Here is an example of a sale.
You sold a house for $100,000 and took $20,000 down. You created a contract with the buyer for $80,000 at 9% interest for 15 years.
You didn't need all the cash at the time of the sale, but now 1 year later you could use it to buy a new piece of investment real estate, perhaps a rental. You can have the cash NOW!
You have received 12 payments of $805.37 or $9,664.48.
The present balance of your contract is $77,355.73.
We could pay approximately $70,000 cash for the $77,355.73 balance.
You would receive very nearly 100% of the original contract amount in cash 1 year after the sale.
