Posted by JHyre in Ohio on January 07, 1999 at 14:03:43:
www.wealthnetwork.com is the website that you are looking for.
By steady cash flow, I mean- a predictable AND consistent flow.
Lonnie Deals are both extremely predictable and very consistent in that you have a high liklihood of being paid and the amount is the same month after month. If the debtor defaults, you sieze the MH, resell it and the payments start all over.
On the judgments, the cash flow depends upon your collection methodology (e.g.- passively sitting on a lien on real estate as opposed to aggressively garnishing wages). Once you’ve got a collection pattern down, the cash flow should be statistically predictable (e.g.- will collect 50% within three months, 10% in 9 months, and so on…) but not always consistent (i.e.- the statistical deviation). While both methods should provide predictable cash flows, Lonnie deals provide near pefect predictability and more consistency (i.e.- the SAME amount, month after month), while the judgment method provides lump sums unless you negotiate a payment plan with the debtor. The judgment method strikes me as easier to do on a no-money-down basis if your state allows non-attorneys to collect on a contingency basis (e.g.- instead of buying the judgment, you split the collected proceeds with the creditor). Michael Warren says there are ways around the contingency issue even if you are not an attorney and your state only allows attorneys to collect on contingency. I’d be curious to hear his solution. Let’s stay in touch & compare experiences.
I wish I had discovered information like the stuff on this site just out of college- good luck.