Many ask “what is cash flow notes investing” each and every month so there must be a need to clarify. Perhaps you are looking for information that will allow you to make money from home or perhaps you are just curious about the industry because you have heard it talked about. No matter what got you here be sure to read this entire article so you can leave with a much better understanding of the industry. Perhaps this is something for you, perhaps not but the fact that you are here indicates that you are doing the proper research at least to find out the facts.
Researching is important if you are looking into starting a business with cash flow notes. I can only assume that the search “What is cash flow notes investing” is meant to find out more about the actual business and not so much wondering about what cash flow notes are. the industry is real and there is potential to make money. Not only that but you can do it from your own home with no need for an actual office setup. You will need to make sure you are willing to put forth effort and do the work needed to make the business successful but much of it can be done right from home.
To clarify what the business is all about let’s talk about the different aspects of the business from the start of a note to the end of a sale. First, there exists a property for sale and a buyer who for whatever reason cannot get traditional financing or who does not want to get traditional financing to buy the home. Whether it is because of a request from the buyer or an idea the seller comes up with, the two parties decide to create a contract between themselves and this allows the sale to go through. This is how the private cash flow notes are created. Once created the buyer starts to make payments to the seller.
Now let’s assume the seller decides he does not want to wait for all the payments to come in. A note finder can buy a list of these note holders and then contact them to offer cash for the note. If the seller decides he does not want to wait for the payments and he likes the idea of selling the note for immediate cash then he will contact the note finder who will gather the information about the note and present it to a note investor. The investor will pay for the note and as part of that payment the note finder is paid a commission. The seller gets his money and is happy and everybody gets what they want.