the winning in the cash flow thing. is it a scam?
2007-03-08 04:21:04 · 2 answers · asked by Lil Reg 1 in Business & Finance ➔ Small Business
Just about anything is possible. All you need do to is find someone holding a 'note' (a contract that pays them a monthly amount) that wants to sell it for the cash amount his company offers.
The problem is that there are many TV, radio, newspaper advertisements already in the market place for this service. Where are you going to find a person that wants your service that is not aware of these other providers that might provide a higher cash buyout?
Also, be aware that your state might require you to be licensed as some sort of financial agent. W/o a license the company may not pay your commission as it would be illegal to pay someone without the proper license.
2007-03-08 04:50:31 · answer #1 · answered by Thinker 7 · 0⤊ 0⤋
It can work, if you buy hundreds, if not thousands, of notes (translation: have millions of dollars to invest) and have a strong background in credit pricing. If you don't have adequate diversification, you will be overexposed to the single-obligor credit risk. If you don't know how to price credit, you will be routinely overpaying.
2007-03-08 13:00:18 · answer #2 · answered by NC 7 · 0⤊ 1⤋