THE SCENARIO
I've been thinking recently of how to help investors get started when they have a month-to-month surplus but haven't yet accumulated a pile of cash to buy a property, business, or other investment. I'm also interested in note investing - that is, buying a payment stream such as a mortgage for a lump sum now in order to get payments coming in over time.
Say I
have a note that's going to pay me $900 per month for the next 154 months, and I want to sell part of those payments to an investor, Tom, who's just starting out. Tom's going to pay me some amount of money each month for the next 5 years, and in return, he's going to get half of each of the payments in the note that remain after the 5 years. Tom wants to earn 10% on his money...
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