Let’s say you are holding a promissory note secured by a property you sold. Your note is for $100,000 payable at 6% for 30 years.
You have a need for $25,000 cash. You like the income from your note and you feel good about your borrower. You really don’t want to sell your note. Here is an option for you. Instead of selling the entire note and letting the investor receive the payments for 30 years, you can sell maybe 5 or 10 years worth of payments, get the $25,000 cash you need today. Then, after the investor has received all the payments due him, the note can be assigned back to you and you receive all the remaining payments.
This way you get the cash you need today, the investor minimizes his investment and risk, and you get to “jump back” into the note and pick up more payments in the last half of the note.
Options – you want options. Our business is to provide that to you and let you make the decision that best fits your needs.