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A "Building
Wealth Together" Success Story
“I made $15,400
on my first 3 deals”. Leland’s
program is everything he says it
is and more” |
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Scott L. Birmingham, AL |
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Member: Southwest Houston Chamber of Commerce |
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Home Business Journal - October 2005
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Hidden Cash Flow Riches
by Leland von Syring
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Have you ever heard of someone buying
and selling income streams for a living? If
you are like most people, you probably
haven’t. This profession, commonly referred
to as the “Cash Flow Industry”, is starting
to open eyes among individuals who are
looking for the perfect home based business
opportunity.
It all began years ago when it was common
place for individuals to sell land and
“carry the note” for the buyer. Savvy
investors realized these “note holders’
would eventually sell their notes at a
discount, meaning nice profits for the
investors buying the notes. This was all
done locally until other investors realized
the potential in purchasing notes across the
country. In the 1990’s the purchasing of
privately held mortgage notes emerged as the
number one “debt instrument” to broker.
Also, years ago the purchasing of invoices
was common place in the garment industry.
Manufactures ran into cash flow problems
when they received large orders (called
invoices) and had to fill them but didn’t
get paid for 60 to 90 days after the goods
were produced and shipped. Once again,
investors discovered they could fill a niche
market and need (supply “cash now” to the
manufacturer) by purchasing these invoices
at a discount. Now accounts receivable
funding is a multi-billion dollar business.
Eventually investors could not find enough
of these deals on their own and at the same
time wanted to expand to purchase notes
throughout the country. They quickly
realized they could find an endless amount
of notes and save huge amounts of money by
having a network of brokers around the
country doing the leg work and locating the
note holders for them. Thus, the “Cash Flow”
broker was born.
The Cash Flow broker, or broker as they are
called, fills a need by placing a note
seller with an investor. Although there are
now over 60 types of income streams that are
brokered, they all share the same common
steps, due diligence, and processing to
complete the “deal” as they are commonly
referred to.
Here is an example of how a typical deal
works. Let’s use a Lottery Winning as an
example (this is only an example for
illustration purposes):
The broker and the lottery winner converse
on the telephone and the broker finds out
the lottery winner is receiving payments of
$50,000 per year for 10 more years paid by
the State of Texas. The broker takes this
information down and forwards it to a couple
of investors, looking for the best offer.
Within a few hours the investors make offers
and the best one is $375,000. The broker can
then subtract his/her commission from the
$375,000 and make an offer to the client. In
this case the broker chose a commission of
$25,000 and offered the client $350,000 for
the 10 payments ($375,000 minus $25,000
equals $350,000).
The client accepts the offer and the broker
assist the investor in gathering documents
and finalizing the purchase of the lottery
winning. In this scenario the broker made
$25,000 ($375,000 offered price minus the
$350,000 price to the client equals $25,000
for the broker).
Cash flow brokers always create a
win-win-win situation for everyone involved.
They assist the note seller by helping them
obtain the lump sum of money they are
seeking, they help the investor because the
investor will purchase the note at a
discount and make a good profit from the
transaction, and the note broker is happy
because he/she will receive a great
commission on each transaction.
One of the great things about the cash flow
industry is that you can work this business
from the comfort of your home. There are
never any territories and all you need is a
telephone and a fax machine is preferred.
Training and support are essential to a
beginning broker’s success. Some investors
will work with brokers and teach them how to
locate note holders and assist them with
completing their transactions while others
expect the broker to be trained and
competent. Because of this need to learn,
there are now several companies who will
assist brokers with training and set them up
for success in the note industry. There are
also several good “how to” manuals on the
market that will teach you how to locate
note holders and broker the deals. Charter
Financial offers an excellent program and is
nationally known for helping beginning
brokers.
Either way, you will be able to make some
excellent part time money or if you desire,
great full time money buying and selling
notes.
Leland von Syring has been in the note
business for over 15 years and is founder
and President of Charter Financial, one of
the countries largest privately owned
purchasers of privately held mortgages,
court settlements, lottery winnings, and
business notes. You may visit the Charter
Financial website at www.brokeropp.com or
call (888) 539-3707 for more information. |
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