One question that is continually posed in this business is whether a cash flow investor has the legal right to access a person's credit file prior to purchasing a debt instrument. The rights of consumers are protected under The Federal Fair Credit Reporting Act ("Act"). Originally passed by Congress in 1970 and substantially overhauled in 1997, the Act regulates acceptable … [Read more...] about The Fair Credit Act
Archives for July 2008
Broker Fees – Too Much or Not Enough?
Negotiating the purchase of a cash flow is about providing a service to sellers desiring cash rather than payments over time. While providing an essential service, the cash flow industry is also a for profit business. Cash flow brokers earn their profit through fees or spreads resulting from the difference between the price the seller agrees to accept and the amount … [Read more...] about Broker Fees – Too Much or Not Enough?
What is “Face Rate” of a Note?
“Face rate” simply refers to the interest rate that is being charged on the note. Typically seller-financed notes are written between 8 percent - 12 percent. The higher the interest rate, the more valuable the note to an investor. … [Read more...] about What is “Face Rate” of a Note?
What is Seller Financing?
When a seller allows a buyer to make payments over time for the purchase of property, it is known as owner financing or seller financing. … [Read more...] about What is Seller Financing?