving payments Be aware that some annuities do not allow you to withdraw money from your account once you have started receiving regular annuity payments In addition, some annuity contracts are structured as immediate annuities, which means that there is no accumulation phase and you will start receiving annuity payments right after you purchase the annuity The Death Benefit and Other Features� A common feature of variable annuities is the death benefit If you die, a person you select as a beneficiary (such as your spouse or child) will receive the greater of: (i) all the money in your account, or (ii) some guaranteed minimum (such as all purchase payments minus prior withdrawals) Example: You own a variable annuity that offers a death benefit equal to the greater of account value or total purchase payments minus withdrawals You have made purchase payments totaling $50,000 In addition, you have withdrawn $5,000 from your account Because of these withdrawals and investment losses, your account value is currently $40,000 If you die, your designated beneficiary will receive $45,000 (the $50,000 in purchase payments you put in minus $5,000 in withdrawals) Some variable annuities allow you to choose a � "stepped-up" death benefit Under this feature, your guaranteed minimum death benefit may be based on a greater amount than purchase payments minus withdrawals For example, the guaranteed minimum might be your account value as of a specified date, which may be greater than purchase payments minus withdrawals if the underlying investment options have performed well The purpose of a stepped-up death benefit is to "lock in" your investment performance and prevent a later decline in the value of your account from eroding the amount that you expect to leave to your heirs This feature carries a charge, however, which will reduce your account value Variable annuities sometimes offer other optional features, which also have extra charges One common feature, the � guaranteed minimum income benefit, guarantees a particular minimum level of annuity payments, even if you do not have enough money in your account (perhaps because of investment losses) to support that level of payments Other features may include long-term care insurance, which pays for home health care or nursing home care if you become seriously ill You may want to consider the financial strength of the insurance company that sponsors any variable annuity you are considering buying This can affect the company's ability to pay any benefits that are greater than the value of your account in mutual fund investment options, such as a death benefit, guaranteed minimum income benefit, long-term care benefit, or amounts you have allocated to a fixed account investment option You will pay for each benefit provided by your variable annuity Carefully consider whether you need the benefit If you do, consider whether you can buy the benefit more cheaply as part of the variable annuity or separately (e , through a long-term care insurance policy) Variable Annuity Charges as You will pay several charges when you invest in a variable annuity Be sure you understand all the charges before you invest These charges will reduce the value of your account and the return on your investment Surrender charges If you withdraw money from a variable annuity within a certain period after a purchase payment (typically within six to eight years, but sometimes as long as ten years), the insurance company usually will assess a "surrender" charge, which is a type of sales charge This charge is used to pay your financial professional a commission for selling the variable annuity to you Generally, the surrender charge is a percentage of the amount withdrawn, and declines gradually over a period of several years, known as the "surrender period " For example, a 7% charge might apply in the first year after a purchase payment, 6% in the second year, 5% in the third year, and so on until the eighth year, when the surrender charge no longer applies Often, contracts will allow you to withdraw part of your account value each year 10% or 15% of your account value, for example without paying a surrender charge Example: You purchase a variable annuity contract with a $10,000 purchase payment The contract has a schedule of surrender charges, beginning with a 7% charge in the first year, and declining by 1% each year In addition, you are allowed to withdraw 10% of your contract value each year free of surrender charges In the first year, you decide to withdraw $5,000, or one-half of your contract value of $10,000 (assuming that your contract value has not increased or decreased because of investment performance) In this case, you could withdraw $1,000 (10% of contract value) free of surrender charges, but you would pay a surrender charge of 7%, or $280, on the other $4,000 withdrawn Mortality and expense risk charge This charge is equal to a certain percentage of your account value, typically in the range of 1 This charge compensates the insurance company for insurance risks it assumes under the annuity contract Profit from the mortality and expense risk charge is sometimes used to pay the insurer's costs of selling the variable annuity, such as a commission paid to your financial professional for selling the variable annuity to you Example: Your variable annuity has a mortality and expense risk charge at an annual rate of 1 Click Here For More Information Hyperlink Text
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Sell annuities 3

November 05, 2008 - 6:12 am

Sell your Annuity If an annuity is used in a qualified pension plan or an IRA funding vehicle, then 100% of the annuity payment is taxable as current income upon distribution (because the taxpayer has no tax basis in any of the money in the annuity) If the annuity contract is purchased with after-tax dollars, then the contract holder upon annuitization recovers his basis pro-rata in the ratio of basis divided by the expected value, according to the tax regulation Section 1 (This is commonly referred to as the exclusion ratio ) After the taxpayer has recovered all of his basis, then 100% of the payments thereafter are subject to ordinary income tax Since the Jobs and Growth Tax Relief Reconciliation Act of 2003, the use of variable annuities as a tax shelter has greatly diminished, because the growth of mutual funds and now most of the dividends of the fund are taxed at long term capital gains rates This taxation, contrasted with the taxation of all the growth of variable annuities at income rates, means that in most cases, variable annuities shouldn't be used for tax shelters unless very long holding periods apply (for example, more than 20 years) Also, any withdrawals before an investor reaches the age of 59 ½ are generally subject to a 10% tax penalty in addition to any gain being taxed as ordinary income [edit] Insurance company default risk and state guaranty associations An investor should consider the financial strength of the insurance company that writes annuity contracts Major insolvencies have occurred at least 62 times since the conspicuous collapse of the Executive Life Insurance Company in 1991 Insurance company defaults are governed by state law The laws are, however, broadly similar in most states Annuity contracts are protected against insurance company insolvency up to a specific dollar limit, often $100,000, but as high as $500,000 in New York[6], New Jersey[7], and the state of Washington[8] This protection is not insurance and is not provided by a government agency It is provided by an entity called the state Guaranty Association When an insolvency occurs, the Guaranty Association steps in to protect annuity holders, and decides what to do on a case-by-case basis Sometimes the contracts will be taken over and fulfilled by a solvent insurance company The state Guaranty Association is not a government agency, but states usually require insurance companies to belong to it as a condition of being licensed to do business The Guaranty Associations of the fifty states are members of a national umbrella association, the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) The NOLHGA website provides a description of the organization, links to websites for the individual state organizations, and links to the actual text of the governing state laws A difference between guaranty association protection and the protection e of bank accounts by FDIC, credit union accounts by NCUA, and brokerage accounts by SIPC, is that it is difficult for consumers to learn about this protection Usually, state law prohibits insurance agents and companies from using the guaranty association in any advertising and agents are prohibited by statute from using this Web site or the existence of the guaranty association as an inducement to purchase insurance(e Presumably this is a response to concerns by stronger insurance companies about moral hazard Deferred annuities, including fixed, equity indexed and variable, typically pay the advisor or salesperson 1 percent to 12 percent of the amount invested as a commission, with possible trail options of 25 basis points to 1 percent Sometimes the advisor can select his payout option, which might be either 7 percent up front, or 5 percent up front with a 25 basis point trail, or 1 percent to 3 percent up front with a 1 percent trail Some firms allow an investor to pick an annuity share class, which determines the salesperson's commission schedule The main variables are the up-front commission and the trailing commission "No-load" variable annuities are available on a direct-to-consumer basis from several no-load mutual fund companies "No-load" means the products have no sales commissions or surrender charges Even these lower cost variable annuities often make sense only after an investor has exhausted all other forms of tax shelters, and only if being held for quite some time Fixed and Indexed Annuity commissions are paid by the insurance companies the licensed agent represents Commissions are not paid out of the clients principal An examination of variable annuity investment versus investing outside of annuities Retrieved An annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date Annuities typically offer tax-deferred growth of earnings and may include a death benefit that will pay your beneficiary a guaranteed minimum amount, such as your total purchase payments There are generally two types of annuities fixed and variable In a fixed annuity, the insurance company guarantees that you will earn a minimum rate of interest during the time that your account is growing The insurance company also guarantees that the periodic payments will be a guaranteed amount per dollar in your account These periodic payments may last for a definite period, such as 20 years, or an indefinite period, such as your lifetime or the lifetime of you and your spouse In a variable annuity, by contrast, you can choose to invest your purchase payments from among a range of different investment options, typically mutual funds The rate of return on your purchase payments, and the amount of the periodic payments you will eventually receive, will vary depending on the performance of the investment options you have selected An equity-indexed annuity is a special type of annuity During the accumulation period when you make either a lump sum payment or a series of payments the insurance company credits you with a return that is based on changes in an equity index, such as the S&P 500 Composite Stock Price Index The insurance company typically guarantees a minimum return After the accumulation period, the insurance company will make periodic payments to you under the terms of your contract, unless you choose to receive your contract value in a lump sum Variable annuities are securities regulated by the SEC Fixed annuities are not securities and are not regulated by the SEC Equity-indexed annuities combine features of traditional insurance products (guaranteed minimum return) and traditional securities (return linked to equity markets) Depending on the mix of features, an equity-indexed annuity may or may not be a security The typical equity-indexed annuity is not registered with the SEC You can learn more about variable annuities by reading our publication, Variable Annuities: What You Should Know You can learn more about equity-indexed annuities by reading our online brochure, which explains equity-indexed annuities and provides resources for obtaining additional information Before you buy a variable annuity, you should know some of the basics and be prepared to ask your insurance agent, broker, financial planner, or other financial professional lots of questions about whether a variable annuity is right for you This is a general description of variable annuities what they are, how they work, and the charges you will pay Before buying any variable annuity, however, you should find out about the particular annuity you are considering Request a prospectus from the insurance company or from your financial professional, and read it carefully The prospectus contains important information about the annuity contract, including fees and charges, investment options, death benefits, and annuity payout options You should compare the benefits and costs of the annuity to other variable annuities and to other types of investments, such as mutual funds A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments A variable annuity offers a range of investment options The value of your investment as a variable annuity owner will vary depending on the performance of the investment options you choose The investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three Although variable annuities are typically invested in mutual funds, variable annuities differ from mutual funds in several important ways: First, variable annuities let you receive periodic payments for the rest of your life (or the life of your spouse or any other person you designate) This feature offers protection against the possibility that, after you retire, you will outlive your assets Second, variable annuities have a death benefit If you die before the insurer has started making payments to you, your beneficiary is guaranteed to receive a specified amount typically at least the amount of your purchase payments Your beneficiary will get a benefit from this feature if, at the time of your death, your account value is less than the guaranteed amount That means you pay no taxes on the income and investment gains from your annuity until you withdraw your money You may also transfer your money from one investment option to another within a variable annuity without paying tax at the time of the transfer When you take your money out of a variable annuity, however, you will be taxed on the earnings at ordinary income tax rates rather than lower capital gains rates In general, the benefits of tax deferral will outweigh the costs of a variable annuity only if you hold it as a long-term investment to meet retirement and other long-range goal Click Here For More Information Hyperlink Text
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Sell Annuityies 2

November 05, 2008 - 5:45 am

Annuity may refer to:Annuity (finance theory), (Payout phase) any recurring periodic series of payments Annuity (finance theory) (Accumulation phase) a tax deferred savings vehicle Annuity (financial contracts), an insurance-like contract providing Monthly, Quarterly, Semi-Annual or Annual payments Annuity (US financial products)Annuity (European financial arrangements)Life annuity (also single payment annuity), a financial contract providing payments for a person's lifetime Annuity, a maintenance fee (patent) in patent law An annuity that has no definite end is called a perpetuity An annuity contract is created when an individual gives a life insurance company money which may grow on a tax-deferred basis and then can be distributed back to the owner in several ways The defining characteristic of all annuity contracts is the option for a guaranteed distribution of income until the death of the person or persons named in the contract Perhaps confusingly, the majority of modern annuity customers use annuities only to accumulate funds and to take lump-sum withdrawals without using the guaranteed-income-for-life feature Annuity contracts in the United States are defined by the Internal Revenue Code and regulated by the individual states Variable annuities have features of both life insurance and investment products , annuity contracts may be issued only by life insurance companies, although private annuity contracts may be arranged between donors to non-profits to reduce taxes Insurance companies are regulated by the states, so contracts or options that may be available in some states may not be available in others Their federal tax treatment, however, is governed by the Internal Revenue Code Variable annuities are regulated by the Securities and Exchange Commission and the sale of variable annuities is overseen by FINRA(The largest non-governmental regulator for all securities firms doing business in the United States) There are two possible phases for an annuity, one phase in which the customer deposits and accumulates money into an account (the deferral phase), and another phase in which customers receive payments for some period of time (the annuity or income phase) During this latter phase, the insurance company makes income payments that may be set for a stated period of time, such as five years, or continue until the death of the customer(s) (the "annuitant(s)") named in the contract Annuitization over a lifetime can have a death benefit guarantee over a certain period of time, such as ten years Annuity contracts with a deferral phase always have an annuity phase and are called deferred annuities An annuity contract may also be structured so that it has only the annuity phase; such a contract is called an immediate annuity The term "annuity," as used in financial theory, is most closely related to what is today called an immediate annuity This is an insurance policy which, in exchange for a sum of money, guarantees that the issuer will make a series of payments These payments may be either level or increasing periodic payments for a fixed term of years or until the ending of a life or two lives, or even whichever is longer It is also possible to structure the payments under an immediate annuity so that they vary with the performance of a specified set of investments, usually bond and equity mutual funds Such a contract is called a variable immediate annuity The overarching characteristic of the immediate annuity is that it is a vehicle for distributing savings with a tax-deferred growth factor A common use for an immediate annuity might be to provide a pension income , the tax treatment of an immediate annuity is that every payment is a combination of a return of principal (which part is not taxed) and income (which is taxed at ordinary income rates, not capital gain rates) When a deferred annuity is annuitized, it works like an immediate annuity from that point on, but with a lower cost basis and thus more of the payment is taxed This type of immediate annuity pays the annuitant for a designated number of years (i , a period certain) and is used to fund a need that will end when the period is up (for example, it might be used to fund the premiums for a term life insurance policy) Thus this option is not necessarily suitable for an individual's retirement income, as the person may outlive the number of years the annuity will pay A life or lifetime immediate annuity is used to provide an income for the life of the annuitant similar to a defined benefit or pension plan A life annuity works somewhat like a loan that is made by the purchaser (contract owner) to the issuing (insurance) company, which pays back the original capital or principal (which isn't taxed) with interest and/or gains (which is taxed as ordinary income) to the annuitant on whose life the annuity is based The assumed period of the loan is based on the life expectancy of the annuitant In order to guarantee that the income continues for life, the insurance company relies on a concept called cross-subsidy or the "law of large numbers" Because an annuity population can be expected to have a distribution of life spans around the population's mean (average) age, those dying earlier will give up income to support those living longer whose money would otherwise run out A life annuity, ideally, can reduce the "problem" faced by a person that he/she doesn't know how long he/she will live, and so he/she doesn't know the optimal speed at which to spend his/her savings Life annuities with payments indexed to the Consumer Price Index might be an acceptable solution to this problem, but there is only a thin market for them in North America For an additional expense (either by way of an increase in payments (premium) or a decrease in benefits), an annuity or benefit rider can be purchased on another life such as a spouse, family member or friend for the duration of whose life the annuity is wholly or partly guaranteed For example, it is common to buy an annuity which will continue to pay out to the spouse of the annuitant after death, for so long as the spouse survives The annuity paid to the spouse is called a reversionary annuity or survivorship annuity However, if the annuitant is in good health, it may be more advantageous to select the higher payout option on his or her life only and purchase a life insurance policy that would pay income to the survivor The pure life annuity can have harsh consequences for the annuitant who dies before recovering his or her investment in the contract Such a situation, called a forfeiture, can be mitigated by the addition of a period-certain feature under which the annuity issuer is required to make annuity payments for a least a certain number of years; if the annuitant outlives the specified period certain, annuity payments continue until the annuitant's death, and if the annuitant dies before the expiration of the period certain, the annuitant's estate or beneficiary is entitled to the remaining payments certain The tradeoff between the pure life annuity and the life-with-period-certain annuity is that the annuity payment for the latter is smaller A viable alternative to the life-with-period-certain annuity is to purchase a single-premium life policy that would cover the lost premium in the annuity Impaired-life annuities for smokers or those with a particular illness are also available from some insurance companies Since the life expectancy is reduced, the annual payment to the purchaser is raised Life annuities are priced based on the probability of the annuitant surviving to receive the payments Longevity insurance is a form of annuity that defers commencement of the payments until very late in life A common longevity contract would be purchased at or before retirement but would not commence payments until 20 years after retirement If the nominee dies before payments commence there is no payable benefit This drastically reduces the cost of the annuity while still providing protection against outliving one's resources The second usage for the term annuity came into being during the 1970s Such a contract is more properly referred to as a deferred annuity and is chiefly a vehicle for accumulating savings with a view to eventually distributing them either in the manner of an immediate annuity or as a lump-sum payment All varieties of deferred annuities owned by individuals have one thing in common: any increase in account values is not taxed until those gains are withdrawn This is also known as tax-deferred growth A deferred annuity which grows by interest rate earnings alone is called a fixed deferred annuity (FA) A deferred annuity that permits allocations to stock or bond funds and for which the account value is not guaranteed to stay above the initial amount invested is called a variable annuity (VA) A new category of deferred annuity, called the equity indexed annuity (EIA) emerged in 1995 [2] Equity indexed annuities may have features of both fixed and variable deferred annuities The insurance company typically guarantees a minimum return for EIA An investor can still lose money if he or she cancels (or surrenders) the policy early, before a "break even" period An oversimplified expression of a typical EIA's rate of return might be that it is equal to a stated "participation rate" multiplied by a target stock market index's performance excluding dividends Interest rate caps or an administrative fee may be applicable Deferred annuities in the United States have the advantage that taxation of all capital gains and ordinary income is deferred until withdrawn In theory, such tax-deferred compounding allows more money to be put to work while the savings are accumulating, leading to higher returns A disadvantage, however, is that when amounts held under a deferred annuity are withdrawn or inherited, the interest/gains are immediately taxed as ordinary income A variety of features and guarantees have been developed by insurance companies in order to make annuity products more attractive These include death and living benefit options, extra credit options, account guarantees, spousal continuation benefits, reduced contingent deferred sales charges (or surrender charges), and various combinations thereof Click Here For More Information Hyperlink Text
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Sell annuityies 1

November 05, 2008 - 5:37 am

Cash flowNote Sates 4

November 05, 2008 - 2:47 am

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analysis & forecast cash flow statements and use software to improve projected cash flows Ever day the principles of cash flow affect your life Now you can learn to profit from them We find and create great investment opportunities My We buy, rehab and sell cash flow properties in and around Indianapolis Team up with us to find great deals to rehab and flip or rehab and hold [ Cash flow notes, mortgage notes, real estate notes, annuity notes Winning Cash Flow Business Enjoy a winning cash flow business you create and operate right from your own home It's as straightforward as learning to use Russ Dalbey's proven methods for success in the ever-expanding business of cash flow notes The cash flow business is the exchange of cash flow notes for cash between two people, similar to taking out a mortgage from the bank As a consultant, you act as the go-between for people who want to sell cash flow notes and people who want to buy them You probably already know someone who's done a financial transaction with cash flow notes Start a Winning Cash Flow Business Today The cash flow business is a huge industry, and more and more businesses and individuals are turning to it each and every day Currently, 1 in 13 homes are bought using cash flow notes There are endless opportunities for consultants to start their own business from home in buying and selling these notes With expert guidance from Russ Dalbey's Winning in the Cash Flow Business, you can get started today Russ Dalbey has assembled his years of expertise into a single, complete course to help you develop a winning cash flow business By following his proven method, you'll quickly learn about this exciting industry and how to run a successful cash flow business from home Watch Your Cash Flow Business Grow. Don't know much about the cash flow industry Russ Dalbey's Winning in the Cash Flow Business is intended for beginners who are eager to learn What is the present value of the note today But would you "guess" at how much your home is worth Find out exactly what the note is worth by having it appraised by a Certified Mortgage Appraiser A note appraisal determines the current worth of a mortgage using the present value approach, taking into consideration the degree of safety, interest rate, liquidity and the collateral for the note Where do you find buyers and sellers of mortgages and notes Many individuals buy and sell cash flow notes, including the author of this article Buyers and sellers of notes will often place classified ads in your local newspaper Or you can run an ad to buy or sell a note Anyone interested in getting a good return on their investment dollar is a candidate to buy your note Who is responsible for making the property taxes and insurance payments What do you do if they are not current The person responsible for making the tax and insurance payments can vary depending on the terms of the mortgage Before buying or selling a mortgage note, be sure to examine the terms for paying the taxes and insurance Also verify that the policy is issued for an amount that represents at least the full value of the amount still owed on the note, and that you, as the lender, are listed as the mortgagee on the policy What should you do if the borrower fails to make a payment on time Do not let the borrower get into the habit of making payments later than the due date or grace period Be sure to collect late fees if the payment is not received on time or within the grace period Establish a no tolerance policy for late payments If late payments persist, notify the borrower in writing of the exact nature of the default and proceed with legal action What if the borrower files Bankruptcy or has a judgment against them recorded on the property If the borrower files bankruptcy and lists you as a creditor you will be notified by the bankruptcy court In this case, you must stop all collection efforts Consider hiring an attorney to advice you in this area to avoid legal problems How do I initiate foreclosure proceedings if legal action is required Should I hire an attorney or do it myself If legal action is required, the Note holder has the right to initiate foreclosure proceedings Find an attorney in your area with experience in the area of real estate foreclosure Declaring a loan to be in default and starting the foreclosure process is a serious matter and should be handled by an attorney familiar with the laws in your state Should I periodically inspect the property that secures my mortgage note What if the property is not being maintained properly It is the borrower�s duty to protect and maintain the value of the property until it is paid in full However, as the lender you should drive by the property on a regular basis to insure that the property is being properly maintained If the property is in another state, have someone you know do this for you Deferred maintenance on a property can seriously diminish the value of you loan In addition to buying & selling real estate and cash flow notes, he is also a Certified Mortgage Appraiser Click Here For More Information Hyperlink Text
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Sell cash Flow Notes 3

November 05, 2008 - 2:43 am

Some people don't want to sell entire cash flow notes because the security of having a monthly income is comforting, but the holders still need a quick cash infusion For example, a man has sold a three hundred thousand dollar plane and is holding the note for it The man runs into tax problems and needs forty thousand dollars to clear a lien on his house The guy offers a buyer of notes the next sixteen monthly payments on the airplane in return for most of the money upfront to cover his liability The investor agrees to a seventy cents on the dollar lump sum to the note holder for those sixteen months of monthly payments The note holder gets the forty thousand, and the investor makes almost ten thousand dollars on the deal Not a bad deal for both and the man get back to his monthly income in a year and five months Not everyone has an annuity, which can certainly be considered in the family of cash flow notes, but many people have life insurance policies that, because of a terminal illness, can be put on the market and bought by an investment business Such a business transaction, called a viatical, could be considered the same as the purchase of cash flow notes These types of sales get very low ratings from financial experts and the business is fraught with those looking to take advantage of someone in a very sad condition The best advice is to try and get through this hard time without being battered by a viatical agreement There is a sizable amount of people making a good living buying and selling cash flow notes There are even infomercials offering courses on how to do the business just described But hold on; do a lot of checking because there have been complaints about the way these advertised companies do business And while the traditional financial world has had its grocery cart full of maggots, anytime business is done outside the traditional box, such as the buying and selling of these notes, the breeding ground for unethical practices is enhanced almost exponentially We need to be wise as serpents and gentle as doves Real estate notes are probably the most common in the cash flow note business, or probably the most discussed for both business and conversational purposes Almost everyone that has purchased a house understands the concept of a mortgage and what their responsibilities are for paying the "house note" On the other hand, someone that is holding a note as a private individual may not be aware that it is possible to sell this note to someone else for a lump sum of cash Many individuals, when selling property, decide that they can act as the bank or traditional lending institution and provide the financing for the buyer In doing so the owner acts as the note holder and the buyer pays the owner/note holder in monthly installments until the entire amount is paid off or in this case, sells the real estate note to a private investor or company Many individuals have income streams set up through these type of notes, collecting a month income from each one However, circumstances may sometimes require that the note holder sell the note and receive a lump sum of cash for a myriad of reasons including financial upheaval to acquiring cash to expand their cash flow note business Selling real estate notes is not difficult but does require research and due diligence There are perhaps thousands of note brokers and note buyers within the United States that specialize in buying cash flow notes Just as you would do your research before engaging the services of a real estate agent, insurance agent or financial planner, researching a note broker or buyer is just as important Asking the note buyer for proof of qualification is recommended along with a transaction history A reputable note buyer should have no problem providing information the information you require and providing the comfort you desire when selling real estate notes Most importantly, all records and language of the transaction should be in writing If you, as the real estate note seller, do not understand some of the language ask questions Attain full knowledge of the transaction before agreeing and signing off on your real estate note As humans, we sometimes have a internal radar that alerts us when a situation may not be in our best interest More times than not, these internal warnings are correct and should be heeded If for any reason you are not comfortable with the transaction, express you misgivings to the note broker and call an end to the session until you have time to research your misgivings about the transaction Remember, you are selling your real estate note for a reason Acquiring the best possible price for you note is paramount to both your portfolio and piece of mind Research is the best possible way to finding the best deal and attaining the cash you desire Selling real estate notes is not difficult, bit does require some effort on the part of the seller Cash flow notes come in many forms and formats but all have one unique characteristic and principle All notes are a promise to pay Almost everyone has entered into an agreement to purchase something and pay for it over a set period of time For example, when someone buys a new car, they will give the seller a down payment and sign a contract(this is a note) to pay for the car in monthly installments at an agreed upon interest rate Once the buyer has met his obligation of paying for the car over the life of the note, the car is now the property of the buyer This example can be applied to anything from furniture to multi-million dollar real estate transactions Whenever a contract is signed to pay for something over a set period of time, this process creates cash flow notes These transaction are not always between a buyer and a commercial entity such as a bank or lending institution Often these transactions take place between a buyer and private individuals, whereas these private individuals act in the same capacity as a bank or lender Real estate transactions are probably the most common form of cash flow notes between a buyer and a private individual Many individuals may own homes they have placed on the market and provide the financing for a buyer rather than a commercial lender In this case, the buyer would pay the monthly note to the original owner of the house Once the contract or note is agreed upon by both the buyer and seller, the seller has now created a cash flow stream that pays him every month for the life of the note, or until the mortgage is paid in full Real estate is just one example of cash flow streams that can be generated to create a monthly income for private individuals and investors In following post, we will discuss other contracts and transactions that are also cash flow notes and income streams We partner with an extensive list of Invoice Factoring Firms providing your company with a reputable firm with competitive rates Someone requiring start-up cash for a business will usually seek out loans, which then require him or her to sign business cash flow notes Also known as promissory notes, these papers set out repayment terms of the loan, establishing a promise to pay that debt When a person borrows money from a non-commercial lender, business cash flow notes are still highly recommended, though not necessarily required When signing promissory note forms, the parties usually agree on a specified repayment schedule Amortized payments are especially common, particularly amongst commercial lenders With amortized payments, the borrower pays equal monthly installments of both interest and principal over the course of several years or months When the final payment is in, the entire debt is paid off A balloon payment following smaller monthly payments is another repayment option Here, the borrower pays either interest-only during the smaller monthly payments, or a combination of interest and principal At a specified time, the borrower is required to pay the remaining balance in full For less formal loans, such as those from friends or family members, the business cash flow notes may designate a date in the future for a single payment in full Many people end up choosing to sell cash flow notes for immediate cash in their pockets In fact, there are many companies and individual investors who are specifically cash flow note buyers Since business cash flow notes are always sold at a discount, savvy investors will factor in risks and purchase notes that are likely to produce a good return on investment DK World Cash Flow is a business which assists in private real estate financing DK World offers services that include: assisting other professionals with structuring quick sales of difficult properties for their clients, through the creation of notes which can be liquidated for cash at the close of escrow ("simultaneous closings"); disposing of existing notes to achieve cash liquidity for clients; and structuring transactions whereby private paper can be used in lieu of cash toward achieving investment or personal acquisition objectives *Please note: If you are a realtor or other professional (attorney, CPA, financial advisor, mortgage broker, developer or contractor, etc), you can also receive free reports relating directly to your professions Are you receiving payments on a private loan If you're receiving payments on any type real estate note, promissory note or private loan, leave it up to us It's 100% Secure and most importantly, our specialists work with you for free until the deal is complete If the deal doesn't go through, you still pay us nothing Click Here For More Information Hyperlink Text
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Sell Cash fFow Notes 3

November 05, 2008 - 2:42 am

Sell Cash fFow Notes 2

November 05, 2008 - 2:37 am

Cash flow notes, mortgage notes, real estate notes, annuity notes0&&parent We will counsel individuals and companies in structuring private paper transactions and turning private paper assets into cash First Class Cash Flow Handlers offers services that include: assisting other professionals with structuring quick sales of difficult properties for their clients, through the creation of notes which can be liquidated for cash at the close of escrow ("simultaneous closings"); disposing of existing notes to achieve cash liquidity for clients; and structuring transactions whereby private paper can be used in lieu of cash toward achieving investment or personal acquisition objectives We specialize in helping people solve their cash flow problems We buy and sell cash flow notes of any type, including mortgage notes, real estate notes, trust deeds, business notes, mobile home notes, structured settlements, inheritance notes, auto notes, airplane notes, boat notes, lottery winnings, presettlement funding and annuity notes It explores current topics within the cash flow field and answers frequently asked questions about cash flow notes and owner financing You can subscribe to The Cash Flow Clarion and have current issues delivered directly to your e-mail inbox To subscribe, please click here� and then click "Send" Or you may view and subscribe to our Cash Flow Clarion blog *Please note:� If you are a realtor or other professional (attorney, CPA, financial advisor, mortgage broker, developer or contractor, etc), you can also receive free reports relating directly to your professions Please visit the "Realtors" or "Other Professionals" pages to subscribe There are many reasons you may want to sell your note You may prefer to have a lump sum of cash now Have you ever had a buyer who couldn't qualify for a loan, but had the down payment and decent credit First Cash Flow Handlers will buy any type of cash flow, including mortgages, trust deeds, and deeds of trust on residential site map | home page | privacy policy | terms of service products & services | frequently asked questions | note holders | realtors | other professionals We also offer products and services designed to help a home owner sell their home quickly using owner financing and to help people who hold cash flow notes protect and secure their investment in the note By using owner financing, a home owner can sell their home for top dollar and close the sale much more quickly than is possible with traditional home sales techniques For a note holder, not having the information necessary to maintain and secure the note could mean losing money on the note Information is the key to financial success and we can provide you with the information you need to fulfill your financial goals. You may prefer to have a lump sum of cash now in order to pay bills or buy Our sales techniques will significantly increase your production, earn you more commissions, make you more competitive If you are an attorney, CPA, financial advisor, mortgage broker, real estate contractor or developer, rehabber, or mobile home dealer We, at VRUN Services provide services to buy and sell � seller-held mortgages, offering cash for your trust deeds and land contracts both purchase money and hard money mortgages all over the country The � terms used for these types of notes are real estate note, real estate notes, promissory notes, or even privately held notes but rest assured all the terms refer to the same type of transaction We have been buying and selling the mortgage note buyers � for many years Eddie Franklins Cash Flow Note Sales Services is a business which assists in private real estate financing Services offers services that include: assisting other professionals with structuring quick sales of difficult properties for their clients, through the creation of notes which can be liquidated for cash at the close of escrow ("simultaneous closings"); disposing of existing notes to achieve cash liquidity for clients; and structuring transactions whereby private paper can be used in lieu of cash toward achieving investment or personal acquisition objectives We buy and sell cash flow notes of any type, including mortgage notes, real estate notes and trust deeds Right now, people like you all across North America are stuck with investments that they don't want They would rather sell cash flow notes for cash now Whether it's a real estate note created when selling a property, a business note created when selling a business or even a structured settlement, there are thousands of notes out there that could be turned into cash From Note to Cash is a Franklins Cash Flow Note Sales that helps private individuals to: Liquidate Cash Flows Few people know that they can sell cash flow notes TODAY for cash 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 the owner of a property is holding the mortgage for a buyer who couldn't get financing on his own, that owner would be holding a cash flow note If someone is a participator in a trust and is receiving or will be receiving monthly income, he is holding a cash flow note Lottery winners, those who have an annuity and those with court awards paying out monthly or yearly, are all holders of these notes There is a whole business dedicated to buying cash flow notes from people so that they can have a lump sum of money immediately (relatively speaking) rather than wait for years or decades for the entire amount Let's take the case of the man who tried for three years to sell his parent's house in a large Eastern city Look, the place was not exactly the Ritz and five realtors tried and failed, so the man decided to sell to a couple who wouldn't have passed the bank's sniff test, but the owner liked them and really liked the idea of selling the place So the guy is now holding the mortgage Five hundred dollars a month of steady income for thirty years, but the guy's sixty eight with a bad heart, and the wife is begging for an African safari So the man puts an ad in the paper that he is willing to sell cash flow notes And soon the man has a prospective buyer When the two got together to talk turkey, the buyer set down the ground rules His offer for the note would be based on the new owners' credit score, the value and condition of the house as well as its location When all the facts were assembled, the notes buyer was willing to pay the man forty five percent of what the owner had originally asked for the house with a realtor While it was a real disappointment, the man had an epiphany Since the value of the dollar seemed to be dropping every year and inflation climbing, the realization came that in ten years the five hundred each month might be worth four hundred dollars and by the time the thirtieth year came, the five hundred could easily be worth a hundred dollars Better to get money while it still had a value of five hundred in today's economy The note was sold and the new mortgage owner was now paid by the couple each month A contract specifically laying out the amount of the loan to purchase an object, the interest rate, the amount and frequency of payments and any penalties for late payments or early payoff is a cash note Airplanes, cars, boats and mobile homes are all ways that a cash note can be secured And if the cash flow notes holder longs for credit card relief or a medical treatment or for any reason, there are investors ready to buy the note, but it will be at a tidy profit for them, not for the note holder After telling us that the greatest commandment is to love God with all our heart, soul, mind and strength, Jesus added, "Thou shalt love thy neighbor as thyself There is none other commandment greater than these " (Mark 12:31) Christian business people should approach each customer with this commandment in mind Click Here For More Information Hyperlink Text
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Sell Cash Flow Notes 1

November 04, 2008 - 9:01 am

EDDIE FRANKLIN�S cash flow sales get cash now We will counsel individuals and companies in structuring private paper transactions and turning private paper assets into cash First Class Cash Flow Handlers offers services that include: assisting other professionals with structuring quick sales of difficult properties for their clients, through the creation of notes which can be liquidated for cash at the close of escrow ("simultaneous closings"); disposing of existing notes to achieve cash liquidity for clients; and structuring transactions whereby private paper can be used in lieu of cash toward achieving investment or personal acquisition objectives We specialize in helping people solve their cash flow problems We buy and sell cash flow notes of any type, including mortgage notes, real estate notes, trust deeds, business notes, mobile home notes, structured settlements, inheritance notes, auto notes, airplane notes, boat notes, lottery winnings, presettlement funding and annuity notes By using owner financing, a home owner can sell their home for top dollar and close the sale much more quickly than is possible with traditional home sales techniques For a note holder, not having the information necessary to maintain and secure the note could mean losing money on the note Information is the key to financial success and we can provide you with the information you need to fulfill your financial goals If you are an attorney, CPA, financial advisor, mortgage broker, real estate contractor or developer, rehabber, or mobile home dealer We, at Eddie Franklin�s Services provide services to buy and sell� seller-held mortgages, offering cash for your trust deeds and land contracts both purchase money and hard money mortgages all over the country The� terms used for these types of notes are real estate note, real estate notes, promissory notes, or even privately held notes but rest assured all the terms refer to the same type of transaction Right now, people like you all across North America are stuck with investments that they don't want They would rather sell cash flow notes for cash now Whether it's a real estate note created when selling a property, a business note created when selling a business or even a structured settlement, there are thousands of notes out there that could be turned into cash There is a whole business dedicated to buying cash flow notes from people so that they can have a lump sum of money immediately (relatively speaking) rather than wait for years or decades for the entire amount Let's take the case of the man who tried for three years to sell his parent's house in a large Eastern city Look, the place was not exactly the Ritz and five realtors tried and failed, so the man decided to sell to a couple who wouldn't have passed the bank's sniff test, but the owner liked them and really liked the idea of selling the place So the guy is now holding the mortgage Five hundred dollars a month of steady income for thirty years, but the guy's sixty eight with a bad heart, and the wife is begging for an African safari So the man puts an ad in the paper that he is willing to sell cash flow notes And soon the man has a prospective buyer When the two got together to talk turkey, the buyer set down the ground rules His offer for the note would be based on the new owners' credit score, the value and condition of the house as well as its location When all the facts were assembled, the notes buyer was willing to pay the man forty five percent of what the owner had originally asked for the house with a realtor While it was a real disappointment, the man had an epiphany Since the value of the dollar seemed to be dropping every year and inflation climbing, the realization came that in ten years the five hundred each month might be worth four hundred dollars and by the time the thirtieth year came, the five hundred could easily be worth a hundred dollars Better to get money while it still had a value of five hundred in today's economy The note was sold and the new mortgage owner was now paid by the couple each month A contract specifically laying out the amount of the loan to purchase an object, the interest rate, the amount and frequency of payments and any penalties for late payments or early payoff is a cash note Airplanes, cars, boats and mobile homes are all ways that a cash note can be secured And if the cash flow notes holder longs for credit card relief or a medical treatment or for any reason, there are investors ready to buy the note, but it will be at a tidy profit for them, not for the note holder After telling us that the greatest commandment is to love God with all our heart, soul, mind and strength, Jesus added, "Thou shalt love thy neighbor as thyself There is none other commandment greater than these " (Mark 12:31) Christian business people should approach each customer with this commandment in mind Some people don't want to sell entire cash flow notes because the security of having a monthly income is comforting, but the holders still need a quick cash infusion For example, a man has sold a three hundred thousand dollar plane and is holding the note for it The man runs into tax problems and needs forty thousand dollars to clear a lien on his house The guy offers a buyer of notes the next sixteen monthly payments on the airplane in return for most of the money upfront to cover his liability The investor agrees to a seventy cents on the dollar lump sum to the note holder for those sixteen months of monthly payments The note holder gets the forty thousand, and the investor makes almost ten thousand dollars on the deal Not a bad deal for both and the man get back to his monthly income in a year and five months Not everyone has an annuity, which can certainly be considered in the family of cash flow notes, but many people have life insurance policies that, because of a terminal illness, can be put on the market and bought by an investment business Such a business transaction, called a viatical, could be considered the same as the purchase of cash flow notes These types of sales get very low ratings from financial experts and the business is fraught with those looking to take advantage of someone in a very sad condition The best advice is to try and get through this hard time without being battered by a viatical agreement There is a sizable amount of people making a good living buying and selling cash flow notes There are even infomercials offering courses on how to do the business just described But hold on; do a lot of checking because there have been complaints about the way these advertised companies do business And while the traditional financial world has had its grocery cart full of maggots, anytime business is done outside the traditional box, such as the buying and selling of these notes, the breeding ground for unethical practices is enhanced almost exponentially We need to be wise as serpents and gentle as doves Real estate notes are probably the most common in the cash flow note business, or probably the most discussed for both business and conversational purposes Almost everyone that has purchased a house understands the concept of a mortgage and what their responsibilities are for paying the "house note" On the other hand, someone that is holding a note as a private individual may not be aware that it is possible to sell this note to someone else for a lump sum of cash Many individuals, when selling property, decide that they can act as the bank or traditional lending institution and provide the financing for the buyer In doing so the owner acts as the note holder and the buyer pays the owner/note holder in monthly installments until the entire amount is paid off or in this case, sells the real estate note to a private investor or company Many individuals have income streams set up through these type of notes, collecting a month income from each one However, circumstances may sometimes require that the note holder sell the note and receive a lump sum of cash for a myriad of reasons including financial upheaval to acquiring cash to expand their cash flow note business Selling real estate notes is not difficult but does require research and due diligence There are perhaps thousands of note brokers and note buyers within the United States that specialize in buying cash flow notes Just as you would do your research before engaging the services of a real estate agent, insurance agent or financial planner, researching a note broker or buyer is just as important Click Here For More Information Hyperlink Text
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Sell Real Estate Cash flow notes 7

November 03, 2008 - 1:44 am

A real estate note is just the loan document created when you financed the sale of your house or investment property It could be a mortgage note, or a land contract or contract for sale The point is that the buyer is making payments to you, and you want to cash in You can sell the entire contract, or just a certain number of payments if you want The buyer of your property will have the same terms and payments He�ll just be making those payments to somebody else Selling real estate notes can be an intimidating process You know you won�t get the full face value for your note, but will there be other fees you have to pay too How do you know if the buyer is reputable What is a normal discount on a note Here are some guidelines to follow: No upfront fees Eddie Franklins cash Flow Note Sales does not charge upfront fees for credit checks or initial appraisals No other fees, with a couple exceptions The buyer has already figured his expenses before making the offer, so there are only a couple fees you should have to possibly pay First, you may have to pay for the title policy, if there are problems with the title that prevent purchase Second, if the property appraises at less than the sales price, you may have to pay for the appraisal You should only pay exactly what these cost the note buyer though We will always give you a written purchase agreement with the purchase price and contingencies Ask questions about anything that isn�t clear Eddie Franklins Cash Flow note Sales checks the credit of your property buyer upfront Unscrupulous buyers can quote one price initially, and then lower it later, using the excuse of the property buyer�s bad credit score This is called �bait and switch,� and it isn�t ethical You�ll need to provide information like the type of property, sale price, payment amounts, current balance, etc They should respond within a day or two When you get a quote you like, you�ll have to send copies of the Mortgage or Deed of Trust, the Note, the closing or Settlement Statement, and the Title Policy If there is no recent appraisal, they will usually arrange for that Usually, once you agree to the offer and send the documents (if done by mail), you can expect to receive a certified check or electronic transfer to your account within two to three weeks Notes with a balloon payment get a higher price Those are notes that have had payments made on them for a while Some note buyers will buy new or �unseasoned� notes, but if you can wait until six payments have been made, you�re likely to get a much better price Higher interest rates and shorter loan periods will get you more money too This is something to consider before you sell the house, if you think you might sell the note in the future You can sell second mortgage notes, and other second-place real estate notes as well Note buyers will look at these differently though The first and second place notes can�t add up to much more than 70% of the value of the property, or you�ll be looking at a steep discount Qualified to Sell Real Estate Notes Over 30 years selling real estate notes Master real estate note brokers Real estate professionals Nationally recognized as a leaders, innovators and instructors in the Debt Instrument Field to sell real estate notes knowledgeably Capable to Sell Real Estate Notes Sell one real estate note, a few notes at a time, or sell hundreds of real estate notes Function as real estate note buyers and real estate note brokers Work hard to obtain the best price to sell your real estate notes Flexibility to sell Real Estate Notes All real estate note underwriting is in house to ensure we sell real estate notes properly Prepare new real estate note documents if needed Correct real estate note title problems Handle all real estate note needs from appraisal to the closing We sell real estate notes everyday, so please contact Edward J Adams or one of his real estate note associates if you are a note seller or a broker Remember, we are real estate note brokers. Fill out a free note quote online, or give us a call today 1-312-938-0922 We purchase real estate notes, deeds of trust and land contracts, nationwide If you are currently receiving payments on a 1st or 2nd lien position real estate note, or an all-inclusive wrap (a mortgage note that wraps around the 1st lien position) We will pay you cash for your future note payments in as little as 10 business days A direct mortgage note buyer, land contract buyer and deed of trust buyer we will quickly provide you with the highest possible quote for your mortgage note or land contract We pay top dollar for 1st lien position real estate notes, nationwide Request a quote: Land Building Lots Recreational Land. If you are a first-time seller or an experienced investor, rest assured, as an experienced deed of trust buyer, we will handle your transaction in a fast, friendly and professional manner. Questions you may have regarding the sale of your note will be answered. We will then evaluate the information provided taking into consideration the purchaser's equity, payment history, term of the note, interest rate, current balance on the note, as well as the credit rating of the buyer We do this, so we may provide you with the highest possible price for your note Upon acceptance of our price we will send you a contract as well as a list of documents we will need to complete your transaction You will then need to either fax or overnight mail to us copies of the documents we have requested along with the signed contract After we review the documents we will order an appraisal of the property After review of the appraisal we will order title insurance, and prepare the closing documents Once prepared the documents in most cases will be sent to you for review You will review, sign and return the documents After the documents are received the transaction will be funded, usually the following day and a trust account or cashiers check will be express mailed to you or wired directly to your account, if you prefer Flexible Purchase Options: So we may better serve the financial needs of our clients we offer a wide array of flexible purchase options When you want to sell a promissory note or whether you are interested in selling a mortgage note, or selling a real estate note or any other real estate secured note, we offer many flexible purchase options to get you the cash you want fast For example, we can purchase all of the remaining payments on your contract (a full purchase) Or, if you need a specific dollar amount it may be more beneficial to only sell a portion of your remaining payments This option, known as (a partial purchase) is often preferred by many note sellers, with this option you receive the cash you need now while still retaining the right to receive future payments In addition, we offer a (split disbursement partial) this option is often an excellent choice for individuals that do not want sell the entire monthly income such payment streams provide In this example lets say you receive a $500 monthly payment, we could purchase $200 of the $500 monthly payment with the remaining $300 dollars per month going to the you With this option you get the large lump sum of cash you need now plus you still receive the needed monthly income Besides these very popular purchase options we also offer a Reverse Partial, Simultaneous Purchase and a Multiple Staged Payout all of which you are encouraged to review in the Purchase Options section of our site or give us a call, we would be glad to explain any question you may have Often referred to as seller financing, owner financing, or owner carry back financing, this method of private financing is often desirable for many reasons including: More qualified buyers Quick sale of the property Less hassle than more conventional financing Additional monthly income these cash flow notes may provide These real estate notes are known by various names such as, privately held mortgage notes, contracts for deeds, deeds of trust, land contracts, real estate contracts, trust indentures, trust deeds and promissory notes, depending on what state or region of the country the original sale took place in These debt instruments provide the holders of these real estate cash flow notes with income over the long-term However, many times a note holder's circumstances may change Making the option of large lump sum payment now more appealing and useful than the smaller monthly payments for a variety of reasons including: Taxes Retirement needs Investment Opportunities Vacation or college tuition Unexpected financial changes or simply being free from the worry of late payments or the possibility of having to foreclose on the buyer and the list goes on We are happy to assist first time sellers, we will walk you through the entire purchase process and answer any questions you may have As an experienced mortgage note buyer and real estate note buyer, we have the expertise and the know-how to get your note purchase accomplished in a fast, efficient and professional manner We have been investing in real estate for over forty years and have been buying real estate notes, since 1980 Because we are private investors, we understand the bottom line and take pride in providing some of the highest pay prices in the industry as well as providing you with a fast, hassle free closing experience Are you receiving payments from real estate. We pay top dollar for real estate notes & contracts, nationwide Sell a Real Estate Note Sell a Mortgage Not Sell Promissory Note. Sell Land Contract. Fast, Hassle Free Closing. We Pay all Closing Expenses. We are dedicated to helping note and contract holders nationwide, convert their long-term payment streams into large lump sums of "cash in the bank" as quickly and hassle free as possible Whether you are receiving payments on a residential property contract, commercial property contract, mobile home note or a bare land contract Call us, as an experienced mortgage note buyer, we will quickly provide you with the highest possible quote on your privately held mortgage, nobody pays more If you are considering selling you home or investment property via seller financing, give us a call Click Here For More Information Hyperlink Text eSyndiCat Directory
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Sell Real Estate Cash Flow notes 6

November 01, 2008 - 6:12 pm

EDDIE FRANKLIN�S real estate note sales get cash now A real estate note is just the loan document created when you financed the sale of your house or investment property It could be a mortgage note, or a land contract or contract for sale The point is that the buyer is making payments to you, and you want to cash in You can sell the entire contract, or just a certain number of payments if you want The buyer of your property will have the same terms and payments He�ll just be making those payments to somebody else Selling real estate notes can be an intimidating process You know you won�t get the full face value for your note, but will there be other fees you have to pay too How do you know if the buyer is reputable? What is a normal discount on a note? Here are some guidelines to follow: No upfront fees Eddie Franklin�s cash Flow Note Sales does not charge upfront fees for credit checks or initial appraisals No other fees, with a couple exceptions The buyer has already figured his expenses before making the offer, so there are only a couple fees you should have to possibly pay First, you may have to pay for the title policy, if there are problems with the title that prevent purchase Second, if the property appraises at less than the sales price, you may have to pay for the appraisal You should only pay exactly what these cost the note buyer though We will always give you a written purchase agreement with the purchase price and contingencies Ask questions about anything that isn�t clear Eddie Franklins Cash Flow note Sales checks the credit of your property buyer upfront Unscrupulous buyers can quote one price initially, and then lower it later, using the excuse of the property buyer�s bad credit score This is called �bait and switch,� and it isn�t ethical You�ll need to provide information like the type of property, sale price, payment amounts, current balance, etc They should respond within a day or two When you get a quote you like, you�ll have to send copies of the Mortgage or Deed of Trust, the Note, the closing or Settlement Statement, and the Title Policy If there is no recent appraisal, they will usually arrange for that Usually, once you agree to the offer and send the documents (if done by mail), you can expect to receive a certified check or electronic transfer to your account within two to three weeks Notes with a balloon payment get a higher price Those are notes that have had payments made on them for a while Some note buyers will buy new or �unseasoned� notes, but if you can wait until six payments have been made, you�re likely to get a much better price Higher interest rates and shorter loan periods will get you more money too This is something to consider before you sell the house, if you think you might sell the note in the future You can sell second mortgage notes and other second-place real estate notes as well Note buyers will look at these differently though The first and second place notes can�t add up to much more than 70% of the value of the property, or you�ll be looking at a steep discount Qualified to Sell Real Estate Notes Over 30 years selling real estate notes Master real estate note brokers Real estate professionals Nationally recognized as a leaders, innovators and instructors in the Debt Instrument Field to sell real estate notes knowledgeably Capable to Sell Real Estate Notes Sell one real estate note, a few notes at a time, or sell hundreds of real estate notes Function as real estate note buyers and real estate note brokers Work hard to obtain the best price to sell your real estate notes Flexibility to sell Real Estate Notes All real estate note underwriting is in house to ensure we sell real estate notes properly Prepare new real estate note documents if needed Correct real estate note title problems Handle all real estate note needs from appraisal to the closing We sell real estate notes everyday, so please contact Edward J Adams or one of his real estate note associates if you are a note seller or a broker Remember, we are real estate note brokers. Fill out a free note quote online, or give us a call today 1-312-938-0922 We purchase real estate notes, deeds of trust and land contracts, nationwide If you are currently receiving payments on a 1st or 2nd lien position real estate note, or an all-inclusive wrap (a mortgage note that wraps around the 1st lien position) We will pay you cash for your future note payments in as little as 10 business days A direct mortgage note buyer, land contract buyer and deed of trust buyer we will quickly provide you with the highest possible quote for your mortgage note or land contract We pay top dollar for 1st lien position real estate notes, nationwide Request a quote: Land Building Lots Recreational Land. If you are a first-time seller or an experienced investor, rest assured, as an experienced deed of trust buyer, we will handle your transaction in a fast, friendly and professional manner. Questions you may have regarding the sale of your note will be answered. We will then evaluate the information provided taking into consideration the purchaser's equity, payment history, term of the note, interest rate, current balance on the note, as well as the credit rating of the buyer We do this, so we may provide you with the highest possible price for your note Upon acceptance of our price we will send you a contract as well as a list of documents we will need to complete your transaction You will then need to either fax or overnight mail to us copies of the documents we have requested along with the signed contract After we review the documents we will order an appraisal of the property After review of the appraisal we will order title insurance, and prepare the closing documents Once prepared the documents in most cases will be sent to you for review You will review, sign and return the documents After the documents are received the transaction will be funded, usually the following day and a trust account or cashiers check will be express mailed to you or wired directly to your account, if you prefer Flexible Purchase Options: So we may better serve the financial needs of our clients we offer a wide array of flexible purchase options When you want to sell a promissory note or whether you are interested in selling a mortgage note, or selling a real estate note or any other real estate secured note, we offer many flexible purchase options to get you the cash you want fast For example, we can purchase all of the remaining payments on your contract (a full purchase) Or, if you need a specific dollar amount it may be more beneficial to only sell a portion of your remaining payments This option, known as (a partial purchase) is often preferred by many note sellers, with this option you receive the cash you need now while still retaining the right to receive future payments In addition, we offer a (split disbursement partial) this option is often an excellent choice for individuals that do not want sell the entire monthly income such payment streams provide In this example let�s say you receive a $500 monthly payment, we could purchase $200 of the $500 monthly payment with the remaining $300 dollars per month going to the you With this option you get the large lump sum of cash you need now plus you still receive the needed monthly income Besides these very popular purchase options we also offer a Reverse Partial, Simultaneous Purchase and a Multiple Staged Payout all of which you are encouraged to review in the Purchase Options section of our site or give us a call, we would be glad to explain any question you may have Often referred to as seller financing, owner financing, or owner carry back financing, this method of private financing is often desirable for many reasons including: More qualified buyers Quick sale of the property Less hassle than more conventional financing Additional monthly income these cash flow notes may provide These real estate notes are known by various names such as, privately held mortgage notes, contracts for deeds, deeds of trust, land contracts, real estate contracts, trust indentures, trust deeds and promissory notes, depending on what state or region of the country the original sale took place in These debt instruments provide the holders of these real estate cash flow notes with income over the long-term However, many times a note holder's circumstances may change Making the option of large lump sum payment now more appealing and useful than the smaller monthly payments for a variety of reasons including: Taxes Retirement needs Investment Opportunities Vacation or college tuition Unexpected financial changes or simply being free from the worry of late payments or the possibility of having to foreclose on the buyer and the list goes on We are happy to assist first time sellers; we will walk you through the entire purchase process and answer any questions you may have As an experienced mortgage note buyer and real estate note buyer, we have the expertise and the know-how to get your note purchase accomplished in a fast, efficient and professional manner We have been investing in real estate for over forty years and have been buying real estate notes, since 1980 Because we are private investors, we understand the bottom line and take pride in providing some of the highest pay prices in the industry as well as providing you with a fast, hassle free closing experience Are you receiving payments from real estate? We pay top dollar for real estate notes & contracts, nationwide Sell a Real Estate Note Sell a Mortgage Not Sell Promissory Note. Sell Land Contract. Fast, Hassle Free Closing. We pay all Closing Expenses. We are dedicated to helping note and contract holders nationwide, convert their long-term payment streams into large lump sums of "cash in the bank" as quickly and hassle free as possible Whether you are receiving payments on a residential property contract, commercial property contract, mobile home note or a bare land contract Call us, as an experienced mortgage note buyer, we will quickly provide you with the highest possible quote on your privately held mortgage, nobody pays more If you are considering selling you home or investment property via seller financing, give us a call Click Here For More Information Hyperlink Text eSyndiCat Directory
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Sell Real Estate Notes 5

November 01, 2008 - 2:31 pm

EDDIE FRANKLIN�S real estate note sales get cash now If you would like to sell mortgage notes, sell real estate notes, sell deeds or trust, sell a real estate contract or sell land contracts, our company can help you convert all, or any portion, of your future payments into immediate cash There are no closing costs or fees for you and the price we quote you will be net cash to you We do all the work and we pay all of the expenses Call or email the premier mortgage note buyers, trust deed buyers, real estate note buyers and land contract buyers today at 1-312-938-0922 to learn more about your available options When we purchase discounted mortgage notes, we buy mortgage note payments that are due in the future on real estate secured contracts from people who sold property and used owner financing Our long history of doing business with honesty and integrity has made us one of the most experienced and respected mortgage note buyers in America Note � A promissory note, mortgage note, trust deed note or cash flow note is a document in which one party, the maker (payor), promises to pay an exact sum of money to another (the payee) at a fixed or determinable future time Mortgage � A mortgage deed is a written instrument that creates a lien by pledging real property as security for a debt Deed of Trust � A written instrument that transfers bare legal title to real property to a trustee to be held as security for a debt Land Contract � A security device used in the sale of real property The buyer agrees to pay the purchase price in installments The seller agrees that when the purchase price is paid in full, he will deed the property to the buyer Until the purchase price is paid in full, the seller keeps legal title Also called conditional sales contract, contract for deed or contract of sale If you sold a property and carried back private mortgages or a deed of trust, you've got a LOT of money just hanging out there If you're like most people, your fingers are crossed and you're hoping your payer keeps paying, the real estate market improves, the economy doesn't get any worse and nothing else bad happens to jeopardize your money The good news is that a real estate note buyer or mortgage note buyer like TCF can convert your worries into immediate CASH Is any of this ringing true with you TCF will pay you the highest cash price for your private residential or commercial mortgage or trust deed with no hassles, no risk and no delays We always pay closing costs and can close and fund in as little as 10 business days "I found the entire note buying process, from my first inquiry to the final result almost too easy In fact, it was so easy, at times I questioned the validity of what was taking place Any questions I had were answered promptly and professionally and the amount of work required on my end was simple Once everything was in place, it was a matter of about 2 days and the funds were in my account I can't fault any part of the process and would recommend TriMark Capital Funding, Inc to anyone who wants to cash out of a real estate note As one of America's top real estate note buyers, we know this business inside and out You won't be at the mercy of greedy middlemen or note brokers; you'll be working directly with professional real estate note investors who have been buying and selling real estate notes for decades We buy mortgage notes and trust deeds (deed of trust) in the 1st lien position or an all-inclusive wrap (wraps around the 1st lien) Did you sell a home, business or property and carry back a note If you did, then as long as you're receiving monthly or periodic payments on that note, mortgage, deed of trust, land contract or other cash flow, your note is as good as gold And if you have been thinking about converting that note into a large block of usable cash then TCF can help you We will customize our purchase to suit your exact needs, whether you want to convert just a few, or all of your future payments into IMMEDIATE CASH "The one thing I would say above all else that separates [TriMark Capital Funding, Inc Every facet of the note purchase process was dealt with quickly and succinctly Never once did I feel that the sale of our [pool of] notes was in the wrong hands Eddie Franklins experience and know-how showed through in every phase of the process The full purchase is our most popular option for buying real estate contracts for several excellent reasons: Provides the largest amount of cash right now Eliminates the risk & hassle of foreclosure The partial purchase is also an exceptionally popular option with note sellers because of it's extreme flexibility and because in many cases it is possible to receive MORE MONEY than the original selling price Also, note holders frequently don't need to sell their entire note, they just need to access some of it's worth, so we buy mortgage note payments instead of the whole note This enables note sellers to generate a specific amount of cash by selling just a portion of their payments and keep the rest The note seller receives cash at closing to achieve their immediate goals and has the option to sell the remaining payments later or begin collecting payments again in the future The split partial balloon note sale is an option when a mortgage has a certain number of payments and a balloon payment due at a later date We can buy the payments leading up to the balloon and a portion of the balloon when it comes due The note seller gets a lump sum of cash at closing and receives the other portion of the balloon split when it gets paid off There are a number of companies that buy seller financed real estate contracts Often referred to as mortgage buyers, note buyers, trust deed buyers, mortgage investors, real estate note investors or real estate contract buyers, these companies all purchase real estate secured promissory notes and discounted mortgage notes If you're in the market to sell a real estate note, sell a deed of trust, sell a mortgage note, sell a contract for deed, or sell any real estate secured note we recommend you contact more than one company to establish your note's highest cash value Call us last and we'll do our best to beat every offer you received Many factors are evaluated to reach the market value of real estate secured promissory notes: Type of property securing the note is committed to offering you the very best pricing available, delivered with integrity, professionalism and extraordinary customer service Get your best offer BEFORE calling us and then let us prove it to you We will do our best to beat every purchase offer you received And in the highly unlikely event that we can't, we will send you a check for $200 when you close with the other company It is our way of thanking you for giving us the opportunity to earn your business Extraordinary Service Pledge: We pay you the HIGHEST CASH PRICE for your real estate notes and mortgages We will consider all 1st position notes and note portfolios from $25,000 to $10,000,000 YOU PAY ZERO CLOSING COSTS TCF pays all normal closing expenses including title, appraisal, etc You'll have a FIRM QUOTE and contract emailed to you within 6 hours of contacting us Maybe you want to sell real estate note so you can cash-in on another hot investment opportunity Or perhaps it's a promissory note that's been giving you trouble and you want out Some of you are carrying a huge mortgage note or commercial note and have had trouble finding a qualified investor to purchase it Note Seller Network is the largest and most trusted resource for selling ANY note you have With over 300 investors (and growing) all throughout the United States, Note Seller Network can purchase ANY kind of note and ANY size of note Simply fill out our Easy Quote Request Form below or call us now and in 10 minutes, we will gather the information we need to quickly and easily get you a buyer for your note The Dubai Financial Market is showing huge losses this autumn Looked at your real estate portfolio lately Given the current financial crisis on world markets, most people have been looking at their financial portfolios But real estate generally makes up the bulk of a family's net worth Direct real estate investing is becoming an increasing option for investors eying retirement and who want to take advantage of real estate's return potential and its abilities as a portfolio diversifier and inflation hedge For the most part, real estate is not frequently invested in for retirement-account purposes, and with the exception of real estate-related funds, there are few options for Coming at the real estate equation from opposite sides, buyers and sellers may feel they have little in common Pershing to unveil real-estate deal for Target (Market Watch) SAN FRANCISCO (MarketWatch) -- Pershing Square Capital Management, a hedge fund firm run by Bill Ackman, plans to unveil a potential transaction that could help unlock some of the value of Target Corp 's real estate, according to a press release on Tuesday Homes & Land, the affluent home buyer's marketplace, announced today that it will begin to offer its Realtor(R) advertisers featured listings on Yahoo Real Estate, the number one real estate site on the web With this new ad package, Homes & Land Realtors are able to promote specific homes as featured listings on Yahoo Real Estate at the top of its local search results pages, increasing The thing with the real estate business is it can be stable but more often it is changing, and when it change it is in a fast pace , the country's two largest real estate developers by market value, fell in China trading after both reported that third-quarter earnings declined as demand for homes weakened , with about 6 trillion yen ($64 billion) in assets, plans to invest in overseas real estate and credit securities after recent declines made them attractive - All Rights Reserved sell mortgage note | sell promissory note | sell real estate note Sell real estate note, sell mortgage note, sell promissory note or sell annuity and get the cash NOW Whether it's a real estate note created when selling a property, a promissory note created when selling a business or even a structured settlement or annuity, Note Seller Network can turn any note into immediate cash Note $8,440- Time Share Note $300,699- Collection Account sell mortgage note | sell promissory note | sell real estate note Click Here For More Information Hyperlink Text eSyndiCat Directory
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Sell Cash Flow Notes 4

October 31, 2008 - 1:09 pm

EDDIE FRANKLIN�S real estate note sales get cash now Sell your real estate note, land contract or mortgage note and get cash for your real estate note in as little as 10 business days This is one of the best times in years, to sell a real estate note, with interest rates near all-time lows, many real estate note buyers and investors are buying privately held real estate notes and mortgages as a relatively safe harbor for their retirement and investment funds Allowing real estate note holders to reap the benefits of higher buyouts and more flexible purchase options than ever before Eddie Franklins Cash Flow Note Sales of real estate notes and land contracts, from Oregon to Florida, New York to Texas and all fifty US States including Connecticut, Colorado and California If you are receiving payments from a real estate note and are ready to accept a cash now buyout for that real estate note Call us or please take a moment to complete our FREE QUOTE FORM We guarantee you exceptional pricing, a streamlined purchase process and a courteous staff of real estate note buying professionals that will listen to, understand and exceed your expectations As one of the nations high volume real estate note buyers, we will quickly provide you with our best offer for your real estate note or contract. If it is, have you been thinking you'd like to sell some mortgage note payments to a real estate note buyer or maybe even cash out your entire note Economists insist a recession is in full swing That, combined with $4 a gallon gas prices, inflation, rising food costs, the war on terror, the upcoming presidential election and a nationwide unemployment rate of 9 All in all, it comes as no surprise that millions of folks are tightening their belts, liquidating their riskier investments, stockpiling their cash and bracing themselves for what many believe could turn out to be quite a storm Once upon a time, seller financed real estate notes were considered among the safest, most secure income producing assets you could get and mortgage backed securities were, until very recently, a Wall Street mainstay Now they're seen as risky by most note holders (and even by many would-be real estate note buyers and private mortgage note buyers too) because the combination of the sub prime meltdown, plummeting property values, a stagnant real estate market and rising unemployment make their future payments much less certain In turn, the prospect of foreclosure and financial loss becomes much more likely To add insult to injury, none of the major investors who used to buy private mortgages and package them into mortgage backed securities for sale to Wall Street will touch them anymore Even huge loan servicing companies like Countrywide, Fannie Mae, Freddie Mac and IndyMac are in serious trouble or have been taken over by the US government With no major outlets to sell to any longer, holding a privately owned mortgage note is suddenly a much riskier proposition At TCF, we buy & hold; we don't package & sell to Wall Street That's why we're STILL BUYING and STILL paying TOP DOLLAR for good quality private mortgage notes Given the choice, it's no wonder millions of people who are currently receiving payments on a real estate note, mortgage note or deed of trust feel like the clock is ticking It's also not surprising that millions of them are searching for an exit strategy (real estate note investors and/or private mortgage investors) and have begun converting their notes into cash now, before the market declines further and especially before their payments stop or there is a problem that causes their note to lose even more value And while the days of getting 95 to 99 cents on the dollar for private mortgage notes are long gone, it's still an excellent time to sell your note; at least for the time being But hindsight is always 20/20; and if history has taught us ANYTHING, it's that "he who hesitates loses his shirt", so don't wait too long to contact a mortgage note buyer like TCF Are you receiving periodic payments from the sale of a home or other property we're experienced, professional real estate note investors and private mortgage investors; we buy owner financed real estate notes and private mortgages everyday We're driven to offer every client the best price, great service & remarkable customer care when they decide it's time to sell real estate note, sell mortgage note, sell deed of trust or sell land contract payments We'll do our utmost to beat every other offer you receive In the unlikely event that we can�t, we�ll send you a check for $200 when you close with the other company It's our way of guaranteeing you'll receive the highest cash price when you sell a real estate note, sell a mortgage note, sell a deed of trust or sell a land contract Call us today, we will gladly walk you through the entire purchase process and honestly answer any questions you may have regarding the sale of your real estate note or contract Your note will NEVER be worth more than it is TODAY Our staff of real estate note professionals will quickly evaluate your real estate note and in most cases provide a quote over the phone Once accepted, we can typically have a purchase contract in your hand within the hour When completing the form, please try to give exact date and payment amounts without rounding off of numbers The more accurate the information provided, the better and more accurate the quote Your road map to real estate success starts here Whether you're selling your property and need to create a profitable note as you owner finance, you are a realtor looking to help your client sell a property faster, or an investor who wants to earn a good yield on all property acquisitions and sales, this website provides the "here's-how-you-do-it" strategy to enable success
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Sell Real Estate Notes 3

October 30, 2008 - 3:33 am

Creative home sellers who offer seller financing to potential buyers can often sell their houses more quickly (and at a higher price) in a slow market While applying seller financing techniques isn't more difficult than traditional real estate sales, it is important to recognize that the buyers looking for seller financing represent a different target market than typical bank-financed customers Similarly, the process for obtaining a large cash payment for the seller after a note is created varies from the conventional real estate closing technique as well In some seller-financed real estate situations, the property owner may have an immediate need for more cash than is available from the scheduled principal and interest payments This situation often comes about when the seller needs to have enough money to use as a down payment for their next real estate purchase In order to quickly obtain a large proportion of the money due from the loan they just created, the seller could sell the monthly note payments to a buyer for a lump sum of cash By locating someone willing to buy the note payments, the seller will have ready cash for a down payment or any other pressing financial need In order to streamline the seller finance sale situation, it is advisable to have potential buyers for the newly-created cash flow at the ready A seller can start looking for buyers before the note is created, or even before a seller-financed buyer is "lined up" This way, the property seller could have a buyer for the payment stream ready to make the purchase as soon as the new private mortgage is created But what is the best method to find these note buyers In stark contrast to locating seller-finance buyers for the real estate itself, a classified ad in the paper is not the best option Most people looking to purchase a stream of monthly payments do not look in the newspaper for potential cash flows to add to their portfolios An alternate marketing strategy is required for finding note buyers In recent years, the Internet has become the best place to find cash flow purchasers Using keywords such as "buy monthly payments" or "buy mortgage payments" at a popular search engine website should lead to many interested buyers Sometimes there are so many potential buyers, it can be difficult to figure out where to start Also, cash flow buyers tend to have distinctly different financial parameters; an opportunity that meets the needs of one person perfectly may not be attractive at all to another Therefore, it is often best to work with someone who could give the seller a general idea about how notes should be structured In the secondary finance industry, a unique group of individuals exists who specialize in locating note buyers These finders are happy to work with agents and their clients Many of them utilize online marketing and have Internet websites to facilitate the buyer location process The best of the bunch also look in the newspaper for property sellers offering financing, so sometimes a good finder will contact the seller if their property is advertised as FSBO Finders specialize in helping property sellers locate buyers for secured notes Once in contact with a finder, the seller should explain the details of the situation Most importantly, note finders will be able to help locate a buyer for a newly-created cash flow Remember, these finders are not note brokers, meaning they will not "show" the seller's note to buyers or act as a representative They will only pass the information along to someone who would be interested Once a commitment to purchase the cash flow has been established, the buyer will step in and complete the deal When working with a property seller who needs a lump sum of cash immediately after selling their real estate, contacting a finder early in the process of creating a real estate note makes sense By involving a qualified note finder BEFORE a note is created, the property seller can receive invaluable input about the payment characteristics that note buyers prefer Without this knowledge, the property could sell quickly with the creation of a new note, but the seller might end up collecting the payments long-term instead of being able to quickly "trade" the future payments for an upfront cash settlement If the property seller will need a large amount of cash quickly, it makes sense to plan ahead for a buyer to purchase the cash flow and involve the services of a note finder Buy a business or sell a business for free Find businesses for sale, franchise opportunities, business brokers & commercial loans If you want cash for your business note or mortgage note, Eddie Franklins Cash Flow Note Sales can help you We work with some of the top business and mortgage note buyers and investors Perhaps you've recently come across a great investment opportunity Or, maybe you need some extra cash flow to pay down debt Whatever the reason, you have heard that you can sell your real estate note (more often called a mortgage note), but you aren't quite sure how it works or how to ensure that you get a good deal Let's say that the note has now been completed, you have received at least one payment from the property buyer, and now you've called us about selling the note The first thing that most note sellers think about is selling the entire note If that scenario fits your financial situation and the note is likely to fetch a high value, you may want to go down that path But wait, you should at least understand other options in order to choose the one that is the best fit Sometimes, note sellers like the interest rate that they are receiving on the note, but just want to obtain some amount of cash now Or, It is possible, and often to your advantage, to just sell some of the payments This is called a partial, and it can often provide you with a much higher rate of return Assume that you sold a house for $120,000, the buyer gave you $20,000 as a down payment, and you have a $100,000 note at 7% for the next 15 years (180 months) You enjoy getting the income each month but need $30,000 for another investment or to pay off debt We could give you that $30,000 in exchange for buying the next "x" number of payments, after which the note reverts back to you for the remainder of the term There are also other ways to structure the note to meet your needs, such as getting a lump sum of money now plus receiving a part of the payment each month thereafter A knowledgeable note buyer will be able to explain these to you in more detail The items that are described above and apply mainly to 1st liens Click Here For More Information Hyperlink Text
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Eddie Franklins Sale Real Estate Notes 3

October 29, 2008 - 4:04 am

Eddie Franklins Sale Real Estate Notes 2

Wednesday, October 29, 2008

Eddie Franklins Sale Real Estate Notes 2

Take control of your cash flow and use your money when you decide
Sell a real estate note or other income stream or cash flow and get Tomorrows cash today
Are you receiving payments from the sale of residential or commercial real estate, but need more CASH
Let us help with your cash flow
Find out what your real estate note is worth, try our FREE on-line quote
You are in total control when you work with us and your buyer will never know
Right now thousands of people across North America are stuck with investments that they don't want, they would rather have the CASH now
Our Network believes in fast, efficient service
We are dedicated to helping you get the "Best Possible Price" for your note
All of your dealings with us are strictly confidential and you are in complete control of all transactions

We help individuals and businesses to more effectively manage their cash flow by converting money that is due in the future on real estate notes, business sale notes, structured settlements, annuities and other future instruments into Fast Cash that can be used to pay current obligations or make the most of opportunities right now
If you plan to sell a business and offer owner financing to facilitate the sale, we can cash you out
Property owners are choosing to provide financing to new buyers when they sell their home or investment properties in order to facilitate a quick sale
Often referred to as owner financing, seller financing, owner assisted financing or owner carry backs, this method of private financing is often done for many reasons
If your considering the possibility of selling your real estate note, mortgage note, trust deed or deed of trust we can structure a creative solution to get you the CASH that you need NOW
We've heard many different reasons from people why they want to get access to CASH in exchange for all or part of the payments they are receiving on their Notes, Annuities, Mortgage Notes, or Structured Settlements
If you need to sell a real estate note or get CASH NOW for your real estate notes, mortgage notes, trust deeds or business notes, we will pay TOP dollar for your notes
We are national buyers of real estate notes and other types of cash flows
We attribute our success to outstanding customer service and competitive pricing
Our friendly and efficient staff will see you through to the finish
We are premier cash flow specialists who work with private individuals to liquidate any of their cash flows or SellReal Estate Notes
Sell Real Estate NoteReal Estate Note Buyer Our network of investors are 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 are a prime buyer of Estate Notes, Privately Held Mortgages and Deeds of Trust
We are available to assist you with the structuring, purchase, or sale of real estate notes and help you with your cash flow
Sell Real Estate Note If you are looking to sell real estate note, you're probably in need of cash for a new investment, a payment or a special purchase
Whatever the case may be, it is crucial that you find a reputable note buyer, someone with extensive experience that you can trust to execute the sale properly and give you the money that you deserve
These days note buyers are just a click away; you just have to know where to find them
Many people who sell real estate notes go into the process blindly, not knowing what to look for and ultimately getting less than they deserve for their notes
Others are not aware that they can sell just a percentage of the note, called a partial, rather than the entire note
This allows you to receive a lump sum for a certain number of payments
For example, if you are receiving $50,000 over 10 years, you can sell a portion of the payments, say $10,000 worth, and continue to receive the rest of the payments
There are many different ways to sell real estate note, so don't let a buyer tell you have to sell the entire note
Although it will often yield high payments, there are many advantages to retaining some of the note
On the other hand, selling off the note in its entirety is also an option to consider as well
An experienced, reputable buyer will explain all of your options
So you've decided to sell a real estate note, so what should you look for in a buyer
A reputable buyer will be more than happy to answer any questions you have and let you know what your options are when it comes to selling your note
Choose the option that makes the most sense for you
Ask the buyer how long they have been in the business, how many transactions they have done
Chances are if someone has been doing this a long time they know what they are doing
When you sell real estate notes, you should not have to pay any initial fees, points, closing costs or anything else
Everything should be including in the price you are getting paid for the full or partial note
Everything should be in writing so you know exactly what you're agreeing to
If upon reading the agreement you don't understand one or more of the terms, feel free to ask for clarification
The most important thing when you sell a real estate note is to go with your gut
You should feel comfortable with the note buyer and with the entire process
If you get a bad vibe or the note buyer is unwilling to answer all of your questions or seems to be giving you conflicting information, don't go ahead with the sale
There are plenty of reputable, honest buyers out there that you can work with that will answer all of your questions and make you feel confident about the sale of your real estate note
Now when it comes time to sell real estate note, at least you'll know what to look for
And remember, money now is always worth more than money later, so if you need cash, selling your note always makes sense
more than sell real estate note on our Selling Your Note home page. Do you have a note to sell
Click Here For More Information Hyperlink Text

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Real Estate Note Sales 2

October 29, 2008 - 3:34 am

Take control of your cash flow and use your money when you decide Sell a real estate note or other income stream or cash flow and get Tomorrows cash today Are you receiving payments from the sale of residential or commercial real estate, but need more CASH Let us help with your cash flow Find out what your real estate note is worth, try our FREE on-line quote You are in total control when you work with us and your buyer will never know Right now thousands of people across North America are stuck with investments that they don't want, they would rather have the CASH now Our Network believes in fast, efficient service We are dedicated to helping you get the "Best Possible Price" for your note All of your dealings with us are strictly confidential and you are in complete control of all transactions We help individuals and businesses to more effectively manage their cash flow by converting money that is due in the future on real estate notes, business sale notes, structured settlements, annuities and other future instruments into Fast Cash that can be used to pay current obligations or make the most of opportunities right now If you plan to sell a business and offer owner financing to facilitate the sale, we can cash you out Property owners are choosing to provide financing to new buyers when they sell their home or investment properties in order to facilitate a quick sale Often referred to as owner financing, seller financing, owner assisted financing or owner carry backs, this method of private financing is often done for many reasons If your considering the possibility of selling your real estate note, mortgage note, trust deed or deed of trust we can structure a creative solution to get you the CASH that you need NOW We've heard many different reasons from people why they want to get access to CASH in exchange for all or part of the payments they are receiving on their Notes, Annuities, Mortgage Notes, or Structured Settlements If you need to sell a real estate note or get CASH NOW for your real estate notes, mortgage notes, trust deeds or business notes, we will pay TOP dollar for your notes We are national buyers of real estate notes and other types of cash flows We attribute our success to outstanding customer service and competitive pricing Our friendly and efficient staff will see you through to the finish We are premier cash flow specialists who work with private individuals to liquidate any of their cash flows or SellReal Estate Notes Sell Real Estate NoteReal Estate Note Buyer Our network of investors are 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 are a prime buyer of Estate Notes, Privately Held Mortgages and Deeds of Trust We are available to assist you with the structuring, purchase, or sale of real estate notes and help you with your cash flow Sell Real Estate Note If you are looking to sell real estate note, you're probably in need of cash for a new investment, a payment or a special purchase Whatever the case may be, it is crucial that you find a reputable note buyer, someone with extensive experience that you can trust to execute the sale properly and give you the money that you deserve These days note buyers are just a click away; you just have to know where to find them Many people who sell real estate notes go into the process blindly, not knowing what to look for and ultimately getting less than they deserve for their notes Others are not aware that they can sell just a percentage of the note, called a partial, rather than the entire note This allows you to receive a lump sum for a certain number of payments For example, if you are receiving $50,000 over 10 years, you can sell a portion of the payments, say $10,000 worth, and continue to receive the rest of the payments There are many different ways to sell real estate note, so don't let a buyer tell you have to sell the entire note Although it will often yield high payments, there are many advantages to retaining some of the note On the other hand, selling off the note in its entirety is also an option to consider as well An experienced, reputable buyer will explain all of your options So you've decided to sell a real estate note, so what should you look for in a buyer A reputable buyer will be more than happy to answer any questions you have and let you know what your options are when it comes to selling your note Choose the option that makes the most sense for you Ask the buyer how long they have been in the business, how many transactions they have done Chances are if someone has been doing this a long time they know what they are doing When you sell real estate notes, you should not have to pay any initial fees, points, closing costs or anything else Everything should be including in the price you are getting paid for the full or partial note Everything should be in writing so you know exactly what you're agreeing to If upon reading the agreement you don't understand one or more of the terms, feel free to ask for clarification The most important thing when you sell a real estate note is to go with your gut You should feel comfortable with the note buyer and with the entire process If you get a bad vibe or the note buyer is unwilling to answer all of your questions or seems to be giving you conflicting information, don't go ahead with the sale There are plenty of reputable, honest buyers out there that you can work with that will answer all of your questions and make you feel confident about the sale of your real estate note Now when it comes time to sell real estate note, at least you'll know what to look for And remember, money now is always worth more than money later, so if you need cash, selling your note always makes sense more than sell real estate note on our Selling Your Note home page. Do you have a note to sell Click Here For More Information Hyperlink Text
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Real Estate Note Sales

October 28, 2008 - 1:52 pm

Sell Real Estate Note

Tuesday, October 28, 2008

Eddie Franklins' Real Estate Note Sales

Selling Your NotesEverything you need to know about selling your real estate and other cash flow notes
Note buying and selling has become quite popular over the last decade or so, and note sellers such as yourself have more opportunities than ever before
Now you can quickly and easily sell all or just a portion of a note that you carry, giving you immediate access to needed cash for purchases, investment or other financial purposes
We have spent years researching the note selling market and have teamed up with the most reputable, most experienced note buyers in the country to create the Selling-Your-Note
If you have a note to sell or just want to learn a little more about the types of notes we purchase, you've come to the right place
There are many reasons to sell your note, and most of the time it can be more profitable to you than not doing so
Remember, money today is always worth more than money tomorrow
It means that over time, due to inflation, uncertainty of what the future holds and other intrinsic factors, the value of money declines
So $50,000 owed to you in monthly installments over 10 years is not worth nearly as much as the full amount right now, or even a significant percentage of that full amount
That's why so many people choose to sell their notes in their entirety, or just a portion of the note
It gives them access to instant cash that they can use for whatever purpose they choose
Note selling gives you peace of mind
Just fill out the short form to the right and one of our experts will contact you via email or phone to see if we will be able to purchase your note
Do you have a note to sell
Our experts have researched dozens of top note buyers across the country to determine which are the very best
In order to arrive at their top recommendation, they created a list of strict criteria which the company would have to meet
Only after meeting ALL of these criteria would a note buyer become a recommended resource for our visitors
Here are the criteria they must meet:
* Extensive experience with note buying * Stellar reputation in the industry
* Excellent customer service * Repeat business and referrals
* Maximum prices for notes * Quick turnaround times
We set the bar very high to ensure that the company we recommended would provide the very best service to our visitors
What we found was some companies met most of the criteria, but did not meet a few important ones such as repeat business, competitive pricing or free valuations
Those are very important elements of the note buying process
There was one company that did meet all (10) of the criteria outline above, along with a few additional criteria that we did not include
We were very impressed with what we found and can confidently recommend the company to our visitors
If you are ready to sell your note just follow the link provided to visit Nationwide Secured Capital, a leading nationwide note buyer with over a decade of experience in the industry
Right now, thousands of people across North America are stuck with investments that they don't want
They would rather have the cash now
If you want to sell a real estate note created when sold your property, a business note created when you sold a business or even a structured settlement, there are thousands of opportunities to sell real estate notes or other income stream and turn them into cash
Eddie Franklin is a Certified Cash Flow Consultant and a Legal Services Consultant who works with private individuals and businesses to sell real estate notes and income streams and find affordable legal services and solutions
Our specialties allow us to get you cash for a
Few people know they can sell a real estate note or other income stream TODAY for cash
Let us show you how you can sell a real estate note for cash today
We have a network of investors standing by, waiting to make offers when you sell a real estate note, cash flow or income stream of any varieties
So whether you need to cash out for personal reasons or you know someone who needs some extra cash up front, from a Certified Cash Flow Consultant, you can get the help you help, so contact us today
Join our mailing list today and receive a free newsletter on this incredible industry
Eddie Franklin is available to assist you with the structuring, purchase, or to sell your real estate note
Click Here For More Information Hyperlink Text

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Eddie Franklins' Real Estate Note Sales

October 28, 2008 - 11:44 am

Selling Your NotesEverything you need to know about selling your real estate and other cash flow notes Note buying and selling has become quite popular over the last decade or so, and note sellers such as yourself have more opportunities than ever before Now you can quickly and easily sell all or just a portion of a note that you carry, giving you immediate access to needed cash for purchases, investment or other financial purposes We have spent years researching the note selling market and have teamed up with the most reputable, most experienced note buyers in the country to create the Selling-Your-Note If you have a note to sell or just want to learn a little more about the types of notes we purchase, you've come to the right place There are many reasons to sell your note, and most of the time it can be more profitable to you than not doing so Remember, money today is always worth more than money tomorrow It means that over time, due to inflation, uncertainty of what the future holds and other intrinsic factors, the value of money declines So $50,000 owed to you in monthly installments over 10 years is not worth nearly as much as the full amount right now, or even a significant percentage of that full amount That's why so many people choose to sell their notes in their entirety, or just a portion of the note It gives them access to instant cash that they can use for whatever purpose they choose Note selling gives you peace of mind Just fill out the short form to the right and one of our experts will contact you via email or phone to see if we will be able to purchase your note Do you have a note to sell Our experts have researched dozens of top note buyers across the country to determine which are the very best In order to arrive at their top recommendation, they created a list of strict criteria which the company would have to meet Only after meeting ALL of these criteria would a note buyer become a recommended resource for our visitors Here are the criteria they must meet: * Extensive experience with note buying * Stellar reputation in the industry * Excellent customer service * Repeat business and referrals * Maximum prices for notes * Quick turnaround times We set the bar very high to ensure that the company we recommended would provide the very best service to our visitors What we found was some companies met most of the criteria, but did not meet a few important ones such as repeat business, competitive pricing or free valuations Those are very important elements of the note buying process There was one company that did meet all (10) of the criteria outline above, along with a few additional criteria that we did not include We were very impressed with what we found and can confidently recommend the company to our visitors If you are ready to sell your note just follow the link provided to visit Nationwide Secured Capital, a leading nationwide note buyer with over a decade of experience in the industry Right now, thousands of people across North America are stuck with investments that they don't want They would rather have the cash now If you want to sell a real estate note created when sold your property, a business note created when you sold a business or even a structured settlement, there are thousands of opportunities to sell real estate notes or other income stream and turn them into cash Eddie Franklin is a Certified Cash Flow Consultant and a Legal Services Consultant who works with private individuals and businesses to sell real estate notes and income streams and find affordable legal services and solutions Our specialties allow us to get you cash for a Few people know they can sell a real estate note or other income stream TODAY for cash Let us show you how you can sell a real estate note for cash today We have a network of investors standing by, waiting to make offers when you sell a real estate note, cash flow or income stream of any varieties So whether you need to cash out for personal reasons or you know someone who needs some extra cash up front, from a Certified Cash Flow Consultant, you can get the help you help, so contact us today Join our mailing list today and receive a free newsletter on this incredible industry Eddie Franklin is available to assist you with the structuring, purchase, or to sell your real estate note Click Here For More Information Hyperlink Text
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Cash Flow note Demographics

September 23, 2008 - 10:41 am

ED FRANKLIN�S cash flow note sales get cash now Different Demographic, Better Results As explained in the last issue, seller financing can be an extremely useful option to sell a house in a slow real estate market. Unconventional private lending is a great way to increase the overall sales closing ratio. When the property owner is willing to "carry back" a note, it is often possible to obtain a higher selling price and reduce the time needed to find a buyer. Plus, creating a note secured by real estate can give the seller a steady, interest-generating income stream for their long-term future. The Challenge: A Different Demographic Home owners who are ready to offer a private loan in order to sell their houses are still faced with a stumbling block: how to find buyers in need of seller financing. Most property owners don.t have any experience in finding individuals interested in buying a "high ticket" item like a home directly from the owner. When property sellers work within the established real estate agent process to find buyers and close a deal by "traditional" methods, it is generally safe to assume that the vast majority of these customers will qualify for bank financing. In order to pursue private seller financing to sell a home, however, a property owner will need to attract home buyers who do not have adequate credit to buy real estate - a significantly different demographic. The key to successfully orchestrating a seller-financed real estate deal is getting the right buyers through the door - just like a traditional property sale. In order to get motivated buyers interested, the seller will need to use a targeted marketing technique designed specifically for the "unconventional buyer's market". The most effective advertising method to tap into this distinctly separate pool of buyers is surprising to some. Unconventional Marketing The seller's best strategy for finding their credit-challenged buyers would be to list the property in places that are frequented by individuals that do not have a real estate agent. The newspaper is one of the best places to start putting out the word. The majority of home buyers looking for seller financing start by searching the "For Sale By Owner" ad listings in the local paper. Seller financing originated and took off via this print medium. Even in today's Internet-dominated business world, newspaper advertising continues to be an effective means to reach those looking for seller financed deals, so it makes sense to start the advertising here. A simple sale ad including the line "seller financing available" or "credit issues OK" should help to generate genuine interest from the right potential candidates. Orchestrating the Deal Once interested buyers start coming around, the seller can choose to work with the party that brings the most to the closing table in terms of the down payment. Of course, larger down payments are better than smaller amounts, but it is entirely up to the property seller to decide what is acceptable. Once the details of the initial payment, payment term, interest rate, and any necessary clauses are established, the buyer and seller could create a new seller-financed note. If the seller needs money immediately to pay their down payment, the note terms can be specifically tailored to ensure that it's attractive to cash flow buyers. Once the newly-created note is sold, the property seller will have "cashed in" their future monthly payments for an immediate lump sum of cash. The details of the note creation are easily handled with standardized boilerplate or the assistance of an attorney; some note sellers are able to manage the sale of their home without any paid legal counsel at all. In fact, once the seller understands the potential advantages of seller financing and takes the proper steps to market the property to the target buyers, the final steps in cementing the note deal are usually much easier than expected. Click Here For More Information Hyperlink Text

Seller Financing to the Rescue

September 22, 2008 - 11:15 am

Sell Bad Mortgage Dept

September 22, 2008 - 11:11 am

EDDIE FRANKLIN�S Sell Bad Mortgage Dept sales get cash now Mortgage-Backed Securities Home | Previous Page Mortgage-Backed Securities Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by a governmental, quasi-governmental, or private entity The entity then issues securities that represent claims on the principal and interest payments made by borrowers on the loans in the pool, a process known as securitization Ginnie Mae, backed by the full faith and credit of the U government, guarantees that investors receive timely payments Fannie Mae and Freddie Mac also provide certain guarantees and, while not backed by the full faith and credit of the U government, have special authority to borrow from the U Some private institutions, such as brokerage firms, banks, and homebuilders, also securitize mortgages, known as "private-label" mortgage securities Mortgage-backed securities exhibit a variety of structures The most basic types are pass-through participation certificates, which entitle the holder to a pro-rata share of all principal and interest payments made on the pool of loan assets More complicated MBSs, known as collaterized mortgage obligations or mortgage derivatives, may be designed to protect investors from or expose investors to various types of risk An important risk with regard to residential mortgages involves prepayments, typically because homeowners refinance when interest rates fall Absent protection, such prepayments would return principal to investors precisely when their options for reinvesting those funds may be relatively unattractive You can learn more about mortgage securities by visiting the website of The Securities Industry and Financial Markets Association Staff of the Department of the Treasury ("Treasury"), the Office of Federal Housing Enterprise Oversight ("OFHEO"), and the Securities and Exchange Commission (the "Commission") formed a joint task force ("Task Force") in August 2002 to conduct a study of disclosures in offerings of mortgage-backed securities ("MBS") The purpose of the joint study was to evaluate current disclosure practices and consider whether disclosure enhancements are desirable in assisting investors to make informed investment decisions In conducting the study, the Task Force reviewed the history and development of the MBS markets, the current disclosure requirements for these securities, and market-driven industry disclosure practices and standards The Task Force also interviewed a variety of MBS issuers and investors, and other experienced market participants and observers, which provided the Task Force with additional perspectives about the evolution of the MBS markets, including changing disclosure standards The Task Force received recommendations concerning changes to current disclosure standards based on investor needs, and assessments as to the likely impact of additional disclosure on the MBS markets' continued smooth functioning and liquidity This report contains the Task Force's findings, conclusions, and recommendations regarding enhanced MBS disclosures Privately owned financial institutions have become increasingly important as issuers in the so-called "private-label" market The MBS markets are estimated to have grown by more than 800% in the past two decades MBS investors continue to be almost exclusively institutional, but their expressed needs have changed with the evolving market and economic conditions In recent years, investors have focused much more time, attention and resources on the evaluation of prepayment risk and, in the case of private label MBS, credit risk Market participants interviewed by the Task Force indicate that the changes have been considered beneficial to the market In interviews with the Task Force, MBS market participants also agreed, almost without exception, that the significant changes in disclosure did not affect the highly liquid nature of the GSE and Ginnie Mae pass-through and to-be-announced markets, and MBS markets generally operate reliably and efficiently Yet, the Task Force also found that most market participants with whom it spoke, as well as most lenders and non-GSE issuers, believe the MBS markets could function better with additional pool-level disclosure Moreover, consistent with their past experiences with changes in disclosure, these market participants expressed confidence that additional pool-level disclosures would not have a significant adverse effect on the markets' liquidity Based on the study, the Task Force has concluded that additional pool-level disclosures would be both useful and feasible Market participants interviewed by the Task Force were clear in suggesting additional information that they believed would be useful This report sets forth and describes the most frequently mentioned information that market participants recommended be disclosed to supplement currently disclosed information Examples of additional disclosure items that market participants suggested would present few practical obstacles are:loan purpose; The Task Force believes there are no significant obstacles to the introduction of these additional pool-level disclosures and that the benefits of enhanced transparency would ultimately outweigh any costs To implement additional disclosures, the Task Force recommends that investor interest and issues of practicality should be key criteria used to determine the specific items for additional disclosure in the MBS markets, as well as the appropriate timing and method of providing this additional disclosure In the past, industry groups and other market participants have stepped forward to coordinate and implement additional disclosures in the MBS market The Task Force encourages a continuation of this approach at this time If market forces are unable to reach consensus on disclosure enhancements, the agencies represented on the Task Force will need to consider what additional action might be appropriate In addition to its review of MBS disclosures, the Task Force inquired about allegations of selective MBS selling and purchasing practices arising from possible information imbalances among market participants The Task Force looked at policies and procedures regarding information barriers at the GSEs In addition, OFHEO reviewed OFHEO examination reports and inquiries of the GSEs as to specific allegations Though questioned by the Task Force about such allegations, interviewees provided no evidence to substantiate allegations of improper activity The Treasury, the Commission, and OFHEO will, in their separate capacities, continue to monitor the MBS markets to assess the implementation and potential impact of enhanced MBS disclosures If future developments warrant, the Task Force members, in their separate capacities or jointly as they agree appropriate, could consider what additional steps might help provide additional, useful disclosures to MBS investors and market participants In July of 2002, Treasury, OFHEO and the Commission made a joint announcement regarding the intention of Fannie Mae and Freddie Mac to voluntarily register their common stock under the Securities Exchange Act of 1934 (the "Exchange Act") This voluntary registration, when in place, will trigger periodic disclosures regarding the GSEs Treasury, OFHEO and the Commission also indicated they would review disclosure requirements and practices in the MBS markets, which would not be affected under this voluntary registration initiative The purpose of the review on primary offering disclosures for MBS, which culminated in this report, was to examine disclosures to all investors in these securities, with a view to enhancing the availability of information that investors should have to evaluate the securities in the MBS markets and make investment decisions Staff from Treasury, OFHEO and the Commission, acting as the Task Force, have conducted the review of the disclosure practices in the MBS markets The Task Force reviewed regulatory disclosure requirements and current industry disclosure practices The Task Force also interviewed Fannie Mae, Freddie Mac and Ginnie Mae, private-label issuers, institutional investors, dealers, individual analysts, MBS market and real estate finance trade groups, pension funds and others involved in the markets to hear their views ranging from evaluations of current markets, how the markets function and particular concerns regarding disclosures As background to the Task Force's findings, the report discusses the development and operation of the MBS markets, the various market participants, and the types of MBS sold The report also addresses current disclosure practices and investor interest regarding the assets of and structures used for the securitization vehicles, credit and repayment sources and other risks affecting the repayment and value of the MBS, and information imbalance issues Finally, the report notes categories of information that the Task Force believes would enhance disclosures in the MBS markets Growth in the MBS markets has been significant over the past 20 years For example, single-family MBS grew from less than $367 billion outstanding in 1981 to more than $3 In order to understand the reasons for evaluating disclosure practices in the MBS markets, it is helpful to understand the development and operation of the MBS markets As described in this section, the MBS markets consist primarily of the MBS issued or guaranteed by two government-sponsored enterprises, Fannie Mae and Freddie Mac, and one United States-owned corporation, Ginnie Mae MBS are also issued by private-label issuers, which are private institutions The GSEs and Ginnie Mae guarantee payments on their respective MBS, whereas private-label issuers use various forms of credit enhancement The most commonly issued MBS are pass-through securities, which consist almost entirely of GSE and Ginnie Mae MBS, and REMICs, which are the primary security issued by private-label issuers The MBS investor base has evolved, but remains largely institutional The most important risks in the MBS market are prepayment risk and credit risk This section includes a discussion of how these risks drive disclosures in the MBS markets Other sections of this report discuss whether MBS disclosures can be enhanced Fannie Mae, Freddie Mac, and Ginnie Mae were all created by federal law to address perceived deficiencies in the U The GSEs and Ginnie Mae enhance liquidity by enabling lenders and originators to sell their mortgage loans and use the proceeds from the sales to make new mortgage loans Fannie Mae was originally authorized only to buy FHA insured loans After being split into two entities in 1968, Fannie Mae and Ginnie Mae, Fannie Mae was authorized to buy a broader range of loans Freddie Mac was initially authorized to purchase conventional mortgages from federally insured financial institutions Both Fannie Mae and Freddie Mac are now investor owned companies, and the common stock of both companies is traded on the New York Stock Exchange Ginnie Mae does not buy or sell loans or issue MBS; instead, it guarantees payment on MBS that are backed by federally insured or guaranteed loans, mostly loans insured by the FHA and guaranteed by the Department of Veterans Affairs (the "VA") Other guarantors or insurers of loans eligible as collateral for Ginnie Mae MBS include other offices in the Department of Housing and Urban Development ("HUD"), and the Department of Agriculture's Rural Housing Service Ginnie Mae is a wholly-owned government corporation under the auspices of HUD Private-label issuers include commercial banks, savings associations, mortgage companies, investment banking firms and other entities that acquire and package mortgage loans for resale as MBS The types of investors in MBS have changed over time Initially the primary purchasers of MBS were thrift institutions, commercial banks, insurance companies, pension funds, and mutual funds More recently Fannie Mae, Freddie Mac, and international institutions have also become much more active market participants Investments in MBS are made for a variety of reasons Some investors purchase MBS to hold long-term in portfolios while others purchase for short term trading purposes MBS are also widely used for hedging purposes Much of the development of GSE, Ginnie Mae, and private-label MBS markets has been in direct response to investor interests and demands The MBS market as we know it today can be traced back to 1970, when Ginnie Mae first guaranteed a pool of mortgage loans The creation of Freddie Mac in 1970 helped to expand the market In the basic MBS structure, a group of mortgage loans is sold to a trust or other investment vehicle In the case of residential home mortgages, the pools usually include a large enough number of loans so that information on no one loan is important in analyzing the pool The investment vehicle owns the mortgage loans, issues securities that are either backed by or represent interests in the loans, and makes payments to investors out of the payments made on the loans A servicer is hired to collect the mortgage payments from the borrowers and to pass the payments, less fees, including guarantee and trustee fees, through to the trustee, who passes these payments on to the investors that hold the MBS To facilitate sales of MBS, the GSEs and Ginnie Mae are authorized to guarantee the MBS Thus, if for some reason, there is insufficient money to cover the payments due on the MBS, the GSEs make the payments due on the MBS Ginnie Mae's guarantee arises if the issuer (typically the loan originator) does not make the delinquent payments to the MBS holders Unlike Fannie Mae and Freddie Mac, which are permitted to issue, as well as guarantee the payments on, MBS, Ginnie Mae only guarantees the payment of MBS that are created by private entities Ginnie Mae's guarantee of the payment of MBS is backed by the full faith and credit of the United States, whereas the guarantee obligations of Fannie Mae and Freddie Mac are not There are significant differences in the composition and structure of typical private-label MBS compared to MBS issued or guaranteed by the GSEs or Ginnie Mae The perceived strength of the guarantees, the evolution of tax law, and the demands of investors in an increasingly complex marketplace have contributed to current practices and product distinctions between GSE and Ginnie Mae MBS and private-label MBS A number of regulatory and tax constraints initially impeded private entities from expanding into the MBS market created by the GSEs and Ginnie Mae Many of the regulatory constraints affecting private entities were removed in 1984 with the passage of the Secondary Mortgage Market Enhancement Act of 1984 ("SMMEA") SMMEA was intended to encourage private sector participation in the secondary mortgage market by, among other things, relaxing certain regulatory burdens that affected the ability of private-label issuers to sell their MBS Tax law constraints also affected the types of MBS that could be sold Until the passage of the Tax Reform Act of 1986 ("1986 Tax Act"), which recognized the Real Estate Mortgage Investment Conduit ("REMIC") structure with its beneficial tax treatment, most MBS were sold as "pass-through" securities As discussed below, pass-through securities pay an investor principal and interest received from payments on the mortgage loans that are the assets of the trust The payments on the mortgage loans are passed through the trust to the investors as they are made Before 1986, the effect of the limitation on activity of grantor trusts under the tax laws restricted the use of trusts with multiple classes of securities with differing payment characteristics In the multi-class structure, the principal and interest payments are not just passed through pro rata as paid to all investors, but rather are divided into varying payment streams to create classes with different expected maturities, different levels of seniority or subordination or other differing characteristics Prior to 1986, the tax law treated these multi-class trusts as associations taxable as corporations, and distributions would have been taxable at the trust level and also at the trust investor level This "double taxation" made multi-class structures generally unfeasible The 1986 Tax Act eliminated the double taxation for multi-class vehicles structured as REMICs With the advent of the REMIC, more complex structures with multiple classes were developed which divided up the payment streams on the mortgage loans that were collateral for the securities repayment obligations to investors There are differences between the GSE and Ginnie Mae MBS and private-label MBS in the composition of the mortgage loans comprising the collateral for the respective pools The types of underlying mortgage loans that are eligible to be included in GSE and Ginnie Mae MBS affect the composition of pools backing private-label MBS because originators can generally receive the best price for eligible loans in GSE and Ginnie Mae transactions Because the GSEs require a higher fee to accept some loans of lesser credit quality, sometimes originators may find a private-label transaction more attractive The mortgage loans included in Fannie Mae and Freddie Mac MBS generally have the following characteristics:mortgages are on residential properties, most commonly one to four family homes (these are referred to as single family loans); mortgages are generally 15 year and 30 year maturities that are fully amortizing;16 the loans are due on sale of the underlying property and cannot be assumed by the buyer of the property;18 mortgage loans must be within the "conforming loan limit", which for one-unit homes in 2003 is $322,700 loans within the conforming loan limit generally satisfy other GSE specifications for loan documentation, credit information and property type, among other requirements There are some mortgage loans made to borrowers with good credit histories that are within the conforming loan limit but do not satisfy all the standard GSE underwriting guidelines, including documentation, for mortgage loans These mortgage loans are called "Alternative A" or "Alt A" loans These Alt A loans fail to satisfy the GSE guidelines for reasons such as limited or low documentation of income from the borrower (for reasons of speed or convenience to the borrower), unstable income sources, higher loan-to-value ratios ("LTV") or other ratios of payments to income Alternative A loans and some lower credit quality loans that are within the conforming loan limit can be swapped for Fannie Mae or Freddie Mac MBS or pooled and sold as private-label MBS Fannie Mae or Freddie Mac will issue MBS backed by such loans if the lender pays a higher guarantee fee that compensates the GSE for the potentially higher risk Apart from Alt A loans, there are other types of mortgage loans that do not satisfy standard GSE requirements Mortgage loans that are larger than the conforming loan limit, called jumbo loans, cannot, by statute, be included in GSE or Ginnie Mae MBS pools Mortgage loans are also made to borrowers who fail to meet GSE underwriting requirements because of certain borrower or loan characteristics For example, mortgage loans made to borrowers with poor credit histories or high debt-to-income ratios may be ineligible for securitization by the GSEs or eligible only by payment of a higher guarantee fee These are the types of loans that typically comprise the pools backing the private-label MBS Under the Ginnie Mae MBS program, HUD-approved mortgage originators pool FHA, VA or certain other federally-insured mortgages into MBS and sell the MBS guaranteed by Ginnie Mae The terms of the underlying mortgage loans must comply with the underwriting requirements of the FHA or VA, as applicable As a result of the GSE underwriting criteria and conforming loan limits and FHA and VA underwriting requirements which do not apply to private-label issuers, the mortgage loans in private-label MBS generally have more diverse collateral, credit risk or other underwriting characteristics than GSE or Ginnie Mae MBS and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics Private-label pools more frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans The coupon rates and maturities of the underlying mortgage loans in a private-label MBS pool may vary to a greater extent than those included in a GSE guaranteed pool As noted above, the GSEs and Ginnie Mae guarantee payments to investors on their MBS This guarantee ensures that investors receive scheduled payments of principal and interest, regardless of whether payments on the underlying mortgages are made MBS issued in the private-label market are typically not guaranteed by the issuer and instead rely on other forms of credit enhancement or support to give investors greater assurance they will receive payments on their MBS The credit enhancement in private-label MBS may be internal or external to the vehicle issuing the security External credit enhancements generally involve insurance or a letter of credit purchased by private-label issuers to support the underlying mortgage payments The most common credit enhancement currently used in private-label MBS is the senior-subordinated structure in REMICs In the senior-subordinated credit enhancement, the trust will issue different classes of securities There will be a senior class or tranche and at least one class that has a subordinated right of payment to the senior class The senior class, which bears the least amount of risk of default of the underlying mortgages, will carry a lower interest rate The subordinated class, which bears the greatest amount of risk of default of the underlying mortgage loans, will carry a higher interest rate in order to compensate for the greater risk exposure The level of credit protection this structure provides to the senior class may decline over time due to prepayments and thus other mechanisms, such as prepayments going disproportionately to the senior class (known as shifting interest structures), must be in place to provide further safeguards The most significant feature and risk that all MBS share is prepayment risk, which is the risk that principal payments on an underlying loan will be paid earlier or later than expected Unscheduled prepayments may affect the return realized by MBS investors When an investor purchases an MBS or any other fixed income security, the investor does so with the understanding that the price he or she is paying for the security reflects uncertainty about its expected life Prepayment risk on MBS is influenced by a wide range of factors that relate both to general market conditions, including interest rates, and the performance on individual loans included in the portfolio of loans backing an MBS issuance As interest rates fall below rates on existing mortgages, borrowers may, and commonly do, prepay their existing loans and refinance at lower rates Refinancings are recognized as being the primary driver of prepayments Most mortgage loans must be paid in full when a home is sold The mortgage loan can also be paid prior to its due date or maturity if the homeowner does not pay the loan and the lender repossesses or forecloses on and sells the home Finally, a borrower may prepay a loan, in whole or in part, at any time for any other reason When MBS prepay as a result of borrower refinancing, investors seeking to reinvest in the fixed income market will generally be forced to make a new investment in a lower interest rate environment When prepayments are slower than expected, it often means that interest rates have risen The security pays later than expected, and the investor cannot take advantage of more attractive investment opportunities with those funds The potentially significant risk to investors in private-label MBS that is generally thought by investors to be less significant in the case of GSE and Ginnie Mae MBS is credit risk Investors in MBS, as with other fixed income instruments, evaluate the risk of whether they will receive the scheduled payments of principal and interest on their MBS Credit risk reflects the risk that the borrowers on the underlying loans may not be able to make timely payments on the loans or may even default on the loans In the absence of a guarantee or external credit enhancement, MBS investors generally can look only to the assets or collateral of the trust, the underlying mortgage loans, as the source of payments on their securities and to the structure of the transaction for any internal credit enhancement The creditworthiness of the underlying borrowers becomes significantly more relevant in private-label MBS offerings because there is seldom an entity that is guaranteeing the payment of the securities Therefore, if the borrowers do not pay the mortgage loans, the MBS securities will not pay, absent some credit enhancement Consequently, GSE and Ginnie Mae MBS and the private-label MBS may pose differing degrees of risk for investors Since the GSEs and Ginnie Mae guarantee the timely payment of principal and interest on the MBS, a GSE and Ginnie Mae MBS investor looks to the GSEs and Ginnie Mae to determine the credit risk Ginnie Mae's guarantee is the full faith and credit guarantee of the United States In contrast, Fannie Mae's and Freddie Mac's guarantees are based solely on their own credit quality Fannie Mae and Freddie Mac provide extensive corporate disclosure and will soon register their common stock under the Exchange Act, subjecting the two companies to all of the disclosure requirements of the federal securities laws Investors in Fannie Mae and Freddie Mac MBS may look to these disclosures to assess those companies' abilities to fulfill the guarantees of the MBS Investors may also look to information provided by OFHEO about the GSEs' creditworthiness, including results of examinations and risk based capital stress tests In addition to assessing the credit quality of the underlying mortgage loans, investors in private-label MBS must look to the creditworthiness of the provider of the external credit enhancement or must evaluate the reliability of the transaction structure to provide any internal credit enhancement and the reliability of a rating agency's rating The amount of disclosure private-label issuers must provide with respect to third party credit enhancements varies with the type and level of support expected Private-label issuers are required to discuss in their registration statements the material terms of any credit enhancement, whether internal or external and to provide information regarding the credit enhancer, insurer or guarantor As noted above, the most common form of private-label MBS is in the form of a REMIC The other common form of MBS is the pass-through security, which is used predominantly by the GSEs and Ginnie Mae The most common type of MBS is a pass-through security backed by a pool of single-family mortgage loans Generally, pass-through MBS are created by pooling or packaging mortgage loans together in a trust or other collective investment vehicle and selling the interests in the trust All payments on the underlying mortgage loans, including principal, scheduled interest, and unscheduled prepayments are passed through, on a pro rata basis, to the holders of the pool interest or participation certificates after deducting the servicing fees, Ginnie Mae and GSE guarantee fees, and trust expenses The assets of the trust or other vehicle are the mortgage loans in the pool Most pass-through vehicles own fixed rate mortgages, although adjustable rate mortgages may also be assets of a pass-through MBS entity The interest differential is used to pay for the guarantee fee to one of the GSEs and the servicing fee to the servicer Generally, the underlying mortgage loans are serviced by the originating lender or another institution that has bought the servicing rights Private-label issuers can, but in most cases do not, issue pass-through securities In a private-label MBS, the interest differential would be used to pay for credit enhancement or credit support, the servicing fee to the servicer, and trust expenses As previously noted, the REMIC is a multiple-class security vehicle that does not have the burden of double taxation The assets underlying the REMIC securities can be either other MBS or whole mortgage loans The assets are pooled and cash flows from the assets are distributed to the various REMIC security classes according to the priorities specified in advance The REMIC structure allows issuers to create securities with short, intermediate and long-term maturities This flexibility enables issuers to expand the market for the MBS to fit the needs of a variety of investors, not just investors looking for 30-year fixed-rate securities The REMIC structure has allowed for a broader group of investors REMICs may also be used to address particular investment objectives or concerns about prepayment risk by carving up principal and interest payments on the underlying mortgage loans to create different timing and levels of payments on the securities REMICs are issued by private-label issuers and under the GSE and Ginnie Mae programs The GSEs then guarantee the payment obligations on the REMIC securities In the Ginnie Mae REMIC program, Ginnie Mae guarantees the timely payment of principal and interest on each of the classes Due to the widely diverse coupon and payment characteristics of the underlying mortgage loans, most private-label securities are structured as REMICs The GSE participation in the REMIC market has effectively priced most potential private-label REMIC securities backed by conforming loans out of the market This is because, as a result of the GSE or Ginnie Mae guarantee, investors will likely pay more for GSE and Ginnie Mae securities backed by the same loans, even though guarantee fees are paid from the pool cash flows In a standard REMIC structure, known as sequential pay, each class or tranche of the security is generally paid the coupon rate on a monthly basis Principal is paid on the regular classes in sequential order: senior classes are paid first, and then the subordinated classes Any prepayments are allocated in the same way The effect of prepayments is that more senior classes may be paid off much sooner or later than anticipated Prepayments to senior classes can also shorten the expected maturities of later maturity classes in a sequential pay structure, but later maturities have less prepayment risk than exists for securities in a pass-through structure GSE and Ginnie Mae MBS are created through a variety of programs A mortgage originator selects a group of mortgage loans that it determines to sell to one of the GSEs as a package Under the "swap" programs, the lender selects and pools a group of conforming mortgage loans that meet the GSE underwriting standards and "swaps" them for MBS issued and guaranteed by one of the GSEs representing interests in that same pool of mortgages Under their "cash" programs, Fannie Mae and Freddie Mac take whole mortgage loans and give the originators cash back Subsequently, the GSE will decide which mortgages out of the pools it has purchased in the cash program to pool and use as collateral for new GSE MBS or whether to hold the mortgage loans as an investment The GSE will then issue MBS backed by the loans it has purchased from lenders or originators, guarantee the timely payment of principal and interest on the securities and sell the MBS through dealers The mortgage originator, not the GSE, decides whether to swap the loans for MBS or to receive cash A small amount of Fannie Mae and Freddie Mac MBS are created through their respective "cash" programs, with the vast majority being created through their respective "swap" programs The loan originator, of course, would also be free to use the loans in a private-label MBS issuance Under the Ginnie Mae MBS program, a HUD-approved mortgage loan originator pools FHA, VA or certain other federally-insured mortgages and sells MBS guaranteed by Ginnie Mae Ginnie Mae does not issue securities or own the underlying assets but rather guarantees the payment of the securities backed by the underlying mortgage loans or mortgage pools Like the loans in the Fannie Mae and Freddie Mac swaps, the loans in the mortgage pools comprising Ginnie Mae guaranteed MBS are chosen by the lender, not by Ginnie Mae The GSEs have other MBS products that are either larger pass-through structures, which can be pools of pools (small balance pools consolidated into one larger pool) or are collateralized mortgage obligations such as REMICs In addition to the differences in the collateral and structures discussed above, private-label MBS are sold to investors through different market mechanisms than are GSE and Ginnie Mae MBS Most pass-through MBS of each of Fannie Mae, Freddie Mac and Ginnie Mae are eligible to be sold in the "to-be-announced" or TBA market, which is essentially a forward or delayed delivery market The TBA market allows mortgage lenders essentially to sell the loans they intend to fund even before the loans are closed This also allows the lender to lock in an interest rate for the borrower The lender, or other market participant, will enter into a forward contract to sell MBS in the TBA market, promising to deliver MBS on the settlement date sometime in the future In the TBA market, GSE and Ginnie Mae MBS are traded on a forward or delayed delivery basis with settlement up to 180 days later The actual mortgage pools comprising the MBS are not specified at the time of sale In fact, many of the mortgage loans may not even be signed (and the mortgage pools created) at the time of sale The largest volume of trading in the TBA market is for settlement within 30 days In a TBA trade the seller and buyer agree to five pieces of information before entering into the transaction: the type of security, which will usually be a certain type of Fannie Mae, Freddie Mac or Ginnie Mae program and type of mortgage (i , GNMA 30-year pass-throughs); coupon or interest rate; face value (the total dollar amount of MBS the purchaser wishes); price; and settlement date The purchaser will contract to acquire a specified dollar amount of MBS, which may be satisfied when the seller delivers one or more MBS pools at settlement Forty-eight hours before settlement, the seller specifies or allocates the identity and number of mortgage pools by the specific pool numbers and CUSIPs to be delivered to satisfy the TBA trade The Bond Market Association, a private trade association of dealers in debt securities, publishes guidelines governing the mechanics of trading and settling MBS, which are intended to implement standard industry practices The guidelines, titled "Uniform Practices for the Clearance and Settlement of Mortgage-Backed Securities and Other Related Securities," contain specific guidelines for trading and settling GSE and Ginnie Mae pass-through MBS in the TBA market, known as Good Delivery Guidelines The Good Delivery Guidelines set forth the basic characteristics that GSE and Ginnie Mae pass-through MBS must have to be able to be delivered to settle an open TBA transaction Most newly issued GSE and Ginnie Mae pass-through MBS are eligible to be sold in the TBA market Already outstanding GSE and Ginnie Mae pass-through MBS may also be used to cover a TBA trade Therefore, the mortgage originator has until 48 hours before the settlement date to decide whether to use new pools of mortgages or to buy outstanding GSE or Ginnie Mae MBS to cover the trade The Task Force understands that roughly 75% of GSE and Ginnie Mae MBS are eligible to trade in the TBA market The Good Delivery Guidelines were developed as a result of the unique nature of the GSE and Ginnie Mae MBS market The TBA market developed in response to the demands of market participants for more liquidity in trading GSE and Ginnie Mae MBS In order for the market to work on a delayed delivery basis, with sales of GSE and Ginnie Mae MBS occurring before the underlying mortgage loans close, and to account for the potential that not all commitments for mortgage loans will close (called pipeline risk), the market had to develop a process that would allow the identification of the securities that would be delivered in satisfaction of a trade a very short time before settlement, rather than at the time the forward trade was entered into In addition, because there are over 1 million individual GSE and Ginnie Mae MBS, with huge variations in outstanding principal amount, it was recognized that it was impractical and inefficient, and would greatly limit liquidity, and generally reduce price, to attempt to trade these GSE and Ginnie Mae MBS on a pool-by-pool basis Thus, it was essential to establish a concept of fungibility or interchangeability among pools that would facilitate both forward trading and an orderly and liquid trading market in GSE and Ginnie Mae pass-through MBS As a result of the GSE and Ginnie Mae standardized underwriting guidelines for single-family mortgages and the trading and settling parameters of the Good Delivery Guidelines, GSE MBS that may be delivered to satisfy a TBA trade will have similar characteristics The mortgage loans underlying GSE and Ginnie Mae pass-through MBS are pooled together according to similar characteristics that are based on guidelines established by the GSEs and Ginnie Mae and enable the pools to satisfy the Good Delivery Guidelines The TBA market functions on the premise that even though each pool that will be created is unique, all pools eligible for delivery on a given TBA trade are equivalent in their characteristics and expected performance Therefore, any distinct characteristics of the underlying mortgage loans comprising a pool delivered in a trade are considered to blend together so that the MBS they back can be considered a generic security As a result, TBA market participants consider MBS of Fannie Mae, Freddie Mac and Ginnie Mae that meet the Good Delivery Guidelines to be interchangeable or fungible with other such MBS issued or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, respectively TBA trading vastly improves the liquidity of TBA-eligible pass-through MBS Market participants have noted that the fungible nature of TBA securities promotes broad liquidity, which adds to efficiencies in pricing, execution, delivery and settlement In addition, the TBA market allows lenders to finance mortgages, thereby locking in interest rates, prior to the actual closing of a mortgage Using TBA forward sales to hedge pipelines is more efficient and has probably resulted in lower mortgage rates for borrowers In a TBA transaction, the security traded is the one that the seller can buy or obtain at the lowest cost for delivery at settlement (and thus has a higher profit potential) In other words, TBA prices are based on the GSE or Ginnie Mae pass-through MBS that are the "cheapest to deliver " Thus, the price of the cheapest to deliver security or the generic security in a TBA trade is the base price for TBA trades Because the generic security trade price is the base price for TBA trades, this price is also the floor off which other MBS trades are priced Any extra amount paid for a perceived benefit is measured relative to the base price Market participants note that the tremendous market liquidity has created pricing efficiency and reduced the bid/ask spread to 1/16 of a point or even 1/32 of a point Bloomberg LP and other third party vendors publish average daily price quotations for TBA trades, which include only generic securities There is also a competitive dealer and interdealer broker network from which daily pricing of trades in generic securities is available As described above, the Good Delivery Guidelines establish standard notification and settlement dates for GSE and Ginnie Mae MBS The trading guidelines require delivery of confirmations within one business day of the TBA forward trade The confirmation must contain information regarding the security and the transaction, including product type, coupon rate and settlement month The confirmation may contain other stipulated conditions that were negotiated as part of the trade The Good Delivery Guidelines also address delivery and settlement Allocation is the process by which the seller determines which GSE or Ginnie Mae MBS will be delivered to the buyer to satisfy good delivery and requires that GSE or Ginnie Mae MBS assigned pools must be within certain parameters The parameters are necessary to maintain the fungible character of the MBS delivered to satisfy a TBA trade These parameters include the permissible variance in the face value of MBS being delivered and the number of MBS pools per million dollars traded The Good Delivery Guidelines prohibit delivery of securities until 2 business days after the seller provides pool information As discussed below, the dollar roll market enables sellers to acquire pools to deliver to avoid settlement fails or to follow buy-in requirements TBA-eligible MBS may be traded three ways: generic, stipulated and specified trades Generic TBA trades are trades that merely fit the Good Delivery Guidelines The majority of GSE and Ginnie Mae pass-through MBS are traded on a generic basis through the TBA market process Stipulated TBA trades are TBA-eligible securities meeting Good Delivery Guidelines that have characteristics that have been requested by the investor In general, the stipulations are based on publicly available information about the pools or alterations of the Good Delivery Guidelines The most common stipulated terms are number of pools that can be delivered, the principal dollar amount variance, maturity year, weighted average loan age of the mortgage loans in the pool, and geographic location of the underlying properties Recently, investors have increasingly stipulated Alternative A characteristics Investors also commonly stipulate to late delivery to facilitate a seller's ability to obtain pools to satisfy an investor's trade Investors entering into a stipulated trade will pay a higher price than the price for a generic pool in the TBA market " As with generic TBA trades, there is no specific security identified at the time the parties enter into the trade Finally, TBA-eligible securities may be traded on a specified pool basis Unlike generic and stipulated trades, specified pool trades occur outside the TBA market There are a number of reasons an investor may engage in a specified trade For instance, an investor may want to purchase particular pools that have been in existence for a period of time, known as seasoned MBS, because of their better known prepayment characteristics Although seasoned pools may trade in the TBA market, and can be used to settle any TBA trade, they often trade on a specified basis outside the TBA market because of the increased differentiation in prepayment histories Among newly created MBS, specified pools generally command the highest price due to the additional available information regarding the content of the pool indicating the pool is worth more than a generic pool Market participants have indicated that investors generally obtain information on these pools from dealers or originators These market participants have indicated, however, that certain historical information they may receive about previously specified pools cannot be independently verified In addition to the flexibility the TBA market gives to buyers to determine the level of specificity the buyer desires in terms of pool characteristics, the TBA market has two distinct trading uses Investors, dealers, originators and other participants use the TBA market not only to acquire pools for investment or to form other investment vehicles, but TBA market participants trade TBA pools in "dollar rolls" as financing vehicles Dollar rolls, which are a form of collateralized short-term financing where the collateral consists of mortgage securities, perform a function analogous to that provided by the repo (repurchase agreement) market The vast majority of financing in the MBS market occurs through the dollar roll market, which takes advantage of the flexibility of the TBA market Unlike a reverse repurchase agreement, which generally requires redelivery of exactly the same securities that are delivered during the first leg of the transaction, a dollar roll is a simultaneous purchase and sale of substantially similar (TBA) securities for different settlement dates The dealer, who is said to "roll in" the securities received, is not required to deliver the identical securities, only securities that meet the Good Delivery Guidelines Thus, the investor may assume some risk because the characteristics of the MBS delivered to the investor may be less favorable than the MBS the investor delivered to the dealer Because the dealer is not obligated to return the identical MBS collateral that the investor has delivered, both parties usually transact the dollar roll with generic GSE or Ginnie Mae MBS pools that they believe to be of the same or less value than the average TBA-eligible security Dollar roll deliveries are made pursuant to TBA Good Delivery Guidelines Most dollar roll purchase and sale dates conform to the same dates as TBA MBS delivery A private-label issuer generally creates MBS using whole loans that it either originates or acquires in the secondary whole loan market or uses MBS, including GSE and Ginnie Mae MBS, it acquires in the market The MBS issuer will assemble pools of mortgage loans that it will deposit into a trust in exchange for MBS Most private-label MBS are designed to meet specific investor needs; thus, the private label issuer will generally obtain dealer and investor input on the desired characteristics of the various MBS classes to be issued in any particular deal prior to depositing the pool of whole mortgage loans or MBS into the trust Once the private-label MBS structure is established, the mortgage loans will be deposited into a trust and the MBS sold to investors for cash The private-label issuer or its affiliates may also retain certain classes of the MBS offered in any deal Private-label MBS, generally REMICs (backed by both GSE and non-GSE collateral), are composed of specified pools The diversity of the underlying collateral and credit risk issues heighten investor demand for detailed information to assess prepayment and credit risk Private-label MBS are not sold in the TBA market Private-label MBS typically are offered initially through underwriters and generally are not traded on a registered exchange or other organized market As a result of the fact that private-label MBS have a wide variety of multi-class structures, pool characteristics and issuer standards, they are not fungible and more information about the private-label MBS is provided to facilitate trading While the private-label MBS market is less liquid than the TBA market, market participants indicate that there is a resale market for many private-label MBS Because there is no established trading market for resales of private-label MBS, participants in this market must rely on dealer to customer interaction to effect transactions in these securities The trades are carried out in the over-the-counter market by telephone, fax and e-mail with dealers The GSEs and Ginnie Mae were created by federal legislation, and a number of provisions of federal law exempt their securities from most provisions of the federal securities laws These exemptions extend to the offer and sale of MBS issued or guaranteed by the GSEs or Ginnie Mae As discussed below, securities of private-label issuers, including the offer and sale of their MBS, are subject to regulation under these laws Ginnie Mae is a wholly-owned corporation of the United States Government under HUD As such, the securities it guarantees are exempt securities under Section 3(a)(2) of the Securities Act52 and Section 3(a)(12) of the Exchange Act Government securities and as such are also exempt in the same manner as securities that Ginnie Mae guarantees Furthermore, the securities are also considered government securities under the Exchange Act and may be traded by government securities brokers These exemptions, however, do not mean that the GSEs and issuers of Ginnie Mae MBS are exempt from the antifraud provisions of the federal securities laws Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated thereunder, apply to all issuers of securities, whether or not the offer and sale is registered under the Securities Act Specifically, the provisions prohibit any person from making a false or misleading statement of material fact In making disclosures, issuers also may not omit to state a material fact that is necessary in order to make the statements made not misleading To be considered material, there must be a substantial likelihood that the disclosure of the omitted fact "would have been viewed by the reasonable investor as having significantly altered the total mix' of information made available "59 GSE disclosures are also subject to OFHEO safety and soundness supervision and regulation Unlike GSE and Ginnie Mae MBS, offerings of private-label MBS are subject to the registration requirements of the federal securities laws As such the offer and sale of these securities must be done pursuant to a registration statement filed with the Commission or pursuant to an exemption The registration statement must meet the Commission's disclosure requirements If an exemption from the registration requirements is available, the private-label securities may be sold without filing a registration statement with the Commission Rule 144A, a non-exclusive safe harbor from the registration requirements of the Securities Act, permits resales to institutional investors that meet the criteria for "qualified institutional buyer" ("QIB") of certain privately placed securities The content and timing of disclosure vary with the type of issuer and type of security offered Both private-label and GSE and Ginnie Mae MBS issuers provide disclosure to potential MBS investors in a series of documents and through a variety of means The MBS structure used, whether pass-through or REMIC, will directly affect the form and content of disclosure, because disclosure will address the terms and risks of the securities being sold While almost all pass-through MBS are issued by the GSEs or Ginnie Mae issuers, private-label issuers sell primarily REMIC securities In MBS offerings, disclosure is particularly focused on helping investors evaluate the prepayment and credit risks In addition, the different characteristics of the underlying mortgage loans included in GSE and Ginnie Mae MBS and private-label MBS affect the format and content of the disclosures in the respective MBS deals As discussed above, there have been significant differences, historically, between the mortgage loans underlying GSE and Ginnie Mae MBS and those underlying private-label MBS Some of these differences between the mortgage loans in GSE and Ginnie Mae or private-label MBS pools may be changing as the GSEs expand their programs to include mortgage loans that may have more or less advantageous payment characteristics than the majority of mortgage loans included in GSE MBS Because these changes may affect the existing homogeneity of the GSE MBS pools, the changes may also impact the type of information that investors require to assess risk and that the GSEs provide about their MBS pools in the future Private-label issuers and the GSEs and Ginnie Mae provide MBS disclosure to investors using different mechanisms The differences in disclosure delivery arise for two primary reasons First, while GSE and Ginnie Mae MBS are exempt from the registration and reporting requirements of the federal securities laws, private-label issuers must either file a registration statement meeting the Commission's disclosure requirements or rely on an exemption from registration Second, GSE and Ginnie Mae pass-through MBS are often sold through a different market, the TBA market, than private-label MBS and GSE and Ginnie Mae REMICs backed by TBA-eligible pass-through MBS As noted above, the mortgage loans may not even have been made at the time of sale in the TBA market, while the loans have been pooled and described by the time of issuance in the private-label market Disclosure procedures for providing ongoing information are also different for the GSEs, Ginnie Mae and private-label issuers A private-label issuer that registers the offer and sale of its MBS under the Securities Act must comply with the content and procedural requirements of the Securities Act covering such offering In registered offerings under the Securities Act, private-label issuers will disclose material information to investors through the use of two primary documents: the core prospectus and the prospectus supplement When private-label issuers file a registration statement to register an issuance of MBS, they typically use what is called "shelf registration "64 Through this process, issuers first file a disclosure document that outlines the parameters of the various types of MBS offerings they may conduct in the future This document is known as the "core" or "base" prospectus The registration statement will also contain a form of prospectus supplement, which outlines the format of deal-specific information they will disclose when they later conduct an offering In the private-label market, issuers may structure their MBS offerings to meet the particular investment needs of the investors to whom they wish to sell In this regard, private-label issuers will often provide potential investors with computational materials and structural and collateral term sheets prior to finalizing the deal structure and printing the final prospectus supplement Structural term sheets set out the proposed structure of the securities being offered, such as the parameters of the various types of classes in a REMIC Private-label issuers using structural term sheets may be required to file them with the Commission and incorporate them by reference into the registration statement for the registered offering Collateral term sheets, like structural term sheets, may also be required to be filed with the Commission and thereby incorporated by reference into the registration statement A prospectus supplement describing the terms of the securities the issuer intends to offer, particular risks, information regarding the assets and other deal-specific information may also be prepared and used in the offering process The final prospectus supplement must be filed with the Commission within two business days following its first use The GSEs and Ginnie Mae are not subject to the registration requirements of the Securities Act in connection with their MBS offerings However, the GSEs prepare offering documents similar in form to the core prospectuses filed by private-label issuers in registered offerings and make deal-specific information available through either final prospectus supplements or website disclosures Fannie Mae and Freddie Mac post their offering documents on their websites Investors also receive disclosures as part of the settlement process for TBA trades Fannie Mae and Freddie Mac provide disclosures to investors through various documents including the base prospectuses and deal specific supplements Fannie Mae and Freddie Mac also make available information statements that describe their business and operations, as well as include their full audited financial statements An information statement provides information investors need in order to evaluate the GSEs' guarantees of the MBS Ginnie Mae, unlike Fannie Mae and Freddie Mac, does not utilize either a core prospectus or prospectus supplement to disclose information regarding its guaranteed pass-through MBS issuances Instead, Ginnie Mae requires each issuer to use a single required form of disclosure document for the initial MBS sale Private-label issuers that have registered the offer and sale of MBS under the Securities Act generally will have a limited mandatory obligation to continue providing information on the MBS However, registrants that become subject to reporting requirements pursuant to Section 15(d) of the Exchange Act may discontinue reporting after they file their first annual report on Form 10-K if they have less than 300 record holders Therefore, most private-label issuers are not required to continue filing reports with the Commission after they file their first annual report Although the securities were offered publicly, the small number of investors indicates that the issuer should no longer be considered a public entity Because of the passive nature of MBS issuers, the staff of the Commission has allowed a modified reporting scheme under the Exchange Act for MBS issuers Ginnie Mae and the GSEs provide ongoing disclosure regarding the pools underlying the securities they issue or guarantee As noted above, the characteristics of the underlying mortgage loans and the marketplace's evaluation of their expected payment speeds will affect the structure, marketability and risk characteristics of the particular MBS The yield, or return, on MBS is primarily determined by the timing of payments on the underlying mortgage loans The underlying mortgage loans in a GSE or Ginnie Mae MBS will often have different payment (including default and prepayment) and other characteristics from those in a private-label MBS This is due in large part to the eligibility requirements for the underlying mortgage loans and the underwriting standards and guarantee requirements that Ginnie Mae and the GSEs have established for their MBS programs The effect of these requirements is that the mortgage loans underlying GSE and Ginnie Mae MBS may be less diverse than those underlying private-label MBS GSE and Ginnie Mae MBS will have more common or homogeneous features and will benefit from the GSE and Ginnie Mae guarantees As previously discussed, a major risk in an investment in MBS is prepayment risk Due to the importance of prepayment risk to an investor's decision to invest in MBS, the key disclosures in MBS issuances relate to the various factors that might affect prepayment Market participants have developed prepayment models to evaluate prepayment risks Prepayment models make certain assumptions regarding probable payments on the underlying mortgage loans in order to estimate or predict cash flows among other characteristics, the greater the need for more detailed information to be able to model for different prepayment scenarios As discussed above, credit risk, the risk that the borrowers on the underlying loans may not make timely payments or may default on their loans, is thought by investors to be more significant in private-label MBS than in GSE or Ginnie Mae MBS The GSEs and Ginnie Mae guarantee the timely payment of principal and interest on the MBS The Ginnie Mae guarantee is backed by the full faith and credit of the United States Investors should look to the audited financial statements and other disclosures of Fannie Mae and Freddie Mac, as well as safety and soundness information provided by OFHEO, to assess the credit risk Characteristics of the loans backing MBS, of the properties that collateralize the loans, and of the borrowers can have a significant effect on the prepayment and default behavior of the loans and, therefore, on the expected payments to security holders Market participants have focused on various pieces of information that may help them understand the risk of prepayment or payment failure Factors that have been most widely noted, including those that are currently disclosed, and some that are not, are discussed below The GSEs and Ginnie Mae disclosures discussed are only with regard to their pass-through MBS The most important loan terms are the interest rates (coupons) paid by the borrowers, the loan maturity dates, the ages of the loans (including origination years), and the sizes of the loans Coupon information is critical because a borrower's financial incentive to prepay a loan depends on the relationship between the coupon and current market rates The difference between the interest rate on a mortgage loan and the prevailing market interest rate is the most important factor in evaluating the likelihood that the mortgage loan will be prepaid In order to predict the prepayment of mortgage loans included within a pool underlying MBS, investors look to information that discloses the interest rates of mortgage loans within the MBS pool, and the interest rates that are most prevalent within the pool One measure of the overall interest rates on mortgage loans underlying a MBS pool is the pool's weighted average coupon, or WAC The WAC is the average of the coupons on the loans included in the pool, weighted by each loan's outstanding balance At issuance, Freddie Mac and private-label issuers typically disclose the WAC for the pool and the distribution of the pool's total unpaid principal balances in various increments across coupon ranges For example, private label issuers might disclose how much principal of the pool is subject to an interest rate of greater than six percent and less than or equal to 6 1/8 percent Information on original loan maturities (most often 15 or 30 years), remaining maturities, and loan age make it possible for investors to estimate future loan amortization payments Principal payments increase as loans age, and the payments are lower the longer the original maturities are The difference between original maturity and remaining maturity may be greater than loan age if borrowers have partially prepaid loans because partial prepayments shorten remaining maturities Given loan age and original maturity, a shorter remaining maturity implies faster amortization The longest maturity date of a pool helps investors determine the latest possible date by which scheduled payments on the underlying mortgage loans and, in turn, the MBS should be made The weighted average maturity of the pool provides investors with information about the maturity dates of the loans included in the pool Calculated initially as of the date of pool formation, weighted average maturity is the average of the maturities of the loans included in the pools, weighted by each loan's outstanding balance Many MBS issuers provide updated maturity information, which is the weighted average remaining maturity of all loans remaining in the pool at the date of calculation As loans are paid off or prepaid, the number of remaining monthly payments decreases To the extent prepayments are made, the remaining maturity decreases at a faster rate than it would if borrowers paid only the required amount each month Thus, investors can evaluate prepayment speeds and make determinations as to when they expect to receive payment on the MBS by examining changes in the pool's weighted average remaining maturity or by comparing the pool's average remaining term to maturity with its weighted average original loan term and weighted average loan age Unless loan age and loan maturity are evaluated together, prepayments could make a pool look older than it actually is Information on loan age is also useful in predicting prepayment speeds because prepayments tend to increase during the first few years of newly issued pools and then level out Prior to settlement, Freddie Mac discloses each pool's weighted average remaining term to maturity, weighted average loan age, weighted average original loan term, and latest loan maturity date, as well as the total number of loans, unpaid principal balance, and percent of the pool attributed to each loan origination year Freddie Mac also discloses, again prior to settlement, quartile data for each pool's weighted average maturity, weighted average loan age, and weighted ave

Mortgage Backed Securities Sale

September 20, 2008 - 2:50 pm

Mortgage-Backed Securities Home | Previous Page Mortgage-Backed Securities Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by a governmental, quasi-governmental, or private entity The entity then issues securities that represent claims on the principal and interest payments made by borrowers on the loans in the pool, a process known as securitization Ginnie Mae, backed by the full faith and credit of the U government, guarantees that investors receive timely payments Fannie Mae and Freddie Mac also provide certain guarantees and, while not backed by the full faith and credit of the U government, have special authority to borrow from the U Some private institutions, such as brokerage firms, banks, and homebuilders, also securitize mortgages, known as "private-label" mortgage securities Mortgage-backed securities exhibit a variety of structures The most basic types are pass-through participation certificates, which entitle the holder to a pro-rata share of all principal and interest payments made on the pool of loan assets More complicated MBSs, known as collaterized mortgage obligations or mortgage derivatives, may be designed to protect investors from or expose investors to various types of risk An important risk with regard to residential mortgages involves prepayments, typically because homeowners refinance when interest rates fall Absent protection, such prepayments would return principal to investors precisely when their options for reinvesting those funds may be relatively unattractive You can learn more about mortgage securities by visiting the website of The Securities Industry and Financial Markets Association Staff of the Department of the Treasury ("Treasury"), the Office of Federal Housing Enterprise Oversight ("OFHEO"), and the Securities and Exchange Commission (the "Commission") formed a joint task force ("Task Force") in August 2002 to conduct a study of disclosures in offerings of mortgage-backed securities ("MBS") The purpose of the joint study was to evaluate current disclosure practices and consider whether disclosure enhancements are desirable in assisting investors to make informed investment decisions In conducting the study, the Task Force reviewed the history and development of the MBS markets, the current disclosure requirements for these securities, and market-driven industry disclosure practices and standards The Task Force also interviewed a variety of MBS issuers and investors, and other experienced market participants and observers, which provided the Task Force with additional perspectives about the evolution of the MBS markets, including changing disclosure standards The Task Force received recommendations concerning changes to current disclosure standards based on investor needs, and assessments as to the likely impact of additional disclosure on the MBS markets' continued smooth functioning and liquidity This report contains the Task Force's findings, conclusions, and recommendations regarding enhanced MBS disclosures Privately owned financial institutions have become increasingly important as issuers in the so-called "private-label" market The MBS markets are estimated to have grown by more than 800% in the past two decades MBS investors continue to be almost exclusively institutional, but their expressed needs have changed with the evolving market and economic conditions In recent years, investors have focused much more time, attention and resources on the evaluation of prepayment risk and, in the case of private label MBS, credit risk Market participants interviewed by the Task Force indicate that the changes have been considered beneficial to the market In interviews with the Task Force, MBS market participants also agreed, almost without exception, that the significant changes in disclosure did not affect the highly liquid nature of the GSE and Ginnie Mae pass-through and to-be-announced markets, and MBS markets generally operate reliably and efficiently Yet, the Task Force also found that most market participants with whom it spoke, as well as most lenders and non-GSE issuers, believe the MBS markets could function better with additional pool-level disclosure Moreover, consistent with their past experiences with changes in disclosure, these market participants expressed confidence that additional pool-level disclosures would not have a significant adverse effect on the markets' liquidity Based on the study, the Task Force has concluded that additional pool-level disclosures would be both useful and feasible Market participants interviewed by the Task Force were clear in suggesting additional information that they believed would be useful This report sets forth and describes the most frequently mentioned information that market participants recommended be disclosed to supplement currently disclosed information Examples of additional disclosure items that market participants suggested would present few practical obstacles are:loan purpose; The Task Force believes there are no significant obstacles to the introduction of these additional pool-level disclosures and that the benefits of enhanced transparency would ultimately outweigh any costs To implement additional disclosures, the Task Force recommends that investor interest and issues of practicality should be key criteria used to determine the specific items for additional disclosure in the MBS markets, as well as the appropriate timing and method of providing this additional disclosure In the past, industry groups and other market participants have stepped forward to coordinate and implement additional disclosures in the MBS market The Task Force encourages a continuation of this approach at this time If market forces are unable to reach consensus on disclosure enhancements, the agencies represented on the Task Force will need to consider what additional action might be appropriate In addition to its review of MBS disclosures, the Task Force inquired about allegations of selective MBS selling and purchasing practices arising from possible information imbalances among market participants The Task Force looked at policies and procedures regarding information barriers at the GSEs In addition, OFHEO reviewed OFHEO examination reports and inquiries of the GSEs as to specific allegations Though questioned by the Task Force about such allegations, interviewees provided no evidence to substantiate allegations of improper activity The Treasury, the Commission, and OFHEO will, in their separate capacities, continue to monitor the MBS markets to assess the implementation and potential impact of enhanced MBS disclosures If future developments warrant, the Task Force members, in their separate capacities or jointly as they agree appropriate, could consider what additional steps might help provide additional, useful disclosures to MBS investors and market participants In July of 2002, Treasury, OFHEO and the Commission made a joint announcement regarding the intention of Fannie Mae and Freddie Mac to voluntarily register their common stock under the Securities Exchange Act of 1934 (the "Exchange Act") This voluntary registration, when in place, will trigger periodic disclosures regarding the GSEs Treasury, OFHEO and the Commission also indicated they would review disclosure requirements and practices in the MBS markets, which would not be affected under this voluntary registration initiative The purpose of the review on primary offering disclosures for MBS, which culminated in this report, was to examine disclosures to all investors in these securities, with a view to enhancing the availability of information that investors should have to evaluate the securities in the MBS markets and make investment decisions Staff from Treasury, OFHEO and the Commission, acting as the Task Force, have conducted the review of the disclosure practices in the MBS markets The Task Force reviewed regulatory disclosure requirements and current industry disclosure practices The Task Force also interviewed Fannie Mae, Freddie Mac and Ginnie Mae, private-label issuers, institutional investors, dealers, individual analysts, MBS market and real estate finance trade groups, pension funds and others involved in the markets to hear their views ranging from evaluations of current markets, how the markets function and particular concerns regarding disclosures As background to the Task Force's findings, the report discusses the development and operation of the MBS markets, the various market participants, and the types of MBS sold The report also addresses current disclosure practices and investor interest regarding the assets of and structures used for the securitization vehicles, credit and repayment sources and other risks affecting the repayment and value of the MBS, and information imbalance issues Finally, the report notes categories of information that the Task Force believes would enhance disclosures in the MBS markets Growth in the MBS markets has been significant over the past 20 years For example, single-family MBS grew from less than $367 billion outstanding in 1981 to more than $3 In order to understand the reasons for evaluating disclosure practices in the MBS markets, it is helpful to understand the development and operation of the MBS markets As described in this section, the MBS markets consist primarily of the MBS issued or guaranteed by two government-sponsored enterprises, Fannie Mae and Freddie Mac, and one United States-owned corporation, Ginnie Mae MBS are also issued by private-label issuers, which are private institutions The GSEs and Ginnie Mae guarantee payments on their respective MBS, whereas private-label issuers use various forms of credit enhancement The most commonly issued MBS are pass-through securities, which consist almost entirely of GSE and Ginnie Mae MBS, and REMICs, which are the primary security issued by private-label issuers The MBS investor base has evolved, but remains largely institutional The most important risks in the MBS market are prepayment risk and credit risk This section includes a discussion of how these risks drive disclosures in the MBS markets Other sections of this report discuss whether MBS disclosures can be enhanced Fannie Mae, Freddie Mac, and Ginnie Mae were all created by federal law to address perceived deficiencies in the U The GSEs and Ginnie Mae enhance liquidity by enabling lenders and originators to sell their mortgage loans and use the proceeds from the sales to make new mortgage loans Fannie Mae was originally authorized only to buy FHA insured loans After being split into two entities in 1968, Fannie Mae and Ginnie Mae, Fannie Mae was authorized to buy a broader range of loans Freddie Mac was initially authorized to purchase conventional mortgages from federally insured financial institutions Both Fannie Mae and Freddie Mac are now investor owned companies, and the common stock of both companies is traded on the New York Stock Exchange Ginnie Mae does not buy or sell loans or issue MBS; instead, it guarantees payment on MBS that are backed by federally insured or guaranteed loans, mostly loans insured by the FHA and guaranteed by the Department of Veterans Affairs (the "VA") Other guarantors or insurers of loans eligible as collateral for Ginnie Mae MBS include other offices in the Department of Housing and Urban Development ("HUD"), and the Department of Agriculture's Rural Housing Service Ginnie Mae is a wholly-owned government corporation under the auspices of HUD Private-label issuers include commercial banks, savings associations, mortgage companies, investment banking firms and other entities that acquire and package mortgage loans for resale as MBS The types of investors in MBS have changed over time Initially the primary purchasers of MBS were thrift institutions, commercial banks, insurance companies, pension funds, and mutual funds More recently Fannie Mae, Freddie Mac, and international institutions have also become much more active market participants Investments in MBS are made for a variety of reasons Some investors purchase MBS to hold long-term in portfolios while others purchase for short term trading purposes MBS are also widely used for hedging purposes Much of the development of GSE, Ginnie Mae, and private-label MBS markets has been in direct response to investor interests and demands The MBS market as we know it today can be traced back to 1970, when Ginnie Mae first guaranteed a pool of mortgage loans The creation of Freddie Mac in 1970 helped to expand the market In the basic MBS structure, a group of mortgage loans is sold to a trust or other investment vehicle In the case of residential home mortgages, the pools usually include a large enough number of loans so that information on no one loan is important in analyzing the pool The investment vehicle owns the mortgage loans, issues securities that are either backed by or represent interests in the loans, and makes payments to investors out of the payments made on the loans A servicer is hired to collect the mortgage payments from the borrowers and to pass the payments, less fees, including guarantee and trustee fees, through to the trustee, who passes these payments on to the investors that hold the MBS To facilitate sales of MBS, the GSEs and Ginnie Mae are authorized to guarantee the MBS Thus, if for some reason, there is insufficient money to cover the payments due on the MBS, the GSEs make the payments due on the MBS Ginnie Mae's guarantee arises if the issuer (typically the loan originator) does not make the delinquent payments to the MBS holders Unlike Fannie Mae and Freddie Mac, which are permitted to issue, as well as guarantee the payments on, MBS, Ginnie Mae only guarantees the payment of MBS that are created by private entities Ginnie Mae's guarantee of the payment of MBS is backed by the full faith and credit of the United States, whereas the guarantee obligations of Fannie Mae and Freddie Mac are not There are significant differences in the composition and structure of typical private-label MBS compared to MBS issued or guaranteed by the GSEs or Ginnie Mae The perceived strength of the guarantees, the evolution of tax law, and the demands of investors in an increasingly complex marketplace have contributed to current practices and product distinctions between GSE and Ginnie Mae MBS and private-label MBS A number of regulatory and tax constraints initially impeded private entities from expanding into the MBS market created by the GSEs and Ginnie Mae Many of the regulatory constraints affecting private entities were removed in 1984 with the passage of the Secondary Mortgage Market Enhancement Act of 1984 ("SMMEA") SMMEA was intended to encourage private sector participation in the secondary mortgage market by, among other things, relaxing certain regulatory burdens that affected the ability of private-label issuers to sell their MBS Tax law constraints also affected the types of MBS that could be sold Until the passage of the Tax Reform Act of 1986 ("1986 Tax Act"), which recognized the Real Estate Mortgage Investment Conduit ("REMIC") structure with its beneficial tax treatment, most MBS were sold as "pass-through" securities As discussed below, pass-through securities pay an investor principal and interest received from payments on the mortgage loans that are the assets of the trust The payments on the mortgage loans are passed through the trust to the investors as they are made Before 1986, the effect of the limitation on activity of grantor trusts under the tax laws restricted the use of trusts with multiple classes of securities with differing payment characteristics In the multi-class structure, the principal and interest payments are not just passed through pro rata as paid to all investors, but rather are divided into varying payment streams to create classes with different expected maturities, different levels of seniority or subordination or other differing characteristics Prior to 1986, the tax law treated these multi-class trusts as associations taxable as corporations, and distributions would have been taxable at the trust level and also at the trust investor level This "double taxation" made multi-class structures generally unfeasible The 1986 Tax Act eliminated the double taxation for multi-class vehicles structured as REMICs With the advent of the REMIC, more complex structures with multiple classes were developed which divided up the payment streams on the mortgage loans that were collateral for the securities repayment obligations to investors There are differences between the GSE and Ginnie Mae MBS and private-label MBS in the composition of the mortgage loans comprising the collateral for the respective pools The types of underlying mortgage loans that are eligible to be included in GSE and Ginnie Mae MBS affect the composition of pools backing private-label MBS because originators can generally receive the best price for eligible loans in GSE and Ginnie Mae transactions Because the GSEs require a higher fee to accept some loans of lesser credit quality, sometimes originators may find a private-label transaction more attractive The mortgage loans included in Fannie Mae and Freddie Mac MBS generally have the following characteristics:mortgages are on residential properties, most commonly one to four family homes (these are referred to as single family loans); mortgages are generally 15 year and 30 year maturities that are fully amortizing;16 the loans are due on sale of the underlying property and cannot be assumed by the buyer of the property;18 mortgage loans must be within the "conforming loan limit", which for one-unit homes in 2003 is $322,700 loans within the conforming loan limit generally satisfy other GSE specifications for loan documentation, credit information and property type, among other requirements There are some mortgage loans made to borrowers with good credit histories that are within the conforming loan limit but do not satisfy all the standard GSE underwriting guidelines, including documentation, for mortgage loans These mortgage loans are called "Alternative A" or "Alt A" loans These Alt A loans fail to satisfy the GSE guidelines for reasons such as limited or low documentation of income from the borrower (for reasons of speed or convenience to the borrower), unstable income sources, higher loan-to-value ratios ("LTV") or other ratios of payments to income Alternative A loans and some lower credit quality loans that are within the conforming loan limit can be swapped for Fannie Mae or Freddie Mac MBS or pooled and sold as private-label MBS Fannie Mae or Freddie Mac will issue MBS backed by such loans if the lender pays a higher guarantee fee that compensates the GSE for the potentially higher risk Apart from Alt A loans, there are other types of mortgage loans that do not satisfy standard GSE requirements Mortgage loans that are larger than the conforming loan limit, called jumbo loans, cannot, by statute, be included in GSE or Ginnie Mae MBS pools Mortgage loans are also made to borrowers who fail to meet GSE underwriting requirements because of certain borrower or loan characteristics For example, mortgage loans made to borrowers with poor credit histories or high debt-to-income ratios may be ineligible for securitization by the GSEs or eligible only by payment of a higher guarantee fee These are the types of loans that typically comprise the pools backing the private-label MBS Under the Ginnie Mae MBS program, HUD-approved mortgage originators pool FHA, VA or certain other federally-insured mortgages into MBS and sell the MBS guaranteed by Ginnie Mae The terms of the underlying mortgage loans must comply with the underwriting requirements of the FHA or VA, as applicable As a result of the GSE underwriting criteria and conforming loan limits and FHA and VA underwriting requirements which do not apply to private-label issuers, the mortgage loans in private-label MBS generally have more diverse collateral, credit risk or other underwriting characteristics than GSE or Ginnie Mae MBS and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics Private-label pools more frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans The coupon rates and maturities of the underlying mortgage loans in a private-label MBS pool may vary to a greater extent than those included in a GSE guaranteed pool As noted above, the GSEs and Ginnie Mae guarantee payments to investors on their MBS This guarantee ensures that investors receive scheduled payments of principal and interest, regardless of whether payments on the underlying mortgages are made MBS issued in the private-label market are typically not guaranteed by the issuer and instead rely on other forms of credit enhancement or support to give investors greater assurance they will receive payments on their MBS The credit enhancement in private-label MBS may be internal or external to the vehicle issuing the security External credit enhancements generally involve insurance or a letter of credit purchased by private-label issuers to support the underlying mortgage payments The most common credit enhancement currently used in private-label MBS is the senior-subordinated structure in REMICs In the senior-subordinated credit enhancement, the trust will issue different classes of securities There will be a senior class or tranche and at least one class that has a subordinated right of payment to the senior class The senior class, which bears the least amount of risk of default of the underlying mortgages, will carry a lower interest rate The subordinated class, which bears the greatest amount of risk of default of the underlying mortgage loans, will carry a higher interest rate in order to compensate for the greater risk exposure The level of credit protection this structure provides to the senior class may decline over time due to prepayments and thus other mechanisms, such as prepayments going disproportionately to the senior class (known as shifting interest structures), must be in place to provide further safeguards The most significant feature and risk that all MBS share is prepayment risk, which is the risk that principal payments on an underlying loan will be paid earlier or later than expected Unscheduled prepayments may affect the return realized by MBS investors When an investor purchases an MBS or any other fixed income security, the investor does so with the understanding that the price he or she is paying for the security reflects uncertainty about its expected life Prepayment risk on MBS is influenced by a wide range of factors that relate both to general market conditions, including interest rates, and the performance on individual loans included in the portfolio of loans backing an MBS issuance As interest rates fall below rates on existing mortgages, borrowers may, and commonly do, prepay their existing loans and refinance at lower rates Refinancings are recognized as being the primary driver of prepayments Most mortgage loans must be paid in full when a home is sold The mortgage loan can also be paid prior to its due date or maturity if the homeowner does not pay the loan and the lender repossesses or forecloses on and sells the home Finally, a borrower may prepay a loan, in whole or in part, at any time for any other reason When MBS prepay as a result of borrower refinancing, investors seeking to reinvest in the fixed income market will generally be forced to make a new investment in a lower interest rate environment When prepayments are slower than expected, it often means that interest rates have risen The security pays later than expected, and the investor cannot take advantage of more attractive investment opportunities with those funds The potentially significant risk to investors in private-label MBS that is generally thought by investors to be less significant in the case of GSE and Ginnie Mae MBS is credit risk Investors in MBS, as with other fixed income instruments, evaluate the risk of whether they will receive the scheduled payments of principal and interest on their MBS Credit risk reflects the risk that the borrowers on the underlying loans may not be able to make timely payments on the loans or may even default on the loans In the absence of a guarantee or external credit enhancement, MBS investors generally can look only to the assets or collateral of the trust, the underlying mortgage loans, as the source of payments on their securities and to the structure of the transaction for any internal credit enhancement The creditworthiness of the underlying borrowers becomes significantly more relevant in private-label MBS offerings because there is seldom an entity that is guaranteeing the payment of the securities Therefore, if the borrowers do not pay the mortgage loans, the MBS securities will not pay, absent some credit enhancement Consequently, GSE and Ginnie Mae MBS and the private-label MBS may pose differing degrees of risk for investors Since the GSEs and Ginnie Mae guarantee the timely payment of principal and interest on the MBS, a GSE and Ginnie Mae MBS investor looks to the GSEs and Ginnie Mae to determine the credit risk Ginnie Mae's guarantee is the full faith and credit guarantee of the United States In contrast, Fannie Mae's and Freddie Mac's guarantees are based solely on their own credit quality Fannie Mae and Freddie Mac provide extensive corporate disclosure and will soon register their common stock under the Exchange Act, subjecting the two companies to all of the disclosure requirements of the federal securities laws Investors in Fannie Mae and Freddie Mac MBS may look to these disclosures to assess those companies' abilities to fulfill the guarantees of the MBS Investors may also look to information provided by OFHEO about the GSEs' creditworthiness, including results of examinations and risk based capital stress tests In addition to assessing the credit quality of the underlying mortgage loans, investors in private-label MBS must look to the creditworthiness of the provider of the external credit enhancement or must evaluate the reliability of the transaction structure to provide any internal credit enhancement and the reliability of a rating agency's rating The amount of disclosure private-label issuers must provide with respect to third party credit enhancements varies with the type and level of support expected Private-label issuers are required to discuss in their registration statements the material terms of any credit enhancement, whether internal or external and to provide information regarding the credit enhancer, insurer or guarantor As noted above, the most common form of private-label MBS is in the form of a REMIC The other common form of MBS is the pass-through security, which is used predominantly by the GSEs and Ginnie Mae The most common type of MBS is a pass-through security backed by a pool of single-family mortgage loans Generally, pass-through MBS are created by pooling or packaging mortgage loans together in a trust or other collective investment vehicle and selling the interests in the trust All payments on the underlying mortgage loans, including principal, scheduled interest, and unscheduled prepayments are passed through, on a pro rata basis, to the holders of the pool interest or participation certificates after deducting the servicing fees, Ginnie Mae and GSE guarantee fees, and trust expenses The assets of the trust or other vehicle are the mortgage loans in the pool Most pass-through vehicles own fixed rate mortgages, although adjustable rate mortgages may also be assets of a pass-through MBS entity The interest differential is used to pay for the guarantee fee to one of the GSEs and the servicing fee to the servicer Generally, the underlying mortgage loans are serviced by the originating lender or another institution that has bought the servicing rights Private-label issuers can, but in most cases do not, issue pass-through securities In a private-label MBS, the interest differential would be used to pay for credit enhancement or credit support, the servicing fee to the servicer, and trust expenses As previously noted, the REMIC is a multiple-class security vehicle that does not have the burden of double taxation The assets underlying the REMIC securities can be either other MBS or whole mortgage loans The assets are pooled and cash flows from the assets are distributed to the various REMIC security classes according to the priorities specified in advance The REMIC structure allows issuers to create securities with short, intermediate and long-term maturities This flexibility enables issuers to expand the market for the MBS to fit the needs of a variety of investors, not just investors looking for 30-year fixed-rate securities The REMIC structure has allowed for a broader group of investors REMICs may also be used to address particular investment objectives or concerns about prepayment risk by carving up principal and interest payments on the underlying mortgage loans to create different timing and levels of payments on the securities REMICs are issued by private-label issuers and under the GSE and Ginnie Mae programs The GSEs then guarantee the payment obligations on the REMIC securities In the Ginnie Mae REMIC program, Ginnie Mae guarantees the timely payment of principal and interest on each of the classes Due to the widely diverse coupon and payment characteristics of the underlying mortgage loans, most private-label securities are structured as REMICs The GSE participation in the REMIC market has effectively priced most potential private-label REMIC securities backed by conforming loans out of the market This is because, as a result of the GSE or Ginnie Mae guarantee, investors will likely pay more for GSE and Ginnie Mae securities backed by the same loans, even though guarantee fees are paid from the pool cash flows In a standard REMIC structure, known as sequential pay, each class or tranche of the security is generally paid the coupon rate on a monthly basis Principal is paid on the regular classes in sequential order: senior classes are paid first, and then the subordinated classes Any prepayments are allocated in the same way The effect of prepayments is that more senior classes may be paid off much sooner or later than anticipated Prepayments to senior classes can also shorten the expected maturities of later maturity classes in a sequential pay structure, but later maturities have less prepayment risk than exists for securities in a pass-through structure GSE and Ginnie Mae MBS are created through a variety of programs A mortgage originator selects a group of mortgage loans that it determines to sell to one of the GSEs as a package Under the "swap" programs, the lender selects and pools a group of conforming mortgage loans that meet the GSE underwriting standards and "swaps" them for MBS issued and guaranteed by one of the GSEs representing interests in that same pool of mortgages Under their "cash" programs, Fannie Mae and Freddie Mac take whole mortgage loans and give the originators cash back Subsequently, the GSE will decide which mortgages out of the pools it has purchased in the cash program to pool and use as collateral for new GSE MBS or whether to hold the mortgage loans as an investment The GSE will then issue MBS backed by the loans it has purchased from lenders or originators, guarantee the timely payment of principal and interest on the securities and sell the MBS through dealers The mortgage originator, not the GSE, decides whether to swap the loans for MBS or to receive cash A small amount of Fannie Mae and Freddie Mac MBS are created through their respective "cash" programs, with the vast majority being created through their respective "swap" programs The loan originator, of course, would also be free to use the loans in a private-label MBS issuance Under the Ginnie Mae MBS program, a HUD-approved mortgage loan originator pools FHA, VA or certain other federally-insured mortgages and sells MBS guaranteed by Ginnie Mae Ginnie Mae does not issue securities or own the underlying assets but rather guarantees the payment of the securities backed by the underlying mortgage loans or mortgage pools Like the loans in the Fannie Mae and Freddie Mac swaps, the loans in the mortgage pools comprising Ginnie Mae guaranteed MBS are chosen by the lender, not by Ginnie Mae The GSEs have other MBS products that are either larger pass-through structures, which can be pools of pools (small balance pools consolidated into one larger pool) or are collateralized mortgage obligations such as REMICs In addition to the differences in the collateral and structures discussed above, private-label MBS are sold to investors through different market mechanisms than are GSE and Ginnie Mae MBS Most pass-through MBS of each of Fannie Mae, Freddie Mac and Ginnie Mae are eligible to be sold in the "to-be-announced" or TBA market, which is essentially a forward or delayed delivery market The TBA market allows mortgage lenders essentially to sell the loans they intend to fund even before the loans are closed This also allows the lender to lock in an interest rate for the borrower The lender, or other market participant, will enter into a forward contract to sell MBS in the TBA market, promising to deliver MBS on the settlement date sometime in the future In the TBA market, GSE and Ginnie Mae MBS are traded on a forward or delayed delivery basis with settlement up to 180 days later The actual mortgage pools comprising the MBS are not specified at the time of sale In fact, many of the mortgage loans may not even be signed (and the mortgage pools created) at the time of sale The largest volume of trading in the TBA market is for settlement within 30 days In a TBA trade the seller and buyer agree to five pieces of information before entering into the transaction: the type of security, which will usually be a certain type of Fannie Mae, Freddie Mac or Ginnie Mae program and type of mortgage (i , GNMA 30-year pass-throughs); coupon or interest rate; face value (the total dollar amount of MBS the purchaser wishes); price; and settlement date The purchaser will contract to acquire a specified dollar amount of MBS, which may be satisfied when the seller delivers one or more MBS pools at settlement Forty-eight hours before settlement, the seller specifies or allocates the identity and number of mortgage pools by the specific pool numbers and CUSIPs to be delivered to satisfy the TBA trade The Bond Market Association, a private trade association of dealers in debt securities, publishes guidelines governing the mechanics of trading and settling MBS, which are intended to implement standard industry practices The guidelines, titled "Uniform Practices for the Clearance and Settlement of Mortgage-Backed Securities and Other Related Securities," contain specific guidelines for trading and settling GSE and Ginnie Mae pass-through MBS in the TBA market, known as Good Delivery Guidelines The Good Delivery Guidelines set forth the basic characteristics that GSE and Ginnie Mae pass-through MBS must have to be able to be delivered to settle an open TBA transaction Most newly issued GSE and Ginnie Mae pass-through MBS are eligible to be sold in the TBA market Already outstanding GSE and Ginnie Mae pass-through MBS may also be used to cover a TBA trade Therefore, the mortgage originator has until 48 hours before the settlement date to decide whether to use new pools of mortgages or to buy outstanding GSE or Ginnie Mae MBS to cover the trade The Task Force understands that roughly 75% of GSE and Ginnie Mae MBS are eligible to trade in the TBA market The Good Delivery Guidelines were developed as a result of the unique nature of the GSE and Ginnie Mae MBS market The TBA market developed in response to the demands of market participants for more liquidity in trading GSE and Ginnie Mae MBS In order for the market to work on a delayed delivery basis, with sales of GSE and Ginnie Mae MBS occurring before the underlying mortgage loans close, and to account for the potential that not all commitments for mortgage loans will close (called pipeline risk), the market had to develop a process that would allow the identification of the securities that would be delivered in satisfaction of a trade a very short time before settlement, rather than at the time the forward trade was entered into In addition, because there are over 1 million individual GSE and Ginnie Mae MBS, with huge variations in outstanding principal amount, it was recognized that it was impractical and inefficient, and would greatly limit liquidity, and generally reduce price, to attempt to trade these GSE and Ginnie Mae MBS on a pool-by-pool basis Thus, it was essential to establish a concept of fungibility or interchangeability among pools that would facilitate both forward trading and an orderly and liquid trading market in GSE and Ginnie Mae pass-through MBS As a result of the GSE and Ginnie Mae standardized underwriting guidelines for single-family mortgages and the trading and settling parameters of the Good Delivery Guidelines, GSE MBS that may be delivered to satisfy a TBA trade will have similar characteristics The mortgage loans underlying GSE and Ginnie Mae pass-through MBS are pooled together according to similar characteristics that are based on guidelines established by the GSEs and Ginnie Mae and enable the pools to satisfy the Good Delivery Guidelines The TBA market functions on the premise that even though each pool that will be created is unique, all pools eligible for delivery on a given TBA trade are equivalent in their characteristics and expected performance Therefore, any distinct characteristics of the underlying mortgage loans comprising a pool delivered in a trade are considered to blend together so that the MBS they back can be considered a generic security As a result, TBA market participants consider MBS of Fannie Mae, Freddie Mac and Ginnie Mae that meet the Good Delivery Guidelines to be interchangeable or fungible with other such MBS issued or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, respectively TBA trading vastly improves the liquidity of TBA-eligible pass-through MBS Market participants have noted that the fungible nature of TBA securities promotes broad liquidity, which adds to efficiencies in pricing, execution, delivery and settlement In addition, the TBA market allows lenders to finance mortgages, thereby locking in interest rates, prior to the actual closing of a mortgage Using TBA forward sales to hedge pipelines is more efficient and has probably resulted in lower mortgage rates for borrowers In a TBA transaction, the security traded is the one that the seller can buy or obtain at the lowest cost for delivery at settlement (and thus has a higher profit potential) In other words, TBA prices are based on the GSE or Ginnie Mae pass-through MBS that are the "cheapest to deliver " Thus, the price of the cheapest to deliver security or the generic security in a TBA trade is the base price for TBA trades Because the generic security trade price is the base price for TBA trades, this price is also the floor off which other MBS trades are priced Any extra amount paid for a perceived benefit is measured relative to the base price Market participants note that the tremendous market liquidity has created pricing efficiency and reduced the bid/ask spread to 1/16 of a point or even 1/32 of a point Bloomberg LP and other third party vendors publish average daily price quotations for TBA trades, which include only generic securities There is also a competitive dealer and interdealer broker network from which daily pricing of trades in generic securities is available As described above, the Good Delivery Guidelines establish standard notification and settlement dates for GSE and Ginnie Mae MBS The trading guidelines require delivery of confirmations within one business day of the TBA forward trade The confirmation must contain information regarding the security and the transaction, including product type, coupon rate and settlement month The confirmation may contain other stipulated conditions that were negotiated as part of the trade The Good Delivery Guidelines also address delivery and settlement Allocation is the process by which the seller determines which GSE or Ginnie Mae MBS will be delivered to the buyer to satisfy good delivery and requires that GSE or Ginnie Mae MBS assigned pools must be within certain parameters The parameters are necessary to maintain the fungible character of the MBS delivered to satisfy a TBA trade These parameters include the permissible variance in the face value of MBS being delivered and the number of MBS pools per million dollars traded The Good Delivery Guidelines prohibit delivery of securities until 2 business days after the seller provides pool information As discussed below, the dollar roll market enables sellers to acquire pools to deliver to avoid settlement fails or to follow buy-in requirements TBA-eligible MBS may be traded three ways: generic, stipulated and specified trades Generic TBA trades are trades that merely fit the Good Delivery Guidelines The majority of GSE and Ginnie Mae pass-through MBS are traded on a generic basis through the TBA market process Stipulated TBA trades are TBA-eligible securities meeting Good Delivery Guidelines that have characteristics that have been requested by the investor In general, the stipulations are based on publicly available information about the pools or alterations of the Good Delivery Guidelines The most common stipulated terms are number of pools that can be delivered, the principal dollar amount variance, maturity year, weighted average loan age of the mortgage loans in the pool, and geographic location of the underlying properties Recently, investors have increasingly stipulated Alternative A characteristics Investors also commonly stipulate to late delivery to facilitate a seller's ability to obtain pools to satisfy an investor's trade Investors entering into a stipulated trade will pay a higher price than the price for a generic pool in the TBA market " As with generic TBA trades, there is no specific security identified at the time the parties enter into the trade Finally, TBA-eligible securities may be traded on a specified pool basis Unlike generic and stipulated trades, specified pool trades occur outside the TBA market There are a number of reasons an investor may engage in a specified trade For instance, an investor may want to purchase particular pools that have been in existence for a period of time, known as seasoned MBS, because of their better known prepayment characteristics Although seasoned pools may trade in the TBA market, and can be used to settle any TBA trade, they often trade on a specified basis outside the TBA market because of the increased differentiation in prepayment histories Among newly created MBS, specified pools generally command the highest price due to the additional available information regarding the content of the pool indicating the pool is worth more than a generic pool Market participants have indicated that investors generally obtain information on these pools from dealers or originators These market participants have indicated, however, that certain historical information they may receive about previously specified pools cannot be independently verified In addition to the flexibility the TBA market gives to buyers to determine the level of specificity the buyer desires in terms of pool characteristics, the TBA market has two distinct trading uses Investors, dealers, originators and other participants use the TBA market not only to acquire pools for investment or to form other investment vehicles, but TBA market participants trade TBA pools in "dollar rolls" as financing vehicles Dollar rolls, which are a form of collateralized short-term financing where the collateral consists of mortgage securities, perform a function analogous to that provided by the repo (repurchase agreement) market The vast majority of financing in the MBS market occurs through the dollar roll market, which takes advantage of the flexibility of the TBA market Unlike a reverse repurchase agreement, which generally requires redelivery of exactly the same securities that are delivered during the first leg of the transaction, a dollar roll is a simultaneous purchase and sale of substantially similar (TBA) securities for different settlement dates The dealer, who is said to "roll in" the securities received, is not required to deliver the identical securities, only securities that meet the Good Delivery Guidelines Thus, the investor may assume some risk because the characteristics of the MBS delivered to the investor may be less favorable than the MBS the investor delivered to the dealer Because the dealer is not obligated to return the identical MBS collateral that the investor has delivered, both parties usually transact the dollar roll with generic GSE or Ginnie Mae MBS pools that they believe to be of the same or less value than the average TBA-eligible security Dollar roll deliveries are made pursuant to TBA Good Delivery Guidelines Most dollar roll purchase and sale dates conform to the same dates as TBA MBS delivery A private-label issuer generally creates MBS using whole loans that it either originates or acquires in the secondary whole loan market or uses MBS, including GSE and Ginnie Mae MBS, it acquires in the market The MBS issuer will assemble pools of mortgage loans that it will deposit into a trust in exchange for MBS Most private-label MBS are designed to meet specific investor needs; thus, the private label issuer will generally obtain dealer and investor input on the desired characteristics of the various MBS classes to be issued in any particular deal prior to depositing the pool of whole mortgage loans or MBS into the trust Once the private-label MBS structure is established, the mortgage loans will be deposited into a trust and the MBS sold to investors for cash The private-label issuer or its affiliates may also retain certain classes of the MBS offered in any deal Private-label MBS, generally REMICs (backed by both GSE and non-GSE collateral), are composed of specified pools The diversity of the underlying collateral and credit risk issues heighten investor demand for detailed information to assess prepayment and credit risk Private-label MBS are not sold in the TBA market Private-label MBS typically are offered initially through underwriters and generally are not traded on a registered exchange or other organized market As a result of the fact that private-label MBS have a wide variety of multi-class structures, pool characteristics and issuer standards, they are not fungible and more information about the private-label MBS is provided to facilitate trading While the private-label MBS market is less liquid than the TBA market, market participants indicate that there is a resale market for many private-label MBS Because there is no established trading market for resales of private-label MBS, participants in this market must rely on dealer to customer interaction to effect transactions in these securities The trades are carried out in the over-the-counter market by telephone, fax and e-mail with dealers The GSEs and Ginnie Mae were created by federal legislation, and a number of provisions of federal law exempt their securities from most provisions of the federal securities laws These exemptions extend to the offer and sale of MBS issued or guaranteed by the GSEs or Ginnie Mae As discussed below, securities of private-label issuers, including the offer and sale of their MBS, are subject to regulation under these laws Ginnie Mae is a wholly-owned corporation of the United States Government under HUD As such, the securities it guarantees are exempt securities under Section 3(a)(2) of the Securities Act52 and Section 3(a)(12) of the Exchange Act Government securities and as such are also exempt in the same manner as securities that Ginnie Mae guarantees Furthermore, the securities are also considered government securities under the Exchange Act and may be traded by government securities brokers These exemptions, however, do not mean that the GSEs and issuers of Ginnie Mae MBS are exempt from the antifraud provisions of the federal securities laws Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated thereunder, apply to all issuers of securities, whether or not the offer and sale is registered under the Securities Act Specifically, the provisions prohibit any person from making a false or misleading statement of material fact In making disclosures, issuers also may not omit to state a material fact that is necessary in order to make the statements made not misleading To be considered material, there must be a substantial likelihood that the disclosure of the omitted fact "would have been viewed by the reasonable investor as having significantly altered the total mix' of information made available "59 GSE disclosures are also subject to OFHEO safety and soundness supervision and regulation Unlike GSE and Ginnie Mae MBS, offerings of private-label MBS are subject to the registration requirements of the federal securities laws As such the offer and sale of these securities must be done pursuant to a registration statement filed with the Commission or pursuant to an exemption The registration statement must meet the Commission's disclosure requirements If an exemption from the registration requirements is available, the private-label securities may be sold without filing a registration statement with the Commission Rule 144A, a non-exclusive safe harbor from the registration requirements of the Securities Act, permits resales to institutional investors that meet the criteria for "qualified institutional buyer" ("QIB") of certain privately placed securities The content and timing of disclosure vary with the type of issuer and type of security offered Both private-label and GSE and Ginnie Mae MBS issuers provide disclosure to potential MBS investors in a series of documents and through a variety of means The MBS structure used, whether pass-through or REMIC, will directly affect the form and content of disclosure, because disclosure will address the terms and risks of the securities being sold While almost all pass-through MBS are issued by the GSEs or Ginnie Mae issuers, private-label issuers sell primarily REMIC securities In MBS offerings, disclosure is particularly focused on helping investors evaluate the prepayment and credit risks In addition, the different characteristics of the underlying mortgage loans included in GSE and Ginnie Mae MBS and private-label MBS affect the format and content of the disclosures in the respective MBS deals As discussed above, there have been significant differences, historically, between the mortgage loans underlying GSE and Ginnie Mae MBS and those underlying private-label MBS Some of these differences between the mortgage loans in GSE and Ginnie Mae or private-label MBS pools may be changing as the GSEs expand their programs to include mortgage loans that may have more or less advantageous payment characteristics than the majority of mortgage loans included in GSE MBS Because these changes may affect the existing homogeneity of the GSE MBS pools, the changes may also impact the type of information that investors require to assess risk and that the GSEs provide about their MBS pools in the future Private-label issuers and the GSEs and Ginnie Mae provide MBS disclosure to investors using different mechanisms The differences in disclosure delivery arise for two primary reasons First, while GSE and Ginnie Mae MBS are exempt from the registration and reporting requirements of the federal securities laws, private-label issuers must either file a registration statement meeting the Commission's disclosure requirements or rely on an exemption from registration Second, GSE and Ginnie Mae pass-through MBS are often sold through a different market, the TBA market, than private-label MBS and GSE and Ginnie Mae REMICs backed by TBA-eligible pass-through MBS As noted above, the mortgage loans may not even have been made at the time of sale in the TBA market, while the loans have been pooled and described by the time of issuance in the private-label market Disclosure procedures for providing ongoing information are also different for the GSEs, Ginnie Mae and private-label issuers A private-label issuer that registers the offer and sale of its MBS under the Securities Act must comply with the content and procedural requirements of the Securities Act covering such offering In registered offerings under the Securities Act, private-label issuers will disclose material information to investors through the use of two primary documents: the core prospectus and the prospectus supplement When private-label issuers file a registration statement to register an issuance of MBS, they typically use what is called "shelf registration "64 Through this process, issuers first file a disclosure document that outlines the parameters of the various types of MBS offerings they may conduct in the future This document is known as the "core" or "base" prospectus The registration statement will also contain a form of prospectus supplement, which outlines the format of deal-specific information they will disclose when they later conduct an offering In the private-label market, issuers may structure their MBS offerings to meet the particular investment needs of the investors to whom they wish to sell In this regard, private-label issuers will often provide potential investors with computational materials and structural and collateral term sheets prior to finalizing the deal structure and printing the final prospectus supplement Structural term sheets set out the proposed structure of the securities being offered, such as the parameters of the various types of classes in a REMIC Private-label issuers using structural term sheets may be required to file them with the Commission and incorporate them by reference into the registration statement for the registered offering Collateral term sheets, like structural term sheets, may also be required to be filed with the Commission and thereby incorporated by reference into the registration statement A prospectus supplement describing the terms of the securities the issuer intends to offer, particular risks, information regarding the assets and other deal-specific information may also be prepared and used in the offering process The final prospectus supplement must be filed with the Commission within two business days following its first use The GSEs and Ginnie Mae are not subject to the registration requirements of the Securities Act in connection with their MBS offerings However, the GSEs prepare offering documents similar in form to the core prospectuses filed by private-label issuers in registered offerings and make deal-specific information available through either final prospectus supplements or website disclosures Fannie Mae and Freddie Mac post their offering documents on their websites Investors also receive disclosures as part of the settlement process for TBA trades Fannie Mae and Freddie Mac provide disclosures to investors through various documents including the base prospectuses and deal specific supplements Fannie Mae and Freddie Mac also make available information statements that describe their business and operations, as well as include their full audited financial statements An information statement provides information investors need in order to evaluate the GSEs' guarantees of the MBS Ginnie Mae, unlike Fannie Mae and Freddie Mac, does not utilize either a core prospectus or prospectus supplement to disclose information regarding its guaranteed pass-through MBS issuances Instead, Ginnie Mae requires each issuer to use a single required form of disclosure document for the initial MBS sale Private-label issuers that have registered the offer and sale of MBS under the Securities Act generally will have a limited mandatory obligation to continue providing information on the MBS However, registrants that become subject to reporting requirements pursuant to Section 15(d) of the Exchange Act may discontinue reporting after they file their first annual report on Form 10-K if they have less than 300 record holders Therefore, most private-label issuers are not required to continue filing reports with the Commission after they file their first annual report Although the securities were offered publicly, the small number of investors indicates that the issuer should no longer be considered a public entity Because of the passive nature of MBS issuers, the staff of the Commission has allowed a modified reporting scheme under the Exchange Act for MBS issuers Ginnie Mae and the GSEs provide ongoing disclosure regarding the pools underlying the securities they issue or guarantee As noted above, the characteristics of the underlying mortgage loans and the marketplace's evaluation of their expected payment speeds will affect the structure, marketability and risk characteristics of the particular MBS The yield, or return, on MBS is primarily determined by the timing of payments on the underlying mortgage loans The underlying mortgage loans in a GSE or Ginnie Mae MBS will often have different payment (including default and prepayment) and other characteristics from those in a private-label MBS This is due in large part to the eligibility requirements for the underlying mortgage loans and the underwriting standards and guarantee requirements that Ginnie Mae and the GSEs have established for their MBS programs The effect of these requirements is that the mortgage loans underlying GSE and Ginnie Mae MBS may be less diverse than those underlying private-label MBS GSE and Ginnie Mae MBS will have more common or homogeneous features and will benefit from the GSE and Ginnie Mae guarantees As previously discussed, a major risk in an investment in MBS is prepayment risk Due to the importance of prepayment risk to an investor's decision to invest in MBS, the key disclosures in MBS issuances relate to the various factors that might affect prepayment Market participants have developed prepayment models to evaluate prepayment risks Prepayment models make certain assumptions regarding probable payments on the underlying mortgage loans in order to estimate or predict cash flows among other characteristics, the greater the need for more detailed information to be able to model for different prepayment scenarios As discussed above, credit risk, the risk that the borrowers on the underlying loans may not make timely payments or may default on their loans, is thought by investors to be more significant in private-label MBS than in GSE or Ginnie Mae MBS The GSEs and Ginnie Mae guarantee the timely payment of principal and interest on the MBS The Ginnie Mae guarantee is backed by the full faith and credit of the United States Investors should look to the audited financial statements and other disclosures of Fannie Mae and Freddie Mac, as well as safety and soundness information provided by OFHEO, to assess the credit risk Characteristics of the loans backing MBS, of the properties that collateralize the loans, and of the borrowers can have a significant effect on the prepayment and default behavior of the loans and, therefore, on the expected payments to security holders Market participants have focused on various pieces of information that may help them understand the risk of prepayment or payment failure Factors that have been most widely noted, including those that are currently disclosed, and some that are not, are discussed below The GSEs and Ginnie Mae disclosures discussed are only with regard to their pass-through MBS The most important loan terms are the interest rates (coupons) paid by the borrowers, the loan maturity dates, the ages of the loans (including origination years), and the sizes of the loans Coupon information is critical because a borrower's financial incentive to prepay a loan depends on the relationship between the coupon and current market rates The difference between the interest rate on a mortgage loan and the prevailing market interest rate is the most important factor in evaluating the likelihood that the mortgage loan will be prepaid In order to predict the prepayment of mortgage loans included within a pool underlying MBS, investors look to information that discloses the interest rates of mortgage loans within the MBS pool, and the interest rates that are most prevalent within the pool One measure of the overall interest rates on mortgage loans underlying a MBS pool is the pool's weighted average coupon, or WAC The WAC is the average of the coupons on the loans included in the pool, weighted by each loan's outstanding balance At issuance, Freddie Mac and private-label issuers typically disclose the WAC for the pool and the distribution of the pool's total unpaid principal balances in various increments across coupon ranges For example, private label issuers might disclose how much principal of the pool is subject to an interest rate of greater than six percent and less than or equal to 6 1/8 percent Information on original loan maturities (most often 15 or 30 years), remaining maturities, and loan age make it possible for investors to estimate future loan amortization payments Principal payments increase as loans age, and the payments are lower the longer the original maturities are The difference between original maturity and remaining maturity may be greater than loan age if borrowers have partially prepaid loans because partial prepayments shorten remaining maturities Given loan age and original maturity, a shorter remaining maturity implies faster amortization The longest maturity date of a pool helps investors determine the latest possible date by which scheduled payments on the underlying mortgage loans and, in turn, the MBS should be made The weighted average maturity of the pool provides investors with information about the maturity dates of the loans included in the pool Calculated initially as of the date of pool formation, weighted average maturity is the average of the maturities of the loans included in the pools, weighted by each loan's outstanding balance Many MBS issuers provide updated maturity information, which is the weighted average remaining maturity of all loans remaining in the pool at the date of calculation As loans are paid off or prepaid, the number of remaining monthly payments decreases To the extent prepayments are made, the remaining maturity decreases at a faster rate than it would if borrowers paid only the required amount each month Thus, investors can evaluate prepayment speeds and make determinations as to when they expect to receive payment on the MBS by examining changes in the pool's weighted average remaining maturity or by comparing the pool's average remaining term to maturity with its weighted average original loan term and weighted average loan age Unless loan age and loan maturity are evaluated together, prepayments could make a pool look older than it actually is Information on loan age is also useful in predicting prepayment speeds because prepayments tend to increase during the first few years of newly issued pools and then level out Prior to settlement, Freddie Mac discloses each pool's weighted average remaining term to maturity, weighted average loan age, weighted average original loan term, and latest loan maturity date, as well as the total number of loans, unpaid principal balance, and percent of the pool attributed to each loan origination year Freddie Mac also discloses, again prior to settlement, quartile data for each pool's weighted average maturity, weighted average loan age, and weighted average original loan term Prior to settlement, Fannie Mae discloses each pool's weighted average remaining term to maturity, latest loan maturity date, number of mortgage loans and unpaid principal balance Private-label issuers typically provide information similar to that provided by Fannie Mae and Freddie Mac In their offering documents, most private-label issuers disclose each pool's weighted average remaining term to maturity and some disclose weighted average original loan term They also sometimes disclose, by ranges of original loan term and either remaining terms to maturity or loan maturity year, the number of loans, aggregate principal balance, and percent of pool

Ed Franklin's Cash Flow Note Sales 8

September 20, 2008 - 2:34 pm

When the real estate mortgage note seller accepts your offer (what the discounted mortgages paper buyer has offered for the real estate discounted mortgages & notes less your note broker profit), it is now your job as a note broker to collect the necessary real estate mortgage note information such as copies of the real estate discounted mortgages, the real estate notes, real estate settlement sheet, etc After you have collected the necessary real estate mortgage note information, the commercial discounted mortgages paper buyer then takes over for the note broker and does all the things you do not know how to do They order credit reports, do real estate title searches, order real estate appraisals, prepare all the settlement documents and a lot of other things for the discount mortgage note paper purchase from the note broker Best of all, the discount mortgages & notes buyer funds the discount mortgage note paper transaction and pay you , the note broker, the difference between what they offered for the real estate discounted mortgages paper and what you offered the real estate discounted mortgages & notes seller For example, if the discount mortgage note buyer was willing to pay $100,000 for a real estate mortgage note & the real estate discounted mortgages and notes seller was willing to accept $95,000 your note broker profit for the discount mortgage note paper would be $5,000 The discount mortgage note buyer really does not care how much you make on the discount mortgage note broker deal We suggest that you remain reasonable, do not try to get rich on every discounted mortgages & notes paper deal and you will make your fair share of discount mortgage note broker paper transactions When things go awry- Things do not always go as planned as a note broker There are instances when the institutional discounted mortgage note buyer discovers that there are problems with the discounted mortgages and notes paper transaction These problems range from innocent mistakes to outright fraud by the real estate mortgage note seller (can you imagine such a thing What happens now to the note broker Who gets stuck with all those expenses that were incurred if, anywhere along the line, the discounted mortgages & notes paper deal breaks down Guess what, the commercial discount mortgage note buyer does, as long as they agreed to this in advance Now that is a really good deal for the note broker Another recommendation we would make is to start this discounted mortgage note broker paper business part time This is a wealth building real estate paper related business that has a way of growing slowly but steadily if you will just stick with it Starting part time with discounted mortgages & notes has a way of reducing the pressure and the need of immediate results for a note broker In this discounted mortgage note broker business, instant success is the exception and not the rule, regardless of what some of the real estate paper TV discount mortgage note broker gurus would lead you to believe Getting started- Let's talk about what you need to get you started in your paper discounted mortgage note broker business There is one absolute necessity that you cannot do without and that is a telephone We do not know how you could run a paper discount mortgage note broker business without one What we are really getting to here are all the things you do not need to start your paper discounted mortgage note broker business We have seen many people pay big money to buy into a business or franchise opportunity but that is often only the beginning There may be many additional necessities to operate that business A real estate location to operate the business may be needed which can be costly and may obligate you for a long period of time whether your business is successful or not You may be required to stock inventory, hire people, etc A paper discounted mortgage note broker business can be run for many years without taking on any of these obligations ees, no inventory and very little equipment in the paper discounted mortgage note broker business Besides a phone, which is a must, you should have an answering machine (unless you are always by the phone), and a fax machine You can literally run this paper discounted mortgage note broker business from a card table in a rented room where you are living This paper discounted mortgage note broker business offers tremendous financial freedom and financial independence You may work out of your home if it suits your lifestyle You can roll out of bed when you want and you are at work If you like to travel, you may want to spend time down south for the winter if you so choose, and your paper discounted mortgage note broker business will never skip a beat As long as you can get to a phone you are in the real estate paper business This paper discounted mortgage note broker business knows no geographical boundaries You can successfully close paper discounted mortgage note broker transactions from Hawaii to Alaska to Pennsylvania and so on The best part is you can do it all without ever leaving the chair that you work from A Tax break- An article of this nature would be incomplete without mentioning the enormous tax benefits that accrue to to those who have their own home business even if it is part time and especially if it is out of their home We are not accountants or attorneys and we will leave the sophisticated tax lessons to those more qualified But we do know that too much wealth is eroded by taxes and one of the best if not the best defense against this is having your own home based business We have been told that the average person can save about $5000 per year just by having their own home based business It is better to pay your children to do work for you then to pay them an allowance; it is better to be able to put $30,000 per year toward your retirement than $2000; it is better to be able to write off gas mileage starting from when you leave your house rather than from when you get to your business destination; and on and on A very simple business- Discounted mortgages are really a very simple home business opportunity You find someone who has something they probably do not want and match them with someone who wants what they have and you get paid handsomely for that service What is nice, is that you can do this without ever leaving your house There is one final benefit that we would like to mention and it is an important one Two things are happening simultaneously as you become more experienced and close more paper discounted mortgage note broker transactions You become an expert in paper discounted mortgages & notes By working with the institutional paper discount mortgage note buyers you learn to tell the difference between good & bad paper discounted mortgage note broker transactions, what paper documents you need, what research needs to be done, etc In other words you are being taught all the inticracies of the paper discounted mortgage note broker business by experts The best part is while you are learning you are getting paid when really good real estate discounted mortgages & notes come along you are in a position to invest in the paper discounted mortgages & notes for your personal portfolio at rates of return other people do not even dream about This is the way you create wealth and build wealth It does not get any better than that The discounted mortgages & notes paper note broker business is one of the easiest, fastest and safest ways for you to generate additional income and financial independence Many people who fail at this wonderful paper discounted mortgage note broker business do so because they miss the "forest for the trees" If you will follow the simple guidelines below, your chances of success in paper discounted mortgages & notes will improve immeasurably as a note broker Start part time- This paper discount mortgage note broker business that has a way of growing slowly but steadily if you will just stick with it Starting part time has a way of reducing the pressure and need of immediate results In this paper discounted mortgage note broker business, instant success is the exception and not the rule, regardless of what some of the real estate paper TV discount mortgage note broker gurus would lead you to believe Think long-term- This is not a get rich quick scheme It is a get rich slow process I have found that 75% of the paper discount mortgage note broker transactions we close are with discounted mortgages & notes sellers who initially turn down our first proposal Some real estate discounted mortgages & notes sellers will reconsider quickly; others take months, or, in some cases, years before they will do business with you as a note broker We find that many people who leave the paper discount mortgage note broker business prematurely have left behind thousands of dollars in paper discounted mortgage note broker profits that are just waiting to be made You simply need to stay in touch with real estate discounted mortgages & notes holders, and when the time is right, you will be able to structure a win-win paper discounted mortgage note broker situation and collect your cash reward Flip, do not buy discounted mortgages & notes- When you first start out in real estate paper, it is better to find a real estate mortgage note, and, instead of buying it, you should broker it to a discount mortgage note investor for a profit Today, there are institutional discount mortgage note buyers who, to our best guesstimate, are buying in the neighborhood of $40 million dollars of paper discounted mortgages & notes per month from note broker sources There are many advantages of working in this discounted mortgages & notes paper marketplace The commercial paper discount mortgage note buyer not only puts up the money, they do almost all of the work associated with the paper discount mortgage note broker transaction, i , credit checks, real estate appraisals, etc As a beginning note broker in real estate discounted mortgages & notes paper, this allows you to make a quick cash profit with no investment of your own funds, with virtually no risk- and, best of all, you le arn by watching the paper discounted mortgages & notes professionals do the deal Concentrate on generating leads- This is a very simple real estate paper business where you get paid a lot of money for finding something ( discounted mortgages & notes) that someone else (a discount mortgage note buyer) wants Most people concentrate on the technicalities of the paper discount mortgage note broker business such as using a financial calculator, creative paper restructuring and techniques, etc What you must do is focus your attention in the right direction, which is marketing for paper discounted mortgages & notes In this case, you are marketing to find paper discounted mortgages & notes sellers Paper discounted mortgages & notes are a business, and all successful businesses know the importance of marketing Because of the importance of this subject, we will devote more time to this in a future article A great business -In conclusion, paper discounted mortgages & notes are a great paper business where you do not have to quit your job, have or risk much money, stock inventory, hire employees, etc You have to do a lot of little things right, and then there is no reason that you cannot find success as a note broker We suggest that you add paper discounted mortgages & notes to your real estate wealth building arsenal Make money as a note broker note brokering discounted mortgages For years, discounted mortgage note broker players have been making a fortune note brokering discounted mortgages & notes If you are really serious about making money as a note broker, then Note Investors' SuperEarnings audio cassettes will get you started right away note brokering This 1 1/2 hour tape on note brokering is jam packed with proven strategies on how to decrease your risk as a note broker while increasing your returns with note brokering discounted mortgages & notes Even if you know about note brokering discounted mortgages & notes, you absolutely must hear this refreshingly simple, easy-to-understand, step-by-step approach for a note broker Here's just a small sampling of some of the powerful income-producing note brokering techniques that are revealed: Why Note Brokering Mortgage Paper is essential to your financial security How to create a very high positive cash flow note brokering How to understand investment formulas as a note broker How to note broker spectacular rates of return How to use win-win transactions to your advantage brokering notes Whether you're just starting note brokering to build your fortune, or already are on your way as a note broker, SuperEarnings program is essential to your financial security From the Author A Tax break- An article of this nature would be incomplete without mentioning the enormous tax benefits that accrue to to those who have their own home business even if it is part time and especially if it is out of their home Click Here For More Information Hyperlink Text

Cash Flow Notes Sales 7

September 19, 2008 - 1:20 pm

Individuals and business sell income streams(future payment or Series of payments cash flow instruments)for following three basic reasons: Access People need or want access to their cash Sometimes they have a serious need to pay off credit cards, finance long-term medical care, or to settle a divorce Other times, they simply have a desire to purchase a dream home, take a vacation, buy a new car or boat, finance a wedding, or start a business, for example 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 of Yield People will sell their income streams even for less than face value because they know that with cash in hand today, they can start earning interest or yield Interest or yield is what gives us the ability to invest money this year and turn it into an even larger amount of money next year. Inflation eats away at the future value of "buying power" of money You can buy more with a dollar today than you will be able to 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 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 Fill out � Collateral Note or Lease Contract for Sale short inquiry form in "Contact Us" next Cash Flow Notes, Mortgage/Real Estate/Deed-of-Trust Note Buyers, Hard Money Loans "We buy owner financed notes, mortgages and deeds of trust using our own funds, including commercial, real estate and cash flow notes We pay fast cash for delinquent, difficult and hard to place notes We will pay you top $$ for your cash flow note Just complete and submit this simple form, and we will estimate your notes value instantly, online If you are currently receiving installment payments from a personally financed commercial note, mortgage or deed of trust, we will pay you a lump sum of cash and free you from these worries: Collecting the payments from your borrower Default, bankruptcy and foreclosure of the borrower Seizure of property for unpaid taxes and IRS liens Hazard insurance lapses resulting in loss of property Tax reporting requirements Keeping track of principal and interest Contact us today and experience the Reliant difference And, in some cases, that may be the best solution to a cash flow problem One of the advantages of selling the entire note is that once you've sold the note, you no longer have to worry about collecting the payments You have your money and collecting on the note is now someone else's problem If the note defaults, you aren't affected by the default But what about the situations where you may need a smaller amount of money immediately and enjoy having the monthly payments as extra spending money Did you know that you have the option of selling only part of your cash flow and continuing to collect the monthly payments on the portion you do not sell Partial purchases can be structured in many ways You can sell the next 12 payments and have the note return to you when those 12 payments have been paid Or you can sell 24 payments, or 36 Another option is selling a portion of each payment and continuing to collect the unsold portion For instance, you could sell 1/2 of each payment and still collect 1/2 of each payment In this way, you get a lump sum of money and still continue to collect a monthly payment as well On the down side, partial purchases mean you are still involved with the note and if it defaults, you are likely to be affected by the default Make sure what happens in the event of a late payment or default is clearly spelled out in your agreement with the investor before you finalize the sale of the note That being said, many times a partial purchase will actually allow you to collect a much larger total sum of money for the note than a full purchase will allow You may actually end up collecting more than the face value of the note in some instances If you are considering selling a cash flow note, or have questions about the best purchase option for you, please call us at (401)-258-7158 or contact us We will consult with you about your individual cash flow needs and make sure that we come up with the option that best suits your situation A structured settlement is usually an insurance settlement and most often the result of a court judgment or out of court settlement It may be the result of an accident, illness, or some other type of cause Most often, the settlement and the resulting periodic payments seem like a windfall at first and help ease the financial burden many people collecting a settlement experience However, as time passes, you may find that your monthly payment is no longer adequate to cover your financial obligations You may find that you have an unexpected need for cash for medical treatments or other needs that were not anticipated at the time your case was settled Selling all or part of your structured settlement may be the solution to your cash flow problems Most structured settlements can be sold for cash Unfortunately, work related claims are the exception and generally cannot be sold In reality, when you sell a structured settlement, you are not selling the settlement itself You are actually selling the right to receive the payments on the settlement In practicality, you are exchanging your monthly payments for a lump sum of cash paid immediately, with the note buyer purchasing the right to receive the future payments If your settlement is paid in quarterly or yearly payments, you can still sell that note for cash First Class Cash Flow Handlers will be happy to consult with you about your structured settlement and your individual cash flow needs We will find a solution for you that will help you meet your financial responsibilities If you have cash flow needs that you didn't realize you would encounter when you accepted the settlement, there is no reason you should not be able to use your settlement to meet those needs After all, the money is supposed to belong to you, not to the insurance company who is holding your funds The Cash Flow Clarion. The Cash Flow Clarion March 5, 2006 � Mobile Home Notes Financing to purchase a mobile home may be difficult, if not impossible, to secure through traditional lending institutions For this reason, quite often mobile homes are sold with owner financing In this situation, the owner of the mobile home provides the financing for the buyer This may be the case when a mobile home is purchased directly from a mobile home dealer or a mobile home park, or even when the mobile home is purchased from the previous occupant Mobile home notes are similar to other real estate notes in that they are cash flow notes and are a liquid asset which can be sold for cash However, they also differ from real estate notes in several ways that you should be aware of if you are planning on selling your mobile home and taking back a note on it Firstly, mobile home notes can seldom be sold on creation of the note Though four months seasoning may be acceptable in some circumstances, twelve months is generally preferred What this means for you, as the holder of a mobile home note, is that you will need to hold that note for at least one year (and receive monthly payments on it) before you can receive a lump sum of cash in exchange for the monthly payments Unlike real estate notes, the market for selling a second mortgage on a mobile home is small and the note must be very desirable to be considered Try to make sure your note is in first position when it is created In addition, terms less than ten years on the note are preferred Statistics have shown that notes with terms more than ten years (especially those between 10 and 20 years) have a higher default rate Mobile homes may be located in a mobile home park or on land If the home is located in a park, the rating of the park will affect the resell value of mobile home note The higher the park is rated, the more valuable the note will be Mobile homes notes on homes located in parks with a rating of less than 3 stars will be difficult to sell In addition, mobile homes notes on homes located on land which is leased or not fully owned will be difficult to sell, whereas mobile homes located on land which is part of the security for the note will make the note more valuable The value of a mobile home is generally acquired through a resource known as the NADA guide It is important to make certain that the sales price for the mobile home is not significantly higher than the NADA book-value, unless you can validate the sales price with an appraisal As with privately-held real estate mortgages, the interest rate on a mobile home note will affect the resell value of the note Under no circumstances should the interest rate go above 16% Additionally, balloon payments are generally not acceptable, unless a well documented exit strategy can be verified Down-payments of 10% or more of the sales price are preferred As with real estate notes, the value of a mobile home note will be affected by the amount of equity in the home In summary, mobile home notes can and quite often are sold for cash, much like real estate notes However, there are a number of differences between real estate notes and mobile home notes that must be taken into account when creating, buying or selling a mobile home note First Class Cash Flow Handlers buys and sells privately held mortgages, trust deeds, mobile home notes and other cash flow notes For more information, visit us at our home page or call us at 401-258-7158 Pre-Settlement Funding When you are injured in an accident or become ill because of the actions of another party, litigation can drag on for long periods of time It is not unusual for a case to take years to make it's way through the court system In the meantime, you need to have enough money to pay your expenses and bills This can be difficult if you are unable to work, have a reduced income, or have expenses associated with medical care This is where pre-settlement funding can be of assistance Pre-settlement funding can free you from having to accept inadequate or pre-mature settlements because of a lack of income Pre-settlement funding is actually a non-recourse cash advance made to you In return, you promise to repay the advance and associated fees after your lawsuit settles, or after a court victory This type of funding is not a loan The cash advance and fees are repayable only after your case is resolved and only if it is resolved in your favor You repay nothing if your case is lost Because of the fees involved with pre-settlement funding, you should carefully consider all of your options before you decide to accept a pre-settlement funding offer In some cases, a personal loan or other funding alternative may be more cost effective for you However, pre-settlement funding is preferable to being forced to accept an award that is much lower than what you deserve With pre-settlement funding, you'll no longer be at the mercy of the person or company that injured you, or their insurance company, simply because of a lack of funds Click Here For More Information Hyperlink Text

Russell Dalbey Cash Flow Note Sales 2

September 19, 2008 - 1:14 pm

We specialize in buying qualifying private party Real Estate Cash Flow Notes, giving you money NOW, and not spread out over 10, 15, 20 years or more What would you do with your lump sum cash Do you own a real estate note on a property you sold to help negotiate the deal Was that an option you offered, or was it one requested by the buyer Most of the time a person carries a note on a property when all they wanted was cash at signing Now as a note holder, you may have to wait a long period of time to fully collect But you can sell that real estate note and receive cash for it We are a group of private mortgage note buyers in the cash flow business who offer to buy your real estate note from you at a reasonable rate based on today�s market and dollar value We can even offer to purchase some of your payments giving you cash now for them and then you collect on the remainder of payments If you are interested in cashing out your real estate cash flow note, please fill out our Quote Application The application process does not cost you anything, and there is no obligation to sell us your cash flow note if we make you an offer on it This is a great opportunity to receive cash for your cash flow note Reproduction without written permission is strictly prohibited A must read for anyone owning a mortgage or business note Cash Flow Investor Funding is a premier cash flow organization � developed over 10 years ago to work with private individuals like yourself and investors to liquidate � cash flow notes Let the Judgment Note Buyer at Cash Flow Investor Funding help you sell your cash flow note today Back when you sold your property it probably suited your financial needs at that time to act as the lender Perhaps you need a lump sum to pay off debts or maxed out credit cards Perhaps you need a large sum for a once in a lifetime investment, for sending the kids off to college, or for your daughter's perfect wedding Medical expenses add up quickly these days, or perhaps you just want to take that once in a lifetime vacation Whatever the reason, your situation has changed Thanks to Cash Flow Investor Funding, the nationwide � note buyers, there is no need to remain bound by a cash flow note any longer Rather than wait another 10, 20, or 30 years to receive your commercial note money, Cash Flow Investor Funding can purchase your � note and cash you out right now Take a moment to fill out our FREE Commercial Note Form to get your free quote now Our network of investors is standing by, waiting to make bids 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 Whatever the reason, we have many options available to get you the cash you need TODAY Cash Flow Investor Funding � is standing by to assist you now Call1-503-516-5122 or click on the "Get Started Now" � tab now for an no obligation note appraisal today and buyer of Judgment Notes can be found her by contacting us today Judgment Note investors are standing by to quote you top price for your note Licensed automobile note buyer, sell my automobile note, buyer of automobile notes, Let the Automobile Note Buyer at Cash Flow Investor Funding help you sell your cash flow note today and buyer of Automobile notes can be found her by contacting us today Automobile note investors are standing by to quote you top price for your note You need cash and you need it yesterday Quick-2-Close LLC, a nationwide note buyer, provides solutions We buy privately held promissory notes, mortgage notes (both residential and commercial), business notes, structured settlements, annuities and lottery payments You have a situation that requires an immediate solution And the good news is that we make the process � simple for YOU What could you do with a lump sum of cash Pay off those nagging credit cards bills and finally put an end to those finance charges that make you poorer and credit card companies rich Pay off the IRS, save your home from foreclosure, pay off a judgment Getting out from under a lien or judgment is like removing a heavy burden off of your back Imagine jetting off to an exotic island where the gentle breezes and sandy beaches are calling your name You could take your spouse on that second honeymoon, to � an exclusive spa or golf course where you will be pampered like royalty Invest the money for a greater return Make a down payment on an income producing commercial property Create generational wealth and a larger passive income for yourself and your family Keep your business going or expand your business The possibilities are endless and you are just 3 steps away from solving your financial needs Do you have a real estate note that you want to cash out We buy quality residential real estate notes, commercial mortgage notes, land contracts, deeds of trust, and trust deeds We can buy virtually any owner financed promissory note secured by real estate Did you sell a business that created a seller financed business note Are you ready to cut ties with the new owner We buy business notes that meet certain criteria Are you receiving payments from an annuity, structured settlement or lottery payout We can cash you out, so that you can use the money to solve your financial issues Whatever your situation, Quick-2-Close, LLC� is dedicated to solving your financial needs Whether your cash flow stream is worth $50,000 or $50,000,000,� we will� get you the money you need No matter the size or the situation the process is the same, 3 simple steps Free information will help you make an informed decision Fill out the contact information and press the SUBMIT button One of our associates will contact you at a convenient time You will be asked some preliminary questions about your cash flow We ask that you have your documentation available, because the accuracy of your answers helps us determine the best offer Did we mention the quote is FREE Step 2 – The Offer Once we have your preliminary information we will analyze your deal We will contact you again to request all the necessary documentation Once we have all the requested docs it usually takes about 24 hours to present you with a offer Once accepted, we will overnight you all the necessary documentation You simply sign and review them at the title office With real estate notes it usually takes about 10 business days to close Annuities take 6 to 10 weeks because it must be assigned Structured settlements require a court appearance for reassignment and can take between 8 to 12 weeks Funding takes place within a week once all required documents (credit, titles, and appraisals) have been collected For real estate notes we will place a cashier's check into the trust account of the title company Once closed, the title company will hand you a cashiers check or wire the money to your account All other cash flows are paid by cashiers check or wire transfer Because we have done it so many times, we have it down to a science We know people like you demand quick solutions and outstanding service Keeping the process simple allows us at Quick-2-Close, LLC� to deliver timely solutions to your financial needs Find out how to get the BEST price for your cash flow note GUARANTEED Click here to learn about us Quick-2-Close, LLC� Need more information Check out the following articles:How much money can I get when I sell my Real Estate Mortgage Note Click Here For More Information Hyperlink Text

Russell Dalbey Cash Flow Note Sales

September 19, 2008 - 12:56 pm

business Not only does Russell Dalbey run the institute in Colorado, he also has online courses that currently serve over 400,000 clients; he also lectures and guides people across the country through inspirational seminars The financial freedom Russell Dalbey found in the cash flow notes business is easily obtainable through his one-of-a-kind system and 24-hour online support with quick responses Russell Dalbey has not always been the cash flow notes guru he is now He started off in the public eye as a professional cyclist and was on the Olympic training team After that, he worked on Wall Street becoming one of the top sellers, outselling his entire staff This superior sales ability brought him towards selling cash flow notes He founded America’s “Note Network” in which he first discovered the value of the cash flow notes industry Selling these notes from his home office became a lucrative job Being the generous man that he is, Dalbey decided not to keep his success to himself He has now combined the Note Network with the Dalbey Education Institute so others can learn his amazing secrets to success Though Russell Dalbey does not offer a motto or single concept for success in personal or professional lives, he does continually emphasize the importance of education and dedication Success cannot come to anyone who is not committed and dedicating to making it happen This usually means that an individual is constantly seeking to increase their knowledge about their business or industry and that they commit themselves to succeeding in a realistic and balanced manner Russell Dalbey knows by experience that success does not count as success if it has cost an individual any part of their personal life or personal happiness What good is financial and professional success if it has ruined family time or good health He teaches his many students that education is ongoing and that dedication is not fulfilled when goals are reached, but only when a well balanced lifestyle can be achieved Teaching people what they need to know in order to succeed is a focus of Russell Dalbey’s professional life and his business Providing the critical information for success in the cash flow business is what he is currently putting his greatest efforts into It is impossible to succeed without some basic information, and Russell Dalbey provides that to his many students, but he goes far beyond the basics He offers the history of his own success, what he continues to learn as an active participant in the cash flow business, and what his experience leads him to predict in the future of the industry Many newcomers to a business or industry don’t often get the advice and guidance of an experienced mentor, but Russell Dalbey has committed himself to providing mentorship and education to his thousands of students through online learning, training manuals and educational seminars Although Russell Dalbey was once a Wall Street stockbroker living a hectic and busy life, it wasn't until he discovered the cash flow business that his life really took off He found that the cash flow business was a much better way to make money The business was less stressful, and he found that he had more time to do the things in life that he wanted to do, including spending time with his family Because he had such success and found that his life was far more rewarding, he decided that he wanted to share the secrets of making money with cash flow notes with the rest of the world Russ Dalbey founded the Dalbey Education Institute in Colorado, which provides courses for people to learn all the ins and out of the business Anyone can take these courses, as they are provided for home study Study hard and work hard, and then you can have the life you've always wanted From the Russ Dalbey Education Institute, you can learn how to make a very good living by brokering cash flow notes You can learn how to find note holders that wish to sell their notes and investors that wish to purchase notes and how to match the right investor to the right note holder Additionally, you can learn how to approach each potential transaction so that both the note holder and the investor have confidence in your ability to broker such a deal The Russ Dalbey Education Institute offers motivational and instructional DVDs and CDs to help you continue your education in cash flow notes even after you begin making money from having taken the first course At the end of your course at the Institute, you will also receive 250 free leads for note holders who may want to sell their notes for fast cash Many people have heard of the program “Winning in the Cash Flow Business” The program has been successful for more than ten years and is currently hosted by actor Gary Collins Russ Dalbey, the program’s creator, is responsible for the program, which has helped thousands of people attain financial freedom over the years Russ Dalbey started the program after he became a millionaire selling cash flow notes The program gives tips and tricks to help anyone gain success by winning in the cash flow business While hard work and determination are key elements Dalbey says that anyone has the ability to learn his methods and can become wealthy In addition to the program he also started the Dalbey Education Institute The institute provides advanced training through seminars and courses that help people take their business to the next level Dalbey also has a popular online blog that gives people insight to additional techniques Russ Dalbey is a successful entrepreneur and self-made millionaire As a young man, he was a cyclist and set a world record that still stands today Later, he became a stockbroker and learned the cash flow note business in his spare time He soon discovered that he could be even more successful in the business doing it full time The business took off and he became a millionaire by the age of 28 To help others gain financial success he created the program “Winning in the Cash Flow Business is Soon after he developed the Dalbey Education Institute to provide further training and mentoring for those who were ready to grow their business It is located in Colorado and also houses his successful corporation Russ Dalbey has a goal of helping a thousand people become millionaires He mentors others by giving seminars and through his online blog He is also a famous motivational speaker Russ Dalbey is the creator of the program called Winning in the Cash Flow Business The cash flow business is a home-based business opportunity that has the potential to be very successful Cash flow notes can be sold through your own business The keys to success are outlined in the program as well as through other methods Russ Dalbey first sold cash flow notes with the help of a mentor and found this to be a tremendous help He was able to become a millionaire by the age of 28 by selling cash flow notes Dalbey wanted to share the secrets to success to help others create their own business and find financial freedom He professes that it is also important to be determined and work hard to achieve the results that you want Yet anyone can learn how to sell notes by taking his course and by attending seminars and courses at the Dalbey Education Institute More and more people are looking for ways to start their own home-based business One of the best businesses you can find is the cash flow business Russ Dalbey has popularized the cash flow business Russ Dalbey is a self-made millionaire who made his first million dollars in the cash flow business by the age of 28 He then took his techniques and packed them into a learning program that anyone can learn how to do The cash flow business can be very lucrative – especially for those who are willing to work hard The business can be started at home and provides a way for anyone to become his or her own boss One of the biggest benefits of the business is that it doesn�t take much money to start like some businesses can The cash flow business is still virtually untapped and remains a great business for people to start Everyone wants to gain wealth and have financial independence Russ Dalbey knows this better than anyone He learned the secrets to creating a successful business and became a self-made multi-millionaire Russ Dalbey started out as a successful stockbroker but soon started to sell cash flow notes as a side job With the help of a mentor he became so successful that he was able to quit his job and sell notes full time His business thrived and he made his first million dollars by the age of 28 He wanted to teach others how they, too, could use his secrets to become wealthy His popular program Winning in the Cash Flow Business has helped thousands of people over more than ten years He also founded the Dalbey Education Institute to help people by using seminars and classes He also has an Internet blog where he gives people additional insights to success The cash flow note business is currently one of the best ways for individuals interested in establishing financial freedom to do just exactly that Russ Dalbey as well as scores of other individuals have secured their financial futures by establishing success in the cash flow note business After having secured his own success, Russ Dalbey teaches others how they too can turn a profit in the cash flow note business Dalbey teaches in his winning in the cash flow business courses is the importance of follow-up with prospective contacts Following-up on contacts can prove to be the critical difference between enjoying mediocre success in the cash flow note industry and establishing true financial success This is just one of the many techniques that Mr Dalbey provides to students who are enrolled in his courses As the founder of a leading educational institution in the United States, the Russ Dalbey vision is without doubt, unique Often, a millionaire holds all the secrets hidden but not in Dalbey�s case When it comes to the Russ Dalbey vision, he is eager to share everything he knows about private cash flow management, helping other people to become millionaires Dalbey is often booked for giving seminars where he shares a wealth of information about not only success, but also motivation in achieving goals in the world of finance Before getting involved with the cash flow industry, Dalbey was a cyclist training for the US Olympic training team, understanding hard work and determination Taking everything he knows about cash flow notes and finances, the institute was born so others could learn from his own experience His vision is that with perseverance, will, and knowledge, anyone can succeed Today, people are looking for viable and affordable ways of earning an education specific to the world of finances While there are a number of schools that offer programs, not surpass what Russ Dalbey teaches Unlike anything else on the market today, the classes taught at the Russ Dalbey Education institute are designed to improve each students chance at success The classes themselves are organized to allow people to still have a life while being taught incredible financial information The methods are hands-on and the applications practical This makes learning fun but more effective When it comes to private cash flow opportunities, there is no one who understands the system more than Dalbey himself Now, he is taking the expertise he possesses and passing it on to other people who also want success Every program offered comes with personal support from highly trained professionals while allowing the student to learn at a comfortable pace Many people are shocked to learn that Russ Dalbey training programs are not only the most effective, but also affordable The courses taught specific to the business of private cash flow allows students to work at a pace that fits in with their own schedule Dalbey understands people need to work and have families Therefore, the Dalbey training programs are flexible When it comes to private cash flow management, these programs are truly remarkable Every student and class is handled by top professionals who are 100% committed to creating millionaires The programs at Dalbeys institute are practical and hands-on Therefore, every student feels as if he or she is getting special attention with people who are working hard to make them successful The number of success stories associated with these programs continues to grow Known for being a leader in the financial institute, it is no wonder considering the strategy of the programs offered Peer-to-peer financing is a convenient way to purchase real estate, especially today when loan regulations are tightening Due to the fact that real estate is an extremely safe investment, many people are interested in purchasing the financial instrument that results from peer-to-peer financing That financial instrument is known as a cash flow note While the purchase of a cash flow note can be beneficial for investors, it can also be beneficial for the individual who matches buyers holding cash flow notes and prospective investors interested in purchasing cash flow notes Such a match creates benefits for both the seller as well as the buyer In addition, the person who creates the match can collect a fee in return for making the deal possible The amount of the fee that can be received provides a method for individuals to establish financial freedom Turn your future real estate note payments into a lump sum cash payment today Click Here For More Information Hyperlink Text

Russell Dalbey Cash flow Institute

September 19, 2008 - 12:56 pm

Cash Flow Note Sales 4

September 18, 2008 - 2:24 pm

Russ Dalbey has been highly successful promoting his program via the Internet Because he wants to get as many people as possible involved in Winning in the Cash Flow Business, he is now prepared to pay you $100 for every person you get to order his course This may be the simplest and easiest way Russ has ever developed for you to make money Russ Dalbey is #1 best selling Winning in the Cash Flow Business course is considered the premier source of information for newcomers to the $200 Billion cash flow note industry – providing education to more than 400,000 students with over 15 years of success Today, with thousands of active students, professionals and cash flow educators helping each other to succeed, Dalbey Education Institute is one of the biggest, most powerful web communities on the net Access libraries of information, interactive forums and much more instantly on our member are only site Financial experts from The Wall Street Journal to Money Magazine are raving about the opportunities available in the cash flow note industry It is time to tap into the money-making strategy Russ Dalbey calls the easiest, most hassle free way to make money "The Winning In The Cash Flow Business program was a tiny little investment, and it's come back thousands of times over Despite some people's perception, being a successful note professional is not about having in-depth knowledge of finance or even about real estate investing The Note Service provides a unique link between people with notes to sell and the qualified investors who buy them When you list your real estate notes below you could receive real offers quickly from some of the industry's top buyers Providing you with a direct link to qualified buyers, the Note Service encourages quick responses, competitive bids and industry leading service Simply agree to the terms and conditions below to post your note I Agree (Terms & Conditions) Please list your note secured by real estate by clicking: It is only necessary to list your note once Please read our Terms & Conditions, which you agree to when using Note Network If you live or do business in Indiana, Maine, or Utah, you may need to be licensed as a securities broker-dealer to offer or sell notes on the website Get cash now and forget those monthly payments FOREVER Our investors are ready to pay top dollar for your notes If you have a trust deed, a mortgage note or one of 48 other cash flows, it's time to find out exactly how much CASH you could be entitled to Maximize your cash profit with the nation's largest note-buying network.Get offers from up to 200 active investor�s .Find out exactly what your note is worth Our secure network is set up to give you the cash you need There has never been an easier or faster way to cash out of your investment Whether you need money to pay bills or even if you just need some spending cash (NDAQ: ENER) shares dropped sharply in early trading despite a positive recommendation by CNBC's Jim Cramer on his Mad Money program (NYSE: BGP) has had a healthy three months, with shares up more than 10%, but will Wednesday & rsquo;s first quarter results deliver given (OTC-BB: SOBM) China is one of the fastest growing economies in the world with an estimated growth rate of just under 10 Unilever plc (NYSE: UL) shares opened lower despite a positive recommendation by CNBC's Jim Cramer on his Mad Money program Centro Properties' US asset sale deal falls through Centro Properties Group, an Australian shopping mall operator struggling through the global credit crunch, said yesterday a potential buyer of its US assets had cancelled the deal The unnamed potential buyer, a private real estate Lehman Brothers has filed for bankruptcy protection under the weight of $60 billion in soured real estate holdings The company's filing for Chapter 11 protection will allow it to restructure while creditor claims are held at bay The filing was made Monday in the U Lehman's last hope of surviving outside of court protection faded Sunday after British bank Barclays PLC withdrew its bid to buy the investment bank Wall Street awakes to 2 storied firms falling NEW YORK -- When Wall Street woke up this morning, two more of its storied firms had fallen Lehman Brothers, burdened by $60 billion in soured real-estate holdings, filed a Chapter 11 bankruptcy petit Wall Street awakes to find two storied firms gone Lehman Brothers, burdened by $60 billion in soured real-estate holdings, said it is filing for Chapter 11 bankruptcy after attempts to rescue the 158-year-old firm failed said it is snapping up Merrill Lynch & Co Listed are the buyer, the property address, the seller and the amount This list includes trust deeds (to secure repayment of a loan) of $750,000 or more Information includes the borrower, lender, address or legal description of the property, date the trust deed was filed and amount The listing shows: property address; highest bidder; amount owed; sale bid: New auction house ART+OBJECT has released its fourth contemporary art catalogue into a "thriving" investment market place Managing director Hamish Coney says while more mainstream investment markets, such as real estate and shares, The freehold interest on which luxury alpine lodge Grasmere is situated is up for mortgagee sale by September 26 Grasmere Lodge, managed by Tom Butler, leases the land and buildings from owner company Grasmere Estate Trust co No signs of the credit crunch as buyers snap up country estates THE top end of the country house and estate market north of the border is riding out the credit crunch with Scots overtaking foreign buyers in snapping up multi-million-pound How is a discounted lump sum worth more than the full balance of my note Let us say you had a $40,000 real estate note with 80 months of payments remaining that you wanted to make money with, and we quoted the cash value of it at $35,000 If you were to invest this lump sum of $35,000 at 11 Or you can keep receiving your existing payments Of course, most people simply fritter these small payments away, while a lump sum of cash is a powerful investment tool Why is your bid less than the balance on my note? You do not have your balance in hand What you have is a promise of payment over the remaining term The buyer could pay this real estate note off anytime If our investor purchases your note for sale and the buyer pays off next month, we would only get the balance owing, then they would lose money in this situation We also consider the risk involved, as the buyer could default at anytime and then our investor would get no future interest We pay you a lump sum for your cash flow note And cash in hand is worth more than future money In order to provide you with the best bid possible, Note World must perform an appraisal, a title search, and must receive all documents We fund very quickly after the completion of those processes, and we pay all the processing and closing costs At Note World, we pledge to do all that we can to meet or beat any valid written bid We do not use a straight percent or dollar amount of discount in purchasing real estate notes The discount amount varies, depending on many factors involving your note, including the interest rate, the length of the remaining term; the type of property and the buyer have ability to repay the note This property is worth more now than it was when I sold it So why won't you pay me more for the note When we value a real estate note, we are looking at the future value of the payment stream and the likelihood that the payment stream will continue The property value is really only collateral against the note But the property value is definitely a factor that we use to determine the likelihood that the buyer will continue to pay Since the property has appreciated, if the buyer stops paying, you take the property back and sell it for more than the note amount Our investors do not want to purchase a real estate note and foreclose on it There is too much cost and risk associated with the foreclosure process and it is not our preferred way of doing business The interest rate on my note is more than I could get at a bank So why should I place my note for sale You must also consider the risk level associated with carrying a real estate note Your money is guaranteed at a bank With your note, if the buyer stops paying, you will receive no interest Also your cash flow note is paying off with each monthly payment If you were to sell the note, you could use the cash flow to invest and then reinvest the interest so that there is money for you in the future The amount you quoted me sounds nice, but what fees come out of that amount We pay for all fees and we do all the work of transferring the note, the title search, and other related tasks The amount we quoted you is the amount you will get I hear a lot about the time value of money Think about how many loaves of bread you can buy with $10 today Now imagine how much less bread that same $10 will buy you ten years from now The fact is, money loses value over time Create a liquid investment which you can convert to cash, if necessary The three most common mistakes made when creating a cash flow note are:Bad creditA poor appraisal of the propertyClouded property title Bad Credit: Finding the right buyer for your property involves much more than simply finding a person who loves your home Before entering any agreements, you need to obtain a credit history on all parties involved Many people are concerned about whether they have the right to request credit information, under the federal laws Because you are effectively loaning money to the potential buyer, you absolutely have the right to request access to their credit information You should require a completed credit application from any potential buyer This application should include permission from the potential buyer to pull their credit report If a potential buyer does not want to give you information about their credit, then decline to offer any owner financing to that person Once you have obtained the credit report, examine it thoroughly The credit rating is important, but you should also look at the rest of the information available In particular, look for any reports of defaults, late payments, etc Look at the amount of income as well You need to be comfortable that your buyer is willing and able to make the payments on your property every month Poor Appraisal Of Property: The property should be appraised at or near the sale price If the sale price is higher than the appraised value of the property, this can create problems in the event of a default You may actually end up losing money on the deal if you need to foreclose on the note and resell the property An appraisal value which is less than the balance due on the note will also significantly reduce the value of your note You will also want to be able to monitor the property periodically after the sale Making certain that the property is kept in good condition will allow you to make sure that the property retains its value In the event that foreclosure becomes necessary, it is very frustrating to find a property that needs numerous repairs before it can be resold Clouded Property Title: A clouded property title means that ownership of the title is unclear A clouded property title may result froma previous lien on the property that was never satisfied, association liens, mechanics liens, or delinquent property taxes It is also possible that the chain of title is out of order Whatever the cause, you should correct the problem before the property sale A clouded property title, if discovered during the negotiation process, may weaken your bargaining position, or even be a reason for not completing the sale If discovered after the sale of the property, a clouded title will lower the value of your note If you are thinking of selling your property and are considering offering owner financing, we urge you to contactFirst Class Cash Flow Handlers for more information This manual will walk you through the process of selling your home with owner financing step-by-step Marketing involves more than advertising and sending out smoke signals to bring in customers At the heart of it, marketing is simply about effective communication to get what you want This is an essential skill not only for running a business, but also for being successful in all aspects of life If you can effectively sell your ideas to people, you could stand to make a lot of money Your confidence will grow, and as a result, your credibility among your co-workers will skyrocket Solid communication is essentially the key to the door of success in all aspects of your life A Cash flow note sale is no exception to this There are basic concepts behind marketing that always apply, regardless of the company or marketing method Perhaps the most important part of marketing and a cash flow note sale is getting the attention of your client Perhaps more than ever before, people are distracted and have a short attention span Use a compelling, involving image to your advantage If you are creating a marketing piece with text, make sure to sell the reader with your first sentence The first sentence of anything you write, whether it is an email subject line, an opening to a promotional letter, or the headline of an online ad, is the most important part of the whole piece After all, if the customer never starts reading, there is no chance of them reading anything that comes afterwards When there are a lot of text, it is not the reader job to stay interested and keep reading It is your job to grab their attention and keep it Never make it longer than it needs to be Don�t overload your potential customer or client with extra and unnecessary information and data If you want to get involved with a cash flow note sale, go online to Note Network It should be obvious that any marketing materials should be clear, powerful, and 100% free from typos and grammatical errors Judging by the technical problems found in many small business websites and advertising materials, many businesses apparently still haven�t realized this Don�t just use an electronic spell check, because many word substitutions won�t be caught After you�ve checked it yourself repeatedly and think it is perfect, run it past some friends and family Good advertising copy will attract people interested in cash flow note buying Your copy has to do more than just publicize features and benefits In fact, leading off with a headline that touts how amazing and wonderful your product is might have the opposite effect and instantly turn off the reader If you use a headline or sub-headline, remember that the purpose is only to grab the readers attention and compel him to keep reading The following copy must make some kind of emotional connection with your prospect You might consider starting with a story or anecdote that seems to have nothing to do with what you�re pitching An involving story (one with people or animals in it) sucks your reader in and makes him forget that he is reading an advertisement It also plays to the readers emotions, perhaps sparking their interest in cash flow note buying Make sure whatever you�ve what written isn�t too long Again, try it out on acquaintances and get their input Ask them how it makes them feel, or if they got bored or easily distracted while reading it Ask them if they came up with any objections to performing the call to action What do they think about the company behind the ad after reading your piece You can find out all you need to know about marketing and cash flow note buying at Note Network Buying-Selling notes and all other cash flows WELCOME TO CASH-FLOW-NOTE-QUOTE Please bookmark this site for future use Click Here For More Information Hyperlink Text

Cash Flow Note Sales 3

September 18, 2008 - 2:11 pm

The customized Note Generator newsletter overcomes both obstacles at once by providing cash flow note finders with highly valuable Newsletter content and the ability to personalize the Newsletters with the note finder’s business and contact information Each newsletter contains copyrighted, insightful financial articles written by Russ Dalbey himself and other top minds in the industry and serves to set the aspiring note finder apart from the rest The Note Generator newsletter has proven to be the best “foot in the door” and is an effective way to gain access to attorneys, CPAs, financial advisors, and other hard-to-penetrate professional industries The Note Generator Newsletter is available pre-printed or in software format This New Business Start Up Kit software provides something that has never been readily available before: the ability to create a uniform image of competency and expertise for the Note Professional’s company at a very low cost The New Business Start Up Kit is the perfect PC-based system to project a professional image and maximize the effectiveness of any entrepreneur’s marketing efforts It’s that time of year again – tax time – and some of you may already be thinking of how to spend your tax refund It’s hard to resist spending your refund on a big-ticket item Maybe that flat-screen HDTV you’ve been eyeing in the electronics store is calling, or an exotic Caribbean vacation You’ll be better off if you delay your gratification and invest in your future Cash flow note buying is just one of many available options for you One thing you could do is to put your refund toward a credit-card balance carrying an 18% (or higher) interest rate guarantees an 18% return on your money Also, consider paying down your mortgage principal This can save you a lot of money in interest Think of how great you’ll feel once you pay off your house Another good idea is to increase your contribution to your 401(k) plan You might get even more if your employer matches 50 cents for each dollar you contribute up to a certain percentage of your salary You’ll double your contribution if the employer matches dollar-for-dollar No matter what your employment situation, is it feels great to save for your future Do not forget about cash flow note buying The cash flow note industry is an extremely lucrative one, and you can make a great deal of money from it It’s OK to give yourself a little treat – maybe a nice dinner out with your family or a piece of recreational equipment you’ve all been looking at However, you should use these tips on how to wisely spend at least part of your refund and make your money work hard for you After all, didn’t you work hard for your money To learn more about cash flow note buying go online to DalbeyEducation The Cash Flow Clarion THE CASH FLOW CLARIONFocusing on current trends in the cash flow industry and answering frequently asked questions about owner financing and cash flow notesContact us Cash Flow Note QuestionsThis entry was posted on 6/4/2006 12:35 AM and is filed under General Information About Cash Flow Notes Let's start first by defining the term "cash flow note" A cash flow note is a written document that states a promise to pay, and the terms which include the amount, the interest rate and the length of time A cash flow note may be a mortgage, a trust deed, a deed of trust, a business note, a court award (such as a structured settlement), lottery winnings, annuities, etc Generally, a cash flow note provides a pre-determined payment at regular intervals (often monthly, quarterly or annually) A note holder, of course, is the person who holds a cash flow note and receives those payments As a note holder, you may not be aware that you can sell that note for cash However, selling your cash flow note is a great way to raise a large sum of money quickly We are frequently asked why would I want to sell my cash flow note The fact is there may be many reasons to sell your note It's possible that you didn't even want the note to begin with You may have settled for it in order to sell a property, or been awarded a settlement in court, but would have preferred a lump sum payment instead By selling your cash flow note, you can receive that lump sum payment and be done with those small monthly payments You'll have your money up-front and won't have to wait years to collect it Another reason for selling your cash flow note may be to raise money to cover the cost of a financial obligation, such as paying off credit card debts or medical bills You may need cash to finance a college education or a retirement You may simply want to purchase a new home or car, or even a new business You might decide you want to take that dream vacation you never thought that you could afford You might simply want to invest your money in a more profitable endeavor Whatever the reason, as a note holder, you have the right to sell your note at any time you wish You're probably wondering what your note is worth The truth is, you probably won't get the full face value of the note Cash flow notes are almost always sold at a discount First of all, you'll be receiving your cash now, but the investor you sell your note to has to wait several years to collect all of the funds he/she purchased from you It's a fairly well known fact that money now is worth more than money in the future It's the same principle that makes a home that was purchased 30 years ago for $55,000 worth $250,000 now Do you remember what you paid for a gallon of milk or a loaf of bread 10 years ago What do you pay for the same item now That's one of the reasons your note will likely be sold at a discount The money is worth more to you today than it will be several years from now The other reason that notes are sold at a discount is the fact that each note has risk factors inherent in the note itself There is always the possibility that the note could default and the person holding the note could get stuck No investor wants to deal with foreclosure Despite popular opinion that foreclosure is profitable, more often than not, foreclosure is an expensive process and the property may need extensive repairs before it can be sold Under these circumstances, the note holder could lose quite a bit of money on the note Is there a standard discount on a note No, even though it would make it much easier to price a note, it is impossible to apply a standard discount factor Each note is different and has to be evaluated on the basis of it's own strengths and weaknesses It's like asking what it costs to buy a house How big is the house, where is it located, how many bedrooms, how many baths, is there a garage attached, how big is the yard, is there a swimming pool, hot tub, whirlpool bath, and on and on and on So what factors determine what a note is worth That will vary depending on the type of note The factors to consider in a real estate note are things like the term of the note, the interest rate, the payor's credit rating, the value of the property securing the note, the amount of equity in the property, the amount of the down-payment made, the payment history, and the seasoning on the note (in other words, how many payments have been made) Commercial notes deal with these issues, plus factors such as the income and the expenses of the property Business notes will deal with the term of the note, the interest rate, the value of securing assets, the payor's credit rating, the value of the business, the amount of equity, the payment history, the seasoning, the experience of the payor, plus several other factors Each note type has it's own parameters, but it basically comes down to how much risk is involved with the note and how long will it take to collect all the money from the note First Class Cash Flow Handlers will purchase any type of cash flow note A typical note sale takes approximately 4-6 weeks to complete, assuming there are no complications with the note and all documents are supplied in a timely fashion We offer a number of different plans to meet the needs of any note holder You may sell all or part of your note We will work with you to determine which plan is better suited to meet your individual needs Click here to submit a note or call us at (401)-258-7158 Another question we hear frequently is whether a note holder should sell their note or take out a loan instead You can certainly take out a loan to cover any financial needs you may have, and may even be able to use your note as collateral However, there are some disadvantages to this also Firstly, it increases your debt load, while decreasing your net worth Both of these factors combine to decrease your credit worthiness and credit score By selling your existing note, rather than taking on additional financing, you increase your net worth without adding any additional debt load In the event that you need to pursue financing in the future, this will increase your overall credit score and credit worthiness What did you think of this article Click Here For More Information Hyperlink Text

Russ Dalby Cash Flow Note Sales

September 17, 2008 - 10:42 am

Sell Cash Flow notes Now

September 16, 2008 - 12:34 pm

1-FAMILY Classifieds Portal: Post this monkey to all the remote submission services. 1-Family Classifieds has been on the Internet lomger than all the other classifieds and allows remote submission. A virtual Premium Lead dynamo! The submission services love us: http://e60628.1-family.com Sell Cash Flow Notes Now Click Here For More Information Hyperlink Text

Ed Franklins Carry Back Note sales

August 12, 2008 - 1:31 am

ED FRANKLIN�S carry back note sales get cash now Sell your carry back note and get cash now. This type of financing can also be a very effective income tax planning and/or estate tax planning strategy for you if you do not want to 1031 Exchange into other like-kind replacement properties Seller Carry Back Note — Inside or Outside the 1031 ExchangeSpecial planning is required when you intend to complete a 1031 exchange and carry-back an installment note as part of the 1031 exchange transaction The common misconception is that seller carry-back financing and 1031 exchanges can not be used together and are mutually exclusive This could not be further from the truth Seller carry-back financing and 1031 exchanges are often combined in the same transaction They do, however, require careful advanced planning and structuring to ensure a smooth 1031 exchange transaction You must decide prior to the close of your relinquished property sale transaction whether your capital gain income tax consequences related to the seller carry-back note will be deferred under the installment sale rules pursuant to Section 453 of the Internal Revenue Code or will be deferred via a 1031 exchange pursuant to Section 1031 of the Internal Revenue Code The installment note and deed of trust or mortgage will be drafted differently depending on which strategy you select Once the relinquished property sale transaction has closed you can not change your mind, so it is important to meet with your advisors ahead of time to ensure that you make the correct decision for you prior to the close Excluding the Note from the 1031 Exchange — Installment Sale TreatmentShould you decide to exclude the seller carry-back note from your 1031 exchange transaction, the promissory note and the corresponding deed of trust or mortgage would be drafted with you listed as the beneficiary or owner of the promissory note Your Qualified Intermediary would only be assigned into the balance of the relinquished property sale transaction that is separate from the seller carry-back note portion of the transaction The cash portion or net proceeds from the sale transaction would be sent to your Qualified Intermediary at the close of your relinquished property sale transaction and the installment note would be owned and held directly by you and would not be part of your 1031 exchange The installment note and corresponding deed of trust or mortgage would be taxable under the installment sale rules pursuant to Section 453 of the Internal Revenue Code Your capital gain income tax liabilities are deferred over the term of the installment note and would be recognized and taxed as principal payments from the installment note are received by you It is extremely important to note that your depreciation recapture income tax liabilities are not deferred over the term of the installment note, but are actually recognized and taxed in the year in which the relinquished property sale transaction closes This can create liquidity issues for you during tax time, so be sure to plan accordingly Not including the seller carry-back note within your 1031 exchange transaction can be a great exit strategy when you want to get out of real estate altogether but still want to defer your income tax consequences over the term of the installment note It is extremely important to remember that that your depreciation recapture income tax liability is immediately recognized and taxed in the year of the sale and your capital gain income tax liability is only deferred over the term of the installment note The entire income tax liability would be immediately recognized when the entire outstanding principal balance of the installment note is paid off and received by you This can be problematic should the borrower decide to pay off the promissory note early You may want to discuss including a prepayment penalty in the promissory note with your advisors You may want to consider including the seller carry-back note inside of your 1031 exchange transaction so that the capital gain and depreciation recapture income tax liabilities can still be indefinitely deferred through your 1031 exchange Including the Note as Part of the 1031 Exchange� — 1031 Exchange TreatmentOn the other hand, should you decide to include the seller carry-back installment note as part of your 1031 exchange transaction, the installment note and corresponding deed of trust or mortgage would be drafted with your Qualified Intermediary listed as the beneficiary or owner under the installment note and corresponding deed of trust or mortgage Learn how to properly draft the installment note and deed of trust or mortgage for your 1031 exchange transaction on our web page entitled "Legal Beneficiary Vesting for Seller Carry Back Notes included with in a 1031 Exchange Your Qualified Intermediary would also be assigned into your entire position in the relinquished property sale transaction so that at the close of the transaction your Qualified Intermediary will receive your entire cash position or net proceeds of your 1031 exchange as well as the seller carry-back installment note The note and corresponding deed of trust or mortgage under this structure would be tax-deferred under the 1031 exchange rules pursuant to Section 1031 of the Internal Revenue Code Your capital gain and depreciation recapture income tax liabilities will be indefinitely deferred as long as you continue to exchange ("swap until you drop") However, you will find that including a seller carry-back installment note in your 1031 exchange transaction is much more complicated than structuring the transaction as an all cash 1031 exchange transaction Including the Note as Part of a Reverse 1031 ExchangeAlthough reverse 1031 exchanges are even more complicated and involved, seller carry-back notes may also be utilized within a reverse 1031 exchange structure depending on your circumstances You need to review the proposed transaction with your advisors carefully to determine if a seller carry-back installment note would be of any benefit within your reverse 1031 exchange Complications with Including the Installment Note in the 1031 ExchangeStructuring and closing the relinquished property sale transaction with the seller carry-back installment note included as part of your 1031 exchange is the easy part It gets more complicated from here on out because your Qualified Intermediary is holding more than just cash in your 1031 exchange account How does your Qualified Intermediary use the seller carry-back installment note to acquire your like-kind replacement property There are really three (3) potential solutions: You can have the installment note endorsed and the corresponding deed of trust or mortgage assigned from your Qualified Intermediary to the seller of the like-kind replacement property as part of the consideration for the purchase of your like-kind replacement property This solution, however, assumes that a seller would be willing to accept the third-party installment note as full or partial consideration for your like-kind replacement property It is a possible solution, but not usually a very practical solution You can convert the installment note into cash by selling it to a third party Investor This could be a viable option, but in most cases the installment sale would have to be sold at a significant discount and would not be a practical solution either You could contribute additional personal funds equal to the face value of the installment note into your own 1031 exchange account (boot paid or contributed) so that sufficient cash funds now exist to complete the acquisition of your like-kind replacement property The note and deed of trust or mortgage would then be endorsed/assigned to you (boot received) after your 1031 exchange transaction has been completed This structure is probably the most practical provided you have the necessary liquidity to fund the strategy It results in the boot received being offset by the boot paid and therefore not generating any income tax consequences Including or excluding the seller carry-back installment note within your 1031 exchange is not an easy business decision In most cases the inclusion of a seller carry-back note with a 1031 exchange will work if there is sufficient pre-exchange planning to ensure the availability of the proper liquidity to fund the transaction And, the inclusion of the installment note usually makes sense from an income tax perspective However, you should decide whether you would even want to accept a seller carry-back installment note as part of your 1031 exchange transaction, or avoid the headaches involved with a seller carry-back installment note and insist on an all cash transaction for the purchase of your relinquished property You should always consult with your legal and tax advisors as well as your Qualified Intermediary prior to completing a seller carry-back installment sale as part of your 1031 exchange transaction Depreciation Recapture Income Tax IssuesThe inclusion of the seller carry-back installment note inside your 1031 exchange transaction will defer the recognition of your depreciation recapture and capital gain income tax liabilities Excluding the seller carry-back installment note from your 1031 exchange transaction will result in the immediate recognition of your depreciation recapture income tax liabilities in the year in which the sale of the relinquished property closed, and your capital gain income tax liabilities will be deferred and recognized over the term of the seller carry-back installment note Special Consideration for Installment Sale Notes In Excess of $5 Million There are special income tax provisions that you will need to take into consideration when the initial principal amount of the seller carry-back installment note exceeds $5 million Your capital gain income tax liabilities are deferred over the term of the installment note and recognized (paid) on a pro-rata basis as principal payments are made against the installment note However, if the original principal balance of the seller carry-back installment note exceeds $5 million, you can only defer the recognition of the capital gain income tax liabilities on the first $5 million The remaining capital gain income tax liabilities related to the balance of the installment note that exceed $5 million will be recognized in the year in which the sale of the relinquished property transaction closed Although this portion of the capital gain income tax liability will be recognized immediately, the IRS will allow you to defer the actual payment of the income tax liabilities over the term of the note and will assess interest on the deferred income tax liability Other Income Tax Considerations Interest income earned on your seller carry-back installment note is taxable as ordinary income, and is taxable to you in the year in which the interest income is paid to the holder of the note whether the installment note is included or excluded as part of your 1031 exchange The holder of the note is generally responsible for filing IRS Form 1098 that will report the amount of interest paid by the borrower to the IRS The servicing agent or collection agent is generally responsible for filing IRS Form 1099INT that will report the amount of interest income received by you as the lender under the seller carry-back installment note Location: Metro Westit's NOT ok to contact this poster with services or other commercial interestsPostingID: 792159253 other contact info, craigslist can notify them via email Location: Northwest/Merrimackit's NOT ok to contact this poster with services or other commercial interestsLicense info: UnlicensedPostingID: 792771333 I guess you can always say the dog ate it, or a tornado snatched it into the sky when you were in Nebraska visiting Aunt Dorothy and Uncle Toto, but the truth is, you may not be able to sell your note if you can’t produce the original The original note is the “green stuff,” it’s the currency, it’s “the thing you’re selling The original John Henry (signature) of the Buyer/Payor, even if it’s not very attractive, fluid or sophisticated, is the silver lining in your paper And it kind of makes sense, doesn’t it Would you be able to pay your mortgage by sending in a nice copy of your check to Bank of America they’re used to losses these days and probably wouldn’t notice) If I’m buying your note, I want to be the legal holder of the note, so I need:the original note in my possessionthe note properly endorsed to me (”For value received, Pay to the Order of Dawn Rickabaugh, with recourse” and it must be signed and dated by the Note Seller) If the original note is in my possession, and is properly endorsed to me, then I am a holder-in-due-course, which gives me some substantial protection should any legal issues arise Right now I am working with a probate attorney in Los Angeles who is liquidating an estate holding a $500,000 seller carry back note, secured by a commercial property in Redondo Beach I was able to offer the estate more than the Payor on the note was offering When I last spoke with the attorney, he said all the beneficiaries/heirs were scrambling to find the original note Perhaps the escrow company still has it in their file, but they really need to find it, or things get a lot more complicated Do yourself a favor, when you carry back paper: keep the original note, deed of trust, Buyer’s credit application (1003) and credit report all together in a very safe place And keep a very good payment history to be able to prove that you have a performing asset Why not sign up to receive future posts by email Leave a comment or ask a question You can follow any responses to this entry through the RSS 2 You can leave a response, or trackback from your own site There are insured safekeeping companies who will hold the documents for the note owner… Pretty cool, cuz note ownership can change hands while the note can stays in the same place “Real” mortgages, funded and then sold by financial institutions, have to be “certified” by the safekeeping company… Somebody goes to jail or writes a big check if they lie about what’s in the vault It makes sense and I’d never thought of that for private note holders To be a holder-in-due-course, I need to have possession of the note If I don’t have physical possession, I wonder if I am jeopardized in any way I heard of one situation where the “possession” was challenged because the note servicer had the original note, not the note holder Doesn’t make sense, though, because if I put it in a safe deposit box, someone could argue that the bank had possession, not me, which is ridiculous As the Seller Finance Evangelist for the largest 3rd party long-term escrow servicer in the US maybe I can shed some light on this question The “challenge” you mentioned was probably the only way the attorney involved could justify their fees Thank you so much for your insight and information One of the great things about blogging is that you often have the opportunity to attract people who know a lot more than you do, just by starting a conversation WebsiteXHTML: You can use these tags: --> Receive an email if someone else comments on this post These 10 spiritual principals were received by James M Allen in 1993 on top of Mt Originally created for the edification of private hard money lenders, the principles largely apply to any seller thinking of becoming the bank on their own property: ALWAYS take possession of the original note ALWAYS make sure that the deed of trust is recorded ALWAYS make sure that you have title insurance showing your deed of trust in the proper priority ALWAYS make sure that you record a “Request for Special Notice” with respect to all senior deeds of trust at the time you make the loan, and promptly when your address changes ALWAYS personally inspect the property which is security for your deed of trust Would you like to own this property in this neighborhood NEVER lend money on a deed of trust where you cannot afford to keep prior payments current while you foreclose your own deed of trust ALWAYS insist that the note and deed of trust show you as the original beneficiary on a new loan, not the broker who arranges the loan ALWAYS make sure that the note is assigned by separate assignment on the note or permanently attached to the note, and by recorded Assignment of the deed of trust when you are buying a “seasoned” note ALWAYS keep your original notes and deeds of trust in safe deposit boxes, or in similarly secure environments You can keep copies in your files for working reference ALWAYS make sure the property taxes are paid current, that prior deeds of trust are kept current, and that hazard insurance is adequate, in force, and premiums are paid current My friend, I testify that if you will heed these principles, and your attitude improves greatly, you will one day enter Seller Financing Heaven You should practice safe recourse, or at least be aware of the risks if you don’t When I buy a note, I need to have the note properly endorsed to me, very much like a check is endorsed from one person to another: “For value received, pay to the order of Little Johnny Cakes,” signed and dated by the note seller This is written on the back of the note, or on a separate piece of paper that is then permanently attached to the note (an allonge) But there’s another aspect to the endorsement After identifying the new owner of the note, it should say “with recourse” or “without recourse For value received, pay to the order of Dawn Rickabaugh, with recourse If the endorsement includes the words “with recourse,” it means that the note seller is guaranteeing the note If the Payor doesn’t make the payments, the note seller is agreeing to make the payments to the keep the note buyer whole If I’m the note buyer, then I would want the seller to agree to a recourse loan that adds another layer of protection for me If a seller is willing to endorse “with recourse” it probably means he is expecting the note payments to keep coming in, and is not hiding some known problem with the note A note sold “without recourse” means that the note seller doesn’t have to be on the hook for the money if the payments stop coming in If I’m the note seller, I would probably want to sign “without recourse ”� I don’t want to take a big discount and then have to guarantee the note payments as well It’s a point of negotiation between buyer and seller The silent endorsement:� if nothing is mentioned about recourse either way, guess what Sellers are often unaware of this, so it can become a point of contention if the note buyer all of a sudden starts demanding payments 2 years down the road when a problem arises It’s just better to discuss it and establish it clearly within the endorsement on the back of the note As always, it’s best to consult with an attorney to understand the complexities and variations in your state I want to carry paper, please help me create a valuable noteWhat will you pay for my note The Exeter Learning Institute: Seller Carry Back Note Combined with a 1031 Exchangeskip to main | skip to sidebarThe Exeter Learning InstituteThe Exeter Learning Institute is dedicated to educating and informing real estate investors on the benefits of 1031 tax-deferred exchanges (866) 393-8377Friday, November 23, 2007Seller Carry Back Note Combined with a 1031 ExchangeYou may be requested by real estate buyers from time-to-time to assist them in the acquisition of your real property ("relinquished property") by helping them with the financing "Seller carry back promissory notes can be very powerful sales tools when negotiating and structuring real estate transactions, especially in rising interest rate environments, distressed real estate markets and tight credit markets However, seller carry back financing can complicate a 1031 exchange transaction if you are planning on selling investment property and then 1031 exchanging into other like-kind replacement property You can learn more about this strategy and the related complications at http://www Exeter 1031 Exchange Services, LLC launched The 1031 Exchange Institute to assist investors in making better informed investment decisions You can contact the Exeter 1031 Exchange Services, LLC's office closest to you by calling (866) 393-8377 Exeter is president and chief executive officer of Exeter 1031 Exchange Services, LLC and its affiliate companies He has written and lectured extensively on 1031 exchange transactions pursuant to Section 1031 of the Internal Revenue Code and on Tenant-In-Common (TIC) Investment Properties as like-kind replacement property solutions pursuant to IRS Revenue Procedure 2002-22 Exeter also serves as an industry consultant through Exeter Consulting Group, LLC and has served as an expert witness regarding 1031 exchange related litigation The Exeter Learning Institute: Sample Legal Beneficiary Vesting for Seller Carry Back Notesskip to main | skip to sidebarThe Exeter Learning InstituteThe Exeter Learning Institute is dedicated to educating and informing real estate investors on the benefits of 1031 tax-deferred exchanges (866) 393-8377Friday, November 23, 2007Sample Legal Beneficiary Vesting for Seller Carry Back NotesWhen you sell real estate or personal property that will be part of a 1031 exchange and you carry back an installment note (seller carry back financing) to facilitate the sale of the asset, the installment note must also be included as part of the 1031 exchange account held by your Qualified Intermediary in order to defer all of your income tax liabilities In other words, the note must be owned by and held by your Qualified Intermediary You can learn more by reading our web page entitled "Seller Carry-Back Financing Combined with a 1031 Exchange "The procedure to include the seller carry-back installment note as part of your 1031 exchange account is actually very easy The installment note and the corresponding deed of trust or mortgage documents would be drafted with the Qualified Intermediary listed as the beneficiary or owner The installment note and corresponding documents cannot be drafted with your name listed as the beneficiary or owner The documents must be drafted in the name of the Qualified Intermediary so that the Qualified Intermediary owns the installment note as part of your 1031 exchange account Drafting the note in your name will trigger "constructive receipt" of your 1031 exchanges funds or assets and create a taxable event Notes incorrectly drafted with your name as the beneficiary or owner cannot be corrected after the close of the transaction and generally will be treated as boot and taxed as an installment sale note under Section 453 of the Internal Revenue Code Click Here For More Information Hyperlink Text

Ed Franklins Comercial Note Sales

August 11, 2008 - 8:50 am

ED FRANKLIN�S commercial note sales get cash now Funding help you sell your commercial real estate note today Back when you sold your property it probably suited your financial needs at that time to act as the lender Perhaps you need a lump sum to pay off debts or maxed out credit cards Perhaps you need a large sum for a once in a lifetime investment, for sending the kids off to college, or for your daughter's perfect wedding Medical expenses add up quickly these days, or perhaps you just want to take that once in a lifetime vacation Whatever the reason, your situation has changed the nationwide commercial real estate note note buyers, theres no need to remain bound by a commercial note any longer Rather than wait another 10, 20, or 30 years to receive your commercial note money, In fact, over the past 27 years,� note sellers in nearly every state have discovered that� selling their owner financed trust deed, mortgage note� or land� contract to US Commercial Note Buyers is a surprisingly simple process Here's how it worksStep One� - The Pricing PhaseThe pricing� phase begins with your initial online quote request or phone call Relying on the specifics� you provide in that initial contact (such as the interest rate,� balance, payment information, buyers details, etc ), we'll price your mortgage note or land contact� and make� an offer Upon acceptance of our offer, our mortgage note and� contract buyers will write up� a formal purchase� agreement, as well as provide you a required document checklist Once these items are signed and returned, we begin the due diligence phase At this phase, we confirm� the information relating to your note, trust deed� or contract We will order title updates and examine the condition of title, and have a "drive-by" appraisal performed at our cost Once completed and all is in order, we then progress to the closing phase At which point, the documents will be recorded and� you get your money Mortgage Note Buyers� Trust Deed Buyers� Land Contract Buyers Would you like� more information from the mortgage note, trust deed or land contract. Our company specializes in helping people sell commercial mortgages, sell commercial trust deeds, sell commercial contract, sell commercial deed of trust and most commercial real estate notes Strategies for Strong Cash Flow Resale ...Free webpages from free-net.com>

Ed Franklins Life Settlement Sales

August 11, 2008 - 8:10 am

ED FRANKLIN�S life settlement sales get cash now Help improve this article by adding relevant internal links (August 2008)This article does not cite any references or sources Please help improve this article by adding citations to reliable sources Unverifiable material may be challenged and removed A life settlement is a financial transaction in which a policy owner possessing an unneeded or unwanted life insurance policy sells the policy to a third party for more than the cash surrender value (cash value offered by the life insurance company) The purchaser becomes the new beneficiary of the policy at maturation and is responsible for all subsequent premium payments Life settlements are an important development in that they have opened a secondary market for life insurance in which policy owners can access fair market value for their policies, rather than accepting the lower cash surrender value from the issuing life insurance company Generally speaking, life settlements are an option for high-net-worth policy owners age 65 or older Independent estimates report that among this group, 20% of policies have a market value that exceeds the cash value offered by the carrier And while many policyowners are unfamiliar with life settlements until a financial professional mentions the option to them, the concept has gained attention from high-profile proponents such as Warren Buffett, former U A growing number of experts now believe that informing clients about offering life settlements should fall under the fiduciary duty of a financial adviser In a life settlement transaction, there is a chain leading from the seller of the policy to the end buyer of the policy (known as a life settlement provider) Each link in the chain has a different responsibility in facilitating the transaction and ensuring that it runs smoothly, while outside vendors typically assist the provider with specialized functions The typical criteria to be an eligible candidate for a life settlement would include: • Policy holders age 65 and older (ages as low as 55 are possible) • $50,000 minimum face amount • Policy active minimum of two years • Low cash surrender value • Premiums less than 8% per annum • Insurance Policy Types o Universal Life o Term (if convertible) o Whole Life o Variable Life o Survivorship (any type) o Adjustable Life o Joint First to Die The proceeds from a Life Settlement transaction can be taxable Typically, the taxable proceeds are based on the difference between the cost basis of a policy (the money paid in) and the cash “surrender” value and the final settlement amount received by the policy holder as to what is considered taxable Any tax implications for capital gains realized from such a transaction could be offset by tax deductions based on “the entire cost of maintenance in a nursing home or home for the aged” (sec In the case of a viatical settlement where the policy owner has a terminal diagnosis and life expectancy of 24 months or less, the proceeds are tax free etiring “key-man” or selling a company/partnership Life settlements are complex financial transactions that are generally conducted on behalf of clients by experienced professional advisers Some examples of advisers that are becoming increasingly involved in the life settlement arena are:Accountants/CPAsAttorneysFinancial Planners/CFPs/ChFCs/CFCsWealth ManagersInsurance AdvisorsEstate Planners/CEPsCertified Senior Advisors/CSAsCharitable Trust Officers Life settlement providers serve as the purchaser in a life settlement transaction and are responsible for paying the client a cash sum greater than the policy's cash surrender value The top providers in the industry fund many transactions each year and hold the seller's policy as a confidential portfolio asset They are experienced in the analysis and valuation of large-face-amount policies and work directly with advisors to develop transactions that are customized to a client's particular situation They have in-house compliance departments to carefully review transactions and, most importantly, they are backed by institutional funds Life Settlement providers must be licensed in the state where the policy owner resides Approximately 41 states have regulations in place regarding the sale of life insurance policies to third parties Financial advisors who choose not to submit cases directly to a settlement provider may opt to work through a life settlement broker Life settlement brokers are intermediaries who bring together policyowners who wish to sell a policy and providers seeking to purchase them Brokers, in exchange for a fee, will shop a policy to multiple providers, much as a real estate broker solicits multiple offers for one’s home Not all buyers are alike and a life settlement broker will help ensure that cases are sold to reputable buyers who are likely to close without significant difficulties It is unlikely a financial advisor will achieve the highest possible price without going through an experienced life settlement broker While it is the broker's duty to collect bids, it is still incumbent on the advisor to help the client evaluate the offers against a number of criteria including offer price, stability of funding, privacy provisions, net yield after commissions, and more Compensation arrangements vary significantly and should be fully disclosed and understood to determine if engaging a broker will benefit the client In many states, brokers must be licensed to do business in that state Industry experts state: "It is imperative that the client works with a licensed broker who has the experience to deal with sophisticated institutional buyers to yield the highest price In regulated states there are material regulations as to procedure, privacy, licensing, disclosure and reporting which must be met and which in some cases carry criminal penalties A licensed life settlement broker can help you meet all relevant requirements Life settlement investors are known as financing entities because they are providing the capital or financing for life settlement transactions (the purchase of a life insurance policy) Life settlement investors may use their own capital to purchase the policies or may raise the capital from a wide range of investors through a variety of structures The life settlement provider is the entity that enters into the transaction with the policyowner and pays the policyowner when the life settlement transaction closes In most cases, the life settlement provider has a written agreement with the life settlement investor to provide the life settlement provider with the funds needed to acquire the policy In this scenario, the life settlement investor is effectively the ultimate funder of the secondary market transaction However, in some life settlement transactions, the life settlement provider is also the investor; the provider uses its own capital to purchase the policy for its own portfolio There are four major life expectancy providers, namely AVS, Fasano Associates, 21st Services, and EMSI Some underwriters provide unreasonably short life expectancies by using base tables that are 5 years out of date, ignoring future mortality improvements & current treatments Eg Statins and basing life expectancies on life manuals which are conservative for mortality and not longevity risk Others apply actuarial analysis to the most recent available data as well as their own experience to develop their base tables and underwriting manuals Providers who do not provide short life expectancies are shunned by originators whom are primarily remunerated for volume Providing more reasonable life expectancies does not inflate the apparent value in these insurance policies This results in fewer cases being written and less support from originators Fasano Associates has published two experience studies showing 96% Actual to Expected accuracy One was performed by Milliman and the second by the Institute for Actuarial Studies No other experience studies have been made publicly available Tracking agents use a variety of methods to collect this type of information such as phone, email, mail, and the social security database Most tracking agents also provide premium management, death claim processing (collecting the death benefit from the insurance company once the insured has expired) and reporting services Steps in a transactionPolicyowner consults with an advisor, decides to sell his or her policy Policy owner and advisor decide whether to work with broker or to go directly to providers Client & advisor submit policy for valuation If policy meets criteria for a life settlement, providers send offers directly or through a broker Client and advisor review offers and client accepts his preferred offer Client and advisor complete the provider's closing package, and return essential documents Provider places cash payment in escrow and submits change of ownership forms to the insurance carrier Paperwork is verified and funds are transferred to the policy seller Although the secondary market for life insurance is relatively new, the market was more than 100 years in the making The life settlement market would not have originated without a number of events, judicial rulings, and key individuals Click Here For More Information Hyperlink Text

Ed Franklins settlement Sales

August 11, 2008 - 8:08 am

ED FRANKLIN�S sell structured settlement get cash now How to sell a structured settlement payment Finding a buyer of structured settlement payments Related Articles Get cash for a structured settlement payment When to sell structured insurance settlements Tips on selling a structured settlement annuity Choosing a structured settlement company Recent News « April 15, 2008 News Archives April 2008 July 2006 November 2005 October 2005 September 2005 Home Cash Payments or a Structured Settlement In traditional settlements, compensation for damages has usually consisted of a single cash payment History has shown that this money is often unwisely managed and quickly spent, leaving no funds available to provide for future needs Alternative arrangements know as structured settlements were created in the 1980's Under these arrangements the beneficiary would receive cash structured settlement payments on a periodic basis This guaranteed stream of annuity payments could be paid over a period of months, years or a complete lifetime Federal and state laws have been created as part of a nationwide policy encouraging the use of structured settlements over cash payments in cases involving injuries These structures are a favored means of providing annuity income to a beneficiary and reducing their risk of rapidly spending the capital proceeds from a cash settlement In some cases, former recipients have found themselves with no cash flow, relying on loans for family living expenses Others have had to rely on direct public assistance as a source of support for the rest of their life To encourage their use, favorable tax treatment rules have been extended to the cash received under a structured settlement agreement Selling Future Payments Many individuals receiving a stream of monthly payments under a settlement agreement don't realize that they can sell all or a portion of their annuity payments and be paid a cash sum Access to this money could provide funding to meet the current life needs of your family instead of waiting for a future stream of inflexible payments structured over a period of a year or more This process of entering into a contract to sell ones legal right of receiving future structured payments to settlement companies in exchange for the present value of the money is called factoring A large number of companies now offer cash for a structured settlement payment When evaluating your options, try to work with financially sound companies that are competent and ethical These factors are important considerations to note of when you compare the knowledge and integrity of a company or corporation as well as their dollar offers It is a always a good idea to shop around and compare companies and offers Settlement Companies In recent years, a complete settlement funding industry has been created Companies will offer to pay for the rights to receive future annuity payments under structured agreements These companies offer customers the benefit of direct access to cash Discounting is not free however and the costs can be quite high The cash price they are willing to pay is much less than the money a person would receive from the future stream of fixed payments You may have seen ads encouraging you to "sell a structured settlement payment", and be wondering if you should sell and cash out This is a serious financial decision especially if you really need the money You should carefully evaluate your options to determine if the sale of even a portion of your guaranteed settlement payments is truly in your best interest To gain immediate access to their money, a person can sell their right to receive all or part of their future structured annuity payments to a settlement buyer The transaction is pretty straightforward but come at a cost with various fees and expenses The factoring company acquires the right to receive future structured settlement monies in exchange for a cash payout If you are considering selling your settlement payments it is wise to call or go online for several free quotes and information from settlement firms you can trust Then compare the terms, costs and services provided in the offers to guarantee you are receiving top dollar While it may be appealing and sometimes even in the recipients best interest to sell one of more future payments, keep in mind that annuities are often sold at a discount Because of this, it's usually not a wise solution to sell your settlement to access funds for luxury items such as purchasing a new sports car or to finance a vacation More responsible reasons to sell a series of payments would be to gain access financial capital in during a family emergency Some people choose to repay a debt or to use the cash for investment purposes such as starting a business or buying a home Others use the money to fund an entire college education The choice is yours, but the implications of a decision to sell should be seriously considered In this situation you are the customer and should receive great service As a client you are free to ask the settlement company real questions in total privacy about selling payments and your rights Use your good judgment and experience but also feel free to ask your attorney for expert legal advice You may also want to consult with a financial professional to discuss the impact on your taxes and your estate before you accept any cash offer for your structured settlement payments There is no guarantee you will you have enough money to live on after the cash lump sum payment has been spent Only sell a structured settlement payment if you are sure that you can meet all your future needs Formally recognized by the federal government since 1983, structured settlement payments are specified in voluntary settlement agreements between and injury victims and defendant(s) A settlement payment or annuity comes as the result of a contract between a victim and a defendant whereby the injured victim receives a stream of tax-free settlement payments as an annuity tailored to meet their future needs instead of receiving one lump sum Once a structured settlement payment agreement is reached, the plaintiff cannot make changes Structured settlements payments are used more frequently these days because they offer substantial benefits to all parties involved in the structured settlement agreement Victims receive tax-free payments and defendants get an end to litigation as the result of reaching a structured settlement agreement Structured settlement payments are an innovative solution in that the amount of the settlement payments and the timetable for settlement payments is completely up to the negotiating parties The personal injury victim gains the ability to custom tailor their structured settlements payments to meet their individual needs over an entire lifetime © Structured Settlement Authority,� 2008� |� Copyrights | Privacy Policy | Terms of Use | Resources | Sitemap Please consult a licensed insurance agent, securities broker, lawyer, or structured settlement professional for advice regarding your personal situation States nationwide have also created laws regulating the sale of structured settlements These regulations guard sellers against the past abuses and false statements of unprofessional settlement companies Under the various state settlement protection acts, the buyer has a legal requirement to disclose the total value of the transferred payments This amount is compared to the net cash value the selling party will receive Normally, the discounted present value of the transferred payments is used in this comparison The interest rates used by investors in this calculation are of particular importance Failure to use a competitive market based interest rate from the start of the calculation can significantly impact the valuation It is good ideas to work with finance professionals you trust that have experience in this area These experts can provide you with personal information, specialized services, and a solution designed to meet your specific situation You have probably seen advertisements urging you to "sell a structured settlement payment" Many beneficiaries wonder if they should sell and cash out, especially if they are in a situation where they need the money This is a major financial decision and you would be well advised to carefully evaluate your options before making a decision You need to determine if selling all or even a portion of your guaranteed settlement payments is in your best interest When you receive a cash offer for your structured payments, you need to realize that the money you obtain from the payout will be less than the total of the future settlement payments you would have received over time Click Here For More Information Hyperlink Text

Ed Franklins Trust Deed Sales

August 11, 2008 - 8:03 am

ED FRANKLIN�S trust deed sales get cash now A deed of trust contains three parties: The Trustor, which is you, the borrower The Trustee, which is an entity that holds "bare or legal" title The Beneficiary, which is the lenderThe deed of trust is an instrument that identifies the following:Original loan amount Legal description of the property being used as security for the mortgage Inception and maturity date of the loan Riders, if any, regarding such clauses as prepayment penalties or terms of an adjustable rate mortgage Because mortgages do not contain a trustee, many borrowers are confused between a mortgage and a deed of trust Deeds of trust contain a trustee, an independent third party that does not represent the borrower nor the lender The trustee is an entity, generally a title company, that holds the "Power of Sale" in the event of default The trustee also reconveys the property once the deed of trust is paid in full In the event of a default, the trustee files a Notice of Default; however, in most instances, the trustee will substitute another trustee to handle the foreclosure under a Substitution of Trustee After the 90-day period in the public records, and a 21-day publication period in the newspaper, the trustee then has the power to sell the property on the courthouse steps without a court procedure During the three months following recordation of the Notice of Default, the borrower can redeem the property by making up the back payments and paying the trustee's fees Once the trustee sells the property at a Trustee's sale, it is final Whereas the deed of trust is security of the debt, secured by the property, the promissory note is secured by the deed of trust and is the evidence of the debt The promissory note is a promise to pay, signed by the borrower in favor of the lender It contains the terms of the loan such as the interest rate and payment obligations The promissory note is generally not recorded When the loan is paid, the promissory note is marked "paid in full" and returned to the borrower, along with a recorded Reconveyance Deed During the term of the loan, the lender retains the promissory note Read both documents, including the pre-printed portions You might ask the closer to send you a blank deed of trust and promissory note beforehand Because preparers are human and can make mistakes, here are the important items to review:Spelling of trustors' names Interest rate (and the rider, if adjustable) If you are 30 years of age and can put $200 away a month in Trust Deed Investments, you will accumulate $1,300,000 by the time you retire at age 65 $500 a month would grow to more than $3,000,000 Trust Deed foreclosure is different than that of a mortgage foreclosure because there are no courts involved Simply put, most investors refer to trust deed foreclosure as a third party action Investors use different terms when dealing with a trust deed foreclosure The borrower is called the trustor, the lender is called the beneficiary, and the third party representative (the one who is holding the title) is called the trustee The trustee, who represents the lender or beneficiary, is brought on for the sole purpose of holding the title of the property as a security measure against the debt Because there is no court action involved, the trustee has the authority to sell the property for the beneficiary in the event the trustor fails to make his monthly mortgage payments As with any trust deed foreclosure, first the trustee will issue a Notice of Default (NOD) to the delinquent borrower and records it Usually the trustor has 90 days to cure the loan and pay all the penalties Once that time is up, they don't play Mr They will post a notice of sale on the front door of the property, the sale of the property is advertised in the newspaper to attract the biggest investors, and after a 3 week publication, the property is auctioned off on the courthouse steps The highest bidder walks away with the property Obviously, most lenders like the trust deed foreclosure process better, because they don't have to wait 6 months to even years before they can begin the foreclosure process "The Investors Complete Foreclosure Home Study Course" Discover a proven system for buying real estate foreclosures 30%, 40%, and 50% below market value Generate huge returns using this step-by-step foreclosure system Learn how you can stop the foreclosure auction and make a great deal of money doing it You'll also receive a list of Hard Money Lenders and investment groups in your area Also available from Amazon: American commercial law series Illinois, hereby releasing and waiving all rights under and by virtue of the Homestead Exemption Laws of the State of Illinois, and all right to retain possession of said premises after default in payment or a breach of any of the covenants or agreements herein contained, in trust, nevertheless, for the following purposes: bearing even date herewith, payable to the order of Now, if default be made in the payment of the said-----------Promissory Note , shall thereupon, at the option of the legal holder or holders thereof, become immediately due and payable; and on the application of the legal holder of said Promissory Note , or either of them, it shall be lawful for the said Grantee, or his successor in trust, to enter into and upon and take possession of the premises hereby granted, or any part thereof, and to collect and receive all rents, issues and profits thereof; and in his own name, or otherwise, to file a bill or bills in any court having jurisdiction thereof against the said party of the first part, Dollars attorney's and solicitor's fees, and also all other expenses of this trust, including all moneys advanced for insurance, taxes and other liens or assessments, with interest thereon at 7 per cent per annum, then to pay the principal sum of said note , whether due and payable by the terms thereof or the option of the legal holder thereof, and interest due on said note In case of the death, resignation, absence, removal from said County, or other inability to act of said Grantee It is agreed that said Grantor shall pay all costs and attorney's fees incurred or paid by said Grantee or the holder or holders of said note in any suit in which either of them shall be plaintiff or defendant, by reason of being a party to this Trust Deed, or a holder of said note , and that the same may be a lien on said premises, and may be included in any decree ordering the sale of said premises and taken out of the proceeds of any sale thereof contracts, negotiable paper, sales of personal property, agency, partnership, corporations, insurance, suretyship, debtor and creditor bankruptcy, banks and banking, property, business, law Click Here For More Information Hyperlink Text

Ed Franklins business Note Sales

August 11, 2008 - 8:01 am

ED FRANKLIN�S business note sales get cash now Turn your future note payments into immediate cash today These are notes created when a business owner sells their business using owner financing It is much more difficult to get a bank loan for the purchase of a small business than it is to get a loan for a home Businesses have a historically high failure rate, and many do not own enough collateral to satisfy a bank loan Sellers usually have no choice but to offer financing They accept a cash down payment for part of the sale, and a promissory note for the balance Sometimes the seller is perfectly content to receive the payments over 3, 5, or� more years More often, they have needs for the cash today or tire of the hassle collecting payments "Call us today to see if you hold a salable note To have the capital to start their next project Purchase a home, car, boat or plane Eliminate the hassle and worry of collecting payments Eligible Businesses include, but are not limited to: While these are typical criteria desired, each transaction will be considered on it's own terms and strengths Every note is reviewed on an individual basis If you are ready to see if your business note is marketable, call us today at 312 638 0922 We have the ability to structure a business note buyout that will meet your immediate needs and long term goals, as well as fund you very quickly We will consider any business note payment stream that is paid out over time We offer several options for individuals who would like to sell their Business Note These options are designed to meet your immediate and future financial needs We are very aggressive in the purchase of Business Notes The following are the basic criteria that we look for in Business Notes All Business types considered First Lien positions only Personal guarantee of payor (exceptions in some cases) 20% down payment by purchaser (smaller down payment in some cases) 3 months of seasoning (less seasoning in some cases) If you are receiving or anticipating payments from a Business Note and would prefer a lump sum of cash, we can help Click Here For More Information Hyperlink Text

Ed Franklins Mobile home Note Sales

August 11, 2008 - 7:59 am

ED FRANKLIN�S mobile home note sales get cash now Would you like to be notified when a new article is added to the Selling category You can sell mobile home note payments for a lump sum of money if you are need of immediate capital for an investment, a purchase, a high-interest debt, or other financial expenditure There are professional note buyers who can purchase your notes in their entirety, or just a portion of them Many people enjoy the steady income that comes with a set monthly installment plan But often, either right at the beginning or somewhere down the road people are in need of money in the short term At this point they might wonder: will my mobile home notes sell The answer is absolutely, and it is much easier to sell mobile home notes than to get a loan from a bank or other lending establishment The best part is you don't have to sell the entire instrument Let's say you have a $100,000 note, but you need $35,000 for a new car or a wedding You can sell off just $35,000 worth (however many months that works out to be) and keep the rest of your note intact So you can also sell mobile home note payments as a split, getting cash for half of each month's payments and retaining the other half A qualified note buyer will go over all of your options with you, so you can decide which you like the best You may decide to sell the entire note for a large lump sum, or sell what's called a partial for a smaller sum How much will your mobile home notes sell for That's a good question, and the quick answer is, it depends There are a number of factors the buyer will take into consideration, including the balance remaining, the time period, the interest rate and the financial stability of the person or entity making the monthly payments, known as the payor Using these criteria as well as a few others, the note buyer can come up with a valuation for your mobile home paper Keep in mind that it has to make financial sense for them as well, as they are taking on the risk of holding your note, oftentimes for a number of years in an uncertain inflationary environment If you're considering selling mobile home note payments, make sure you find a top note buyer with a good reputation and a lot of experience Someone who has been in the business for a long time will usually offer you the best rates and most options Jamie has been working in the finance industry for many years and is a contributing editor to http://www Find out if your mobile home notes sell from a qualified note buyer and learn about other debt instruments on our site It's usually a choice between stability and instant money A steady source of income sounds nice, but you'll also want to be prepared for emergencies or rare business opportunities Selling your insurance policy is a viable option if you have no financial obligations, but there are things you need to note before you cash in Here are some tips to help you [Insurance:Life-Annuities] Annuity sales are a great way to get immediate cash out of your debt instruments Monthly payments might work for some of us, but others need real money to meet their financial needs While you can always take out a bank loan, selling your notes is faster, more convenient, and involves less paperwork Bank loans can take several weeks because of background and credit checks, while an annuity contract can be sold in as little as two weeks [Finance:Loans] Selling your notes to a promissory note buyer allows you to raise a large sum of money without having to take out a bank loan It takes as little as two weeks to sell your debt instrument, whereas a bank can take more than a month There are several other advantages you lose the risk of inflation, preserve your moneys value, and eliminate the hassle of monthly payments [Insurance:Life-Annuities] Selling insurance policy is becoming a popular option for people of or nearing retirement age, whose debts and other obligations have all been paid off There are several reasons you might want to cash in on your life insurance policy You may want to travel, start a business, or set it aside for medical care [Insurance:Life-Annuities] Many people sell life insurance policy when they reach retirement age or when their all their accounts have paid off Selling has several advantages over keeping the policy it gets rid of premium payments, conforms to the needs of your dependents, and gives you access to a large sum of cash that would take weeks to get through a bank loan But there are important things to know if you're planning to cash in [Finance:Personal-Finance] A cash flow note sale simply means selling a structured settlement, such as a mortgage or business note, for a single lump sum instead of small monthly payments There are several reasons you might want your cash now instead of later you may want to invest it somewhere else, buy a house or car, or set it aside for emergencies Whatever your purpose, cashing in is always a viable option [Real-Estate:Mortgage-Refinance] Choosing mortgage note buyers is one of the most crucial aspects of a contract sale How much you get for your note is essentially their decision, so it's important to find a professional who can give you the best price Though there's a pretty good market for debt instruments, you'll find that not all buyers are the same How do you pick the good ones from the bad Here are some tips to get you started [Real-Estate:Selling] Let's say I need money and I want to sell my real estate notes When you need extra cash flow, selling debt instruments is far more convenient than taking out a loan [Real-Estate:Selling] Finding good land contract buyers can be a challenge for people selling land notes There are hundreds of note buyers in the market, but not all of them can give you top dollar for your paper It always pays to take your time, shop around, and go over all your options before signing any deal [Real-Estate:Selling] There are various reasons you might want to sell real estate contract You may need the money for a new business, pay off some debts, or finance a wedding Or maybe youre just tired of waiting every month to get your payments Regardless of your purpose, cashing in on your note is the best way to raise money without waiting weeks for a bank loan [Finance:Loans] If you need fast money and have no time to apply for a loan, your best bet is to sell debt notes You can cash in on your debt instruments in as little as one week, unlike bank loans which can take two weeks or more Given the fast-changing money market, there is good reason you would want your cash now instead of waiting out the debt [Business] Selling your business note for a lump sum is a viable option if you need fast money from your business For most note holders, the game plan is simple: sell the company and then get paid monthly until it is paid off It is a stable scheme, but some people cannot wait the entire term to receive their money If you are one of them, why not cash in your business note instead [Real-Estate:Mortgage-Refinance] You can get a lump sum of cash for mortgage note payments from a professional known as a note buyer He or she will be able to put a value on your debt instrument based on various criteria, and in most cases give you a free, no obligation quote for all or just a portion of your mortgage note Click Here For More Information Hyperlink Text

Ed Franklins Lottery Winning sales

August 11, 2008 - 7:49 am

ED FRANKLIN�S Lottery Winnings Annuity sales get cash now Click Here For More Information Hyperlink Text How can I insure a $50 million lottery win FDIC insurance deposits with a bank only insures up to $100,000 per account holder Will any bank accept a $50 million dollar CD and insure that money The first thing I'll suggest is that with $50 million you can afford to pay for advice from a financial service professional It's just that you'll need more help than you're going to get in this column , or FDIC, insurance on $20 million of the $50 million is to use CDARS, the Certificate of Deposit Account Registry Service You deal with one bank and CDARS works with that bank to ensure that all of your deposit is FDIC-insured I've written about CDARS before and suggest that you read that column and also check out the CDARS Web site Treasury securities are considered risk-free investments when held to maturity You do face some price fluctuations day to day with changes in market interest rates, but the government guarantees the face value of the security at maturity You can own these securities in a brokerage account or in a Treasury Direct account The brokerage firm in most cases will be a member of the Securities Investor Protection Corp The SIPC is much different from the FDIC, but it does provide a measure of protection from fraudulent brokerage firms " SIPC helps individuals whose money, stocks and other securities are stolen by a broker or put at risk when a brokerage fails for other reasons The SIPC doesn't guarantee that your investments won't lose value, it just steps in to protect you from theft of your securities or the failure of a brokerage firm Investments held as cash are protected only up to $100,000 If it were my millions, I wouldn't hesitate to invest in U Treasury securities in an account with a national firm, many of the large regional firms, a brokerage account with one of the large mutual fund companies or Treasury Direct Finding a home for this money while you're deciding how to invest is one thing Treasuries will protect your principal, but you can do a lot better without taking on a lot of risk, and you're probably going to want to expand your approved list of investments Municipal securities, for example, can provide tax-exempt income, but alternate minimum tax considerations means you'd want to consult with a tax professional about investing in municipal securities Try to get the big picture about what life goals you want to achieve with this money and what you'd like to accomplish with the remainder of the money after you're gone I'd actually focus on the life goals aspect before getting too deep into the how-to-invest-it part To that end, the Treasuries and CDs are fine for the short-term I wish I had someone to recommend for you on the life-goal side, but I started out telling you that you'd need more advice that I could give you in this column A life coach seems like a reasonable place to start Just don't listen to any advice about investing in a life-coach franchise Don, go to the "Ask the Experts" page, and select one of these topics: "financing a home," "saving & investing" or "money DonAsk a question � RESOURCES Find out when CD rates hit your target Hey, you Unlucky lotto winners who lost the money � TOP INVESTING STORIES Fame & Fortune: Jennifer Love Hewitt12 investment mistakes couples makeInvesting: To risk or not Which is better -- a rebate or special dealer financing Develop a savings plan Every kind of CD explained Treasury bonds and more Pros and cons of annuities All about IRAs GUIDES Real Estate Guide What will $400K buy This new statute overrides the constructive receipt doctrine and permits lottery winners to consult with their family, attorneys, accountants, and financial planners after winning the lottery in order to determine which payment option is most consonant with their goals and objectives The tax and financial considerations associated with a Section 451(h) election are discussed under "Planning," below The new law, which is effective for individuals winning the lottery after 10/21/98, creates a "qualified prize option" and a "qualified prize "6 A "qualified prize" is "any prize or award which (i) is awarded as a part of a contest, lottery, jackpot, game, or other similar arrangement, (ii) does not relate to any past services performed by the recipient and does not require the recipient to perform any substantial future service, and (iii) is payable over a period of at least 10 years " A "qualified prize option" is an "option which (i) entitles an individual to receive a single cash payment in lieu of receiving a qualified prize (or remaining portion thereof), and (ii) is exercisable not later than 60 days after such individual becomes entitled to the qualified prize " Section 451(h)(1) provides that, for a cash-method taxpayer, a "qualified prize option shall be disregarded in determining the taxable year for which any portion of the qualified prize is properly includible in gross income of the taxpayer " Section 451(h)(3) also instructs Treasury to issue Regulations for the application of the new rules to partnerships or other pass-through entities consisting entirely of cash-method individuals A significant transition rule gives previous lottery winners a one-time option to receive a lump-sum cash payment 105-277 provides that, for an 18-month period commencing on 7/1/99 and continuing to 12/31/00, previous lottery prize winners receiving payment in the form of an annuity may elect a lump-sum distribution equal to the present value of the remaining annuity payments Nevertheless, it is anticipated that most lotteries will begin offering the qualified prize option to prospective lottery contestants and prior lottery winners on 7/1/99 Unfortunately, Section 451(h) creates a class of prize winners who are not afforded its benefits Under the statute, there are three classes of prize winners:Prize winners prior to 10/22/98 ("pre-effective date winners") Prize winners after 10/21/98 and before 7/1/99, the date on which it is anticipated that most lotteries will begin to offer a qualified prize option ("interim winners") Prize winners after 6/30/99 ("qualified prize option winners") Thus, as of 7/1/99, the pre-effective date winners can make the one-time "18-month election" to receive a lump sum Similarly, all qualified prize option winners will be given 60 days to choose between a lump sum or annuity prize But the interim winners are not permitted to make the 18-month election because their lottery prize was won after the effective date of Section 451(h); similarly, they are not permitted to make a 60-day election because the local lottery rules have not been changed to provide for a qualified prize option The omission of the interim winners was most likely unintentional While legislation may be needed to cure the defect, it may be possible for the IRS to rule that it will not apply the constructive receipt doctrine to interim winners who are given an 18-month election to choose between a lump sum or an annuity First, many lotteries already offered a choice between a lump sum or an annuity In order to avoid the constructive receipt doctrine, the lottery contestant had to irrevocably elect the form of the prize prior to purchasing the ticket Regulations should clarify that pre-effective date winners and interim winners who chose to receive their prize as an annuity may nevertheless make the 18-month election to receive a lump-sum payment of the unpaid lottery prize Second, Section 451(h)(2)(b)(iii) requires that the lottery prize in the form of an annuity be payable over at least ten years Regulations should clarify, with respect to pre-effective date winners, that the annuity must be initially payable over ten years, as opposed to having at least ten years remaining on the annuity Example: On 3/15/87, Harold won a lottery prize payable in 20 annual installments On 7/1/99, the lottery board gives prior lottery winners a one-time 18-month election to receive a lump-sum payment Since Harold received 13 annual installments from 3/15/87 to 3/15/99, there are only seven remaining payments with respect to his annuity prize Regulations should clarify whether Harold is entitled to make the 18-month election Arguably, he should be, because his prize was initially payable over 20 years Other Constructive Receipt IssuesThe constructive receipt doctrine has been applied in other contexts with respect to lottery prize winners In Paul, TCM 1992-582, the taxpayer won the New Jersey lottery on 12/29/87 but did not receive payment until 1/22/88 The Tax Court held that winnings were includable in income in 1988, the year in which the payment was actually received In arriving at its decision, the court rejected the Service's argument that the taxpayer could have driven 68 miles to Trenton in the last two days of the year to demand payment "on the spot " The court considered such a requirement a "substantial limitation," thereby negating the application of the constructive receipt doctrine The treatment of the constructive receipt doctrine in Paul raises an issue with respect to lottery winners after the enactment of Section 451(h) If a lottery contestant wins on December 15th and is given 60 days to choose between a lump sum or an annuity, the contestant may argue that she is not required to include any portion of the lottery prize, whether a lump-sum distribution or an annuity installment payment, until the date on which she makes an election, possibly in January or February of the following year The IRS presumably would argue that the lottery contestant is given an election that may be exercised immediately, and therefore the existence of the election does not create a substantial limitation on the lottery winner's control or receipt of the lottery prize, in whatever form Economic Benefit DoctrineThe economic benefit doctrine is a related but separate income tax accounting concept that also should be considered This doctrine provides that income is taxable under Section 61 even though it is not actually or constructively received in the form of cash Unlike the constructive receipt doctrine, it is not necessary that the taxpayer's interest in the property be assignable or for the taxpayer to be entitled to immediate possession; rather, it is only necessary that there be an identifiable property interest over which the taxpayer's rights have vested The Tax Court held that the winnings were taxable to the minor in the year they were deposited into the account for his benefit, not in the year of actual receipt Fortunately, certain restrictions in the lottery statute or rules avoid the application of the economic benefit doctrine Moreover, lottery rules typically provide that the winner has only an inchoate, contractual right to receive annuity payments from the lottery Withholding on Lottery WinningsSection 3402(q)(1) provides that "[e]very person, including the Government of the United States, a State, or a political subdivision thereof, or any instrumentalities of the foregoing, making any payment of winnings which are subject to withholding shall deduct and withhold from such payment a tax in an amount equal to 28 percent of such payment "15 Generally, proceeds exceeding $5,000 are subject to withholding Individuals who receive lottery winnings won by someone else or members of a group of winners on the same winning ticket must report their winnings on IRS Form 5754 Many lottery winners, especially large prize winners, are often dismayed to learn that, even after their lottery prize is substantially reduced by income tax withholding, they may be required to pay additional income tax Given the disparity between the 28% federal withholding rate and the 39 Gambling LossesLottery winnings are considered gambling gains " Therefore, gambling losses may not offset other income or be used as an NOL carryback or carryover The gambling loss deduction can be applied two ways:If a taxpayer's gambling activities constitute a trade or business, substantiated gambling losses are deductible in arriving at the taxpayer's adjusted gross income If a taxpayer's gambling activities do not constitute a trade or business, the IRS takes the position that the taxpayer must deduct such losses as itemized deductions A limited federal credit for state death taxes is available Similarly, for lottery winners receiving payments as an annuity, the present value of the unpaid annuity payments is included in the lottery winner's gross estate In addition to the income taxes payable with respect to the lottery prize, Elizabeth's estate is required to pay estate taxes on the lottery prize included in her estate Assuming that the lottery prize is the only asset in Elizabeth's estate, that she made no taxable gifts during her lifetime, and that she is subject to a flat, combined 45% income tax rate, she would be required to pay income taxes of $4 After receiving the first five payments, Ann died on 11/1/98 Under Sections 2031, 2039, and 7520, Ann's estate is required to include the present value of the remaining 15 annuity payments, calculated to be $10,104,600 " This is an annuity, income, remainder, or reversionary interest that is "subject to any contingency, power, or other restriction, whether the restriction is provided for by the terms of the trust, will, or other governing instrument or is caused by other circumstances " Taxpayers have argued that lottery rules which prohibit or limit the assignability of the remaining annuity payments cause the annuity to be a restricted beneficial interest, thereby permitting a departure from the requirements of Section 7520 In TAM 9616004, the IRS rejected this argument, however, noting that Reg Because there is no restriction on the payment of the lottery prize annuity, the taxpayer is required to use the standard Section 7520 annuity factors , 1998), suggests that, for lottery winners dying between 4/30/89 and 12/13/95, departure from the Section 7520 annuity tables may be warranted In Shackleford, the taxpayer died in 1990 after receiving the first three annuity payments of his lottery prize His estate reported the value of the remaining annuity at $2 The court concluded that a factual issue regarding the value of the annuity was in dispute, and therefore denied the Service's motion for summary judgment The taxpayer and her sister-in-law won a state lottery with a lottery prize payable as an annuity over 20 years The taxpayer's sister-in-law executed an affidavit stating that they regularly pooled their money, that they had a preexisting agreement to share their lottery winnings, and that the winning lottery ticket was purchased on behalf of their preexisting partnership The parties formed a limited partnership in which each was a 2% general partner and a 48% limited partner The limited partnership claimed the winning lottery prize After the first annuity payment was made to the partnership, the taxpayer died; it is significant that, as in Shackleford, the taxpayer died before 12/13/95, the effective date of Reg The taxpayer's estate listed the partnership interests on the estate tax return The partnership interests were valued by first computing the sum of the underlying assets, cash and 19 lottery payments receivable The estate then discounted the payments to present value using a discount rate based on the AAA-rated general obligation bond yield, as opposed to the Section 7520 factors The estate further discounted each payment by 39 Finally, the estate took an additional 20% discount for the partnership interests for lack of control and another 25% for lack of marketability The Service rejected the estate's argument that the Section 7520 factors should not be used and found that the annuity payments were not restricted beneficial interests Based on the same rationale used in TAM 9616004, the IRS found that the nonassignability of the lottery prize did not affect the payment of the annuity In addition, the Service found that the right of the partnership to receive payment of the lottery winnings had not been restricted in any way The IRS concluded that the taxpayer's estate was required to use the standard Section 7520 annuity factors to value the annuity payments and that discounts for lack of marketability and income taxes could not be applied to the valuation of the annuity payments The Service expressed no opinion on entity discounts for lack of marketability and lack of control that were applied to the partnership interests Alternate ValuationOrdinarily, assets subject to the estate tax are valued as of the date of the decedent's death Section 2032(a), however, provides that the executor may elect to value the assets in the gross estate on an "alternate valuation date," typically six months after the date of the decedent's death If the property was distributed, sold, exchanged, or disposed of earlier than that date, it is valued on the date of disposition In TAM 9637006, a lottery winner was entitled to receive 16 additional annuity payments of $112,500 each at the time of his death On the day he died, the Section 7520 interest rate was 8 On the alternate valuation date six months later, the Section 7520 interest rate was 9 The estate valued the decedent's interest in the 16 annuity payments as of the date of death, but used the 9 The IRS ruled that an annuity is an interest that is affected by the mere lapse of time Valuation changes due to interest rate fluctuations, however, are not changes due to the mere lapse of time Changes due to mere lapse of time include changes attributable to the time value of money, the depletion of an asset, or the receipt of a benefit by an estate during the alternate valuation period The IRS concluded that the estate properly valued the interest as of the time of death with the adjustment for the difference in its value as of the alternate valuation date due to the change in the applicable federal rate Liquidity IssuesMany lottery winners and their families are discouraged to learn that, along with the return, estate taxes are due nine months after the date of death The estates of winners who received their prizes as an annuity are often placed in the difficult predicament of not having sufficient cash to pay estate taxes Example: The facts are the same as in the previous example, i , the present value of Ann's remaining lottery annuity is $10,104,600 Assuming that this is the only asset in Ann's estate (and that Ann made no taxable gifts during her lifetime), the estate taxes due will be $5,001,510 Ann's estate will not receive another lottery annuity payment until 10/31/99 Because of the illiquid nature of the annuity, there is simply insufficient cash to pay the estate taxes

Ed Franklins Annuity Sales

August 11, 2008 - 7:48 am

ED FRANKLIN�S annuity buyer and sales get cash now Annuity may refer to:Annuity (finance theory), (Payout phase) any recurring periodic series of payments Annuity (finance theory) (Accumulation phase) a tax deferred savings vehicle Annuity (financial contracts), an insurance-like contract providing Monthly, Quarterly, Semi-Annual or Annual paymentsAnnuity (US financial products)Annuity (European financial arrangements)Life annuity (also single payment annuity), a financial contract providing payments for a person's lifetimeAnnuity, a maintenance fee (patent) in patent law An annuity that has no definite end is called a perpetuity This disambiguation page lists articles associated with the same title If an internal link led you here, you may wish to change the link to point directly to the intended article Perhaps confusingly, the majority of modern annuity customers use annuities only to accumulate funds and to take lump-sum withdrawals without using the guaranteed-income-for-life feature Annuity contracts in the United States are defined by the Internal Revenue Code and regulated by the individual states Variable annuities have features of both life insurance and investment products , annuity contracts may be issued only by life insurance companies, although private annuity contracts may be arranged between donors to non-profits to reduce taxes Insurance companies are regulated by the states, so contracts or options that may be available in some states may not be available in others Their federal tax treatment, however, is governed by the Internal Revenue Code Variable annuities are regulated by the Securities and Exchange Commission and the sale of variable annuities is overseen by FINRA(The largest non-governmental regulator for all securities firms doing business in the United States) There are two possible phases for an annuity, one phase in which the customer deposits and accumulates money into an account (the deferral phase), and another phase in which customers receive payments for some period of time (the annuity or income phase) During this latter phase, the insurance company makes income payments that may be set for a stated period of time, such as five years, or continue until the death of the customer(s) (the "annuitant(s)") named in the contract Annuitization over a lifetime can have a death benefit guarantee over a certain period of time, such as ten years Annuity contracts with a deferral phase always have an annuity phase and are called deferred annuities An annuity contract may also be structured so that it has only the annuity phase; such a contract is called an immediate annuity The term "annuity," as used in financial theory, is most closely related to what is today called an immediate annuity This is an insurance policy which, in exchange for a sum of money, guarantees that the issuer will make a series of payments These payments may be either level or increasing periodic payments for a fixed term of years or until the ending of a life or two lives, or even whichever is longer It is also possible to structure the payments under an immediate annuity so that they vary with the performance of a specified set of investments, usually bond and equity mutual funds Such a contract is called a variable immediate annuity The overarching characteristic of the immediate annuity is that it is a vehicle for distributing savings with a tax-deferred growth factor A common use for an immediate annuity might be to provide a pension income , the tax treatment of an immediate annuity is that every payment is a combination of a return of principal (which part is not taxed) and income (which is taxed at ordinary income rates, not capital gain rates) When a deferred annuity is annuitized, it works like an immediate annuity from that point on, but with a lower cost basis and thus more of the payment is taxed This type of immediate annuity pays the annuitant for a designated number of years (i , a period certain) and is used to fund a need that will end when the period is up (for example, it might be used to fund the premiums for a term life insurance policy) Thus this option is not necessarily suitable for an individual's retirement income, as the person may outlive the number of years the annuity will pay A life or lifetime immediate annuity is used to provide an income for the life of the annuitant similar to a defined benefit or pension plan A life annuity works somewhat like a loan that is made by the purchaser (contract owner) to the issuing (insurance) company, which pays back the original capital or principal (which isn't taxed) with interest and/or gains (which is taxed as ordinary income) to the annuitant on whose life the annuity is based The assumed period of the loan is based on the life expectancy of the annuitant In order to guarantee that the income continues for life, the insurance company relies on a concept called cross-subsidy or the "law of large numbers" Because an annuity population can be expected to have a distribution of lifespans around the population's mean (average) age, those dying earlier will give up income to support those living longer whose money would otherwise run out A life annuity, ideally, can reduce the "problem" faced by a person that he/she doesn't know how long he/she will live, and so he/she doesn't know the optimal speed at which to spend his/her savings Life annuities with payments indexed to the Consumer Price Index might be an acceptable solution to this problem, but there is only a thin market for them in North America For an additional expense (either by way of an increase in payments (premium) or a decrease in benefits), an annuity or benefit rider can be purchased on another life such as a spouse, family member or friend for the duration of whose life the annuity is wholly or partly guaranteed For example, it is common to buy an annuity which will continue to pay out to the spouse of the annuitant after death, for so long as the spouse survives The annuity paid to the spouse is called a reversionary annuity or survivorship annuity However, if the annuitant is in good health, it may be more advantageous to select the higher payout option on his or her life only and purchase a life insurance policy that would pay income to the survivor The pure life annuity can have harsh consequences for the annuitant who dies before recovering his or her investment in the contract Such a situation, called a forfeiture, can be mitigated by the addition of a period-certain feature under which the annuity issuer is required to make annuity payments for a least a certain number of years; if the annuitant outlives the specified period certain, annuity payments continue until the annuitant's death, and if the annuitant dies before the expiration of the period certain, the annuitant's estate or beneficiary is entitled to the remaining payments certain The tradeoff between the pure life annuity and the life-with-period-certain annuity is that the annuity payment for the latter is smaller A viable alternative to the life-with-period-certain annuity is to purchase a single-premium life policy that would cover the lost premium in the annuity Impaired-life annuities for smokers or those with a particular illness are also available from some insurance companies Since the life expectancy is reduced, the annual payment to the purchaser is raised Life annuities are priced based on the probability of the annuitant surviving to receive the payments Longevity insurance is a form of annuity that defers commencement of the payments until very late in life A common longevity contract would be purchased at or before retirement but would not commence payments until 20 years after retirement If the nominee dies before payments commence there is no payable benefit This drastically reduces the cost of the annuity while still providing protection against outliving one's resources The second usage for the term annuity came into being during the 1970s Such a contract is more properly referred to as a deferred annuity and is chiefly a vehicle for accumulating savings with a view to eventually distributing them either in the manner of an immediate annuity or as a lump-sum payment All varieties of deferred annuities owned by individuals have one thing in common: any increase in account values is not taxed until those gains are withdrawn This is also known as tax-deferred growth A deferred annuity which grows by interest rate earnings alone is called a fixed deferred annuity (FA) A deferred annuity that permits allocations to stock or bond funds and for which the account value is not guaranteed to stay above the initial amount invested is called a variable annuity (VA) A new category of deferred annuity, called the equity indexed annuity (EIA) emerged in 1995 [2] Equity indexed annuities may have features of both fixed and variable deferred annuities The insurance company typically guarantees a minimum return for EIA An investor can still lose money if he or she cancels (or surrenders) the policy early, before a "break even" period An oversimplified expression of a typical EIA's rate of return might be that it is equal to a stated "participation rate" multiplied by a target stock market index's performance excluding dividends Interest rate caps or an administrative fee may be applicable Deferred annuities in the United States have the advantage that taxation of all capital gains and ordinary income is deferred until withdrawn In theory, such tax-deferred compounding allows more money to be put to work while the savings are accumulating, leading to higher returns A disadvantage, however, is that when amounts held under a deferred annuity are withdrawn or inherited, the interest/gains are immediately taxed as ordinary income A variety of features and guarantees have been developed by insurance companies in order to make annuity products more attractive These include death and living benefit options, extra credit options, account guarantees, spousal continuation benefits, reduced contingent deferred sales charges (or surrender charges), and various combinations thereof Each feature or benefit added to a contract will typically be accompanied by an additional expense either directly (billed to client) or indirectly (inside product) Deferred annuities are usually divided into two different kinds:Fixed annuities offer some sort of guaranteed rate of return over the life of the contract In general such contracts are often positioned to be somewhat like bank CDs and offer a rate of return competitive with those of CDs of similar time frames Many fixed annuities, however, do not have a fixed rate of return over the life of the contract, offering instead a guaranteed minimum rate and a first year introductory rate The rate after the first year is often an amount that may be set at the insurance company's discretion subject, however, to the minimum amount (typically 3%) There are usually some provisions in the contract to allow a percentage of the interest and/or principal to be withdrawn early and without penalty (usually the interest earned in a 12-month period or 10%), unlike most CDs Fixed annuities normally become fully liquid upon the owner's death Most equity index annuities are properly categorized as fixed annuities and their performance is typically tied to a stock market index (usually the S&P 500 or the Dow Jones Industrial Average) These products are guaranteed but are not as easy to understand as standard fixed annuities as there are usually caps, spreads, margins, and crediting methods that can reduce returns These products also don't pay any of the participating market indices' dividends; the trade-off is that contract holder can never earn less than 0% in a negative year Variable annuities allow money to be invested in insurance company "separate accounts" (which are sometimes referred to as "subaccounts" and in any case are functionally similar to mutual funds) in a tax-deferred manner [3] Their primary use is to allow an investor to engage in tax-deferred investing for retirement in amounts greater than permitted by individual retirement or 401(k) plans In addition, many variable annuity contracts offer a guaranteed minimum rate of return (either for a future withdrawal and/or in the case of the owner's death), even if the underlying separate account investments perform poorly This can be attractive to people uncomfortable investing in the equity markets without the guarantees Of course, an investor will pay for each benefit provided by a variable annuity, since insurance companies must charge a premium to cover the insurance guarantees of such benefits Variable annuities are regulated both by the individual states (as insurance products) and by the Securities and Exchange Commission (as securities under the federal securities laws) The SEC requires that all of the charges under variable annuities be described in great detail in the prospectus that is offered to each variable annuity customer Of course, potential customers should review these charges carefully, just as one would in purchasing mutual fund shares People who sell variable annuities are usually regulated by FINRA, whose rules of conduct require a careful analysis of the suitability of variable annuities (and other securities products) to those to whom they recommend such products These products are often criticized as being sold to the wrong persons, who could have done better investing in a more suitable alternative, since the commissions paid under this product are often high relative to other investment products There are several types of performance guarantees, and one may often choose them a la carte, with higher risk charges for guarantees that are riskier for the insurance companies The first type is comprised of guaranteed minimum death benefits (GMDBs), which can be received only if the owner of the annuity contract, or the covered annuitant, dies GMDBs come in various flavors, in order of increasing risk to the insurance company:Return of premium (a guarantee that you will not have a negative return)Roll-up of premium at a particular rate (a guarantee that you will achieve a minimum rate of return, greater than 0)Maximum anniversary value (looks back at account value on the anniversaries, and guarantees you will get at least as much as the highest values upon death)Greater of maximum anniversary value or particular roll-up Insurance companies provide even greater insurance coverage on guaranteed living benefits, which tend to be elective Unlike death benefits, which the contractholder generally can't time, living benefits pose significant risk for insurance companies as contractholders will likely exercise these benefits when they are worth the most Annuities with guaranteed living benefits (GLBs) tend to have high fees commensurate with the additional risks underwritten by the issuing insurer Some GLB examples, in no particular order:Guaranteed minimum income benefit (a guarantee that one will get a minimum income stream upon annuitization at a particular point in the future)Guaranteed minimum accumulation benefit (a guarantee that the account value will be at a certain amount at a certain point in the future)Guaranteed minimum withdrawal benefit (a guarantee similar to the income benefit, but one that doesn't require annuitizing)Guaranteed-for-life income benefit (a guarantee similar to a withdrawal benefit, but will pay you for as long as you live and does not require annuitization) Deferred annuities are generally sold by financial professionals, some of whom may work directly for an insurance company Most financial professionals, however, are independent agents of the insurance company, not employees The financial professional who sells an annuity collects a commission from the insurance company This commission will be a percentage of the total premium paid by the investor This percentage can be as little as 1% and as high as 12%; the average is 6% Since these commissions appear high and there are deferred sales charges on annuities, many financial gurus have criticized annuity products The investor will, generally, not pay any of this commission directly to the financial professional; the commission is paid by the insurance company to the financial professional up front The insurance company will recapture the commission paid to the financial professional through the fees charged to the customer (in a variable or equity indexed annuity) or the spread in the interest rate market (for a fixed annuity) There are also deferred back-end charges that will be applied if the investor closes out his or her contract before the agreed-upon time frame, usually 8 years These charges can last for as little as 1 year or as many as 20 years, depending on the type of annuity and issuing company These back-end charges concern many financial professionals and financial gurus Some annuities do not have any deferred surrender charges and do not pay the financial professional a commission, although the financial professional may charge a fee for his or her advice These contracts are called "no-load" variable annuity products and are usually available from a fee-based financial planner or directly from a no-load mutual fund company Of course various charges are still imposed on these contracts, but they are less than those sold by commissioned brokers It is important that potential purchasers -- of annuities, mutual funds, tax-exempt municipal bonds, commodities futures, interest-rate swaps, in short, any financial instrument -- understand the fees on the product and the fees a financial planner may charge Variable annuities are controversial because many believe the extra fees (i , the fees above and beyond those charged for similar retail mutual funds that offer no principal protection or guarantees of any kind) may reduce the rate of return compared to what the investor could make by investing directly in similar investments outside of the variable annuity A big selling point for variable annuities is the guarantees many have, such as the guarantee that the customer will not lose his or her principal Critics say that these guarantees are not necessary because over the long term the market has always been positive, while others say that with the uncertainty of the financial markets many investors simply will not invest without guarantees Past returns are no guarantee of future performance, of course, and different investors have different risk tolerances, different investment horizons, different family situations, and so on The sale of any security product should involve a careful analysis of the suitability of the product for a given individual A controversial practice of insurance sales is the selling of insurance contracts within an IRA or 401(k) plan Since these investment vehicles are already tax deferred, investors do not receive additional tax shelters from the annuities The benefit of the annuity contract is the guaranteed lifetime income that all annuity contracts must have by state law Approximately 90% of annuitants, however, have not taken the life annuity upon retirement If an investor does not intend to take the life income option from an annuity contract at retirement he or she may want to consider a low-cost deferred annuity If an investor needs to take lifetime income at retirement, on the other hand, he or she may want to try to buy an annuity upon retirement or might consider selecting a 401(k) plan account with an option to buy the annuity just before retirement [4] examined the effects of taxation on annuities relative to other investment vehicles The author found that annuities are generally not effective as a tax-deferral vehicle and that there are significant flaws in the use of annuities for financial planning during the accumulation phase Internal Revenue Code, the growth of the annuity value during the accumulation phase is tax-deferred, that is, not subject to current income tax, for annuities owned by individuals The tax deferred status of deferred annuities has led to their common usage in the United States tax code, the benefits from annuity contracts do not always have to be taken in the form of a fixed stream of payments (annuitization), and many of annuity contracts are bought primarily for the tax benefits rather than to receive a fixed stream of income If an annuity is used in a qualified pension plan or an IRA funding vehicle, then 100% of the annuity payment is taxable as current income upon distribution (because the taxpayer has no tax basis in any of the money in the annuity) If the annuity contract is purchased with after-tax dollars, then the contractholder upon annuitization recovers his basis pro-rata in the ratio of basis divided by the expected value, according to the tax regulation Section 1 (This is commonly referred to as the exclusion ratio ) After the taxpayer has recovered all of his basis, then 100% of the payments thereafter are subject to ordinary income tax Since the Jobs and Growth Tax Relief Reconciliation Act of 2003, the use of variable annuities as a tax shelter has greatly diminished, because the growth of mutual funds and now most of the dividends of the fund are taxed at long term capital gains rates This taxation, contrasted with the taxation of all the growth of variable annuities at income rates, means that in most cases, variable annuities shouldn't be used for tax shelters unless very long holding periods apply (for example, more than 20 years) Also, any withdrawals before an investor reaches the age of 59 ½ are generally subject to a 10% tax penalty in addition to any gain being taxed as ordinary income [edit] Insurance company default risk and state guaranty associations An investor should consider the financial strength of the insurance company that writes annuity contracts Major insolvencies have occurred at least 62 times since the conspicuous collapse of the Executive Life Insurance Company in 1991 Insurance company defaults are governed by state law The laws are, however, broadly similar in most states Annuity contracts are protected against insurance company insolvency up to a specific dollar limit, often $100,000, but as high as $500,000 in New York[6], New Jersey[7], and the state of Washington[8] This protection is not insurance and is not provided by a government agency It is provided by an entity called the state Guaranty Association When an insolvency occurs, the Guaranty Association steps in to protect annuity holders, and decides what to do on a case-by-case basis Sometimes the contracts will be taken over and fulfilled by a solvent insurance company The state Guaranty Association is not a government agency, but states usually require insurance companies to belong to it as a condition of being licensed to do business The Guaranty Associations of the fifty states are members of a national umbrella association, the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) The NOLHGA website provides a description of the organization, links to websites for the individual state organizations, and links to the actual text of the governing state laws A difference between guaranty association protection and the protection e of bank accounts by FDIC, credit union accounts by NCUA, and brokerage accounts by SIPC, is that it is difficult for consumers to learn about this protection Usually, state law prohibits insurance agents and companies from using the guaranty association in any advertising and agents are prohibited by statute from using this Web site or the existence of the guaranty association as an inducement to purchase insurance(e Presumably this is a response to concerns by stronger insurance companies about moral hazard Deferred annuities, including fixed, equity indexed and variable, typically pay the advisor or salesperson 1 percent to 12 percent of the amount invested as a commission, with possible trail options of 25 basis points to 1 percent Sometimes the advisor can select his payout option, which might be either 7 percent up front, or 5 percent up front with a 25 basis point trail, or 1 percent to 3 percent up front with a 1 percent trail Some firms allow an investor to pick an annuity share class, which determines the salesperson's commission schedule The main variables are the up-front commission and the trailing commission "No-load" variable annuities are available on a direct-to-consumer basis from several no-load mutual fund companies "No-load" means the products have no sales commissions or surrender charges Even these lower cost variable annuities often make sense only after an investor has exhausted all other forms of tax shelters, and only if being held for quite some time Fixed and Indexed Annuity commissions are paid by the insurance companies the licensed agent represents Commissions are not paid out of the clients principal An examination of variable annuity investment versus investing outside of annuitiesRetrieved from "http://en An annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date Annuities typically offer tax-deferred growth of earnings and may include a death benefit that will pay your beneficiary a guaranteed minimum amount, such as your total purchase payments There are generally two types of annuitiesfixed and variable In a fixed annuity, the insurance company guarantees that you will earn a minimum rate of interest during the time that your account is growing The insurance company also guarantees that the periodic payments will be a guaranteed amount per dollar in your account These periodic payments may last for a definite period, such as 20 years, or an indefinite period, such as your lifetime or the lifetime of you and your spouse In a variable annuity, by contrast, you can choose to invest your purchase payments from among a range of different investment options, typically mutual funds The rate of return on your purchase payments, and the amount of the periodic payments you will eventually receive, will vary depending on the performance of the investment options you have selected An equity-indexed annuity is a special type of annuity During the accumulation period when you make either a lump sum payment or a series of payments the insurance company credits you with a return that is based on changes in an equity index, such as the S&P 500 Composite Stock Price Index The insurance company typically guarantees a minimum return After the accumulation period, the insurance company will make periodic payments to you under the terms of your contract, unless you choose to receive your contract value in a lump sum Variable annuities are securities regulated by the SEC Fixed annuities are not securities and are not regulated by the SEC Equity-indexed annuities combine features of traditional insurance products (guaranteed minimum return) and traditional securities (return linked to equity markets) Depending on the mix of features, an equity-indexed annuity may or may not be a security The typical equity-indexed annuity is not registered with the SEC You can learn more about variable annuities by reading our publication, Variable Annuities: What You Should Know You can learn more about equity-indexed annuities by reading our online brochure, which explains equity-indexed annuities and provides resources for obtaining additional information Before you buy a variable annuity, you should know some of the basics and be prepared to ask your insurance agent, broker, financial planner, or other financial professional lots of questions about whether a variable annuity is right for you This is a general description of variable annuities what they are, how they work, and the charges you will pay Before buying any variable annuity, however, you should find out about the particular annuity you are considering Request a prospectus from the insurance company or from your financial professional, and read it carefully The prospectus contains important information about the annuity contract, including fees and charges, investment options, death benefits, and annuity payout options You should compare the benefits and costs of the annuity to other variable annuities and to other types of investments, such as mutual funds A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments A variable annuity offers a range of investment options The value of your investment as a variable annuity owner will vary depending on the performance of the investment options you choose The investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three Although variable annuities are typically invested in mutual funds, variable annuities differ from mutual funds in several important ways:First, variable annuities let you receive periodic payments for the rest of your life (or the life of your spouse or any other person you designate) This feature offers protection against the possibility that, after you retire, you will outlive your assets Second, variable annuities have a death benefit If you die before the insurer has started making payments to you, your beneficiary is guaranteed to receive a specified amount typically at least the amount of your purchase payments Your beneficiary will get a benefit from this feature if, at the time of your death, your account value is less than the guaranteed amount That means you pay no taxes on the income and investment gains from your annuity until you withdraw your money You may also transfer your money from one investment option to another within a variable annuity without paying tax at the time of the transfer When you take your money out of a variable annuity, however, you will be taxed on the earnings at ordinary income tax rates rather than lower capital gains rates In general, the benefits of tax deferral will outweigh the costs of a variable annuity only if you hold it as a long-term investment to meet retirement and other long-range goals Other investment vehicles, such as IRAs and employer-sponsored 401(k) plans, also may provide you with tax-deferred growth and other tax advantages For most investors, it will be advantageous to make the maximum allowable contributions to IRAs and 401(k) plans before investing in a variable annuity In addition, if you are investing in a variable annuity through a tax-advantaged retirement plan (such as a 401(k) plan or IRA), you will get no additional tax advantage from the variable annuity Under these circumstances, consider buying a variable annuity only if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection The tax rules that apply to variable annuities can be complicated before investing, you may want to consult a tax adviser about the tax consequences to you of investing in a variable annuity Remember: � Variable annuities are designed to be long-term investments, to meet retirement and other long-range goals Variable annuities are not suitable for meeting short-term goals because substantial taxes and insurance company charges may apply if you withdraw your money early Variable annuities also involve investment risks, just as mutual funds do How Variable Annuities Work� A variable annuity has two phases: an accumulation phase and a payout phase During the accumulation phase, you make purchase payments, which you can allocate to a number of investment options For example, you could designate 40% of your purchase payments to a bond fund, 40% to a U stock fund, and 20% to an international stock fund The money you have allocated to each mutual fund investment option will increase or decrease over time, depending on the fund's performance In addition, variable annuities often allow you to allocate part of your purchase payments to a fixed account A fixed account, unlike a mutual fund, pays a fixed rate of interest The insurance company may reset this interest rate periodically, but it will usually provide a guaranteed minimum (e Example: � You purchase a variable annuity with an initial purchase payment of $10,000 You allocate 50% of that purchase payment ($5,000) to a bond fund, and 50% ($5,000) to a stock fund Over the following year, the stock fund has a 10% return, and the bond fund has a 5% return At the end of the year, your account has a value of $10,750 ($5,500 in the stock fund and $5,250 in the bond fund), minus fees and charges (discussed below) Your most important source of information about a variable annuity's investment options is the prospectus Request the prospectuses for the mutual fund investment options Read them carefully before you allocate your purchase payments among the investment options offered You should consider a variety of factors with respect to each fund option, including the fund's investment objectives and policies, management fees and other expenses that the fund charges, the risks and volatility of the fund, and whether the fund contributes to the diversification of your overall investment portfolio Another SEC online publication, Invest Wisely: An Introduction to Mutual Funds, provides general information about the types of mutual funds and the expenses they charge During the accumulation phase, you can typically transfer your money from one investment option to another without paying tax on your investment income and gains, although you may be charged by the insurance company for transfers However, if you withdraw money from your account during the early years of the accumulation phase, you may have to pay "surrender charges," which are discussed below In addition, you may have to pay a 10% federal tax penalty if you withdraw money before the age of 59½ At the beginning of the payout phase, you may receive your purchase payments plus investment income and gains (if any) as a lump-sum payment, or you may choose to receive them as a stream of payments at regular intervals (generally monthly) If you choose to receive a stream of payments, you may have a number of choices of how long the payments will last Under most annuity contracts, you can choose to have your annuity payments last for a period that you set (such as 20 years) or for an indefinite period (such as your lifetime or the lifetime of you and your spouse or other beneficiary) During the payout phase, your annuity contract may permit you to choose between receiving payments that are fixed in amount or payments that vary based on the performance of mutual fund investment options The amount of each periodic payment will depend, in part, on the time period that you select for receiving payments Be aware that some annuities do not allow you to withdraw money from your account once you have started receiving regular annuity payments In addition, some annuity contracts are structured as immediate annuities, which means that there is no accumulation phase and you will start receiving annuity payments right after you purchase the annuity The Death Benefit and Other Features� A common feature of variable annuities is the death benefit If you die, a person you select as a beneficiary (such as your spouse or child) will receive the greater of: (i) all the money in your account, or (ii) some guaranteed minimum (such as all purchase payments minus prior withdrawals) Example: You own a variable annuity that offers a death benefit equal to the greater of account value or total purchase payments minus withdrawals You have made purchase payments totaling $50,000 In addition, you have withdrawn $5,000 from your account Because of these withdrawals and investment losses, your account value is currently $40,000 If you die, your designated beneficiary will receive $45,000 (the $50,000 in purchase payments you put in minus $5,000 in withdrawals) Some variable annuities allow you to choose a � "stepped-up" death benefit Under this feature, your guaranteed minimum death benefit may be based on a greater amount than purchase payments minus withdrawals For example, the guaranteed minimum might be your account value as of a specified date, which may be greater than purchase payments minus withdrawals if the underlying investment options have performed well The purpose of a stepped-up death benefit is to "lock in" your investment performance and prevent a later decline in the value of your account from eroding the amount that you expect to leave to your heirs This feature carries a charge, however, which will reduce your account value Variable annuities sometimes offer other optional features, which also have extra charges One common feature, the � guaranteed minimum income benefit, guarantees a particular minimum level of annuity payments, even if you do not have enough money in your account (perhaps because of investment losses) to support that level of payments Other features may include long-term care insurance, which pays for home health care or nursing home care if you become seriously ill You may want to consider the financial strength of the insurance company that sponsors any variable annuity you are considering buying This can affect the company's ability to pay any benefits that are greater than the value of your account in mutual fund investment options, such as a death benefit, guaranteed minimum income benefit, long-term care benefit, or amounts you have allocated to a fixed account investment option You will pay for each benefit provided by your variable annuity Carefully consider whether you need the benefit If you do, consider whether you can buy the benefit more cheaply as part of the variable annuity or separately (e , through a long-term care insurance policy) Variable Annuity Charges� You will pay several charges when you invest in a variable annuity Be sure you understand all the charges before you invest These charges will reduce the value of your account and the return on your investment Surrender charges If you withdraw money from a variable annuity within a certain period after a purchase payment (typically within six to eight years, but sometimes as long as ten years), the insurance company usually will assess a "surrender" charge, which is a type of sales charge This charge is used to pay your financial professional a commission for selling the variable annuity to you Generally, the surrender charge is a percentage of the amount withdrawn, and declines gradually over a period of several years, known as the "surrender period " For example, a 7% charge might apply in the first year after a purchase payment, 6% in the second year, 5% in the third year, and so on until the eighth year, when the surrender charge no longer applies Often, contracts will allow you to withdraw part of your account value each year 10% or 15% of your account value, for example without paying a surrender charge Example: You purchase a variable annuity contract with a $10,000 purchase payment The contract has a schedule of surrender charges, beginning with a 7% charge in the first year, and declining by 1% each year In addition, you are allowed to withdraw 10% of your contract value each year free of surrender charges In the first year, you decide to withdraw $5,000, or one-half of your contract value of $10,000 (assuming that your contract value has not increased or decreased because of investment performance) In this case, you could withdraw $1,000 (10% of contract value) free of surrender charges, but you would pay a surrender charge of 7%, or $280, on the other $4,000 withdrawn Mortality and expense risk charge This charge is equal to a certain percentage of your account value, typically in the range of 1 This charge compensates the insurance company for insurance risks it assumes under the annuity contract Profit from the mortality and expense risk charge is sometimes used to pay the insurer's costs of selling the variable annuity, such as a commission paid to your financial professional for selling the variable annuity to you Example: Your variable annuity has a mortality and expense risk charge at an annual rate of 1 Your average account value during the year is $20,000, so you will pay $250 in mortality and expense risk charges that year Administrative fees The insurer may deduct charges to cover record-keeping and other administrative expenses This may be charged as a flat account maintenance fee (perhaps $25 or $30 per year) or as a percentage of your account value (typically in the range of 0 Example: Your variable annuity charges administrative fees at an annual rate of 0 Your average account value during the year is $50,000 You will pay $75 in administrative fees Underlying Fund Expenses You will also indirectly pay the fees and expenses imposed by the mutual funds that are the underlying investment options for your variable annuity Fees and Charges for Other Features Special features offered by some variable annuities, such as a stepped-up death benefit, a guaranteed minimum income benefit, or long-term care insurance, often carry additional fees and charges Other charges, such as initial sales loads, or fees for transferring part of your account from one investment option to another, may also apply You should ask your financial professional to explain to you all charges that may apply You can also find a description of the charges in the prospectus for any variable annuity that you are considering tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying any tax on the income and investment gains in your current variable annuity account These tax-free exchanges, known as 1035 exchanges, can be useful if another annuity has features that you prefer, such as a larger death benefit, different annuity payout options, or a wider selection of investment choices You may, however, be required to pay surrender charges on the old annuity if you are still in the surrender charge period In addition, a new surrender charge period generally begins when you exchange into the new annuity This means that, for a significant number of years (as many as 10 years), you typically will have to pay a surrender charge (which can be as high as 9% of your purchase payments) if you withdraw funds from the new annuity Further, the new annuity may have higher annual fees and charges than the old annuity, which will reduce your returns If you are thinking about a 1035 exchange, you should compare both annuities carefully Unless you plan to hold the new annuity for a significant amount of time, you may be better off keeping the old annuity because the new annuity typically will impose a new surrender charge period Also, if you decide to do a 1035 exchange, you should talk to your financial professional or tax adviser to make sure the exchange will be tax-free If you surrender the old annuity for cash and then buy a new annuity, you will have to pay tax on the surrender Bonus Credits� Some insurance companies are now offering variable annuity contracts with "bonus credit" features These contracts promise to add a bonus to your contract value based on a specified percentage (typically ranging from 1% to 5%) of purchase payments Example: � You purchase a variable annuity contract that offers a bonus credit of 3% on each purchase payment You make a purchase payment of $20,000 The insurance company issuing the contract adds a bonus of $600 to your account Variable annuities with bonus credits may carry a downside, however higher expenses that can outweigh the benefit of the bonus credit offered Frequently, insurers will charge you for bonus credits in one or more of the following ways:Higher surrender charges Surrender charges may be higher for a variable annuity that pays you a bonus credit than for a similar contract with no bonus credit Longer surrender periods Your purchase payments may be subject to surrender charges for a longer period than they would be under a similar contract with no bonus credit Higher mortality and expense risk charges and other charges Higher annual mortality and expense risk charges may be deducted for a variable annuity that pays you a bonus credit Although the difference may seem small, over time it can add up In addition, some contracts may impose a separate fee specifically to pay for the bonus credit Before purchasing a variable annuity with a bonus credit, ask yourself and the financial professional who is trying to sell you the contract whether the bonus is worth more to you than any increased charges you will pay for the bonus This may depend on a variety of factors, including the amount of the bonus credit and the increased charges, how long you hold your annuity contract, and the return on the underlying investments You also need to consider the other features of the annuity to determine whether it is a good investment for you Annuity A offers a bonus credit of 4% on your purchase payment, and deducts annual charges totaling 1 Annuity B has no bonus credit and deducts annual charges totaling 1 Let's assume that both annuities have an annual rate of return, prior to expenses, of 10% By the tenth year, your account value in Annuity A will have grown to $22,978 But your account value in Annuity B will have grown more, to $23,136, because Annuity B deducts lower annual charges, even though it does not offer a bonus You should also note that a bonus may only apply to your initial premium payment, or to premium payments you make within the first year of the annuity contract Further, under some annuity contracts the insurer will take back all bonus payments made to you within the prior year or some other specified period if you make a withdrawal, if a death benefit is paid to your beneficiaries upon your death, or in other circumstances If you already own a variable annuity and are thinking of exchanging it for a different annuity with a bonus feature, you should be careful Even if the surrender period on your current annuity contract has expired, a new surrender period generally will begin when you exchange that contract for a new one This means that, by exchanging your contract, you will forfeit your ability to withdraw money from your account without incurring substantial surrender charges And as described above, the schedule of surrender charges and other fees may be higher on the variable annuity with the bonus credit than they were on the annuity that you exchanged Example: � You currently hold a variable annuity with an account value of $20,000, which is no longer subject to surrender charges You exchange that annuity for a new variable annuity, which pays a 4% bonus credit and has a surrender charge period of eight years, with surrender charges beginning at 9% of purchase payments in the first year Your account value in this new variable annuity is now $20,800 During the first year you hold the new annuity, you decide to withdraw all of your account value because of an emergency situation Assuming that your account value has not increased or decreased because of investment performance, you will receive $20,800 minus 9% of your $20,000 purchase payment, or $19,000 This is $1,000 less than you would have received if you had stayed in the original variable annuity, where you were no longer subject to surrender charges In short: � Take a hard look at bonus credits In some cases, the "bonus" may not be in your best interest Ask Questions Before You Invest� Financial professionals who sell variable annuities have a duty to advise you as to whether the product they are trying to sell is suitable to your particular investment needs Don't be afraid to ask them questions And write down their answers, so there won't be any confusion later as to what was said Variable annuity contracts typically have a "free look" period of ten or more days, during which you can terminate the contract without paying any surrender charges and get back your purchase payments (which may be adjusted to reflect charges and the performance of your investment) You can continue to ask questions in this period to make sure you understand your variable annuity before the "free look" period ends Before you decide to buy a variable annuity, consider the following questions:Will you use the variable annuity primarily to save for retirement or a similar long-term goal Are you investing in the variable annuity through a retirement plan or IRA (which would mean that you are not receiving any additional tax-deferral benefit from the variable annuity) Are you willing to take the risk that your account value may decrease if the underlying mutual fund investment options perform badly Do you understand the features of the variable annuity Do you understand all of the fees and expenses that the variable annuity charges Do you intend to remain in the variable annuity long enough to avoid paying any surrender charges if you have to withdraw money If a variable annuity offers a bonus credit, will the bonus outweigh any higher fees and charges that the product may charge Are there features of the variable annuity, such as long-term care insurance, that you could purchase more cheaply separately Have you consulted with a tax adviser and considered all the tax consequences of purchasing an annuity, including the effect of annuity payments on your tax status in retirement If you are exchanging one annuity for another one, do the benefits of the exchange outweigh the costs, such as any surrender charges you will have to pay if you withdraw your money before the end of the surrender charge period for the new annuity Remember: � Before purchasing a variable annuity, you owe it to yourself to learn as much as possible about how they work, the benefits they provide, and the charges you will pay Much of this information applies to variable annuities, as well Mutual Fund Investing: Look at More Than a Fund's Past Performance Describes some of the factors you should consider in choosing a mutual fund Mutual Fund Cost Calculator Allows you to compare the total costs of owning different mutual funds Ask Questions Questions you should ask about all of your investments, the people who sell them to you, and what to do if you run into problems Check Out Brokers and Advisers Describes how to get background information about your broker or investment adviser, including prior employment history and disciplinary actions What to Do Describes how to handle a problem with your broker or investment adviser Other Web Sites That May Be HelpfulNASD NASD is an independent self-regulatory organization charged with regulating the securities industry, including sellers of variable annuities The NASD has issued several investor alerts on the topic of variable annuities, and has also issued a release to its members giving guidance on how to present information on the impact of taxes upon investment returns in a variable annuity as compared to a non-specific taxable account If you have a complaint or problem about sales practices involving variable annuities, you should contact the District Office of NASD nearest you A list of NASD District Offices is available on NASD's web site National Association of Insurance Commissioners (NAIC) The NAIC is the national organization of state insurance commissioners Variable annuities are regulated by state insurance commissions, as well as by the SEC The NAIC's web site contains an interactive map of the United States with links to the home pages of each state insurance commissioner You may contact your state insurance commissioner with questions or complaints about variable annuities Get guaranteed income for life with an Immediate Annuity Click Here For More Information Hyperlink Text

Ed Franklins Promissory Note Sales

August 11, 2008 - 7:39 am

ED FRANKLIN�S cash flow note sales get cash now Click Here For More Information Hyperlink Text A promissory note, also referred to as a note payable in accounting, is a contract detailing the terms of a promise by one party (the maker) to pay a sum of money to the other (the payee) The obligation may arise from the repayment of a loan or from another form of debt For example, in the sale of a business, the purchase price might be a combination of an immediate cash payment and payments against one or more promissory notes for the balance The terms of a note typically include the principal amount, the interest rate if any, and the maturity date Sometimes there will be provisions concerning the payee's rights in the event of a default, which may include foreclosure of the maker's assets Demand promissory notes are notes that do not carry a specific maturity date, but are due on demand of the lender Usually the lender will only give the borrower a few days notice before the payment is due For loans between individuals, writing and signing a promissory note is often considered a good idea for tax and recordkeeping reasons In the United States, a promissory note that meets certain conditions is a negotiable instrument governed by Article 3 of the Uniform Commercial Code Negotiable promissory notes are used extensively in combination with mortgages in the financing of real estate transactions Other uses of promissory notes include the capitalization of corporate finances through the issuance and transfer of commercial paper At various times in history, promissory notes have acted as a form of privately issued currency In many jurisdictions today, bearer negotiable promissory notes are illegal precisely because they can act as an alternative currency All Scottish and Northern Irish banknotes are effectively standardized demand promissory notes [edit] Distinction from IOUPlease help improve this article or section by expanding it Further information might be found on the talk page or at requests for expansion An “IOU” (an abbreviation for “I owe you") is sometimes confused with a promissory note In fact, the IOU is simply an acknowledgment of the existence of a debt owed; in contrast, a promissory note “makes a promise”, that is, it contains an affirmative undertaking to pay the amount stated by a date, or subject to other specified conditions, such as “on demand” [edit] See alsoBank noteTreasury noteCommercial noteBond (finance)Credit cardLetter of creditStudent loan All text is available under the terms of the GNU Free Documentation License ) Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc Would you like to increase your practice's income ILRG will soon introduce a new service that will help consumers locate and retain legal counsel in an exciting, innovative way drafting a promissory note to consider state "usury" laws, the laws defining the maximum interest rate you are allowed to charge There can be serious civil, and sometimes criminal, consequences for violating usury laws In the context of a promissory note, the promisor is the person who is promising to repay the loan or obligation secured by the note In the context of a promissory note, the promisee is the person who is entitled to receive payment for the loan or obligation secured by the note In the context of a promisory note, this is another owrd for "promisor" In the context of a promissory note, this is another word for "promisee" In the context of a promissory note, the promisor usually obtains consideration in the form of a loan, and the promisee receives consideration in the form of the promise to repay under the terms specified in the note This means that in the event that the borrower declares bankruptcy, the debt secured by the note will only be repaid after all debts to "secured creditors" have been paid If you are lending money through an unsecured promissory note, a good rule of thumb is to never lend any more money than you are prepared to lose If you are loaning a larger sum, consider consulting with a lawyer to make sure that your promissory note is bulletproof, and to determine how you might secure your note to ensure that you will eventually recover the balance of the loan There can be significant consequences for entering into a "usurious" contract Most jurisdictions make usury a criminal offense if the rate is particularly high Please note that the mere fact that a bank or credit card company charges a particular interest rate does not mean that an individual can charge a similar rate Many jurisdictions have different interest rate regulations for individuals than for banks or financial institutions Individuals are often restricted to charging a lower rate of interest Check your local laws before setting the interest rate for a promissory note Check your local laws before setting the late fees for a promissory note While a promissory note can provide the simplest mechanism to secure a debt, care should be taken if the note relates to a loan for the purchase or improvement of real estate As such loans may be quite substantial, a mere promissory note may not provide the lender with adequate protection in the event that the promisor defaults If you are lending money to help somebody with a real estate transaction, you can usually file a mortgage or lien in order to secure the loan The lien or mortgage is recorded as a public document, and gives any subsequent purchaser of the real estate notice of the obligation and the fact that it is secured by the real estate Unless your lien or mortgage is discharged at the time the property is transfered, the new purchaser will take the property "subject to the lien" This provides you with protection in case the borrower goes bankrupt, or if the property is sold Many office supply stores sell "fill in the blanks" form mortgages For larger loans, you may wish to seek assistance from a lawyer to make sure that all documents and forms are in proper form and are properly filed and recorded with the Register of Deeds As with mortgage forms, you will often be able to find state-specific promissory note forms at an office supply store These forms often include instruction, including information about maximum allowable interest rates Please be aware that the instructions may be out of date There are also numerous websites that will allow you to purchase and download a promissory note form Please be certain that the note you purchase online is specific to your jurisdiction before making your purchase You may review a sample promissory note form on this website Please note that it is provided merely as an example, and may not be in a suitable form for your jurisdiction a promissory note is a contract in writing to repay a debt It is in a simple format and can be used for business and personal purposes Examples of users include buyers, investors and students A promissory note sample letter can be associated with real estate and assignment of mortgage It can be secured, unsecured, convertible and can have a� master amortization schedule It can be used to buy and sell goods when the direct sale is on credit This printable template document is available for all states including California, Texas, Florida and Louisiana Disclaimer: The information� in this site is not legal advice Investor Tips: Promissory Note Fraud Home | Previous Page Broken Promises:Promissory Note FraudA promissory note is a form of debt similar to a loan or an IOU that a company may issue to raise money Typically, an investor agrees to loan money to the company for a set period of time In exchange, the company promises to pay the investor a fixed return on his or her investment, typically principal plus annual interest While promissory notes can be legitimate investments, those that are marketed broadly to individual investors often turn out to be scams The SEC and state securities regulators across the nation have joined forces to combat the fraudulent sale of promissory notes to investors That's why you should ask tough questions and demand answers before you consider investing in a promissory note Be sure you understand how they work and what risks they pose These tips will explain how promissory note fraud can occur and will help you to spot the scams Anatomy of a Promissory Note FraudFraudsters across the nation have recently begun to use promissory notes as vehicles to defraud investors out of hundreds of millions of dollars Most promissory note scams follow predictable, fraudulent fact patterns:The fraudsters who may or may not be affiliated with the company persuade independent life insurance agents to sell promissory notes, luring them with lucrative commissions of up to twenty or even thirty percent These agents often do not have a license to sell securities And in selling the notes, they frequently rely solely on the information the company gives them which later proves to be false or misleading Investors purchase the promissory notes, enticed by the promise of a high, fixed-rate return up to fifteen or twenty percent with a very low level of risk The promissory notes may appear all the more attractive because the seller falsely claims that they're "guaranteed" or insured And few investors ask tough questions about these investments because they know and trust the sellers, insurance agents with whom they've done business in the past The fraudsters use a portion of the money they collect from investors to pay the sellers their commissions But they typically abscond with the rest, squandering it on personal expenses or high-flying life styles They may also use some of the proceeds to support an elaborate "Ponzi" scheme in which money coming in from the sale of new notes pays the interest on older notes Some fraudsters try to avoid repaying investors' principal by convincing investors to "roll-over" their promissory notes upon maturity These investors may, for at least a time, continue to receive interest payments but they rarely get their principal back Promissory note scams often target the elderly, bilking them of their retirement savings at a time when they can least afford to lose it Fraudsters rarely discriminate when it comes to separating investors from their money And most investors don't even realize their investment dollars are at risk until it's far too late Tips To Avoid Promissory Note ScamsHere's how you can avoid the costly mistake of investing in a sham promissory note:Bear in mind that legitimate corporate promissory notes are not usually sold to the general public Instead, they tend to be sold privately to sophisticated buyers who do their own "due diligence" or research on the company If someone calls you up or knocks on your door trying to sell you a promissory note, chances are you're dealing with a scam Find out whether the investment is registered with the SEC or your state securities regulator or whether it's exempt from registration Most legitimate promissory notes can easily be verified by checking the SEC's EDGAR database or by calling your state securities regulator, which you can find at the website of the North American Securities Administrators Association If the promissory note is not registered, you'll have to do your own thorough investigation to confirm whether the company has the ability to pay its debt Be skeptical if the seller tells you that the promissory note is not a security The types of promissory notes involved in promissory note scams usually are securities and must be registered with either the SEC or your state securities regulator or they must meet an exemption Make sure the seller is properly licensed Insurance agents can't sell securities including promissory notes without a securities license Call your state securities regulator, and ask whether the person or firm is licensed to sell securities in your state and whether they have a record of complaints or fraud

Ed Franklins Land contract Sales

August 11, 2008 - 7:36 am

ED FRANKLIN�S land note/contract sales get cash now land contract A land contract is a contract between the buyer and a private seller of a property, wherein the seller holds the title or deed to the property until all agreed upon payments have been made in full This property may be improved or unimproved, vacant, or a home or a commercial Land contracts began to disappear when loan requirements softened and rates dropped below 8% But they have not vanished all together and, in fact, tiptoed back into the market in 2006 Land contracts or contracts for deed are a security agreement between a seller, called a Vendor, and a buyer, called a Vendee The Vendor agrees to sell a property by financing the purchase for the Vendee Sue Heimbichner, an escrow officer at Chicago Title in Sacramento, has been in the business since 1976 and has watched the popularity of land contracts come and go An agreement between a buyer and seller of property in which the buyer makes payments toward full ownership (as with a mortgage), but in a land contract, the title or deed is held by the owner until the full payment is made This type of contract is technically not a legally binding agreement and, therefore, many different types of payment formats can be found As in a standard mortgage, there is an agreed upon price and payment schedule, but the payments are often not amortized evenly, so that a large balloon payment may be required to complete the purchase Also known as an installment purchase contract or an installment sale agreement A land contract can be thought of as a "lease with an option to buy" Certain states have more generous legal rights for land contract holders than others As a result, the world of land contracts can be difficult to navigate As such, as land contract buyer must be very careful to ensure that the terms of the contract are legally binding in case a dispute arises in the future Land contracts are often used by purchasers that would not otherwise qualify for a mortgage, or by investors who wish to complete a purchase faster than a regular mortgage would allow In some parts of the country it is known as a "Contract for Deed" and in other areas it is known as an "Installment Contract " This form is designed as an agreement between the Seller and the Buyer for the purchase of real property in which the payment of all or a portion of the purchasing price is deferred The purchase price may be paid in installments over the period of the contract, with the balance due at maturity When the Buyer completes the required payments, the Seller must deliver valid legal title by way of a deed During the period of the contract, the Buyer makes installment payments on the purchase price and to possession and equitable title to the property The Seller holds legal title and continues to be liable for payment of any underlying mortgage or loans The Buyer may assign and convey his/her interest in this "Contract" or any part thereof provided, however, that such assignment or conveyance should not result in any impairment of Seller's position Under no circumstances shall any assignment or conveyance release the Buyer from obligations under this "Land Contract" unless the Seller specifically releases the Buyer in writing Can you read an existing agreement or contract and tell the difference between what and what is not If you don't understand all that legal language, you're not the only one Whether you are the buyer or seller, the language of any LAND CONTRACT can be confusing Unfortunately, most of us cannot afford to hire an attorney to help us Unless you know and understand contract law, it is very hard to write or sign any kind of agreement and be sure you won't be in trouble later You don't have to know all the rules, because our easy-to-use land contract form contains all the legal language you need All you have to do is fill in your information Don't be mislead by all the free and cheap real estate forms available on the Internet Most are not worth your time or effort and will ultimately get you in trouble Our Official LAND CONTRACT forms contain all the legal language and protection you need That old saying about "how you get what you pay for" has never been more valid The entire process to obtain a valid land contract form is quick, easy, very affordable and most of all USER FRIENDLY Keep reading and we will explain how everything works Your land contract is only a click away We respect your privacy and pledge not to abuse this privilege Please be assured that we will NEVER sell, share or promote your e-mail address to anyone Often times, home buyers are in a financial position to afford the monthly payments associated with home ownership, but they lack the down payment necessary to purchase a home Or, the buyer's credit score or rating may prevent he or she from obtaining traditional bank financing required for the purchase of a home In those cases, it often makes sense for the buyers to consider purchasing a home or piece of real estate and have the owner/seller provide the financing for the purchase Likewise, selling a home by way a land contract can prove beneficial to the seller in many ways Likewise, real property sold on a land contract can often be priced higher than sales with bank financing since the seller provides the all-important financing and the buyer is often times not required to come up with a large down-payment, thereby permitting a higher asking price for the property So how does a land contract work Land contracts are common throughout the United States In some states, they are called Trust Deeds, Contract for Deed, Deeds of Trust, Notes, or (privately held) Mortgages, but they all represent the same thing: a way of selling property where the buyer "borrows" from or relies upon the seller for the financing rather than paying cash up front or borrowing from a bank The seller and buyer enter into a contract that normally states that the seller shall transfer ownership of the property to the after the buyer has fully paid the seller the agreed upon purchase price In most cases, the contract requires the buyer to make a modest down payment and then to make monthly payments over time The land contract can require the buyer to pay the seller interest on the money owed (just like a bank would) During the term of the land contract (i while the contract is in force and effect, the buyer is not in default and until all of the payments are made), the buyer holds legal possession of and occupies the property The land contract can call for transfer of the property once the seller has received all of the required payments or can call for the transfer at some time sooner, with the seller then holding a mortgage on the property to ensure that the balance of the purchase price will be paid in full Whatever the terms agreed upon for transferring ownership, when the agreed upon transfer date is reached, the seller tenders (or gives) a deed to the property to the buyer who then records the deed in the county recorder's office or the real property office of the county where the property is located While the benefits of land contracts are many, there are some potential pitfalls to a land contract that the parties must be aware If the buyer misses any payment under the land contract, he or she may lose the property (the right to have the deed transferred to him) and the seller may keep the money paid up to that point as rent Thereafter, the seller would not be required to transfer the deed to the buyer Some states have laws providing that if a buyer makes a majority of the payments under a land contract (which cover a large percentage of a purchase price of the property), the seller may not be able to keep or refuse to transfer the deed if the buyer can make payments on the contract price at a later date (known as the right of redemption) Typically, the original contract will have a provision allowing amendment of the contract and may also set out an amendment procedure This assignment is designed for those situations where the purchaser of residential property decides to assign all his rights and interests is As one of the nation's undisputed high volume mortgage acquisition companies Land Contract We are the buyers of land sale contracts When we buy your land sale contract, we put CASH in your hands Formerly, the buying of land contracts was just a tool for banks, real estate agents, mortgage brokers, attorneys and financial planners Now we offer YOU the ability to sell your note directly to us, the buyer, via this site (LandContract This site is a member of WebRing Land Contract InformationA land contract is an agreement for the sale of an interest in real estate in which the purchase price is to be paid in installments and no promissory note or mortgage is involved between the seller and the buyer Generally under such agreements, the seller is called the vendor and the buyer is called the vendee Buyer DefaultWhen a buyer default occurs (failure to make payment or other breach of the contract) a seller should look to the remedies provided in the land contract It should be read carefully to determine the parties rights and obligations Generally, a land contract will give the seller at least three remedies to pursue if a buyer has failed to meet the requirements of a land contract: Specific performance of the land contract (If the seller does not want to regain possession of the property, then the seller may sue for the balance due under the land contract or to enforce the provision breached );Forfeiture of the land contract; or Foreclosure on and sale of the land contract property Generally, a seller must use the court system in order to regain possession of the property and evict a land contract buyer who has failed to meet the requirements of the land contract Land Contract Forfeiture Seller may regain possession of land contact property by forfeiture if: The land contract expressly provides for forfeiture and termination of the contract; and The buyer has failed to make payment of any moneys required to be paid under the land contract, or has materially breached the land contract (Example: a failure to pay real estate taxes or to keep the property insured) Before a seller may begin the procedure to regain possession of the land contract property the seller must: Provide the buyer with a written notice of forfeiture describing the default; and Provide the buyer with a minimum of fifteen days (or more if the land contract provides for a longer period) to correct the default It is important that a buyer respond in writing to a notice of forfeiture even if it may have been sent by mistake If the buyer fails to respond to the notice of forfeiture or otherwise fails to come to an agreement with the seller within the time stated in the notice, the seller may take legal action To do this the seller must file a summons and complaint, together with a copy of the land contract, the notice of forfeiture and proof of service with the appropriate court The court will deliver or mail to the buyer (defendant) the summons and complaint The summons states the date and time on which the court will hold a hearing (usually called a summary proceeding) The seller and buyer should appear at the court on the date and time state in the summons and should be prepared to state their positions to the court At the court hearing, if the seller is successful the buyer will have a certain amount of time (90 or 180 days depending upon the amount the buyer has paid on the contract) in which to pay the missed payments and court costs and/or to correct any other material breach of the land contract A buyer who fails to pay or correct the breach within the stated time period may be evicted in the same way a tenant is evicted from rental property Generally, when a seller has regained possession of the property after forfeiture the buyer has no further liability under the land contract Land Contract Foreclosure Land contract foreclosure is generally a more complicated and lengthy remedy to regain possession of the property than forfeiture A significant difference; between forfeiture and foreclosure is that in a forfeiture a buyer may prevent the loss of the property by merely paying past due installments, while in foreclose the buyer may be required to pay the entire balance due under the land contract In addition, in foreclosure even if the property is returned to the seller the buyer may remain liable to the seller for the portion of the balance due under the land contract which was not satisfied by the sale of the property Seller DefaultGenerally, upon a buyer's fulfillment of the land contract the seller should give the required deed conveying the property free of liens created by the seller A seller who fails to provide the required deed may be in breach of the contact If the seller is unwilling or unable to give the required deed the buyer may have various options including legal action for: Specific performance of the land contract (including a court order directing the seller to give the required deed);Quiet title;Cancellation of the land contract (seeking the return of then money paid by the buyer in exchange for all of the buyer's rights in the property);Money damages Above all, both the buyer and the seller may be able to avoid problems if they talk to each other when questions or concerns arise regarding the land contact This should not be used in place of legal assistance In the event of a land contract dispute, seek legal advice Legal Services of Northern Michigan may be able to assist you with land contact problems Click for free Michigan legal help and legal aid, or go to lsnmirp Land contracts vary widely from transaction to transaction In most cases, no grant deed is recorded The buyer rarely obtains a new mortgage loan at the time of purchase Instead, the new owner makes payments to an intermediary, who then makes payments on the sellers mortgage, which is still in place Keep in mind that such an agreement usually violates the lender's guidelines If the lender becomes aware of a transfer of title on the property (which is why you usually don't record the grant deed), they can exercise the "due on sale" clause of the note This would require you to refinance the loan or sell the property Since many who buy on land contracts have problems qualifying for a mortgage, you can see how this can lead to problems At the same time, lenders generally only check for transfers of title if the loan becomes delinquent Within a certain number of years, it is expected the buyer will be able to qualify for a loan At that time, they will obtain a new mortgage and pay off whatever amount the land contract requires Then a grant deed is recorded and full ownership is conveyed List and search your next home for FREE on our public property listing service We are South East Michigan's premier group of investment companies with seller financed , Michigan real estate Flexible programs are available for any buyer land contract and rent to own options No middle-men, no waste of your time & money, you are dealing directly with the sellers and their financing Investors- Sell on Land Contract- sell us the land contract for hard cash Mortgage Reps- Cant yet qualify your prospect private buyers- Cant get a mortgage yet-but you want to buy now We can get you into one of our homes on Land Contract and help you to obtain your refinancing down the road Join our mailing list to receive more info and updates on new homes contract for deed or "installment sale agreement") is a contract between the owner of the real property (called the "vendor" or the "seller") and a person who wants to buy the property (the "vendee", "contract purchaser", "purchaser" or "buyer")for an agreed-upon purchase price Under a land contract the vendor grants equitable title to the vendee (which consists of virtually all rights and benefits to the property), and the vendee agrees to pay the purchase price to the vendor over time, usually in monthly installments, by a certain date When the full amount of the purchase price is paid, the vendor is obligated to deliver legal title to the vendee by an actual deed, and upon delivery of the deed, the vendee owns equitable and legal title to the property Equitable title, for all intents and purposes, makes the purchaser the "owner" of the property There are several "land contract friendly" states in the US, while other states make it extremely difficult to sell or purchase real property by means of a land contract Michigan is a "land contract friendly" state and has a long history with land contracts It is estimated that about 18% of all real property (residential & commercial) in Michigan transfers by way of land contract Often a Vendor will also collect 1/12th of the estimated property tax payments with every monthly installment The Vendor will then pay the property taxes when they become due It is a way for the Vendor to make sure that taxes are paid and do not create a lien on the property Closing costs, prepaid items, and other fee's are typically a lot lower when purchasing real property through Land Contract Most all of the costs paid at closing, directly benefit the purchaser in one way or form The most important feature of an agreement like this is the Seller does not deliver the deed to the Buyer at closing When the contract is fulfilled, the Seller, or Vendor, gives the Buyer, or Vendee, the deed The widest use of an Installment Contract occurs when the Buyer does not have the full purchase price in cash or is unable to borrow it from a lender Historically, a Conditional Sales Contract was used to sell vacant property, or land, where the Buyer put modest amounts of money down and the Seller agreed to receive the balance as installment payments Additionally, an astute Buyer will require that a collection account be used to collect the Buyer's payments This is done using a neutral third party The Seller may insist that the Buyer place one-twelfth of the annual property taxes and hazard insurance in the escrow account each month to pay for these items The Buyer will want to record the contract to establish the Buyer's rights to the property If a Land Contract agreement is used for the purchase, or sale, of real estate, it should be done with the help of legal consul When the final payment is made to the Seller (or the property refinanced through an institutional lender), title is conveyed to the Buyer land contract noun a contract in which a purchaser of real estate, upon making an initial payment, agrees to pay the seller stipulated amounts at specified intervals until the total purchase price is paid. If you're buying or selling land, try to finance the property through an installment purchase contract, known as a land contract Flag Article Instructions Difficulty: Moderate Things You will Need: Legal Counsellors Purchase Agreement Tax Services Paper And Pencils Writing Pens Business Plan Software Step1Agree on a sales price for the property with financing terms that provide a designated number of payments at predetermined intervals at a specific interest rate Step2Realize that in a land contract, the buyer receives the legal deed to the property only after the seller receives most or all of the installment payments Step3Include a clause in the land contract that allows you to prepay the contract amount without penalties This allows you to improve the property and pay off the loan early or at the time of resale Step4If the seller does not agree to prepayment terms, negotiate a release clause that permits you (the buyer) to subdivide and sell lots while allowing the seller to release the land to the lot buyers and accept the money from lot sales as installment payments Step5Review the terms of a land contract with a real estate attorney or agent before making or accepting any offers Tips & Warnings Because income from the sale of land is taxed as ordinary income, many sellers prefer receiving payment in installments through a land contract instead of receiving payment in a lump sum Seek legal advice about the terms of a land contract to avoid potential problems on 10/11/2007where do I get a form for land contract sales or see a sample This Comment this comment has been flagged on 7/18/2007 When selling land by owner, I used a pre-filed land contract to get me started This form is what I use now to sell with owner financing Just change the form to fit the property description Use of this web site constitutes acceptance of the How Terms of Use and Privacy Policy 'land contract' appears in the definitions of these other terms on Business Dictionary Learn the steps how to make a sound financial decision when buying a house Understand what considerations are needed when it's time to decide how much to spend and whether it is better to rent or buy a home Looking to sell your home or just to find out the best practice for the process Learn the steps you need to take to sell your home, and how to get the best price Learn how to choose between fixed-rate and variable rate mortgages Understand what points are, and what term or duration is best for you Learn about pre-qualification, credit history, down payments, refinancing, reverse mortgages, and related topics Give this definition a rating from 1 to 5 (5 being the best) Unauthorized duplication, in whole or in part, is strictly prohibited BAE Systems in West Manchester Township is part of a $538 million contract from the Department of Defense to remanufacture Bradley fighting vehicles and provide spare parts through June 2010, the company said today Final assembly, integration and testing of the vehicles is scheduled for the West Manchester Township branch of BAE The contract provides the option of adding more vehicles and spare parts to the order If all options are taken, the contract would be worth about $1 Advertisement Print q Email a Return to Top a Get the latest YDR news in your e-mail Thexton (May 2008), the California Court of Appeal ruled that a particular purchase agreement containing a discretionary, unilateral "entitlements" contingency, is void Start New SearchView the full text of this article� The views expressed in this article are solely the views of the author and not Martindale-Hubbell This article is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance Except in counties where deeds or other instruments are required as provided in this section, a land contract that is recorded in the office of the county recorder may be cancelled, partially released by the vendor and vendee, or assigned by either of them by writing the cancellation, partial release, or assignment on the original land contract or upon the margin of the record of the original land contract, and by signing it That cancellation, partial release, or assignment need not be acknowledged, but if written on the margin of the record, the signing shall be attested to by the county recorder The assignment by the vendee, whether it is on the land contract or upon the margin of the record of that contract, or by separate instrument, shall transfer the right held by the vendee under the land contract in the premises described in the contract unless otherwise stated in the land contract or in the assignment For copying the cancellation, partial release, or assignment upon the margin of the record, or for attesting it, if written upon the margin of the record, the recorder shall charge the fee provided by section 317 A land contract that is recorded in the office of the county recorder may also be cancelled, partially released, or assigned by deed or by other separate instrument, acknowledged as provided in section 5301 Unless in the form of a deed, a separate instrument of cancellation, partial release, or assignment shall be recorded in the book provided by section 5301 Click Here For More Information Hyperlink Text

Sell Trust Deed

August 06, 2008 - 6:31 am

Resale Cash Flow Note

July 30, 2008 - 11:07 am

ED FRANKLIN�S cash flow note sales get cash now Strategies for Strong Resale When property sellers need to receive as much cash as possible immediately for the down payment on their next house, it is critical to anticipate this need in order to use seller financing to their advantage. Getting top dollar for a note In a typical seller-financed closing, the seller only receives cash from the down payment at the time of sale. This amount could be used to pay the real estate agent and put the remainder toward their own down payment on another house, but in many cases, the amount received is not enough. In addition, sellers who uses private financing to close the sale will not get the full amount financed when the note is sold. Most sellers need as much money as possible when they "cash out" their newly created note, so their objective is to sell the note at the lowest discount possible. And to do this, they will need to create a secured cash flow that is attractive to note buyers. Note pricing factors The size of the discount - i.e., the difference between the purchase price and the remaining balance - depends largely on factors such as the specifics about the payer, the property/price, and the note terms. If the note is created without these important criteria in mind, the seller may have a difficult time finding a buyer to pay the amount that the homeowner needs. The Payer Clearly, there isn't much the seller can do about the "quality" of the payer because most people interested in accepting seller financing are higher-risk borrowers. Still, if there is more than one party interested in buying their property, sellers offering financing can still discriminate based on credit history or the amount of the down payment offered. The Property/Price Similarly, the seller can't change the basic facts about their property - where it's located, the type of structure, or its age or condition. But, the seller can control the price they set for their property. Most sellers have a specific amount in mind that they need to get out of a sale. In traditional real estate sales, getting that money usually is determined by the property's price. But with seller financing, there is another step that is taken before the seller ends up with the total amount of money they were looking for - the note must be sold. Since private notes are typically sold at a discount, the seller must set their price higher than the amount they were looking for to compensate for the drop that will come with the buyer's offer. By setting the price slightly higher than market value, the seller can create a note that sells with a minimal discount. Individuals that don't qualify for conventional funding are motivated to buy real estate, even if the price is somewhat higher than market value. Increasing the sales price and the implied value of the property will not actually affect the buyer's discount, but the adjustment could lead to more money in the seller's pocket. A higher sale price means a note with a larger unpaid balance, which could still bring the seller the desired net amount after discounting. Keep in mind that higher sale prices can also lead to larger down payments (as a set percentage of the price), resulting in more money in the seller's pocket. The Note Terms The most important thing for sellers to do is to structure their note so that the buyers won.t be forced to incorporate a deep discount into their offers. From the buyer.s point of view, higher interest rates and shorter terms are preferred. The actual offer made is based on the yield the buyer is looking for; in general, higher yields are associated with riskier notes. The discount is directly related to the difference between the interest rate on the note and the buyer.s desired yield. While sellers can.t know exactly what a buyer.s required yield will be, the seller can certainly create a note that could minimize the expected discount. Generally, buyers will want to receive a yield anywhere between 12% and 20% on a note. While yield parameters will fluctuate with the market, a 10% yield is typically the lowest they will accept for new notes. A note creation example Because buyers usually want to earn a yield above 12%, creating a note with an interest rate under 10% would automatically mean a steep discount when the note is sold. For example, creating a cash flow with a 3% interest rate doesn.t make any sense if the seller needs to get top dollar for their note, because there is already a seven-point difference between the interest rate and the buyer's desired yield. In addition, most buyers will create a gap in their favor by yielding at least one point more than the interest rate. Sellers can also avoid unnecessary discounts by reducing the terms of their notes. Another part of a buyer's discount is based on the time-value of money principle, meaning that notes that take longer to be paid off will usually be discounted accordingly. An ideal term for a private secured note is between five to ten years (60 to 120 months). Conversely, it isn't a good idea to shorten the term down to two years or less because a foreclosure situation will be created - the monthly payment will likely be too steep for the payer to keep up with for long. By keeping the eventual note buyer's criteria in mind when creating a private note, property sellers can ensure that their real estate note deal works out the best for them. and that they net the highest amount possible when a cash settlement is reached. Click Here For More Information Hyperlink Text

Cash Flow Note Sales

July 29, 2008 - 11:48 am

ED FRANKLIN�S cash flow note sales get cash now Seller Financing to the Rescue The Problem When it comes to selling real estate, one of the most difficult and frustrating situations for sellers is when market conditions make it nearly impossible to sell at the desired price point. A high initial listing price might be because the seller simply has an unrealistic idea of how their house stacks up against the competition in the area, or because the owner needs to sell for a set minimum price in order to pay off their loan against the property. With traditional property sales methods, the only way to prevent the property from sitting on the market indefinitely is to keep dropping the price. Unfortunately, this technique doesn't always work - especially if the seller is unwilling to "discount" their house by much. In areas flooded with homes for sale, reducing the asking price slightly will not bring the desired result. In fact, it's common that the property will continue to sit on the market without offers, alongside the multitude of other unsold properties with similarly reduced prices. Anyone experienced in sales understands that making your product stand out from the crowd is a critical technique for success. But if there's too much competition offering the same attributes, the only logical way to attract the attention of serious buyers is to drop the price so that your property is a much better value than the competition. In cases where the seller is too inflexible with their asking price, this is not a practical solution. Without an alternative strategy, the seller is forced to keep the house on the market for an extended period of time with an unrealistic asking price, hoping for the right buyer to come along. And as you know, that "Mr./Mrs. Right" might NEVER materialize! The Seller Finance Solution Property sellers who want to both obtain their desired price and close on the deal quickly should consider seller financing. Seller financing is a powerful tool to remedy real estate situations that otherwise look grim. Many home sellers (and their real estate agents) do not see seller financing as a viable option. In actuality, seller financing can bring new attention to the listing and invite a different group of potential buyers - thereby opening up a unique, untapped market. A large percentage of people throughout the country cannot get approved for bank funding to buy real estate because of their credit situation. Many of these people are still in the market to buy a house, however. The "credit-challenged" are often frustrated with the limitations of apartment living or being renters; as a result, many are willing to pay a higher price just for a chance to get seller financing and improve their quality of life. A savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it into a bonafide seller's market. By using this type of creative financing, the seller could actually end up getting more than the original asking price - without resorting to the questionable strategy of patiently waiting for the "right buyer". Seller finance can enable homeowners to receive a favorable selling price despite bad market conditions. In addition, the real estate agent (if any) gets to close a deal and move on to other sales, while a home buyer with poor credit is able to become a home owner. It's one of those rare situations where everyone at the negotiating table gets what they want. Paper Tigers Many home sellers never consider seller financing because they don't understand the benefits. There are also common misconceptions that it's much too complicated to attempt to orchestrate a seller financed deal, or that there are no buyers willing to sign a private note. Once a property seller takes the time to learn about the basic process, the advantages of offering financing instead of a lower price to sell their property become very clear. Plus, a little education about seller finance will make it apparent that drafting a secured private note is actually a very straightforward process. The bottom line is seller financing can enable a home owner to "have their cake and eat it too" - i.e., sell at the desired price, close the deal quickly, and even receive additional income from interest payments as well. Click Here For More Information Hyperlink Text

Cash Flow Note Sales

July 29, 2008 - 11:44 am

We specialize in selling cash flow payments and notes for real estate both residential and commercial land notes, promissory notes and business notes and annuities. Get cash for your structure cash flow note payments. create a note to seller and buy $1,000,000 dollars of lake front Michigan real estate $300,000, with good down payment. se information at bottom of page. HEIRS WANT TO SELL PARENTS DEAD. WANT TO SELL YOUR NOTE ? Click on the link at bottom of page and go to the POP up link on the left side of the page. click on sell your note. Fill out information on your structured cash flow note payments AND CLICK ON SEND OR SUBMIT and get quotes from up 200 cash flow note investors and buyers. Can be flipped for quick cash. these are private owners. real estate for sale 3 bedroom house. 1.5 baths, fireplace, dining room, kitchen and two commercial shops fireplace, dining room, kitchen and two commercial garages. One is 40 feet by 60 feet and 18 feet high,the other is 40 feet by 80 feet and is 20 feet high, sitting on 1.5 acers of land on U.S 2 and 41 near lake Michigam SALE PRICE $ 115,000. Real estate for sale a 13 room motel located on a .5 acre of land on U.S of woodlands private road 2 and 41 near lake Michigan SALE PRICE $55,000. Real estate for sale 12 acres real estate for sale, wood land very private gravel roadwith house trailer located on it same area, SALE PRICE $50,000. Real estate for sale 3 bed room house 1.5 baths, living room. fireplace,dining room, kitchen, Oak cabinets, house faces the lake, attached garage on two lotswith 4 other lots that adjoin the property. SALE PRICE $75,000. Click Here For More Information Hyperlink Text

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