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www.simple-honest-profits.com . Russ Dalbey should be telling you this information. Learn what Dalbey leaves out of Winning in The Cash Flow Business. Or do my thing without the note business.
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Markets Fall on Doubts Rescues Will Succeed
cash flow notes

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Markets Fall on Doubts Rescues Will Succeed
Fed, U.K. Weigh More Action as Initial Salvos Fail to Rally Confidence

Dow Closes Below 10000 in Wild Day for World Bourses
By JON HILSENRATH and CARRICK MOLLENKAMP

The global financial crisis has taken a perilous turn: As government efforts to tame it grow more aggressive, markets are becoming less confident those efforts will succeed.
On Monday, the Federal Reserve and European governments stepped up relief efforts, above and beyond the 0 billion rescue package approved by the Congress last week. But markets around the world responded with a massive vote of no confidence. European stocks saw their biggest drop in at least 20 years, and the Dow Jones Industrial Average dropped below the 10000 mark, a stark sign that the crisis may be outpacing policy makers’ ability to contain it.
The deepening malaise illustrates how the financial crisis has moved far beyond U.S. subprime-mortgage troubles to a much more fundamental problem of confidence. The best efforts of U.S. and European officials haven’t solved the central lack of trust: Nobody knows which firms will go under, making almost everybody afraid to lend.
In a further blow to confidence, Bank of America Corp., considered one of the pillars of the U.S. banking system, announced late Monday a surprise dividend cut and plans to raise capital. Only three weeks ago, the bank struck a deal to buy financial firm Merrill Lynch & Co., a move regarded as a sign of strength. On Monday, Chairman and Chief Executive Kenneth D. Lewis said, "These are the most difficult times for financial institutions that I have experienced in my 39 years in banking."
The problem has become so severe that it’s affecting not only banks, but regular companies, which are finding it more difficult to borrow money for everyday activities such as paying workers and buying supplies. If sustained, the freeze in short-term-lending markets will weigh heavily on the weakening global economy. Investors are now coming to recognize this harsh reality.
"In order to shore up confidence in the system — and by the system, I mean the money markets — you need something bigger, and you need something that is pretty consistent across countries," says Hans Lorenzen, credit strategist in London for Citigroup Inc. "And you need it pretty quickly."
The Fed, 12 months into a sometimes makeshift campaign that is rewriting textbooks on central banking, unveiled more measures Monday to unblock the stoppage that has plagued short-term-lending markets for the past few weeks. It said it will begin paying interest on the reserves that banks leave on deposit with the central bank, a key addition to its playbook. The move will make it easier for the Fed to manage interest rates while it floods a damaged financial system with loans that nobody in the private sector will make.
U.S. officials are also examining ways to ease deepening strains in the commercial-paper market, a crucial source of short-term loans for banks and other companies in the U.S. and Europe. Interest-rate cuts by the Fed look increasingly likely to follow.
On Monday evening, U.K. officials were in talks with bank executives about possible emergency injections of capital from the government, a person familiar with the matter said. U.K. Treasury chief Alistair Darling didn’t offer a specific plan.
As the credit crisis becomes more of a global problem, coordinated action on interest rates could become more appealing to policy makers. Such moves could be on the agenda when global financial officials gather this weekend in Washington as part of annual meetings of the International Monetary Fund and World Bank.
"Coordination is of the essence," said Olivier Blanchard, chief economist of the IMF, in an interview ahead of the meetings.
Nicolas Sarkozy
European Union countries made a renewed effort Monday to coordinate their response to the crisis, after a series of unilateral moves by European nations failed to have the desired effect. French President Nicolas Sarkozy, whose country currently holds the EU’s rotating presidency, read out on television a common statement by the 27 EU nations that each "will adopt all the necessary measures to protect the stability of the financial system."
The declarations followed the surprise move on Sunday by Chancellor Angela Merkel of Germany, Europe’s biggest economy, to guarantee all residents’ bank accounts, only a day after she had criticized a similar move by Ireland. On Monday, Austria, Sweden and Denmark joined the growing list of countries that have improved their deposit-guarantee programs.
Angela Merkel
All the activity has done little to ease strains in lending markets, which have deteriorated rapidly since last month’s collapse of U.S. securities firm Lehman Brothers Holdings Inc. Lehman’s bankruptcy filing sent shock waves throughout global markets, precipitating losses even for U.S. money-market investment funds, which were supposed to be as safe as cash.
In one worrying sign, the U.S. commercial-paper market shrank by a record .9 billion during the week ended Oct 1, to .61 trillion in debt outstanding, according to the Fed. That followed a billion decline the week before. Most of the recent contractions were in commercial paper tied to financial companies in the U.S. and overseas.
On Monday, the Fed took steps to try to get the money flowing again. In addition to paying interest on bank reserves, the Fed said it would aggressively expand its lending to needy banks through a special auction program, with plans to make 0 billion in cash available by year end, compared with the 0 billion planned just two weeks ago.
The Fed’s latest moves add to a litany of aggressive actions U.S. policy makers have taken in the past year to address the spiraling crisis, including the recent 0 billion rescue package. Since last September, the Fed has pulled aggressively on its traditional lever, adjusting interest rates, reducing the short-term federal-funds rate to 2% from 5.25% over just a few months.
It has also undertaken a steady stream of unorthodox measures: backstopping money-market mutual funds, creating new borrowing facilities for investment banks, taking on troubled assets from Bear Stearns Cos. and American International Group Inc., to name a few. In the process, its own balance sheet has been radically transformed. Once a bland storehouse for Treasury securities, the Fed’s coffers are now filled with loans to a wobbly financial system, often backed by collateral few other financial institutions want to hold.
Three factors, however, have made it difficult to accomplish the mission of keeping credit flowing. First, banks and investors are pushing to pare back their debt, a process known as deleveraging. The Fed can slow that process, but it can’t stop it.
Second, the financial innovations of recent years — once thought to be a good thing, because they spread risk — become a curse. That’s because they obscure where risk is held, exacerbating uncertainty over which financial institutions will survive.
Third, the failure of Lehman and other financial institutions has so damaged confidence that even grand rescue plans are proving unable to restore it.
Fed officials show no signs of stopping their aggressive efforts to fight the crisis.
In Europe, some governments have gone much further than the U.S. in their efforts to alleviate the pain. Ireland, for example, has issued a blanket guarantee covering virtually all the debts of its six largest banks.
But coming up with a pan-European plan is proving difficult, in large part because any large-scale bailout would require the approval of many countries. While the European Central Bank oversees monetary policy for the 15 countries that share the euro currency, it cannot step in to provide a lifeline to individual banks. Within the euro zone, such emergency assistance is the province of national central banks, typically working together with governments.
An effort at common action on Saturday, before the latest round of shocks, largely failed. Germany and the U.K. rejected Mr. Sarkozy’s suggestion of a common bailout fund for European banks akin to the U.S.’s 0 billion rescue plan, unhappy at the idea of sinking taxpayer money into a fund they can’t control.
"Europe’s economic integration is rather deep, and the inter-bank market is an integrated Europe market," says Daniel Gros, director of the Center for European Policy Studies, a Brussels think tank. "But national politicians haven’t understood that yet, and they’re acting as if banks still had a nationality, so that some banks are their children and others are not."
Alessandro Profumo, chief executive of Italian bank UniCredit, says he hopes for a "European solution." He contends that "the country-by-country solution doesn’t work at all because now the financial system is really a system which is completely interconnected."
On Sunday, UniCredit, Italy’s biggest bank in terms of market value, announced plans to raise €6.6 billion to shore up its finances, and a dividend cut. In an interview, Mr. Profumo conceded that his bank had misjudged the scope of the credit crisis.
Problems may be particularly acute in Europe because banks there are more dependent on the short-term-lending markets than are banks in the U.S. and Asia. They’ve shown a particular hunger for dollar loans, which they used to finance dollar-denominated investments, such as U.S. mortgage securities. European banks steadily increased their dollar borrowings, reaching a total of about 0 billion at the end of last year, compared with 0 billion in 2003, according to the Bank for International Settlements.
Simon Adamson, an analyst at debt-research firm CreditSights, notes that a heavy reliance on short-term-lending markets, rather than regular customer deposits, is common among European banks that have run into trouble in recent weeks. "It is mainly when this feature is found in combination with other perceived weaknesses that confidence evaporates," he says.
The difficulties encountered by Germany’s Hypo Real Estate Holding AG, one of the region’s biggest lenders, underscore how fast things can unravel — and how the world’s interconnected financial markets are amplifying the problems. Over the weekend, the German government and financial firms agreed to a €15 billion bailout package on top of a previously arranged €30 billion rescue plan.
Hypo’s troubles started last month, when Lehman’s bankruptcy filing caused short-term lending markets to freeze. Within a day, a benchmark bank borrowing rate known as the London interbank offered rate saw its sharpest increase on record.
Caught up in the lending freeze was Depfa Bank PLC, a little-known Dublin banking unit of Hypo. Until this month, Depfa had been highly dependent on loans from other banks. When the market for lending among banks froze up, Depfa’s access to funding came to a halt. "That market has dried out," Hypo spokesman Hans Obermeier said.
—Marcus Walker, David Gauthier-Villars, Joellen Perry and Serena Ng contributed to this article.Write to Jon Hilsenrath at jon.hilsenrath@wsj.com and Carrick Mollenkamp at carrick.mollenkamp@wsj.com

Cash Flow Types and Definitions in Regards to Real Estate Notes

Cash flows are everywhere…from credit card bills to auto loans. A cash flow is an instrument setup between two parties to pay and collect a debt over a period of time. Cash flows have actually become the payment option of choice for many of us. Charge it now, and pay more later.

Today let’s talk about cash flow notes that are secured by real estate. What’s nice about cash flows secured by property is the value that those types of cash flows hold.

As said in previous articles, a note has to be written correctly to hold maximum value, but usually all real estate notes hold value in one way or another. If you are curious as to how to correctly write a real estate note for maximum value, please consult with a qualified note finder.

Using a qualified note finder will save you precious time and effort when you decide to sell or create a real estate note. A qualified finder already knows the criteria note buyers are looking for in the current market. One of the best options you have in the real estate note market is to start a good relationship with a qualified note finder.

Now, let’s move on… Here are some of the most common cash flow note types and definitions:

Real Estate Note – This one is easy. It’s simply a note or cash flow secured by real estate. The property acts as collateral if the payer were to become delinquent on the loan, or the payer forfeits on the loan. Once the payer becomes delinquent the payee also has the right to foreclose on the property.

Mortgage Note – A mortgage note is a promissory note that is attached to the mortgage on a property. It is a written promise to pay back a loan on a piece of real estate usually with interest within a given amount of time. While the mortgage holds the title of the property, the mortgage note is the signed agreement that holds the payer responsible for paying back the loan.

Trust Deed or Deed of Trust – There are certain states that do not record mortgages. Instead, a deed of trust is recorded, which is essentially the same thing. So, the trust deed is an instrument created by two parties, a trustor, and a beneficiary, which is secured by the property. The lender or beneficiary grants the trustor a means which to pay back the lent money through the deed of trust.

Land Contract – A land contract is another type of note that usually carries a shorter term than a traditional mortgage note, and sometimes has a balloon payment at the end of the term.

Promissory Note – A promissory note is written contract with the means to pay back a given amount to the owner of the note over a specified period of time. In the cash flow note business, buyers of note only buy promissory notes that are secured by real estate.

When dealing with real estate notes of any kind, it is important to know the details of the note completely. Whether you are creating a note, selling a note, or buying a note, make sure you know what you are getting into before you make any serious decisions. It is always helpful to contact an expert in the field, especially if you are new to the game. Contacting a qualified note finder can be a helpful resource when making an important decision concerning real estate notes. I suggest you find one that suits your needs.

Robert Brown is a qualified note finder and one of the owners of Money Now for Cash Flows. If you interested in selling or creating any type of cash flow secured by real estate, and want the facts, please get in touch with us.

For more information contact Money Now for Cash Flows: http://www.moneynowforcashflows.com/contact

For more articles about the real estate note business check out our blog: http://www.moneynowforcashflows.com/blog

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  • shp77vid

    I thank you more!

  • shp77vid

    ur welcome I am here anytime you need help. just contact me

  • shp77vid

    Hey,

    Thank you for the response and support. While I am no rocket scientist I have never set out to give anyone bad advice.

    I love ya bro.Peace

  • shp77vid

    Awesome bro, I hope you do well!

  • ElectriFi3294

    Interested in getting started with this program. I appreciate your advice.

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    add me on facebook….michael burton

  • carriemartinlake

    ok i see

  • MrWhoDeyMan

    You need to look in the mirror before you call somebody a idiot.

    “Your an idiot if you actually come to youtube for information about any kind of business”

    This is what you said. Then why did you look up this video? Why waste the time? Not only do your post suck but I guess you suck at MW2 also. You have a video in your favorites on how not to suck at MW2. Maybe you should do a search on how not to suck at leaving post on YouTube.

    Thanks for the video Dave

  • MrWhoDeyMan

    You need to look in the mirror before you call somebody a idiot.

    “Your an idiot if you actually come to youtube for information about any kind of business”

    This is what you said. Then why did you look up this video? Why waste the time? Not only do your post suck but I guess you suck at MW2 also. You have a video in your favorites on how not to suck at MW2. Maybe you should do a search on how not to suck at leaving post on YouTube.

    Thanks for the video Dave

  • OrihimeIchigo

    Thank you for posting this.

  • OrihimeIchigo

    Thanks for this video post Dave.

  • bfoxathome

    Hey Dave-

    Thanks for your video/commentary. It seems very straight-forward, honest and helpful.

    Again– Thank you.

  • shp77vid

    Hey,

    Thanks for the comment on my video.

    You said, “who are you to be talking this so called truth”. That is a fair question.

    I am a Class A General contractor who owns a successful real estate development company going on several years.

    Contrary to what you believe I have professional knowledge about cash flow notes Why? Because a seller taking back paper happens quite often.

    Again Thanks,

    Dave

  • you1w

    Your an idiot if you actually come to youtube for information about any kind of business. Who are you to be talking this so called “truth”? Fuck you.

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