Reply: 2
From: Tom Cleary
Ken
Notes, also called cash flows, income streams, debt instruments or paper, are thought by many to be limited to bank notes or discounted seller carryback mortgages.
Today, however, the terms mean much more. Not only are smart money managers investing in and brokering receivables and discounted paper like private seller carryback mortgages, trust deeds and contracts for deed, but almost any other debt that is paid over time, not necessarily secured by real estate, can be a marketable cashflow.
This includes annuities, leases, insurance benefits paid in installments (called structured settlements), retirement accounts and royalties, even lottery winnings -- and much more. Even such esoteric financial instruments like tax lien certificates, contractor's liens, medical receivables and commercial accounts receivable ( factoring ) can provide you, or smart institutional group investors, with multiple streams of income.
In other words, today the term cash-flows can mean any marketable I.O.U. that represents a promise to pay over time.
Notes provide cash flows. They are usually secured by something of value that can be foreclosed on or otherwise claimed by the note owner if the payments are not made. They are normally sold at a discount from their balance. For example, a $10,000 note may be sold for $8,850.00.
From an "introduction to notes"
Check out
http://www.papersourceonline.com/ecourse.htm
where you can do a free ecourse
Regards
Tom