The opportunity to buy structured settlement money is a highly profitable one that can ultimately lead to large profits over time, and so serious investors may wish to consider such a venture.
What follows are the basic rules you need to adhere to when trying to get cash for structured settlement payments.
Who wants to sell a structured settlement payment?
Many people who have been awarded or chosen a structured settlement instead of a lump sum may choose to sell all or part of their future payouts at a later date.
Usually, they do so because of a change in circumstances, such as a medical emergency, or because they need the money to take advantage of a unique investment opportunity.
Should one of these situations occur, the structured settlement owner may feel that he/she has no other choice but to sell the policy, and this is where an investor like yourself comes in.
Most individuals prefer to use a structured settlement broker to negotiate any structured settlement selling arrangement, as these people are highly experienced in such matters.
Structured settlement brokers also know about all the local laws and regulations pertaining to such transactions, and will make sure any deal negotiated is within the rules.
Going to court to buy a structured settlement
It’s necessary to go to court to buy structured settlement money, as there are legal implications - the courts won’t allow such a deal to go ahead without good reason.
First of all, the judge will want to be sure of the reasons why the seller wants to go ahead with the deal.
The judge will need to investigate that the seller’s need to cash in on his policy is an urgent one and not just a sudden whim.
Moreover, the investor who is looking to buy structured settlement money will also want to be sure that they are not taking any risks. By going to court you can establish that the policy you are intending to buy is totally legitimate and worth what the seller says it’s worth.
Timing is important to buy a structured settlement and maximize profits
You can make much bigger returns on the structured settlement payment policy you buy if you time your purchase right. Factors including the general economic climate and the number of structured settlement policies that are available which will impact the ‘going rate’ of such a policy.
Therefore, the best time to move would be when the economy is going through a bad spell and when there are many sellers in the market, as this will surely cause prices to go down.
While calculating how much money structured settlements will bring in is easy enough, the real unknown factor is inflation and how this will affects your ultimate profits.
Normally, structured settlements are bought for around 70% to 90% of their remaining value, but the awarded amounts are not adjusted to the current rate of inflation, and so you will need to forecast future inflation and calculate the total profit you are likely to receive from the deal.