Why Consider Selling a Cash Flow

Many people have a financial goal of creating enough passive income coming in on a regular basis, that they then don’t have to go to “work “ every day. If you are receiving a regular cash flow, or income stream, you own a valuable asset. It can be part of your financial plan of creating the passive income you need to quit working. Others, private investors and institutions, have cash to invest to create this regular income stream, so they are interested in your regularly received payments. A market is created. They want a better rate of return than a bank or CD will pay. Investing in your cash flow is a way to receive safe and better returns.

The question then is what is best for your financial future?

  •  Keep receiving this regular monthly income, which many people aspire to, or get a lump sum of cash today, for your immediate use.
  • What will you do with the money once it’s in your hands?
  •  How much do you really need right now?

These are the questions you should be asking yourself, and having answers for, before you make an important financial decision like this. 

There is no right or wrong answer. It all depends on what are your short and long term financial needs and goals. The point is to be clear on your needs and goals. Then you can make informed and smart decisions in your best interests.

How to Sell a Mortgage Note

Are you receiving a regular cash flow or income stream, whether from a:

  •  real estate note or mortgage,
  •  business note,
  •  structured settlement,
  •  inheritance, or
  •  lottery winnings

You can get a lump sum of cash now and be done with the monthly payments. However the best choice is not always to sell the whole thing. How much cash do you really need now, and why do you want to get rid of a valuable asset that provides you with regular cash flow.

Especially in today’s market, most people don’t realize that they can sell only part of the asset, or so many number of payments. They can sell, say 60 payments. When the 60 payments are up, they get the asset back and they start receiving the payments again. There will still be a high value on the note. So the owner can receive a lump sum of cash for part of the asset, and then receive the asset back with a high balance remaining.

The question then becomes:

Why are you selling?

How much cash do you really need right now?


Be honest with this last question and it can change your experience of deciding to cash out of a valuable asset like a payment stream. What will you do with the cash you receive is the question you should be thinking about.