Christopher John
In these economically trying times, getting our hands on the money we all need now, is not as easy as it once was. Once upon a time if you had good credit, you could borrow thousands of dollars with just a signature. Traditional real estate loans have also seen changes over the past several years, and although interest rates are down and the money is beginning to flow at a more reasonable pace these days, people would still like to get the money they need without taking out a second mortgage if they don't have to. Now more than ever before, people are getting the money they need by cashing out of their privately held real estate notes, structured settlements, annuities, and structured lottery winnings payments. Some may ask, why would someone want to stop relying on the monthly payments that they are receiving? Wouldn't it be better to hold on to a financial instrument that is paying you hundreds and even thousands of dollars each month? With today's job market being as unstable as it is, wouldn't that be the safest bet? Well, the answer is that for some, it would definitely be the best way to go, but as with all life's uncertain situations, sometimes cashing out just makes more sense. Let's look at some of the reasons that a person might want to cash out.
1. Lack of confidence:
This is true mainly with privately held real estate notes. The note holder is afraid that the person paying on the note may stop making the payments, and should that happen, (especially if it is a friend or relative making the payments) they would not know what to do, or want to have to go through a foreclosure situation. They are also afraid the note wont be worth anything should the person stop making the payments.
2. The "now money" factor:
Most people just don't like to wait to receive their money. In fact, 90 out of 100 people would admit that they would have rather received all the money in one lump sum to begin with.
3. A lack of knowledge:
Many people have know idea that their are investors out there that will buy their financial instrument for one lump sum of cash. Once they find out, they are eager to sell for cash now.
4. The need for ready cash:
Life's unseen occurrences often strike without a moments notice. Medical emergencies, loss of job or other income, divorce, death of a loved one, not to mention a host of other bills that one may want to relieve themselves of. Credit card debt, tax debt, school loans, car payments, business loans, etc. Many times relieving ones self of these debts far outweighs the small monthly payments they are receiving from the financial instrument.
5. Other investments.
They may have the opportunity to invest the money in an investment that will pay them a far greater return in the long run.
6. The value of money now as opposed to in the future.
We all know that a dollar doesn't go near as far now as it did just 10 years ago. 10 years ago the average price for a gallon of gas was $1.48. Now it it well over three dollars a gallon! A loaf of bread, 10 years ago the average price was 99 cents, now we pay $2.00 or more. A gallon of milk 10 years ago was on average around $2.00, now we pay closer to $3.50. You get the idea. Let's face it, the price of everything keeps going up which brings the value of a dollar lower and lower as time goes on.
As you can see there are many good reasons for letting go of that privately held real estate note, structured settlement, annuity, or structured lottery payments. We really have only touched on a few. If you have any of the financial instruments above, weigh your circumstances carefully before you sell, always keeping the above in mind.
http://www.cash4you123.com/
Christopher John
C.J.F. & Associates
1-800-908-9312
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